The Wilmington morning star., 1940-05-06

riyet into the structure OF demo-
cracy by the loans it has made this
Year. The nor citizens we help to
home ownership the more we do to
prevent their becoming wards OF
the government.
We have proceeded on the theory
that a building and loan association
has a special responsibility to see
that an adequate job of home I'm
ancing is done in the community.
Commercial banks and life Insurance
companies, both of which have re-
Gently done a substantial amount OF
lending to home owners, are III
mortgage lending activity today be-
cause it is a most profitable avail
able outlet for their funds. Tomor-
row they may be putting their n
elsewhere. Savings and loan lnstltu-
lions such as ours, concerned as
we'll as the banks and insurance
companies with profitable outlets
for their funds, have this funda-
mental difference, that the re-
s%ponsibility is theirs to see that the
public is serviced, not just to flno
an outlet for surplus cash and let
it go at that.
Your association has been no less
assiduous in serving the public wei
fare by promoting thrift. The reward
to our investors this year, the pay
ment which you received for lend
ing the use of your money, totalled
approximately 100000, counting
dividends disbursed at mid-year and
on December 81. The rate was at 4
per cent on paid up and savings
shares, and approximately 6 per
cent straight interest on installment
shares, which is considerably high
err than that paid by other kinds of
savings institutions in this COM
munity, and continues to be a real
incentive to persons of business acu-
men to put off the use of their
money until some future date. Our
dividend policy has apparently met
with the favor of the community as
testified to by the fact that we gain
ed 744 investors during the year.
There is now invested in the associ-
alton $1,6S9, 1883 by over 5000 diff
ferent individuals.
We have performed a real public
service in getting small investors in
terested in saving money here. There
is no other way in which the need
for capital in our communities and
for stamina in our citizens can be
adequately supplied except by train
ing folks to make sacrifices of the
use of their money today in order
that they may provide for tomorrow.
Our first concern for the assocla-
ton, even above it's ability to earn
is the safety of funds invested. Con-
sequently it is a pleasure to report
that out of earnings this year we
allotted SO, 100000 to the reserves,
those shock absorbers against any
emergencies which may arise this
year or those ahead.
In contrast to conditions in our
depression days there r only %
loans delinquent more than sixty
days on principal or interest, out of
our more than 1900 loans. This is
one of the best showings the asso-
citation has made at any time in its
existence and testifies to the careful
lending policies of the association
and the fundamentally dependable
risk which we have in the average
American citizen borrowing for his
home. We expect to continue that
careful personal attention to apprais-
ais, of both the property and the
personal risk, which has enabled
the association to have a trustworthy
record such as the above. Safety of
the institution is due no less to the
calibre of the men on the board,
their integrity and their good judg-
ment, than to the policies of ap-
praisal and reserve ALLEGATIONS and
the other factors which make for
safety.
Your association is an affiliated
Bank System, which is a reserve
credit agency through which affili.
ated members in good standing may
secure cash funds for any emergen-
cy or for the making of real estate
loans. Our full reserve with this
bank is available to use, as we have
had no advances from the bank;
neither do we owe any bills payable
or other liabilities of any kind, ex.
cept to our share holders. The cash
available to your association at the
present time from the Home Loan
Bank is over $3.50, 600. 90. This
amount, together with cash and
bonds on hand, makes almost a half.
million dollars Immediately available
for real estate loans or any other
cash needs.
Your association is also under the
supervision of and insured by the
Federal Savings and Loan Insur.
ance corporation, a permanent in.
strumentality of the United States
government, insuring the safety OF
each members account up to S..
ooo.Oo. This insurance protection is
available only to members Of the
building and loan associations who
are qualified and accepted for in.
surance by the Federal Savings and
Loan insurance corporation. The
share holder does not have to apply
Tor his insurance protection, but is
automatically protected when hi
saves with this association.
Your association has continued its
aftlllatlon with the United States
Building and Loan League, and with
the North Carolina Building an6