Show BUILD G LOAN INCREASE CAPITAL the fidelity Duil building ding loan asso bation through its board 0 of directors have called their stockholders together tor for the purpose of increasing their authorized capital stock from to the having been fully subscribed the sole business ot of this association at this time and through its past history has been teaching thrift and building homes in studying the housing needs ot of the country and in seeking after some sane and practical plan to stimulate the building ot of homes and supplying the grevious grev lous present lack ot of homes in america the american people should give special attention to the work these institutions are doing their work points the way to the most practical solution ot of the housing problem that has yet been devised while the building and loan association are d loing doing most valuable work in financing home building yet the large majority of 0 these associations are unable to 1 supply more than a traction fraction ot of the aid in home building which Is being asked ot of them on account ot of the limited supply of funds coming to them from their ordinary sources ol of supply it if a plan could be put into effect by which the ordinary receipts of the association could be supplemented from some source when home building demands exceeded their ordinary income this would seem to go very tar far towards solving the problem of financing the home building needs 0 of the nation such a plan has been suggested and is the most practical and efficient idea which has yet been presented on this subject the building loan associations have in their vaults two and one quarter billions of dollars worth of gilt edge securities in the form of first mortgages on homes no bank or trust company or other financial institution has among its assets any of higher type or of more intrinsic value than are these mortgages yet under present conditions this vast amount of wealth is absolutely dead inert an all du seless as a basis of 0 credit these associations cannot sell these mortgages or use them as collateral the plan suggested is tor for congress to pass a law empowering these associations to organize and operate a system of federal building loan banks where building and loan associations having need for or additional funds tor for the prudent extension of their business busine sg might deposit a block of its mortgages as collateral and on oil the security ot of these mortgages the bank might issue a series of long time tax tree free bonds sell them in the open market and turn the proceeds over to the depositing aso association clation thus supplying funds with I 1 which the hie association could meet additional dit ional demands tor for home building loans this plan is fully set out in senator calders illinois senate bill no 2492 introduced in the first session of the congress the plan proposed Is not new or novel it is simply providing the building associations of the country with their two and one quarter billions ot of dollars in assets with a type ot of institution which will render them practically the same service which the federal reserve bank renders to the commercial banks da alks of the country it gives the building 9 and loan associations the same service which the federal farm loan dank bank supplies to the farm loan associations it is believed that th tbt bonds which it is proposed to issue under this measure will become a popular investment and anc meet with a ready sale that Is will give an ample supply ot of f funds to enable the building associations ass oc lations to meet all desirable applications tor for home building loans that through the operation of this measure their will be a great revival of home building thru out the country and that a vast number of our people will be transformed from renting nomads into home owning home loving patriotic citizens and after all the american home is the safeguard of american liberties the directors of our local concern are george W watkins ezra N A macdonald win bvm J lowe and john B M bathias fa athias thias |