A BILL TO ENCOURAGE HOME OWNERSHIP AND TO STIMULATE Printed for the use of the Committee on Banking and Currency WASHINGTON 1919 FEDERAL BUILDING LOANS. WEDNESDAY, OCTOBER 8, 1919. UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The Committee on Banking and Currency met, pursuant to call of the chairman, at 10 o'clock a. m., in Room 303, Senate Office Building, Senator William M. Calder presiding. Present: Senators Calder (acting chairman), Gronna, Penrose, and Newberry. Also present the following gentlemen interested in the pending legislation: Messrs. Charles O'C. Hennessy, of New York; W. R. Adair, of Omaha, Nebr.; E. L. Keesler, of Charlotte, N. C.; H. S. Rosenthal, of Cincinnati, Ohio; H. F. Cellarius, of Cincinnati, Ohio; K. V. Haymaker, of Detroit, Mich.; A. M. Linnett, of Newark, N. J.; Mark D. Rider, of Chicago, Ill.; Phil. G. Ricks, of New Orleans, La. Senator CALDER (acting chairman). The bill under consideration is Senate bill 2492, a bill to encourage home ownership and to stimulate the buying and building of homes; to create a standard form of investment based on building-association mortgages; to create Government depositories and financial agents for the United States; to furnish a market for Government bonds, and for other purposes. [S. 2492, Sixty-sixth Congress, first session.] A BILL To encourage home ownership and to stimulate the buying and building of homes; to create a standard form of investment based on building-association mortgages; to create Government depositories and financial agents for the United States; to furnish a market for Government bonds; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the short title of this act shall be "The Federal Building Loan Act." SEC. 2. That wherever the term "building associations" is used in this act it shall be held to include all duly incorporated domestic building and loan associations, savings and loan associations, cooperative banks, homestead aid, or other kindred incorporated associations organized and conducted exclusively for the mutual benefit of their members and doing what is generally known as a cooperative building and loan association business, and which are subject to supervision and examination by State authority in the State in which they are organized, or incorporated or unincorporated building associations which are subject to supervision and examination by Federal authority in the District of Columbia. Wherever the term "first mortgages" is used in this act it shall be held to include such classes of first liens on real estate, not exceeding $6,000 in amount in any case, as are given to secure advances made by building associations under laws of the State or District in which any such building association is 3 organized and doing business, and as shall be approved by the superintendent of Federal building-loan banks, together with the credit instrument, if any, secured thereby. The term "building-loai bonds" shall be held to include all bonds issued under the provisions of this act and secured by first mortgages deposited with the building-loan registrar, as hereinafter provided. SEC. 3. That to. enlarge the facilities for the purchase and erection of dwelling houses by wageworkers and others there shall be established in the Department of the Treasury a bureau charged with the execution of this act and of all laws passed by Congress relating to the establishment and maintenance of mutual and cooperative Federal building-loan banks. The chief officer of such bureau shall be called the superintendent of Federal buildingloan banks and shall perform his duties under the general direction of the Secretary of the Treasury. SEC. 4. That the superintendent of Federal building-loan banks shall be appointed by the President on recommendation of the Secretary of the Treasury, by and with the advice of the Senate, and shall hold his office for a term of five years unless removed by the President for reasons to be communicated by him to the Senate, and he shall be entitled to a salary of $10,000 a year. SEC. 5. That the superintendent of Federal building-loan banks, within 15 days from the time of notice of his appointment, take and subscribe the oath of office, and he shall give to the United States a bond in such amount and with such sureties as shall be approved by the Secretary of the Treasury, conditioned for the faithful discharge of the duties of his office. There may be a deputy superintendent of Federal building-loan banks, to be appointed by the Secretary of the Treasury, if and when necessary, who shall be entitled to a salary of $5,000 a year and who shall possess the power and perform the duties attached by law to the office of the superintendent of Federal buildingloan banks during a vacancy in the office or during the absence or inability of the superintendent. The deputy superintendent shall also take the oath of office prescribed by the Constitution of the United States, and shall also give a bond in such amount and with such sureties as the Secretary may prescribe. It shall be the duty of the superintendent of Federal building loan banks to prepare from time to time bulletins setting forth the principal features of this act and, through the Department of Labor or otherwise, to distribute the same, particularly to the press, to labor journals, and to labor organizations; to prepare and distribute in the same manner bulletins setting forth the processes and advantages of obtaining homes through the aid of building associations and the opportunities and protection afforded such associations under this act; and advising investors of the merits, safety, and advantage of Federal building loan bonds. SEC. 6. That the superintendent of Federal building loan banks shall, as and when necessary, from time to time, employ an examiner or examiners and a clerk or clerks, to be appointed and classified by the Secretary of the Treasury, to discharge such duties as the superintendent of Federal building loan banks shall direct. SEC. 7. That neither the superintendent of Federal building loan banks nor his deputy, nor any officer or employee of the bureau, during the term of his office or employment, shall be an officer, director, trustee, or employee of any building association. SEC. 8. That the superintendent of Federal building loan banks shall devise a seal of his office, to be approved by the Secretary of the Treasury, which shall continue to be the seal of the office and may be renewed when necessary. A description of the seal, with an impression thereof, and a certificate of approval by the Secretary of the Treasury, shall be filed in the office of the Secretary of State. SEC. 9. That there shall be included in the annual report of the Secretary of the Treasury a report of the superintendent of the Federal building loan banks exhibiting a summary of the state and condition of every Federal building loan bank based upon the latest reports or other information in his possession made by every such bank to the superintendent, with a statement of the amount of capital of every such bank, its debts and liabilities, the total amount of Federal building loan bonds outstanding for which it is liable, and the total amount of such bonds issued since the previous report, if any; and such other information in relation to such Federal building loan bank as in the judgment of the superintendent may be useful. |