"The American Home, the Safeguard of Amèrican Liberties" The American Building Association News A Newspaper devoted to the interests of Building, Loan OFFICIAL ORGAN UNITED STATES LEAGUE. OFFICES: 16 WEST SIXTH ST., CINCINNATI. S. W. COR. ADAMS AND DESPLAINES, CHICAGO WEST COAST DEPARTMENT: 401 VAN NUYS BUILDING, Los ANGELES, CAL. CANADIAN AND FOREIGN, $4.00 SUBSCRIPTION, $3.00 PER ANNUM. 30 CENTS A COPY. Entered as Second Class Matter at the Post Office at Cincinnati. O.. SINCE 1880 THE RECOGNIZED AUTHORITY ON BUILDING ASSOCIATION MATTERS. Vol. XLII. JANUARY, 1922 No. 1 WE Bankers Not Yet Reconciled. E regret to note that the bankers still continue to find it difficult to accommodate themselves to the passage of the $300 exemption clause in favor of building and loan interest and dividends in the recently enacted revenue bill. Bankers apparently are bankers and nothing else. The fact that the clause was inserted for the avowed purpose of doing something to relieve the intolerable housing situation does not seem to appeal to their calculating minds. We believe that publicspirited citizens, no matter what their financial connections are. could afford to view the passage of this exemption with equanimity and give it a trial. Its object certainly is wholesome and its objectionable features, if any, entirely negligible. But the bankers do not view it in that light as may be seen from the following from the Journal of the American Bankers' Association: The Revenue Act recently enacted provides that there shall be exempt from the Federal tax upon personal incomes: "(10) So much of the amount received by an individual after December 31, 1921, and before January 1, 1927, as dividends or interest from domestic building and loan associations, operated exclusively for the purpose of making loans to members as does not exceed $300.” This startling innovation, which had been struck out of the House bill by the Senate, was reinserted most unexpectedly. It is a menace to all banks and business interests and all data and suggestions thereon should be sent to the association's office. When the conference bill was reported the following telegram was sent to the Senate Finance Committee: "This provision is not only class legislation and grossly discriminatory, but unsound public finance and against public policy. Inconsequential as remedy for present housing situation in a few localities. Not only grossly unfair, but menaces business needs so far as it operates and can only be effective by drawing deposits from savings banks to building and loan associations, for it cannot be claimed to develop new thrift and saving and thus reaches outside the legitimate scope of such associations. B. Paton, General Counsel." Thomas The bankers are supported in their contention by the comptroller of the currency, D. R. Crissinger, who in his annual report records his opposition to the exemption, declaring that it "offers a new method for the tax dodger, is undesirable and class legislation." A little more importance might be attached to these criticisms if they did not all emanate from a source that can not be designated as entirely disinterested and from men trained to think along one certain well-defined line. We believe that the critics. are unduly alarmed and that the law will readily justify itself. Start the New Year Right. LAST year you probably made a resolution that a year hence you would not be in so low a financial condition as you found yourself-and here you are again! For a few months you carried on your savings systematically in a building and loan association. Then came a week of unforeseen expense when you failed to deposit the savings as planned, and instead of trying to make it up the next week you fell short again, and now you are discouraged and tempted to give up trying to save. If you are a husband, you may try to blame it on the wife. If you are a wife, you may try to conceal some bill from your husband rather than incur his wrath. Fix this one thought in mind-if you are married: No wife can save money unless her husband co-operates with her in this endeavor; and no husband can get ahead if his wife does not exercise economy to aid him. You have seen a team of horses, high-spirited animals, hitched to a heavy wagon. One horse pulls desperately and the other hangs back; then, perhaps, the second horse lunges violently forward as if to burst the harness and at the same time the other ceases from effort. If the team would pull steadily and firmly together they could move the load which neither can budge alone. When it comes to living within one's income and laying by a little for the rainy day, something like teamwork must be exercised to drag the load. Every home should be run upon a budget plan-allotting so much for paying for the home, so much for food, clothing, medicines and other bills, and trying to fix a definite amount which can be saved each payday. A new year-a new leaf-a new deal-get out of the old rut! Now is the time to begin saving, at the beginning of the new year. But the policy should be agreed upon mutually between the partners of a home as between the partners in any business. Co-operation makes for thrift. Get Busy With Ex-Service Men. HE State of Ohio has issued bonds, which have been voted THE on by the people, known as the Ohio adjusted compensation, or soldiers' bonus bonds. This will mean that the former soldiers, sailors and marines will receive pay from the State of Ohio in the near future. Our suggestion to the building association interests would be that they immediately get in touch with the various agencies to induce these young men to start a building association account, with these funds, so that they may eventually have a home of their own. Instructive letters should be sent at once to educate them along the lines of proper saving. This may mean to many a young man getting a start in life, and it would be well for all the secretaries and directors to meet these young men and explain to them what it means to have this money to their credit, and assist in solving the "Housing Problem" in the State of Ohio. Meeting of the West Coast Associations. THE HE building associations of the West Coast States have arranged for a meeting to be held at Los Angeles, Cal., February 11, for the purpose of discussing problems peculiar to that section of the country. The editor of the NEWS expects to leave Cincinnati on January 19 for a tour of the West and hopes to be present at this meeting and have the pleasure of exchanging views with the leaders of the movement in the West. All officers and directors are invited to attend this meeting. For further information, address or phone Mr. R. Holtby Myers, Secretary, Los Angeles Mutual Building and Loan Association, 1011 Washington Bank Building, Los Angeles, Cal. Group Meetings of the Ohio Building Association SOME League. OME time ago the Executive Board of the Ohio League subdivided the association members of the League into sectional groups for the purpose of bringing them into closer contact by means of group meetings, where problems, particularly local ones, could be discussed and where the directing heads of the scattered associations could be brought together and cemented in a spirit of fellowship, for real strength lies in knowing one another. Since that time a number of such meetings have been held in various parts of the state attended by Secretary James A. Devine and other leaders in the movement, as well as by a gratifyingly large number of local representatives. Those who have been fortunate enough to be in attendance at these meetings are convinced that real constructive work is being done and that these meetings should be fostered and held wherever possible. Meetings have been held recently by the DAYTON GROUP at Dayton, on December 13, with almost all the leaders of the group in attendance. Among the visitors present were Mr. H. F. Cellarius, secretary of the United States League; Thomas L. Pogue, president of the Ohio League, and others prominent in the work. CLEVELAND MEETING. The Cuyahoga County Savings and Loan League held its monthly dinner December 14 at the Chamber of Commerce. Prsident L. E. Weitz and Secretary-Treasurer Carl R. Braun officiated. Secretary Devine, Henry S. Rosenthal, of the AMERICAN BUILDING ASSOCIATION NEWS, and E. M. Baugher, of Newark, Ohio, delivered addresses. YOUNGSTOWN MEETING. The Western Reserve Group met December 16th at the Ohio Hotel, Youngstown. Secretary Devine presented a detailed report on new Federal Legislation. Mr. H. S. Rosenthal also delivered an address. Great interest was manifested by all present. HOMES for the people of this land are as essential as farms, and the cause of home building is more fundamental in its necessity than is commercial banking.-Frank L. Wells. Commissioner of Internal Revenue Con- As we go to press a wire reaches us from Wash- Welcome Messengers. N the language of one of the many cards received conveying the season's greetings, "There is nothing so valuable as friends and nothing so necessary as to keep them." We heartily subscribe to the sentiment expressed and assure all that the messages of friendship and good will are appreciated and cordially reciprocated. SINCE Forty-Two Years of Progress. INCE the foundation of THE AMERICAN BUILDING ASSOCIATION NEWS in 1880, great progress has been made in every material line of human endeavor, including the building and loan movement. From small beginnings the associations have spread rapidly all over the United States. Now over 9,000 successful institutions with a membership of 5,500,000 and with assets of $2,750,000,000 are doing constructive work. In 1880 horse cars and stages provided the bulk of local transportation. There were no electric cars, subways, no electric lights, no automobiles and no telephones. The changes which have taken place in the life and appearance of the large cities are typical of the development that has taken place throughout the entire country during the same period. They are a dramatic record of a period of remarkable and intensely interesting human development. In gathering together and making available the surplus funds of the country, the building and loan associations of the United States have performed and are performing a great service in solving the "Housing Problem." |