Evening star., 1932-08-25
HOME LOAN BANK
FOR D. c. MAY Be
IN CAROLINA CITY
Charlotte, Greensboro, Co.
Iumbia Delegations Here
Bid for Location.
$4,000, 900 FIXED
AS MINIMUM CAPITAL
Operation of Relief Unit Probably
Will Start October Is.
Districts Announced.

That the regional bank headquarters
for the Washington district of the
Home Loan Bank system will be estab-
lished in some Carolina City appeared
likely today shortly after the Federal
Board had completed the makeup of
the IL districts and fixed the capital
stock for each regional bank.
The Washington district comprises
the States of Maryland, District of Co
lumbia, Virginia, North and South Car
olina, Georgia. Florica and Alabama.
Franklin w. Fort, chairman of the
board, has stressed that the regional
bank in each district must be the focal
point that will serve the districts re-
| uuirements to the best purpose OF the
area. He said it was obvious that a
city on the district boundary line and
| in other extreme portions would not De
considered by the board.
Therefore, 1t is understood that the
board is leaning favorably to the es-
| tablishment of the regional bank IN
either Charlotte or Greensboro, N. G.,
! or Columbia, S. C. Each of these cities
| has sent delegations here TO bid for
II.
Richmond and Atlanta are other strong
! bidders.
s520,oOO,000 "Frczen" Debts.
The board has affixed the total
! amount of frozen mortgages in this
district at S520,O0O,000, and set the
minimum capital of the regional bank
at $4,000 900, a total of S5,000,-
| 600 above the minimum capital
stipulated in the loan bank act. The
area has been designated as district
No. 5.
The 12-district set-up Of the system
| was made public late yesterday. The
board also determined that the new
Federal financial unit for the relief OF
home owners will start operation, prob
ably on October IS, with capital OF
| 134,0OO,000. Speedy action was prom
| ised by the board in selecting the loca-
tions of the II regional banks.
| In making known the board action,
Mr.. Fort said the States assigned to
each district fell naturally" into the
| alignment decided upon as the final
form CT the district upon analysis OF
! the available eligible mortgage papers
| held within the boundaries. The law
prohibited the splitting of States by dis
| trict lines, so the areas announced
ranged from a minimum of two States
| to seven.
| In connection with the announcement
that the system probably would be
functioning on october Is. Mr.. Fort
called attention to the provision OF the
law requiring books for subscriptions to
! the bank stock to remain open for &c
days from which he said it might prop
erly be deduced that cities in which the
regional banks will be located must be
selected within the next two weeks.
No Location Decided.
The chairman reiterated that no de-
| cision for or against any city seeking
bank site has been made, and he said
he wanted to emphasize that there would
be no hearings here concerning these
applications.
| Arrangement Of the district lines was
accomplished only after long study OF
resources of the several States, together
with examination of transportation and
| other requirements of the areas. Alb
| sence of accurate data forced approXi-
| nations in some of the calculations
Mr. Fort said, but it was represented
| as the opinion of the board that the re-
suits would stand the test Of any rea-
sonable criticism.
| "The wide stretches of territory to be
served by some CT the banks preclude
raising the minimum capital OF $5,OOO,-
| 900 from institutions eligible to pur-
chase it without enlarging the districts
| to an extent which would make them
unworkable," the board said in state
ment "At the same time such surveys
as the board has been able to make In
| the effort to determine the sections
having particular and instant need ol
relief of their mortgage situation have
disclosed that in some respects naturally
the need runs absolutely counter to the
actual financial resources located In the
district
I'VE have, therefore, set up group ol
districts possessing as nearly as may
be the elements of convenience and o.
uniformity of law and mortgage prac.
tice and then have allocated to tho-t
districts such minimum capital structure
as seems to us urgently necessary to thu
maximum immediate benefit.
"In so doing we have considered the
probability that wisely managed home
lean banks will foster the development
of long-term mortgage-lending insti'
tutions at moderate rates of interest ir
each district, which should within 6
reasonable time strengthen the capita
resources of such institutions to the
point where their subscriptions fol
stocks can take up the initial advance
from the Treasury"
Districts Announced.
The districts, with the capital Of each
and the total of mortgages of all types
held by the eligible institutions in eacf
district, are as follows:
No. l. Maine, Vermont, New Hamp-
shire, Massachusetts, Rhode Island anc
Connecticut Mortgages, $500, 100000
capital, $12,500,000.
No. 2. New York, New jersey, Puerto
Rico and Virgin Islands. Mortgages
SO, 500, 600 900; Capital, $20,000,000.
No. 3. Delaware, Pennsylvania ant
West Virginia. Mortgages, $1,60o,
100000; capital, $12,500,000.
No. f. Maryland, Virginia, North ane
South Carolina, Georgia, Florida, Ala
bama and the District of Columbia
Mortgages, $52O,0o0,000; capital, $10,'
100000
No. 5-Ohio, Kentucky and Ten.
nessee. Mortgages, $1,250, ,000,0 900; capi'
tai, SIS 100000.
No. 6-Michigan and Indiana. Mort.
cages, S575, 900; capital, S8,000,00
No. wisconsin and Illinois. Mort.
cages, 1925, ,0G0 900; capital. Sis, 600, 600
| NO. o-NOrLn anu ooulI Ddho1a' WILL
nesota, Iowa and Missouri. Mortgages
$3.50, O,00O, 900; capital, S7,50o,000.
! No 9-Arkansas. Mississippi, Louisi'
ana, Texas and New Mexico. Mort
cages, S340 ,Oo0, 900: capital, 10000, 900
No 10-Nebraska, Kansas, Oklahoma
and Colorado. Mortgages, S4OO,OOO,000
capital, s7,500,000.
No. 11-Montana, Washington, Ore
gon, Idaho Utah, Wyoming ant
Alaska. Mortgages, $200,000,O 900; capl
tai, $6000,000
No. 12-California, Nevada and Ari
zona. Mortgages. s65O,0o0.0oO: capital
$l0,000000. ..--.-.--