Evening star., 1937-10-09
HOME LOAN BANKS
MARK FIFTH YEAR
Gross Assets of institution
Reach Record. Breaking
Peak of S3,893,695,O 900.


The u regional banks Of the Fed
eral Home Loan Bank System will
celebrate their fifth birthday ami
verserv next Friday. October i5 with
gross assets of their member thrift
and home financing institutions at
the record breaking peak of S3893.-
5000. reached on October l. the
Federal Home Loan Bank Board an
nounced today.
The earliest comparable report Is
that of January. 1894. when combined
assets totaled only $4,000. 600, 900. In
the October | figure is represented
gain of more than s250o00, 900 made
In August and September. attributed
TO an increase in the membership of
the bank system and growth in the
size of it's members. The membership
has reached 3.9l5. consisting of 1926
Federal and 2.480 State chartered
savings. building and loan associa-
tions: SO cooperative banks. 35 home
stead associations. % life insurance
companies and mutual savings
banks.
ing the height Of the depression. this
credit reserve system Is = permanent
agency to safeguard thrift and ease
the conditions Of home ownership by
strengthening the financial institu-
tions which constitute major part
Of the home-financing structure of
the Nation.
Aid Small Investors.
Existing for the benefit OF the mil
Hons of small investors In its mem
ber institutions and the families buy
ing their homes through long term
loans from them. it functions in a
manner comparable TO the Federal
Reserve System In the field OF COM
i1ercial banking. It makes no direct
loans to individuals. Membership is
optional-institutions. in order to
qualify, must be solvent. well-manared
and engaged in sound and economical
home financing.
Long overdue As ma tional stabliz-
ing influence, the bank system has
grown steadily over the past five wears.
At the end of 1882 only ll9 thrift and
home financing institutions in %
States had been approved for mem
eership. A year later there were 2.0s6
members. The present 3.o15 members
Are located IN 1854 cities in every State
of the Union and in the District of
Columbia, Hawaii and Alaska
BY last September l the II banks
had made cumulative advances of
e362.27o.000 to their member institu-
eions and received repayments Of $780,
e62.oo0. leaving $175.608. 900 as out
standing credit. This compares with
but s857,s of total credits to MEM
hers at the end Of 1892. Recent in
creases In outstanding advances re-
dect the growing Use members are
making of the system in maintaining
their ltquidity and meeting their local
demand for loans at moderate rates
Tor the construction, purchase. repair
and reflnancing Of homes On the
basis of their assets the member insti-
eut1ons have potential borrowing ca
Capital Stock Ownership.
Each bank is governed by it's regional
member institutions which. with the
United States Treasury. own its capi-
"a stock. As the subscriptions of mem
hers increase the Governments in
vestment of s12lsf4.ooo In the banks
~1ll be retired. leaving them wholly
puned by their members.
Departing from dependence on the
Government for their major financing.
the bank this year made two public
offerings of debentures. totaling s52.-
100000. both of which we're quickly
cversubscrhed. This transition is in
Tine with the original plan of Congress
In creating the system.
The II Home Loan Banks have been
eelf-supporting since their creation.
requiring no appropriations by Con-
gress. They have paid nearly &s.0oo.-
200 In dividends to the member instj-
eut1ons and to the Treasury. .Their
cumulative gross income to August 81
amounted to s18718,261. For the first
come totaled s3.77664s, as compared
with s2,S33,457 and s2,385, ,872 for SIM
Aar periods in 1885 and 1895. Surplus
and undivided profits OF s5.Oss. 1859
have been accumulated by the banks.
The growing dominance in the saw
tngs. building and loan field by such
members Of the system is shown bv
the fact that. although they constitute
only 37.5 per cent in number, their
combined assets are more than so per
Rent OF the assets Of all such associa-
nons IN the country OF the estimated
e471 100000 loaned by all savings.
building and loan associations during
Che first seven months Of 1897, men,
Der institutions of this class loaned
tome s400,000,00O, a gain Of 4s per
cent over the corresponding speriod
last year. The gain was 80 per cent
In July. At this rate the total OF
loans for 1887 by these member saw
ngs, building and loan associations
Will approximate &6af ono 0nO