11 MARCH 1966, Page 27


THE 89th Annual General Meeting of the East- bourne Mutual Building Society will be held on March 30 at Eastbourne.

Mr. Laurence A. Catiyn tChairman). in the course of his circulated Statement. said: The Board decided to increase the rate of interest on Shares to 3;':. per annum from 3-1';', (tax paid). This proved to he inadequate in the first part of the year. The Society had a comparatively large volume of advance business which had been approved. These advances were due for completion in the early' part of the year and had to proceed. Further, new funds were not being attracted to enable the Society to continue to deal with appli- cations at the same rate as in 1964. It scents that this was inevitable in the earlier part of the year.

The Bank Rate was standing at 7 and competi- tive- rates were such that Building Societies would have had to pay a very high rate indeed to attract funds at that particular period.

On 1st May the Mortgage rate increased to fir,. This did not allow an adequate v%orking margin.

The increase to 4- . coinciding as it did with the reduction in the Bank Rate to was most effec- tive. The Society v.as once more a very attractive medium for investments. and the rate of intake since that date has been very promising.

Investment Department: The total Share receipts for the year amounted to This is a little short of the Society's re,ord year in 1964. The intake of new money is continuing.

Advance I)cpartmenr the Society advanced an amount of :1.569.000. Considering the difficulties this is a griiiit\ mg re-tilt.

Liquid Aot the total at the end of the year amounted to I.1.:•35.015. an increase of 1261,000 compared with 19(4.