Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-11-12
INDIVIDUAL THRIFT
NOW URGED AGAIN
Federal Official Warns
Against Sole Reliance on
Social Security

Washington, Nov 12-Popular mis-
interpretations of social security and
similar protective legislation make
necessary the encouragement of thrift
particularly through modernized saw
ings and loan associations, DR.. Henry
E. Hoagland, a member of the Fed
eral Home Loan Bank Board, urged
in a statement to savings and loan
executives today. -
"The continued growth of our So
cial and economic institutions re-
quires that we maintain thrift as one
of our outstanding virtues and use
every reasonable means to protect the
fruits of thrifty habits" he stated.
cat best, Workmen'S compensation
laws, sickness and Unemployment in
surance, and old age pensions are in
tended to provide only minimum sub
sistence and protection to the bene-
ficiaries of such programs.
Gwen should all of these programs
be made completely effective, the
combined benefits would be insuffi-
cient to meet the needs OF self-reliant
Americans who are able, by their own
thrifty habits to make more ample
provision for themselves"
AS an agency for stimulating the
actual practice of thrift, DR.. FIoag-
land characterized the up-to-date saw
ings and loan association as an in
stitution that provides "a high degree
of safety, reasonable liquidity, and
fair return" This applies, he said, to
"the investor who either has a lump
sum for immediate investment or who
1,1or 70 Lott inv f1,,, 1c
through the process of regular saw
ings."
For these purposes" he continued,
there are recommended particularly
Federal and state-chartered savings
and loan associations whose accounts
are insured with the Federal Savings
and Loan Insurance Corporation.
'For a considerable period, the re-
gulation of this business was left en-
tirely to agencies of the stateagovern
ments which granted chafNers to
these institutions. The accumulation
of problems whose solution was lar
gely iseyond the power of these state
regulatory authorities made it neces-
sary half a dozen year ago to enlist
the interest and secure the assistance
VI Tie II 0O0Idl OOVC4 1liA1OllI.
"This has been manifested in the
period since 1892 in the organization
of the Federal Home Loan Bank Sys-
tenn, the creation of the Federal Saw
ings and Loan Insurance Corporation,
the development Of the nome Owners
Loan Corporation, and the provision
for the organization of Federal saw
ings and loan associations. All OF
these activities are administered and
supervised by the Federal Home Loan
Bank Board.
"While the supervising agencies
can do much to protect those who are
interested in this business, they have
no means of. running the business
even were they so inclined. Super
vision NAV discourage the continual
ton of control by those unfit to mani
age. but the responsibility for sue
cess rests distinctly upon those who
direct the affairs of those institut-
lions. It is limited to the maintenance
of minimum standards and to the
assistance which it is able to give to
management 1t has neither the in
clination nor the capacity for TAX
ing over the responsibility of manage
ment."
Amono other protective features of
the modern savings and loan asso-
citation DR.. Hoagland enumerated
were improved appraisal procedures,
+he Federal Home Building Service
plan. and the increased liquidity af-
forded by membership in the Federal
Home Loan Bank System.
In addition, he said, "modernized
savings and loan associations are
meeting the needs of borrowers in
other directions, including reasonable
interest rates, fair ratio of the a.
mount of the loan to the appraised
value of the property securing it, re-
payment provisions that are consis-
tent with the borrowers income, and