Evening star., 1937-10-16
D. c. THR|FTF!!RMS
!: IN CAROLINA UNIT
II Local Institutions Men,
berS of Home Loan Bank
in Winston-SaIem.

Seventeen thrift and home finance
institutions OF the District Of Columbia
are now members Of the Federal Home
Loan Bank of Winston-Salem. which
celebrated its nth anniversary October
IS. These institutions hold combined
assets estimated at $1O3,347,000, an
increase of $26,50l 900 in resources
since October, 1884, when the first
reports on combined assets were COM
piled
They are the American Building As
sociation, Brookland Building Associa-
ton, Columbia Building Association,
Columbia Permanent Building Associ-
alton, District Building and Loan As
sociation, Eastern Building and Loan
Association, Home Building Associa-
ton, the Home Mutual Building and
Loan Association, Interstate Building
Association, Metropolis Building Asso-
citation, National Permanent Building
Association, Northeast Building Asso-
,ciation, Northern Liberty Building As
sociation No. 6, Perpetual Building
Association, Washington Permanent
Building Association and the First
Federal Savings and Loan Association
90 Per Cent of Resources Here.
These associations represent SO per
cent of the number and 90 per cent of
the total resources of all such insti-
,tutions in the city, an index of their
size and Importance in this field. Only
IL States Of the Union exceed the
member institutions.
Edward c. Baltz of Washington IS
vice chairman of the Board of Direc-
tors of the Federal Home Loan Bank
OF Winston-Salem. He is secretary of
the Perpetual Building Association.
That the member institutions in this
city are using the facilities of their
reserve bank is shown by the cumula-
tive total of s4,506,800 in advances re-
ceived by them. Repayments of So
e76,800 leave an outstanding balance
Of $630,000, used by the associations
to supplement local savings in making
loans for the building, purchase, repair
and refinancing of homes in their
communities.
Communities Served.
Communities in the Washington
metropolitan area which are served
hx Viroioio ord NGor1,1ovd -, er,b.re 80
the Home Loan Bank System include
East Falls Church, Arlington, Alexan-
dria, Chevy Chase, Silver Spring,
Takoma Park, Hyattsville and Upper
Marlboro.
Preston Delano, governor of the
Federal Home Loan Bank System,
illustrates the operation Of the system
with the following examples: THE
resources OF typical savings and loan
association have been created by the
accumulated savings of its share
holders and by reserves built up over
q period Of years. Most of its funds
are already invested in long term
loans Of home owners. Other people in
Its community seek to build, buy or
modernize their homes or to pay Of
maturing short-term mortgages.
If this association Is a member OF
the Home Loan Bank System, 1t can
go to its district bank and obtain
credit at low rates for any period up to
10 years. Against long-term advances
the association deposits its home mort
cages as collateral. On short-term
advances, its note may be sufficient
security. 1t now can accommodate
q larger number OF home-owner
borrowers who would be unable to
obtain loans otherwise. Although most
Of its funds are invested in long-term
obligations, the member association
can thus obtain advances to meet
sudden or abnormal demands for re-
purchase or withdrawal by its own
investors, with no restriction on its
lending operations"
Advantage Of System.
To the millions of investors and
borrowers in these member institu-
tions, the bank system has brought
many advantages. BY increasing the
amount of credit obtainable at moder-
ate rates, it has encouraged home
building and moderization, creating
greater activity for local labor and
business. Through it, better distri-
button Of needed home financing funds
throughout the country has been
achieved. The system is protection
against sudden Withdrawals of local
home-mortgage credit.
Among savings, building and loan
associations. desirable Nationwide
uniformity of practices is being slim
ulated. In many sections, home-mort-
gage interest rates are lower than a
few years ago, and sppraisas are on a
sounder basis, to the advantage of both
borrower and lender. The system has
contributed toward both Of these move
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