MUTUAL SAVINGS BANKS

HEARINGS

BEFORE THE

SUBCOMMITTEE ON BANK SUPERVISION
AND INSURANCE

OF THE

COMMITTEE ON BANKING AND CURRENCY
HOUSE OF REPRESENTATIVES

EIGHTY-EIGHTH CONGRESS

FIRST SESSION

ON

H.R. 258

A BILL TO AUTHORIZE THE ESTABLISHMENT OF FEDERAL
MUTUAL SAVINGS BANKS

ABRAHAM J. MULTER, New York, Chairman

WILLIAM S. MOORHEAD, Pennsylvania
FERNAND J. ST GERMAIN, Rhode Island
HENRY B. GONZALEZ, Texas
JOSEPH G. MINISH, New Jersey -
CHARLES L. WELTNER, Georgia
BERNARD F. GRABOWSKI, Connecticut
CHARLES H. WILSON, California

II

OLIVER P. BOLTON, Ohio

W. E. (BILL) BROCK, Tennessee
ROBERT TAFT, JR., Ohio
SHERMAN P. LLOYD, Utah
BURT L. TALCOTT, California

CONTENTS

H.R. 258. A bill to authorize the establishment of Federal

mutual savings banks.

Report on H.R. 258 from Robert C. Weaver, Administrator,

Housing and Home Finance Agency.

Report on H.R. 258 from Jesse P. Wolcott, Director, Federal

Deposit Insurance Corporation, Washington, D.C., dated

October 23, 1963.

Summary of Federal Mutual Savings Bank Act__

Section-by-section analysis of the Federal Mutual Savings

Bank Act.

Statement of—

Alexander, Willis, Jr., president, Trenton Trust Co.,

Trenton, Mo., representing the American Bankers

Association; accompanied by Charles R. McNeill,

director, Washington office, American Bankers Associa-

tion.

Barrett, Hon. William A., a Representative in Congress

from the First Congressional District of the State of

Pennsylvania

Berle, Hon. Adolf A., professor emeritus, Columbia Univ-

versity School of Law, member of Commission on

Money and Credit; accompanied by Eli Shapiro,

professor of finance, Harvard University Graduate

School of Business Administration and former deputy

research director of the Commission on Money and

Credit..

Bliss, George L., president, Council of Mutual Savings

Institutions__

227, 231, 268

Cleveland, Hon. James C., a Representative in Congress

from the Second Congressional District of the State of

New Hampshire..

Courshon, Arthur H., chairman, legislation committee;

accompanied by William F. McKenna, general counsel,

National League of Insured Savings Associations.

Fletcher, Charles K., chairman of the board, Home Federal

Savings & Loan Association, of San Diego, Calif.

Hanna, Hon. Richard T., a Representative in Congress

from the 34th Congressional District of the State of

California...

Hoeft, J. E., chairman of the board and president of

Glendale Federal Savings & Loan Association of Glen-

dale, Calif.; accompanied by Charles K. Fletcher,

chairman of the board, Home Federal Savings & Loan

Association of San Diego, Calif.

73 367ST XL2

09/92 53-005-00

III

230

247

271

42

279

35771

Statement of-Continued

Lloyd, Hon. Sherman P., a Representative in Congress

from the Second Congressional District of the State of

Utah.

Moorhead, Hon. William S., a Representative in Congress

from the 14th Congressional District of the State of

Pennsylvania

Rains, Hon. Albert, a Representative at Large in Congress

from the State of Alabama

Page

41

41

39

Rauch, R. Stewart, Jr., president; and Morris D. Craw-

ford, Jr., vice president; accompanied by Dr. Grover W.

Ensley, executive vice president; Dr. Saul B. Klaman,

director of research; and P. James Riordan, generaĺ

counsel, National Association of Mutual Savings Banks. 43, 183

St Germain, Hon. Fernand J., a Representative in Con-

gress from the First Congressional District of the State

of Rhode Island__

Taft, Hon. Robert, Jr., a Representative at Large in Con-
gress from the State of Ohio

United States Savings & Loan League.
Voorhis, Jerry, executive director, Cooperative League of
the U.S.A

Weltner, Hon. Charles L., a Representative in Congress

from the Fifth Congressional District of the State of

Georgia

Additional information submitted to the subcommittee by-

Bliss, George L., president, Council of Mutual Savings

Institutions:

Details of suggested amendments.

Fletcher, Charles K., chairman, Home Federal Savings &

Loan Association, California:

"Mortgage Demand May Fall Below the Supply of

Savings; Savings Institutions Will Need Diversified

Investment Powers," article from Mortgage Banker,

September 1963_.

Multer, Hon. Abraham J.:

Correspondence sent to the chairman of the full com-

mittee, chairman of the subcommittee, and Mem-

bers of Congress_ -

Establishment of Federal Mutual Savings Banks,

speech of Hon. John Sparkman, January 31, 1963 - -

Report of the Commission on Money and Credit.
Report of the Committee on Financial Institutions to
the President of the United States__
State of Rhode Island and Providence Plantations,
Providence, R.I., letter of Andrew A. DiPrete,
director, dated October 31, 1963, in answer to
Congressman St Germain's questions.

Statement in support of the establishment of Federal

Mutual Savings Banks, January 21, 1963-

41

40

334

293

42

234

272

354

34

37

37

222

32

Additional information-Continued

National Association of Mutual Savings Banks:

Federal charters for mutual savings banks.

Table 1.-Number of major deposit-type financial in-

stitutions, selected years, 1820-19631

Table 2.-Assets and deposits of mutual savings

banks, selected years, 1900-63 - - - -

Table 3.-Savings deposits and share accounts, by

type of financial institution, selected years, 1900-63.

Table 4.-Distribution of mutual savings banks and

savings bank assets, by States and regions, June 30,

1963_.

Table 5.-Distribution of savings held in selected

types of financial institutions in mutual savings

bank States, December 31, 1945, 1959, and 1962-

Table 6.-Number of offices of mutual savings banks,

commercial banks, and savings and loan associa-

tions in mutual savings bank States, December 31,

1962__.

Table 7.-Percentage distribution of assets held by

selected types of financial institutions, June 30,

1963

Table 8.-Percentage distribution of liabilities and

general reserves or capital held by selected types of

financial institutions, June 30, 1963.

Table 9.-Legal investments for mutual savings

banks, by State, October 1963-

Table 10.-Maximum legal limits on selected types of

investments for individual mutual savings banks,

selected States, October 1963.

Table 11.-Assets of mutual savings banks, selected

years, 1900-63 (amounts in dollars and percentage

distribution)..

Table 12.-Net uses of funds channeled through mu-

tual savings banks, 1950-62 _ -

79

80

83

Table 13.-Economic growth, capital formation, and

personal saving in selected countries, 1954-61

Table 14. Relation between total holdings of savings

accounts and personal income, by States, 1962

Table 15.-Distribution of per capita savings ac-

counts in New York State, by savings bank and

nonsaving-bank counties, as of June 23, 1958.

Table 16.-Ratios of long-term savings in local finan-

cial institutions, 16 large metropolitan areas

grouped by type of banking, June 1958.

Table 17.-Amount and percent gain in savings in

Alaska financial institutions, 1957–62-

Table 18.-Selected operating expense ratios, selected

types of institutions, 1962.

Table 19.-Actual versus expected savings flows, eight

major savings bank States versus selected regions,

1950-61 average_

84

86

88

92

95