Evening star., 1939-02-04
1877 Million Supplied
In 1888 by Building
And Loan Groups
Associations Have Second
Largest Year Since
Before Depression

A total OF S797 1886 900 was bOr-
roWed from savings, building and
loan associations in 1888, the United
States Building and Loan League
reported today, making the year
just past the second largest since
before the depression.
December loans by the aSsocia-
tons surpassed the like month of
the year before by 63 per cent, the
first time during 1888 that month
had shown more activity than its
parallel month of the preceding
year. Loans which provided people
with money to build new houses, a
conspicuous feature of the savings
and loan activity during the latter
months of 1888, mounted higher in
December than they had been in
November by per cent and they
were fourth greater than Decem-
Der year ago.
Morton Bodfish, executive vice
president of the league, points out
that these construction loans, so
important in the e-employment
\ of men in the building trades, played
as conspicuous part in the 1888 total
\lending volume as they did in 1887,
when things looked roster on the
whole The $220,450,000 borrowed
for this purpose constituted 2787
per cent of the total disbursement
Beginning with August of last year
each months construction loans
were greater than those for the
same month of 1887, thus showing
the part which savings and loan
associations had in financing an eX-
panding volume of home building
noted during the latter half of the
year.
Home Purchase Biggest Division.
Savings and loan financing for
the year was distributed according
to purpose about the same as it had
been the preceding year, with loans
for the purchase of homes account
ing for the largest single sum, and
those for the building of new homes
running second.
The last quarters lending activity
was about $685. 900 ahead of the
same period in 1887, the league
official indicated, seeing in this po-
tentialities for more active winter
of home lending than has been the
case since 1880.
California was the leading State
In construction loans during De-
cember, Mr.. Bodfish said, while Ohio
and New York and Illinois each re-
ported more than 81 900 900 advanced
for this purpose The lending of
S2,746 900 by California associations,
of course reflected the climatic con-
ditions more conducive to continued
home building than in the other
States with large savings and loan
resources.
Ohio led in total loans for all pur-
poses during December, advancing
S7.585,OOO, nearly half of which was
for assistance in the purchase of
existing homes. The Southeastern
section of the country made the
largest disbursement in December of
the II Federal Home Loan Bank
districts, some 9,248 900 having been
loaned by associations in Virginia,
North and South Carolina, Georgia,
Alabama and Florida. Seasonal and
geographical influences are again at
work in this showing of the milder
climate States.
Analysis of Loans.
The analysis of 1888 loans accord
ing to purpose and the per cent of
total loans on each account follows:
Estimated Loans
Made by All
Associations IN the
New construction - S220 ,450, 900
Repair and modern
iZation -----. So 9,6l3,000
Purchase ------ 265 ,485, 600
Refinancing ----- 16O, l67 900
Other purposes 93,263 900
$797 100000
December loans were made for the
following purposes in the following
amounts:
Estimated Loans
Made by All
Associations in the
Purpose. United States 1898.
New construction - $l9, 900
Repair and modern
ization --- 4025,0
Purchase ------ 2O,S26,OOO
Reflnancing ------ 12.805, 900
Other purposeS------ 7,126,O0O
s63s34,OOO