Evening star., 1932-05-14
BUILDING AND LOAN
!. FINANCING SOUND
Report of League for First
Quarter of 1882 Is
Made Public.

Sound financial condition is evidenced
by statements received from member
associations by the United States Build
ing and Loan League, covering opera
tions of the first quarter of 1892, it was
reported today by Morton Bodflsh, eX-
ecutive manager of the league.
SiZable excess of reserve over real
estate owned, decreasing real estate
holdings and diminished borrowings
from other institutions are shown in the
statements to the league from 633 build
ing and loan associations.
Figures Are Listed.
Capital invested by members Of these
cooperative institutions was shown TO
be 90.23 per cent of the total liabilities:
The contingent reserves and undivided
profits of the reporting associations
amounted to 4.63 per cent of the la
bilities.
Mr.. Bodfish points out that the aggre-
gate reserve exceeds the real estate
owned by the reporting associations by
IL per cent of the total liabilities. Real
estate holdings were "a per cent OF the
assets for the quarter ended April l and
showed decrease in the last month OF
the quarter, indicating increased home
purchases partially due to the moving
season now at hand and largely due to
low cost of homes.
Borrowed money was down to 3.17 per
cent of the liabilities at the end of the
quarter
The reporting associations are in II
widely scattered States constituting IL
per cent of the total assets invested in
these home financing institutions at
present.
Small Investor Bears Burden.
OF total assets 86 per cent now is
represented by mortgage loan holdings,
the 633 associations show. The mort
cages practically are confined to owner
occupied homes and are made on the
monthly repayment plan or amortiza-
ton basis, which building and loan as
sociations have followed for 101 years.
"Installment tshares-thatis,t the month
~ or weekly payment share OF the small
saver on which dividends are credited to-
ward maturity-were 51.5 per cent OF the
shares held by members in reporting ss-
sociations," says the. league executive
manager. "The small investor still is
carrying the larger burden of creating
the funds with which home owners and
would-be home owners are financed to-
day. This fact becomes increasingly ap-
parent when the percentage reported
here is qualified by facts from three
other States. These States. having an
aggregate 35.6 per cent of the total
building and loan assets in the country
had "a per cent, 88 per cent and SO pei
cent, respectively. of their members cap
ital in installment shares at the time oi
the last annual reports. The small syste-
matte saver who was the basis OF the
building and loan plan in the beginning
is still far ahead, these figures prove.
Finance Status Better.
1.-TWO per cent of the assets Of report
ing associations are in cash loans on
the security of shares, and this percent
age is decreasing from month to month
indicating a slightly better financial
status among savers. This betterment
is probably due to the fact that the cost
of living has decreased faster than in
comes and salaries have decreased
among the majority of those who are
working. 80
Altogether the reports of these 63a
associations show healthy conolt1on
Here in these balance sheets we flnd
reason to believe that the safety record
of the first half of 1881. 9989 per cent
| is being upheld during the first hall ol
| 1882. There are some 100000 share
| holders in the United States who benefl
! by this safety.
Demand for loans increased in Marct
over the February lending total, ano
steadily growing waiting lists for loans
are reported. Percentage of loans granted
for refinancing showed steady increase
for each of the months Of the quarter
with demand for remodeling loans show
ing itself stronger. These conditions IN
dicate a strong need for building and
loan association services with immediate
profitable employment OF all new funos
invested with them"