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ficient purposes hve given it universal recognition. In any proposed set-up for a rediscount or reserve institution, the functions and services of the building and loan associations should be preserved and no different financial types should be included so as to embarrass the standing and capacity of these savings and home financing organizations which have so successfully served the people of the United States and for whose plan no substitute or superior has ever been conceived.

" Part II. Any proposal for junior or second mortgage home financing by societies to be known under the general title of building and loan associations is abhorrent to those principles which have caused our associations to achieve the highest record of safety in the realms of American finance over a period of 100 years. The acceptance of it would be nothing short of a betrayal of the interests of the millions of people who have entrusted their savings to our type of institution and the addition of such second mortgage practices would lose to the present system of building and loan associations that confidence and trust which have brought to them nearly $9,000,000,000 of the savings of the people of this Nation.

“In a Nation composed so largely of wage earners and persons of moderate means, it is apparent that home ownership must be achieved through financial institutions lending sufficient sums on the security of the home and on the faith and ability of the borrower to pay small amounts out of his earnings as received to cover interest charges, taxes, insurance, and a portion of the principal.

“ The building and loan association provides this means of home financing without excessive costs and charges, and offers a time-tested plan of small, periodic payments spread over a sufficiently long period of time to obviate renewals or the calling of substantial sums of money.

“No straight mortgage or other plan of short or long maturity could have accomplished such successful results in home ownership."

In closing I wish to state that the balance of the report has my enthusiastic approval, as I consider it one of the most constructive studies of home financing principles and problems that has ever been made and published, and I am going to make it my personal responsibility to give it wide circulation among building and loan associations in the United States when it has been published in its final form. Sincerely,

WILLIAM E. BEST, President.

EXHIBIT C

Statements of condition of the Land Bank of the State of New York as of

December 31, 1931, and for the onlendar yeur 1931

BALANCE SHEET AS OF DECEMBER 31, 1931
Resources:

First mortgages on improved real estate.
New York City bonds, at cost----
Due from member associations for advances..
Cash in banks.

$1, 056, 375.00

105, 079. 76 16, 110, 000.00

594, 936. 06

Total.

17, 866, 390. 82

Liabilities:

Land-bank bonds (amount due from member associations)

$16, 110,000.00 Advance payments made by member associa

tions for redemption of bonds, Jan. 1, 1932_ 329, 000.00

16, 439,000.00

184, 982. 31

Total land-bank bonds outstanding

Reserved for interest on bonds.-
Capital, guaranty fund, and undivided earnings :

Capital
Guaranty fund.-

1, 147,000.00

35, 500.00 72, 332. 66

Undivided earnings :

Reserved for guaranty fund-Jan, 1, 1932_-
Dividend payable_Jan. 1, 1932-
Balance, undivided earnings, Dec. 31, 1931.-

$3,000.00
33, 776. 01
23, 132. 50

Total undivided earnings, Dec. 31, 1931.

$59, 908. 51

17, 866. 390. 82

INCOME AND EXPENSE STATEMENT, YEAR ENDING DECEMBER 31, 1931

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UNDIVIDED EARNINGS STATEMENT, YEAR ENDING DECEMBER 31, 1931

Balance as of Jan. 1, 1931----
Add net profit for year ending Dec. 31, 1931.

$26, 516. 96 68, 948. 20

95, 465. 16

Total.-Less :

Transfer to guaranty fund, July 1, 1931.

$2,800.00 Dividend paid, July 1, 1931.

32, 756. 65

$35, 556. 65

Total as of July 1, 1931.
Reserve for guaranty fund, Jan. 1,

1932
Reserve for dividend, Jan. 1, 1932.

3, 000.00 33, 776. 01

Total as of Jan, 1, 1932

36, 776. 01

Total for 1931, guaranty fund and dividends..

Balance, undivided earnings, Dec. 31, 1931..

23, 132. 50

CASH STATEMENT, YEAR ENDING DECEMBER 31, 1931
Receipts :

Capital.--
Proceeds from sale of bonds---
Investment, guaranteed mortgages repaid-
Loans on note repaid-
Advances to members repaid..
Interest on advances.
Note payable----
Interest on guaranteed mortgages--

$55, 821. 45 Interest on New York City bonds_

4, 500.00 Interest on notes--

316. 67 Interest on bank deposits

2, 081. 14

$71, 000.00 3, 010, 000.00

187, 125. 00

160, 000.00 2, 396, 500,00

742, 184. 49 150, 000.00

Commission.-
Members' accounts, etc---
Balance in banks, Jan, 1, 1931.

62, 719, 26 32, 165, 26

2, 950. 34 502, 490.91

7, 317, 135. 26

Disbursements:

Bonds retired
Advances to members
Advance to member on note.
Interest paid on bonds..
Note payable repaid.-
Interest paid on note-
Investment, guaranteed mortgages.
Dividends-

Jan. 1, 1931.
July 1, 1931

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Directors

Fees
Expenses.

2, 715. 00

919. 10

3, 634. 10 15, 775. 32 2, 433. 33

Salaries
Rent.
Banking department-

Assessment-
Examination

307. 29
70.00

377. 29

Members' expense

Recording fees-
Attorney

853. 39 1, 782. 00

2, 635. 39

909. 67

Office equipment-
General disbursements-

Office supplies and expense_
Postage
Telephone
Printing-

490. 42
319.92

433. 48
1, 053. 35

2, 297. 17

338.00

Miscellaneous expense

Bond costs
Dues-

New York State League--

New York State Bankers' Association -
Premium surety bonds -

105. 31
75. 00
43, 58

Balance in banks Dec. 31, 1931.

561. 89 594, 936, 06

Total.

7, 317, 135. 26

In accordance with the by-laws, we have examined the affairs of the Land Bank of the State of New York as of the close of business, December 31, 1931.

We hereby certify that we have audited the accounts and examined the securities and have compared the same with the books and records of the bank and find the same correct and herein truly reflected.

WILLIAM J. CONSIDINE,
JOHN R. B. BYERS,

Supervisory Committee.

Senator WATSON. Of course we might enter into a lot of argument about things at times, because we have conflicting views here. Usually, when I conduct hearings, I have a free for all. I let anybody sitting around ask questions, and in that way we develop the thought and opinion of the witness and all the others connected with him. The only reason I have not done it at this time is simply because of sheer lack of time. We get into some wonderful discussions. We learn a great deal more that way than any other way, but the sheer lack of time has kept me from doing that. It develops the strength of the opposition as well as the strength of the proposition.

Who else wants to be heard ?
Mr. KISSELL. Might I be heard ?
Senator WATSON. You have been heard.

Mr. KISSELL. I would like to be heard again. I have some information here that I would like to give you.

FURTHER STATEMENT OF HARRY S. KISSELL, FORMER PRESIDENT

NATIONAL ASSOCIATION OF REAL ESTATE BOARDS, SPRINGFIELD, OHIO

Mr. KISSELL. Senator, I wanted to refute one or two things in the way of testimony which has been given by the opponents of this bill. For instance, I was rather surprised this morning to hear my good friend Mr. Stephenson say that the bankers with whom he had talked did not approve this bill. I have here a list of bankers who do approve it.

The Spokane (Wash.) Clearing House unanimously indorsed the plan. The Reading (Pa.) Clearing House approved it, as well as the Cleveland (Ohio) Clearing House and the Indianapolis (Ind.) Clearing House. The Indiana National Bank, of Indianapolis, of which Mr. Stalnaker is president and which I understand is the largest bank in Indiana, has approved it. The Boonton (N. J.) National Bank has approved it, and the Ohio Savings Bank of Toledo; the American Trust & Savings Bank of Richmond, Va., and so forth. I do not want to weary you by reading this list. I will just submit it for the record.

(The list referred to is as follows:)

BANKS FAVORING THE PLAN

Spokane (Wash.) Clearing House has unanimously endorsed the plan. Reading (Pa.) Clearing House wired approval to President Hoover.

Cleveland (Ohio) Clearing House, H. V. Shulters, president, wired approval to President Hoover.

Indianapolis (Ind.) Clearing House, Frank D. Stalnaker, president, wired approval to President Hoover.

Industrial Bank of Detroit (Mich.), Eugene W. Lewis, president, wired President Hoover approval.

Indiana National Bank, Indianapolis, Ind., Frank D. Stalnaker, president, (largest bank in Indiana) wired approval to President Hoover.

Boonton (N. J.) National Bank, Henry G. Rolston, president, wired approval to President Hoover,

Ohio Savings Bank & Trust Co., Toledo, Ohio, Claude A. Campbell, vice president, wired approval to President Hoover.

American Bank & Trust Co., Richmond, Va., Oliver J. Sands, president, wired approval to President Hoover.

First National Bank, Madison, Wis., L. M. Hanks, chairman of the board, wired approval to President Hoover.

Trenton Trust Co., Trenton, N. J., wired approval to President Hoover.

State Bank of Wisconsin, Madison, Wis., Leo T. Crawley, president, wired approval to President Hoover.

Central United National Bank, Cleveland, Ohio, Corliss E. Sullivan, chairman, wired approval to President Hoover.

Union Trust Company, Cleveland Ohio, W. M. Baldwin, president, wired approval to President Hoover.

Cleveland Trust Co., Cleveland, Ohio, Harris Creech, president, wired approval to President Hoover as follows: “Your plan meets the approval of the entire banking group in this section."

The First Central Trust Co., Akron, Ohio, Harry Williams, president, wired approval to President Hoover.

First National Bank, Bakersfield, Calif., Adam Osborne, president, wired approval to President Hoover.

Peoples Wayne County Bank, Detroit, Mich., Wilson W. Mills, chairman of the board, wired enthusiastic approval to President Hoover.

Tiffin National Bank, Tiffin, Ohio, Wm. L. Hertzer, president, wired approval to President Hoover.

The Savings Deposit Bank Co., Medina, Ohio, E. B. Spitzer, president, wired approval to President Hoover.

Federal Reserve Bank, Cleveland, Ohio, George DeCamp, chairman of the board,

Durham Loan & Trust Co., Durham, N. C.; Home Savings Bank, Durham, N. C. ; Home Security Life Insurance Co., Durham, N. C. John Sprunt Hill, president of the three institutions, wired President Hoover approval.

Salem Bank & Trust Co., Goshen, Ind., C. Edwin Stout, secretary and treas

urer.

Five Cents Savings Bank, Salem, Mass., Harry P. Gifford, president; also a past president of National Association of Savings Banks.

Union Trust Co., Dayton, Ohio, Walter G. Davidson, president.

Continental Illinois Bank & Trust Co., Chicago, Ill., Eugene Stevens, president. At the Atlantic City bankers' meeting Mr. Stevens made some very favorable comments. (American Bankers' Association.)

Commercial National Bank, Madison, Wis., president favors the plan and mentioned in a radio talk recently.

Savings Trust Co., 4915 Delmar Boulevard, St. Louis, Mo., John J. Dowling, president, wrote President Hoover a letter approving plan.

State Savings Bank, Council Bluffs, Iowa, H. L. Tinley, cashier, wired approval to President Hoover.

First National Bank, Council Bluffs, Iowa, F. F. Everest, president, wired approval to President Hoover.

City National Bank, Council Bluffs, Iowa, Robert W. Turner, president, wired approval to President Hoover.

Council Bluffs (Iowa) Savings Bank, B. A. Gronstall, vice president.
All Fargo (N. Dak.) banks are writing President Hoover of their approval.
Two hundred bankers in Ohio have wired President Hoover their approval.
All Cleveland bankers approve the plan.
Cleveland's largest investment houses have also sent President Hoover wires.

Mr. KISSELL. Here are banks and clearing houses all over the United States which have approved this unequivocally, including the Ohio State Bankers Association; the Union Trust Co. in Cleveland; the Cleveland Trust Co., and so forth. In Bakersfield, Calif., the First National Bank has approved it. The Savings Deposit Bank Co., of Medina, Ohio, has approved it, as well as the Durham,

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