Evening star., 1932-08-27
BUILDING AND LOAN
MEET|NGNEXTW WEEK
Federal Home Loan Bank
Act to Be Studied at French
Lick, Ind, Convention.

Fifteen hundred executives of build
and loan associations of the country,
which are estimated to hold more than
half the mortgages on American homes,
will discuss improvement cf the flnanc-
ing of residences at the convention
next week of the United States Build
ing and Loan League.
Specifically, the convention dele
gates will consider application Of the
additional funds which will be released
for home financing through the oper-
alton of the Federal Home Loan Bank
act, under which a system Of home
mortgage discount banks now are being
set up.
Principal speakers at the French Lick,
Ind, conclaVe next Thursday. Friday
and Saturday will outline policies de-
signed to increase the economic sta
bility of the home owner.
sS4,962,737 Assets.
The building and loan associations
loomed into more prominence in the
American financial structure this year
through enactment of the Home Loan
Bank act. The new banking system
will provide a place where building and
loan associations and insurance COM
panies may discount conServatively ap-
praised home mortgages, so as to make
available additional funds for other
loans to their customers.
A recent local survey showed that
the assets of IA members of the Build
ing Association Council of the District
totaled S84.962,737 as of June 80, 1882.
The local council will be represented
at the convention by c. Clinton James,
a past president of the national league;
William S. Quinter. past president OF
the District Council and now its secre-
tary, and Carl Bergmann, vice presi-
dent of the local council.
Convention Speakers
Speakers listed so far include Sena-
tor James E. Watson of Indiana, Rep
resentative Michael K. Reilly of Wis
consin, Franklin w. Fort, chairman
of the Federal Home Loan Bank Board;
William E. Best and Morton Bednsn,
members of the board: G. Prather
Knapp. director of banking publica-
tions for one of the largest financial
publishing houses in the country;
Carl P. bennett, Boston, chairman
of the Banking and Industrial Com
mittee of the first Federal Reserve
district, recently formed to promote
wider use of credit to hasten recov-
cry; Arthur c. Erdman, manager OF
the largest Chicago building and
loan association, and j. Russell Doub-
man, Philadelphia, associate professor
at the Wharton School of Finance and
Commerce, University of Pennsylvania.
Nine billion dollars are invested in
building and loan associations by some
100000 American citizens" points
out Mr. Whitlock, league vice presi-
dent. Returns on that investment
netted the shareholders S232000, 900
for the first half of 1882. 1t is 6
business which has continued to main
tain an unexcelled safety record dur
ing the past three years of depression.
It has. financed 6.500,000 homes since
the twentieth century began.
The new Federal law establishing a
reserve system to which the aSsocia-
tions may belong, thereby mobilizing
their credit facilities, will provide them
with means of serving a greater num-
ber of home borrowers and Of investors.
THE French Lick meeting will also
give marked attention to the funda-
mentals of building and loan opera
ton, in the light of 1882 and 1888 con-
ditions The trend of the price level
is nowhere more important than in its
effect on property values. The ap-
praisal division will take up that SUBJ
ject. The league is anticipating the
report of the committee on home tax
alton, recommending the policy which
the building and loan business
| throughout the country should pursue
with regard to this much-debated levy