Evening star., 1933-03-26
HOME LOAN BOARD
|DEN|ES EXTENDING
ALL APPROPRIATION
$91, 900 Remains for SAL
aries Until June 80, Bank
Officers Declare.
EARNINGS BY DECEMBER
| ESTIMATED AT s1,346,564
Official Financial Report Shows
$2e,se3,s11 Borrowings o. KID
$15,e13,16 Advanced.

In an effort to check widely circu-
lated reports that its s250.ooo approp-
ration for the fiscal year has been ex-
penoed and that the organization is
now operating with heavy losses, the
FEDERAL Home Loan Bank Board said
Yesterday 1t had s91, 900 of the total
Iund Tor its upkeep until June 30.
Oticials emphasized this sum would
be ample to meet the pay rolls for the
boards 73 employees.
Organization and operating expenses
through February %, according to
chairman w. F. Stevenson, have
amounted to s445, 1856 81, which he said
had been allocated as follows:
Expenses Of board, $l59.O59.39.
Expenses Of IL regional banks,
S296, ,127.52
Stevenson explained that organiza-
ton and operating expenses of the
regional banks had been assessed from
home financing members.
Began Operations January Is.
The chairman said that although
the board was set up on August 8,
1882, and the regional banks on Oc-
tober Is, the institutions did not ac-
tually begin loan operations until jan
uary IS. last Despite this, he pointed
out, the systems income through Feb
ruary has amounted to S39, ,235 Co. He
estimated that net earnings through
next December would amount to ST.
346,564.
According to the official financial re-
port, loans have been approved to the
extent Of $26,863, ,811, Of which S15,613,-
l66 has been actually advanced and is
at present outstanding. The board
chairman estimated that $50 ,ss2,675 Of
loans are now in process Of approval.
The chairman said by next Septem-
Der z, the net income will have
amounted to 1929 ,689, after deduction
OF organization and operating expenses
and the establishing Of per cent
reserve to care for the dividends accrued
to the Government, estimated on S58,-
100000 Of stock subscriptions made
thereby
Subscriptions $13,167,S00.
Stevenson said subscriptions to stock
by eligible members of the new home
reserve system stood on March 20 at
Sl3, ,167 300, which, added to the total
subscription Of the Government as
specified in the home loan bank act
made the capital stock of the system
for the present stand at s137, ,908, 300.
capital stock on December 81, 1893.
from member institutions at $33, ,557, ,089,
which. together with the s124,74l 900
Of Government subscriptions, would
bring the total to s158, ,298,0 ,089.
The board chairman said as of March
20, payment actually received from
member institutions totalled $4,663. .397,
and the Treasury had actually sub
Scribed S29,620 900, making a total
paid-in capital stock to date at S34.-
283,397. He estimated on December 81,
next. the total paid-in capital stock
would be 500, ,873. Of which $780,
767,873 would have been contributed by
member institutions.
Stevenson explained the s124.74l 600
allotted as Government stock subscrip-
tionS represents that portion of the
SIPS 100000 appropriated by Congress
for use by the board for establishing
the original capital structure of the
regional banks
Had Authority to Join.
1T should be noted" Stevenson said
the building and loan associations of
eight States including the District of
Columbia, had clear authority to Join
the Home Loan Bank system, and that
the associations Of the balance of the
States had to await legislative action
before they could join the system.
THE Legislatures of most of the States
met in January and legislation in all but
five States has now authorized the as
Soc1at1onS to become members, but 1t
was late in the Winter before this was
done. Legislation IS pending in the
other five States to permit the associa-
tions to become members. This delay
in obtaining authority to subscribe and
to borrow prevented loans in large
valume from being made until recently"
Pending a ruling from Controller
McCarl on the chairman's status to
sign salary vouchers, the March Is pay
roll of the board was delayed. This
technicality was Strengthened out last
week and it was said yesterday all SAL
aries had been paid.