Evening star., 1938-11-05
Federal Loan Surety
Protects in Excess Of
100000 Persons
2.071 Savings and Loon
Groups Hold Accounts
TotoIing $l,402, ,000, 900

New high r,rords ~ the number
Of institutions, the number of in
dividual savers and the amount OF
funds 1t protects were reached by
the Federal Savings and Loan In
surance Corp. this month, just four
years after it extended insurance to
its first applicant.
The number of savers and in
Vestors whose funds now are pro-
tected up to 5000 each by this
Sis, ZOO, 900 Federal instrumentality
now exceeds 1000, 900, according to
Nugent Fallon, general manager of
the corporation. Some 2,071 savings
and loan associations holding share
accounts totaling $1.402 100000 and
total assets Of more than 81, ZOO, 900, :
900 now are bulwarked by insurance.
Created by act of Congress in
. June, 1884, the insurance corpora
ton issued its first certificate of
insurance in October that year.
Since then thrift and home financ-
ing institutions throughout the Ma
tion have responded eagerly to the
idea of Federal insurance, and today
1927 cities and towns from Maine
to California have institutions which
offer their investors this protection.
The Territories of Hawaii and
Alaska, and every State except Ne
vada, have insured savings and loan
associations.
Ohio Is in Lead
Ohio, stronghold of savings and
loan associations, leads all other
States with 215 insured institutions
having assets of $399, ,6O7 900 and
100000 investors. California, with
1l9 insured associations, ranks Sec
ond in volume of assets, $50, 900 900,
and New York, with SO associations,
is third in assets with $l71 ,659, 900.
Other States with more than 100 in
Sured associations are Illinois, 154:
Indiana, 1875; Pennsylvania, 122, and
Texas, 121.
Growth of insurance is continuing.
Since September /, 80 associations
have applied for it, State Legisla-
lures throughout the country are
making it legally possible for asso-
Citations chartered by them to be-
come insured. All Federal
associations are insured. AS the re-
suit OF the recent passage of such
legislation in New Jersey and Illi-
nois, AZ State chartered institutions
in the former State and 64 in the
'"tter now protect the savings of
their investors by insurance.
Despite the vast national coverage
by the corporation, Mr.. Fallon
pointed out. it has been required to
pay out in losses only $104,S45 since
it began operation. This speaks
we'll. he said, for the soundness of
those institutions which have been
insured. i
Prompt Aid Illustrated.
The prompt aid which institutions
RAY expect from the corporation in
! me of trouble was dramatically il
nstrated recently just after the de-
jructive New England storm. Mr..
'llon Immediately wired his rep
tentative in Boston:
I'VE will promptly determine with
: our cooperation how much as
: stance is needed and in case an
Impairment of capital has resulted
from the storm damage, we will
make good the amount in cash"
A survey of the damage to insured
lew England institutions now is
f-eing made by representatives of
the corporation.
Effect Of insurance as a stimulant
. growth was illustrated. Mr.. Fallon
aid, by recent study showing that
turing the first six months of 1898 in
TcStments in insured institutions in
creased by 6.5 per cent, as compared
with 5.4 per cent in the previous
period.
Insured institutions during the first
e'Ght months of this year loaned
s636, 900 for the construction, re-
pair and refinancing of homes.