The Washington times., 1932-12-31
LOAN
!. To- MD 1883
RECOVERY
Associations Ready to Con-
tribute to Improvement With
Help OF Home Loan System

Building and loan associations
will contribute to the stability OF
the financial structure. and to the
widespread improvement of resi-.
DENTAL real estate in 1893, giving
an added impetus to the business
betterment which seems under.
way from the standpoints of pro-
duction and commodity prices, is
the view expressed by Ward B.
Whitlock, Springfield, ILL.,. presi-
dent of the United States Build
Ing and Loan League.
Four general witnesses to stabil-
tty within the building and loan
business were outlined:
Increased reserves, pointing to
safety which will change the out
look Of the noninveStor of 1882
to that Of the confident investor
Of 1888. Estimated reserves were
$2l3.092, 900 on November / COM
pared with $186, 6,781, 500 on Janu-
ary 81, 1892.
Continued Dividends
Continued payment of divi-
dends during 1888. Mr.. Whitlock
cites here the record of the as
sociations throughout their 102
years existence, ana especially
IN the past three years of depres-
sion, when their dividend pay
ments continued prompt.
An undoubted increase in the
amount Of mortgage loans be-
cause Of access Of the associa-
tions to the funds of the Federal
Home Loan Bank system.
A much accelerated inflow of
new money from investors in the
associations. This prediction is
based on reports of such in
creaSes in the last three months
by representative associations.
1t appears that production will
be on the increase in 1888. Com
modify prices can be expected to
register steady to higher during
the year. One of the best-known
Of price indices shows for the
last three months apparent sta
bility of prices around so per
cent on basis of 1925 as 100 per
cent. Unemployment will be
gradually bettered by the looked
for increase in production.
Increase in Loans
The outlook on residential real
estate may be largely derived
from point three of our 1888
building and loan analysis-an
undoubted increase in the amount
of home mortgage loans. For
nearly two years there has been
one thing mainly wrong with the
attitude of people about homes
no money to build them or buy
them. or repair them, neither
cash nor credit.
The flow of Home Loan Bank
funds, which will become a
steady s.ream by early 1888,
will remove this main stumbling
block. AS a result, we may eX-
pect reconditioning of homes to
be undertaken on a noticeable
scale this year.
With the exception of some
half hundred cities which have
sponsored definite campaigns urg-
ing citizens to modernize their
homes, improvements in existing
structures have gone along at
such limping pace for the last
three years that there is neces-
sity for hundreds of millions of
dollars to be spent in this direc-
tion If the homes are to remain |
livable at all.
The Federal Home Loan Bank
Board, in making recommends
tions for the use of the new Sys-
TENS funds, has placed such re-
modelling and repairing of homes
at the head of the list, thus
pointing to actual resumption of
these operations in 1898, because
credit will be particularly easy
for such undertakings. Improve
ment in the employment situa-
tion will result. Jobs for 100000
to $50. men should be pro-
vided within few months by |
these activities.