Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09
LOAN ASSOCIATIONS
here GET $2,5DO,0DO
Federal Home Bank System
:Makes Advances After
: Conference.

Building and loan associations OF the
pixtrict have been fortified by direct
loans amounting to s2,5oo,ooo from the
Federal Home Loan Bank system, 1t
was announced today.
The loans were approved here this
week following a conference between
officials of the Building Association
Council! of the District of Columbia and
Officers of the systems fourth regional
bank at Winston-Salem, N. c., accord
ing to the announcement.
Eleven of the Is home financing in
stitutions in the District are members
of the system.
Hope for Home Banks.
Meantime, a ray of hope today sifted
through the clouds Of regrouping
ruinors in favor of the Federal Home
Loan Bank system. 1t was authorlta-
lively reported yesterday that the ad.
nlinistration had slated this infant OF
the Federal Reserve system for COM
plefe abolition. This brought about q
seHes of conferences late yesterday and
TO-DAY between ranking administration
officials, resulting in statement by
william F. Stevenson, chairman OF the
board, that the system would be OPP
Grating for some time to come.
while there is wide talk OF con-
sondation of institutions" Mr.. Steven
sou said, nothing has taken shape as
yet and the very nature OF the busl-
ness Of the Home Loan Banks would
make it very hard to combire them
with other institutions. The system
hal Just begun to operate and develop.
ana its future. If properly handled. will
be- Of great benefit to the American
people"
Confirmed March 4.
Stevenson is the only member Of the
board of five members yet named by
President Roosevelt. Senate confirma-
tioh on his nomination was obtained
March 4, and he Immediately assumed
office. succeeding Franklin w. Fort Ste
venson is former member Of the House
from South Carolina.
It was pointed out in ofncial quarters
today that if the IL regional banks OF
the system are allowed to operate until
June 30, they will automatically be-
come self-sustaining under the provl-
sions of the Home Loan Bank act.
IN order to set the machinery into
motion, Congress last July appropriated
$3.50 900 for salaries and maintenance
OF tine system up 10 JuIle oU I1lS yCdl
For the 1884 fiscal year the sum OF
1872 900, according to the budget esti-
mate, will be assessed from the II re-
gicnal institutions and payable to the
Treasury for the operation Of headquar-
tex here, which has 81 employees, in
Gliding members of the board. No di-
rect Federal funds are requested for its
upkeep during the coming fiscal year.
None OF the employees in the II regional
banks is now on Government pay rolls.
Under the present set-up, according
to Stevenson, it would be an exceedingly
hard matter to turn the systems af-
fairs over to another Government in
stitution because of the funds already
paid into the system by eligible men,
bers Of the II regional banks for capital
stock, the $20,000,000 in loans already
approved, and the $100,000,000 in lines
ofscredit established.
The stock sales campaign last Fall
Melted $14,000,000 from home financing
Institutions eligible for membership in
the system. The remainder of the $134,-
0Oe, 00e set by Congress as the minimum
capital stock Of the system has been
advanced by the Treasury, to be paid
BACK by the self-operating regional in
stHuttons at 2 per cent interest.