Evening star., 1938-05-28
SAVINGS SANDL0AN
OFFENSIVE URGED
Dr.. Husband Sees Need of
Aggressive Program in
Housing Shortage.

Housing Shortage.
The need of a strong, aggressive
program by the Nations savings and
loan associations If they are to meet
the problem and seize the opportunity
for increased business afforded them
by the present housing shortage was
stressed today by DR.. W. H. Husband.
member of the Federal Home Loan
Bank Board
Declaring that we have been too
much on the defense and have over
looked the need for strong program
of offense," DR.. Husband advised saw
ings and loan men to stimulate their
business by two main actions:
/. Wedding out inactive savings and
loan associations which are a drag"
IN the rest of the field. 2. Using to
the full the credit facilities and protec-
ton offered by such Government
agencies as the Federal Home Loan
Bank System and the Federal Savings
& Loan Insurance Corp.
Conservative Course.
Regarding liquidations, DR.. Hus-
band commented:
THE decision to liquidate an in
stitution is never popular, but We have
learned from experience in many in
stances that it is the most conserva-
tive and constructive course to pursue.
Delayed liquidation is always eXpen
sive and usually ends in loss of pres
tige to directors and actual loss in
the realization of assets to investors"
As result of research. DR.. Hus-
band pointed out that there are in
America today a number of savings
and loan associations which, while
existing in name. are making no new
loans for homes and are virtually stag
nant, The entire field. he said. is
retarded by the presence of so many
laggards."
Commenting on the lack of en-
thusiasm" by certain elements in the
savings and loan business to supply
funds for market conservatively esti-
mated as needing between 100000
and 100000 new homes, DR.. Husband
added:
We've been paying too much at
tention to the past and giving too little
regard to the future. We are spending
too much time explaining errors which
developed during the depression, in
stead of laying plans for advance
nlent.
Benefits Outlined.
Taking the bull by the horns
Is not an expression of culture, but it
Is expressive of the kind of action
which is necessary In conjunction,
there is need to take full advantage of
the facilities which are now available
to permit modern thrift and home
financing service"
Dr. Husband then outlined the bene-
fits to be obtained by membership in
the Federal Home Loan Bank System,
which now includes nearly 1000 thrift
and home-financing institutions with
assets of more than $4,000 100000
He pointed out that membership in
the system makes available the credit
facilities Of the Federal Home Loan
Banks for funds to expand business
or meet emergency needs. During the
last six years, he said, these IL banks,
scattered over the United States, have
made advances exceeding s42O, 600, 900,
OF which about $183.000.000 is now
outstanding.
Membership of associations in the |
Federal Savings and Loan Insurance
Corp. also was suggested by DR.. Hus-
band as a means of STRENGTHENING |
them to expand their usefulness. This
Federal instrumentality, with assets
and reserves totaling $4,000, 900.
guarantees the safety of share ac-
counts in savings and loan associa-
tions up to $4,000 for each investor.
Insured associations have found that
not only were their investors pleased
by insurance, but that it resulted In
attracting new home building funds to
their treasures.
Remedy for Encroachment.
There exists in certain quarters"
Or. Husband said, "a fear that gov
ernment is unduly trespassing on pri-
vate domain in attempting to solve Ger
tain segments Of the housing prob
lem. If there is unnecessary encroach-
ment, the best and most desirable way
10 halt the advance is the initiation of
an adequate program by private H.
dustry itself.
This is particular challenge to
the savings and loan industry, which
is responsible for more than 40 per
cent of the home financing and has
a more specialized interest in the
field than any other comparable pri-
vate agency:
Easy money conditions of the day
tend to conceal the longer term sig
niflcance of accumulation of funds
through saving Actually, We know
that any sustained housing program
must be supported by relatively perraa-
nent, as opposed to temporary, excess
funds"
This permanent supply Of home
building funds, he declared, is to be
found mainly In live, aggressive savings
and loan institutions.