Evening star., 1936-01-18
BUILDING ANDLOAN
BENEFITS Shown
$685., 900, 900 Realized for
Investors in 1885, Says
League.

Investors in building and loan aSSo-
cistions received a total Of 1885 ,00O.-
900 in 1888 in the form of maturities,
ghare repurchase, dividends, and cash
loans on the security Of their shares.
This approximate figure on the reward
paid to the systematic saver and the
lump-sum investor is given by the
United States Building and Loan
League, the national organization Of
this type Of institution.
That the figure represents a nor
NAL turnover in the funds Of these
home lending institutions Is pointed
out by H. T. Donaldson, Lansing.
Mich, first vice president Of the
league He stresses disbursements on
maturing shares as one of the signifl-
cant factors In the recovery drive
since the dollars thus paid out repre-
sented the fruits of frugality during
the prosperity era. The repurchaSes
by the associations of the partially
paid-for shares of their investors
combined with the maturity payments
to make disbursement of some $780,
5000, Mr.. Donaldson said. He in
dicated that a large percentage OF
the shares which matured were not
cashed in by the investors but were
kept in the savings, building and loan
associations as full-paid shares con-
tinuing to earn dividends.
Dividends $3.50, 100000
dividends for the year accounted
for about $3.50, 600, 900 of the pay
mentS to shareholders Mr.. Donald
son said. These were distributed on
a semi-annual or quarterly basis and
the last distribution of earnings was
completed on the first of the year.
The record of continuous dividend
payments on the part Of large group
of associations and the resumption Of
dividends by the great majority OF the
remainder will be more effective this
year than at any time since 1880 in
bringing new money into the assocla-
tionS. Significant reports already
forwarded by representative assocla-
tions since the first of the year show
that the opening of new accounts
by the public has run far ahead of
any January period in the past five
years"
Mr.. Donaldson believes that 1886
will see many more new accounts
opened than matured accounts paid
out or partially matured shares with
drawn.
Stakes" Speed Recovery.
"The S500,000,00O paid out in share
maturities and repurchases has been
used by the shareholders in many
instances as a down payment on the
purchase or building of a home" the
league official said. In such cases
particularly the money saved over
from the last prosperity era has been
used to stimulate the capital goods
market in today's climb to another
period of prosperity. This money has
been helpful because a revival of
home building depends fundamentally
upon the would-be borrowers having
some stake of their own to put in the
property at the beginning in addition
to the rnortgagee's advance.
"a large part of the money which
savers received from the associations
as a result of their former thrift has
gore into other markets, materially
increasing the turnover of goods and
the general business expansion which
has been noted. Aside from its func-
ton on the lending side as the most
practical home-flnancing institution
In the Nation, the building and loan
association is contributing to the en-
couragement of the American investor
and his belief in his ability to pro-
vide his own social security"