New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-10-26

is not willing to contemplate and pro-
vide for the gradual payment of the
mortgage. We will have less &C
tive market, perhaps, but much safer
and sounder one.
Money Flowing From Loan Market
1--WE can, in the next place, adopt
The practice of the European countries
of making real estate mortgage securi-
ties available in small units for small
investors. In fact, it is plain that
this must be done One trouble with
the mortgage market has been that
the life insurance companies have
largely abandoned the market and the
savings banks, during the last fifteen
years, have run the average percentage
of their assets loaned on mortgage
down from 60 per cent of all to so
| per cent. 1t Is very difficult now,
therefore, to handle the large mort
cages were recorded in greater New
appeared. Their place must be taken
| by the small lender. and the large
mortgages must be cut up so that he
can share IN them
"Thc fact that $4,000, 900 Of mort
cages were recorded in Greater New
York in 1906 and only $4,000. 600 in
1918 shows how great the flow of
money away from the mortgage mar
ket has been. It must be brought back
and brought back in large volume.
The solution of the housing problem is
vitality dependent on making the cur
rent Of money flow into the mortgage
market instead Of out of it, as it has
been for the past few years. Whether
labor goes up or down, there will be
no great building movement without a
great supply of mortgage money.
Congress Can Help Situation
There is one easy step which can
be taken to facilitate this influx of
money from the smaller investor into
mortgages, and that is the securing
of the legislation pending in Congress
to exempt from the income and sur
taxes that interest on $4,000 worth
of mortgages in any one persons
ownership. The real estate interests
of the State Of New York should get
behind the Mclaughlin bill now pend
ing before the Ways and Means Com
mittee in Congress and insist on that
much relief being offered to the real
estate owner and TO the solution Of the
housing problem
"Thcy should also get behind Sena-
tor Davenport's movement for the in
come tax, but they should convince him
that if he really wishes to relieve the
real estate owner Of the very excessive
income tax which he pays he should
Of Investments and certainly SHOULD
permit the real estate owner to dcduc
from his gross income on all invest
ments the net income from his inves
mcnt in real estate which has alrcad!
paid in taxes 80 to 35 per cent Of al
IL makes The owner docs not apprc
cate the method OF relief obtained il
the present New York State income
tax law, which has left the real estate
In tpv an hi
estate income as before, to wit, al
average Of 80 per cent, and, in add
ton, the same tax on what was left o
that income which others paid on in
come derived from other sources. l
the property owners of greater New
York pay a tax rate Of per cen
on the value next year. as is pre-
dicted, or an increase Of abou
30 per cent on II tax which al
ready takes at least 80 per cent out o
their income, their income tax will b
+ increased to 80 per cent Of all the CAPT
tai earns. They certainly will not thin
that q per cent income tax which
is collected out of other peoples in
come should also be collected out o
them on what they have left after pay
ing 80 per cent income tax already.
1.-THE real estate owners have got t
insist on some relief, and will not y
content with 2 per cent income ia,
and, whatever the rate will not be con
tent that they should pay it also i
addition to that they have already pal
on that portion of their income TIL
whole capital invested in the rea
estate, both by the lender and by tn
owner Of the equity, has paid nm in
come tax at least in greater Ne,
York; of 80 per cent, and next year
looks as if it would be nearly 40 pc
cent 1t is not right to put n furthe
tax on any part of that capital ciths
| that furnished by tho mortgagce or thn
furnished by the owner. for tho owne
has already paid the 80 per cent ia
on the earnings OF the total capiti
: and will pay whatever additional tax
imposed. whether on his lenders NOR,
gage interest or his own equity carr
inga, 40 that what We ask of the Lcp
islutIre L. IN innpmo Tux TINT wi