Long before their predatory practices were scandalously defended by presidential hopeful and secret gremlin John McCain, the savings and loan association was a godsend to families who needed a leg up in the world.
In the early 1800s, most folks didn’t need a bank unless they had boatloads of money. Barter was still common, and if people did have some extra cash, they stashed it in a safe or under a mattress.
Along came the savings and loan association (S&L). Also known as thrifts, savings and loan associations were for the little guy. They were cooperative organizations that lent money to people to buy a house, make home improvements or build on their land. Before the birth of the S&L, it was the insurance companies that provided home mortgage services, with short-term deals highly in their favor. Needless to say, many people lost their homes and their shirts.
The S&Ls, however, were different. The goal was to help develop communities. Anyone who deposited money into the association was a shareholder and received dividends in proportion to the organization’s profits. A member’s saving account was, therefore, an investment in the community.
DC’s oldest S&L, the Oriental Building Association, was founded in 1861. Located at 600 F Street NW in Penn Quarter, the Oriental Building Association No. 6 Building, also known as the OBA Federal Savings & Loan Association, until 2003 housed the oldest continually operating savings & loan association in America.
Located just two blocks from the heart of today’s Chinatown, the bank would presumably have been founded by Chinese businessmen. But the Chinese did not call themselves “Oriental” (Westerners did), Chinatown until 1929 was actually located several blocks away (along Pennsylvania Avenue between 1st and 3rd streets NW) and what we think of today as Chinatown was known then as Germantown.
The four German businessmen who founded the Oriental Building Association were members of the Oriental Lodge, a fraternal organization of the Freemasons. Derived from the Latin for “east,” Orient is a common term among Freemasons; the regional governing body of a Freemason group, a Masonic “Grand Lodge,” is also referred to as a “Grand Orient.”
The Oriental Building Association Building was designed in the Italian Renaissance Revival Style by Albert Goehner in 1909 and was placed on the National Register of Historic Places in 2004. (Goehner also designed the Concordia German Evangelical Church and Rectory, at 20th & G, which was posted to the National Register of Historic Places in 1978.) The OBA Building is one of the last remnants of the original downtown DC to survive from the neighborhood’s turn-of-the-century heyday as a thriving downtown business sector.
Despite federal deregulation in the 1980s, the massive subsequent (and expected) bank fraud and the ultimate failure of nearly half of all S&Ls in the U.S., the Oriental Building Association lives on. In 2003, it moved a few blocks to 700 7th Street NW, and the Oriental Building Association remains the oldest continually operating S&L in the nation.