Evening star., 1935-03-30
100000 INVEST
/ IN HOME REALTY
Increase in Leading Field
in Year Is Reported
by League.

At least half million new people
entrusted their savings or their sur
plus to the residential real estate
lending field during the l2-month
period ending today, the United states
Building and Loan League reported.
This number of new accounts have
been opened since last March in
the 10000 savings, building and loan
associations, the league shows as
it makes public results Of a survey
which took samples from all parts
of the country, characterized by vary
ing business conditions.
Between 100000 and 100000 OF
these people not only put their past
years savings into the associations
but also plan to invest there for the
next to 10 years, it is pointed out
by L. w. Pellet, Newburgh, N. Y,
vice president of the league. BY
taking out monthly installment shares,
this group OF the new investors gives
the associations an expectation OF
S20,0O0,000 to S30,000,000 new money
annually until their shares mature.
Another large group of the new
shareholders took out full-paid shares
by making lump-sum investments, and
the third group of new investors ar
ranged with the association to add
to their holdings small or large sums
at will Their accounts also repre-
sent a practical certainty of bringing
a sustained flow of new money into
the field, although not so regular as
in the installment shares, Mr.. Pellett
pointed out.
The most encouraging fact about
it all, in the league vice president S
opinion. is that the SiX-month period
ended this quarter showed SO per
cent increase in the number of new
share accounts when compared with
the first six months ended September
1884. December and January were
the peak months for the new share
accounts opened.
THE high season for new invest
ments in the associations usually comes
in these two months when we con-
slider our totals for the Nation as q
whole" said Mr.. Pellet. This is be-
cause a great many associations put
their special stress upon new share
subscription at this time of the year
Many others open their books for par
ticipation by new customers only once
every three months and either January
or December is usually one of those
times. 1t is noteworthy, however. that
this prime season for new shares
showed a 10 per cent increase in
number of accounts this year over last
year and February and March are also
materially ahead of the same months
last year.
These figures have to be studied
particularly in the light of the present
wide discussion of getting private
capital into home mortgages. There
are two angles to that discussion and
only one of them is usually taken into
consideration. The willingness of the
private or savings investor to put his
money where it is likely to go into
that kind of an investment is equally
as necessary as the willingness of the
institution which takes his money as
an investment to place it out in a
home-mortgage loan. The savings,
building and loan association situation
today represents a willingness of
private capital to 60 to work in the
field from both these angles. Obviously
an increasing number of savers are
anxious to entrust their funds for this
purpose or else they would not seek
out the building and loan association
for their investment. And at the same
time the associations are willing and
anxious to place that money out in
loans, as shown by their recent widely
expanded lending programs and their
current vigorous search for loan de-
mand."