Evening star., 1939-10-14
Home Loan Banks
Mark 7.Year Period
Of Unifying Credit
Increasing Activities
OF Members Pointed
To by Officials

The birthday of the Federal Home
Loan Bank system tomorrow marks
the close of seven-year period
In which thousands of lending agen-
cies have become linked into a uni
ned credit reserve system for the
financing of American homes.
With combined assets of $4,6l0,-
900, an increase of $285 900 900 in
the past year. the 3,942 member
thrift institutions. and their IL dis
trict Federal Home Loan Banks
comprise the largest reserve of credit
for home loans ever created in any
country. oficials of the Federal
Home Loan Bank Board reported
today, Functioning in corporation
with their district banks, the men,
bers have attained dominant posi-
tion in this field not only in the
volume of home mortgage loans out
standing, but also in the develop
ment of sounder lending practices
for the benefit of home owners.
Federal Home Loan Bank Board
officials pointed today to the in
creasing activities of member in
stitutions as evidenced by nearly
$60O000,000 advanced by them for
the construction, purchase, remodel
Ing and refnancing of homes dur
Ing the first eight months of this
year, as compared with a total of
$407 100000 during the same period
Of 1898. During August, member
savings, building and loan associa-
tions alone financed home mort
cages totaling S779S5,OOO, an in
crease of 1881 900 over August last
year, they said
Position Held Favorable.
"Our member associations were
never before in so favorable a posi-
tion to meet the home-h financing
needs of the country as they are on
the bank SYSTEMS seventh anniver-
sary," said T. D. Webb, vice chair
man of the Federal Home Loan
Bank Board. They have a larger
ratio of earning assets, chiefly
amortizing first mortgages on homes.
greater reserves and undivided
profits, less owned real estate, and
they are receiving new investments
from the public at an increasing
rate. Their total assets continued
to mount during the past year.
Back of them stand the credit
facilities of the II Federal Home
Loan Banks, from which they have
received advances of $537 $4,000 in
the seven years of the banks exist
ence. Their strong liquid position
aoday is evidenced by the fact that
they have repaid to the banks
total of s378,l35,812 of these ad-
vances
AT the same time, the trends of
these advances and repayments have
demonstrated the elasticity of the
long and short term credit facilities
available through the banks. Mem
bers can draw on the banks to i'm
prove their liquidity and to make ad-
ditional home loans when the de-
mand for funds exceeds the local
supply. When their cash on hand
exceeds this demand, they may re-
pay their home loan bank ad-
vances and also use the banks as
repositories for their excess moneys.
Extra seasonal Withdrawals by indi-
vidual savers of the institutions may
also be met by advances from the
banks. A secondary accomplishment
OF the bank system has been the
transfer of surplus savings from one
section to other sections where there
have been greater demands for
credit for home construction and
purchase.
DebentureS Absorbed.
Through the public Offering of
their own debentures, the Federal
Home Loan Banks have further