Hon. ABRAHAM J. MULTER, U.S. House of Representatives, BRONX, N.Y., February 8, 1966. DEAR CONGRESSMAN MULTER: Our New York daily newspapers have recently published articles stating that President Johnson has endorsed the administration's bill (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks. I am writing to you, as a member of a Committee of Banking and Currency, and urge that you support the administration's bill and that you will use your best efforts to report the bill out of committee as soon as possible. The following are the important reasons why I firmly support an early action on this legislation by Congress : A. Primarily the President stated in his Economic Report to the Congress that appropriate regulations are clearly required to protect the safety of savings of American families, to assure the most efficient and equitable regula tion of financial institutions and to create still better channels for the flow of funds to borrowers. Certainly for these reasons this legislation merits congressional support. B. The administration's bill is now ready for action as a consequence of several years of development which include hearings before the Subcommittee on Bank Supervision and Insurance of the House Banking and Currency Committee. In addition, detailed testimony was taken on the nature and characteristics of savings banking and on how a system of federally chartered mutual savings banks would further our basic national economic goals. This legislation certainly has important advantages for the public interest and has indicated from the aforementioned hearings Federal chartering of mutual savings banks would contribute to: (1) an increased and better distributed flow of savings; (2) greater availability of mortgage credit and lower costs to mortgage borrowers; (3) a strengthening of the dual banking system; and (4) establishment of a sound vehicle for broadened investment flexibility for savings institutions. The Federal charter would advance the broad public interest in that it would authorize savings banks ot make personal loans and to acquire conventional mortgage loans anywhere in the country. I sincerely believe that the enactment of the legislation would stimulate efforts to modernize savings bank statutes in many States, to the advantage of borrowers and savers throughout the country. For all of the above reasons, I hope you will urge that this legislation be brought out of committee as soon as possible. Thank you for your consideration in this matter. RUDOLPH A. MARINI. THE BOWERY SAVINGS BANK, Hon. ABRAHAM J. MULTER, House of Representatives, DEAR CONGRESSMAN MULTER: Since you are a member of the Committee on Banking and Currency, I am writing to you with the hope that you will support the administration's bill (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks. There are many good reasons why this legislation merits the support of the 89th Congress regardless of party affiliation and I am sure that you are aware of them. I would like to stress the points that I feel strongly about. 1. The legislation was endorsed by President Johnson in his Economic Report which was presented to Congress recently. 2. Much time (as a matter of fact several years), effort, talent, and serious thought was used in the development of this legislation and it is now ready for action by Congress. 3. The legislation would provide strong support for needed improvements in State savings bank laws some of which are so old that it is impossible to advance the broad public interest to the fullest extent. 4. Finally and most important of all this legislation has many worthwhile advantages for the people of our country: (a) There would be an increased and better distributed flow of saving. (b) There would be a greater flow of mortgage credit and lower costs to mortgage borrowers. (c) The dual banking system would be strengthened. (d) This would contribute to the establishment of a sound vehicle for broadened investment flexibility for savings institutions. Thank you for your efforts and consideration in this matter and my best wishes to you in all your endeavors. Sincerely, ELIZABETH R. CLARK. EAST NORWICH, N.Y., February 9, 1966. Hon. ABRAHAM J. MULTER, DEAR CONGRESSMAN MULTER: I sincerely believe that the administration's bill authorizing Federal charters for mutual savings banks would be advantageous to the borrowers and depositors of mutual savings banks in the State of New York and throughout the Nation. I am writing to you as a resident of New York State urging you to support the administration's bill and ask that you use your best efforts to report the bill out of committee as soon as possible. President Johnson recommended legislation to provide for Federal chartering of mutual savings banks in his Economic Report to Congress on January 27 "to protect the safety of savings of American families, to assure the most efficient and equitable regulation of financial institutions, and to create still better channels for the flow of funds to borrowers." For these reasons, this legislation merits congressional support. Thank you very much for your consideration in this matter and I trust this most important legislation will be enacted with your help at the earliest possible date. Sincerely, WILLIAM A. LEED. BROOKLYN, N.Y., February 9, 1966. Hon. ABRAHAM J. MULTER, DEAR CONGRESSMAN MULTER: In his Economic Report to the Congress on January 27, the President recommended legislation "to provide for Federal chartering of mutual savings banks." This is an issue that, I believe, has great importance to our Nation, and, therefore, I am writing to you, as a member of the Committee on Banking and Currency, to urge your support of the administration's bills (S. 2598, H.R. 11433, and H.R. 11508) authorizing such Federal charters. I hope that you will do all in your power to have this bill reported out of committee as soon as possible. This legislation, which enjoys broad-based, bipartisan support, has important advantages for the public, since Federal chartering would contribute to: (1) An increased and better distributed flow of saving; (2) greater availability of mortgage credit and lower costs to mortgage borrowers; (3) a strengthening of the dual banking system; and (4) establishment of a sound vehicle for broadening investment flexibility for savings institutions. Under Federal chartering, savings banks would acquire powers now available to State-chartered banks in many States, such as the ability to make personal loans and to acquire conventional mortgage loans anywhere in the country. These changes would help to stimulate the modernization of State regulations governing savings bank operations, all to the benefit of both savers and borrowers in those States and throughout the country. Thank you very much for your attention to this matter. I look forward hopefully to your effective support of this important bill Sincerely, EDWIN W. Goat. STATEN ISLAND, N.Y., February 9, 1966. Hon. ABRAHAM MULTER, MY DEAR CONGRESSMAN: I am writing to you in the hope that you will support the administration's bills (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks and that you will use your best efforts to report the bill out of committee as soon as possible. As you know the legislation has important advantages for the public interest and enjoys broad-based bipartisan support. In advancing the broad public interest the Federal charter bill would authorize Federal savings banks to make personal loans and to acquire conventional mortgage loans anywhere in the country to the advantage of borrowers and savers in the State and throughout the country. Also the legislation was endorsed by President Johnson in his Economic Report to Congress on January 27 and has also been endorsed by the Committee on Financial Institutions, the Commission on Money and Credit and among industry groups, by the Mortgage Bankers Association of America, the National Association of Home Builders, the National Association of Real Estate Boards, and the Council of Mutual Savings Institutions. Again I urge you to give this request your full consideration to report this bill out of committee. Sincerely, LESTER ROGERS. YONKERS, N.Y., February 9, 1966. Hon. ABRAHAM J. MULTER, DEAR CONGRESSMAN MULTER: I am writing this letter in the hope that you as a member of the Committee on Banking and Currency, will support the administration's bill (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks. The following are some of the reasons for this letter: 1. I believe the most important aspect of this bill, as indicated in the October, 1963 hearings is that Federal chartering of mutual savings banks would contribute to: (a) An increased and better distributed flow of savings; (b) Greater availability of mortgage credit and lower costs to mortgage borrowers; (c) Strengthening of the dual banking system; and (d) Establishment of basic means for greater investment flexibility for savings institutions. 2. Legislation would provide strong support for needed improvements in State savings bank laws. The Federal charter bill would permit Federal savings banks to make personal loans and to acquire conventional mortgage loans anywhere in the United States. This would be a great advantage to borrowers and savers throughout the country. 3. President Johnson recommended legislation authorizing Federal charters for mutual savings banks as a means "to protect the safety of savings of American families, to assure the most efficient and equitable regulation of financial institutions and to create still better channels for the flow of funds to borrowers". Federal chartering for mutual savings banks has always received broad bipartisan support. In closing may I urge you to get behind the administration's bill and use your best efforts to report this bill out of committee as soon as possible. Your consideration in this matter is greatly appreciated. Sincerely yours, ALWIN W. NEUMANN. LITTLE NECK, N.Y., February 9, 1966. Hon. ABRAHAM J. MULTER, DEAR CONGRESSMAN MULTER: As a former member of your constituency and a past supporter, I want to commend you on your excellent record in the Congress. I am writing to you, as a member of the Committee on Banking and Currency, to urge you to support the administration's bill (S. 2598, H:R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks. There are several reasons why I feel this particular piece of legislation merits early action: 1. Promotion and protection of savings.-The improvement and promotion of thrift contributes to the prosperity of the Nation without causing inflation. It is important, too, that the vehicles for savings be prudently managed to provide safety. The record of the mutual savings banks on this score is unparalleled. Certainly your own experience in New York State can attest to this fact. 2. The health of the banking system.—I believe this legislation would improve and strengthen competition among financial institutions and aid greatly in the flow of funds from savers to borrowers. One of the goals set forth by President Johnson in his Economic Report to the Congress on January 27 was "to create still better channels for the flow of funds to borrowers." The Federal charter bill would directly assist in this aim by contributing greatly to the availability of mortgage credit and short-term personal credit at lower costs to borrowers. 3. Improvements in State banking regulations.—Another important benefit that I hope could be realized by this legislation is to provide strong stimulus to modernize savings bank statutes in many States, including New York State, where the regulations are sorely in need of updating. 4. Advantages for the public interest.—I am certain that you are aware of the many industry groups in housing and finance that have voiced their support of this legislation. In addition, support has been given by the Commission on Money and Credit, the Committee on Financial Institutions and by independent academic studies. Perhaps the most important conclusion that can be drawn from the statements of support, and I might add the overriding consideration for any legislation, is that it is decided "pro bono publico." By the very nature of mutuality the savings banks have both served and suffered in the past. They have served the public by providing investment safety for their many depositors; there are no stockholders to siphon off earnings at the depositors' expenses. Yet this very lack of concentrated wealth has con tributed to the weakening of the savings banks' voice in securing progressive legislation on the State level and hence has limited their ability to expand and improve service to the public. I firmly believe that the Federal charter bill will offset this disadvantage and permit the idea of mutuality to flourish. I hope you will support this legislation and urge that it be brought out of committee as soon as possible. Thank you for your consideration. ARTHUR E. HUTT. Congressman ABRAHAM J. MULTER, Washington, D.C. GARDEN CITY, N.Y., February 9, 1966. DEAR CONGRESSMAN MULTER: I am writing to you, as a member of the Committee on Banking and Currency, and ask that you support the administration's bill (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks, and that you will use your best efforts to report the bill out of committee as soon as possible. As you know, the legislation was endorsed by President Johnson in his Economic Report presented to Congress on January 27. The legislation has been under development for several years and has bipartisan support in view of the important advantages for the public interest. I believe it will lead to an increased and better distributed flow of savings which in turn would lead to a greater availability of mortgage credit and lower costs to the home purchaser. Mutual savings banks have contributed greatly to the national economy by making mortgage credit available to the home buyer at all times. Their major investment is in home mortgages on one family homes. I believe that Federal savings bank legislation deserves your support and I hope you will urge that this legislation be brought out of committee as soon as possible. Thank you for your consideration in this matter. Sincerely, HENRY W. JOHNSON. LEVITTOWN, LONG ISLAND, N.Y., Hon. ABRAHAM J. MULTER, MY DEAR CONGRESSMAN: I am writing to you in the hope that you will support the administration's bill (S. 2598, H.R. 11433, and H.R. 11508) authorizing Federal charters for mutual savings banks and that you will use your full efforts to report the bill out of committee as soon as possible. As you know the legislation has important advantages for the public interest— an increased and better distribution flow of savings, greater availability of mortgage credit, and lower cost to mortgage borrowers. Also the legislation was endorsed by President Johnson in his Economic Report to Congress on January 27 and has also been endorsed by the Committee on Financial Institutions, the Commission on Money and Credit, and among industry groups, by the Mortgage Bankers Association of America, the National Association of Home Builders, the National Association of Real Estate Boards, and the Council of Mutual Savings Institutions. Again I urge you to give this request your full consideration to report this bill out of committee. Sincerely, JAMES P. O'CONNOR. NEW YORK, N.Y., February 9, 1966. Hon. ABRAHAM J. MULTER, Washington, D.C. DEAR SIR: As a member of the Committee on Banking and Currency, I am writing to you in the hope that you will support the administration's bill which would authorize the Federal chartering of mutual savings banks. I am hopeful that you will use your best efforts to report this bill out of committee as soon as possible. My reasons for this recommendation are as follows: 1. In his Economic Report to the Congress on January 27, President Johnson recommended legislation which would "provide for Federal chartering of mutual savings banks*** to protect the safety of savings of American families, to assure the most efficient and equitable regulation of financial institutions and to create still better channels for the flow of funds to borrowers." 2. Several years of development have preceded the administration's recommendations. In October 1963, hearings were held on an earlier version of the Federal savings bank bill before the Subcommittee on Bank Supervision and Insurance of the House Banking and Currency Committee. At these hearings detailed testimony was taken on the nature and characteristics of savings banking and on how a system of federally chartered mutual savings banks would further our basic national economic goals. |