The Washington times., 1919-12-27

| Nevertheless, the actual facts and
recent war tests again prove it to be
remarkably efficient in meeting the
requirements of land tenure and real
estate development in America.
In fact. those of widest experience
| with real estate mortgages appear
| unanimous in regarding with some
suspicion any scheme for reform
| which is argued from the assumption
of present inadequacy. These bank
ers find that no security other than
mortgages secured by real estate
have so firmly maintained their par
ity In the public opinion. During the
war period investors were ready to
sell all other securities at discount
before they sacrificed on their mort
gage investments. While this view
point has it's disadvantages when we
consider occa sional need for liuuiditv
OF such investments, this evidence of
nigh popular regard should not be
cverlookcd-in fact, it should be cap.
italzed.
Ihis appears to be a proper time to
remind all concerned that the pres
ent shifting in values, rent sand in
terest rates are only incidents to
piacinS realty on a sound economic
OASIS. We must not allow the occa-
slonal case of protiteering in rents to
prompt measures that will make
ownership Improbable and undesi,.
anic and so prevent an ample flow CT
capital into new construction
The theorist who forms the opinion
that our mortgage methods are un-
systematic and even without uni-
lormlty, doubtless has in mind the
picture of great bond issues. more or
less serial in form. such as result
from the adoption of special projects
oy states or perhaps those being is
sued under the Federal farm loan act
inc worship of Standardization is
quite in harmony with the general
trend of thought by those people who
regard human nature and political or
ganlzations as now in a plastic con-
dltlon as the result of the war, and
available for such experiments as
their own limited ability might lead
them to undertake. r.
Uniformity Preached.
Uniformity in mortgage securities
and in methods of real estate finance
has been preached for many years.
but definite steps TO accomplish this
uniformity in any broad way have
only been seriously proposed within
the past few years.
As a matter of fact, we now have
comparative uniformity in mortgage
conditions throughout the country
Mere difference of names does not in
dlcatc a chaos of system. To cstab-
FISH this, We may note that whatever
the form of the mortgage or other
conditional conveyance. nothing short
OF an Absolute deed will obviate the
necessity for foreclosure, il any
equity is claimed by the borrower
The principles and procedure in real
estate mortgage loans are remark
ably uniform throughout the English
speaking world.
Mortgage funds are obtained either
from a. capitalists, or CD by cooper
atlvC credit. or 60 from bankers
Each Of these sources has its limita-
tlonS and there are distinct economic
conditions which affect all.
Capitalists. the FIRST source, sell their
funds on the best terms which can be
obtained. regard being given to both
present and prospective net return.
and To the equality of the security
offered
cooperative credit institutions, the
second class. have loans OF two bill
hon dollars on mortgage securities
The borrowers are not persons of cS-
tablished credit rating but the system
provides for.a fair amount OF proof
Of thrift and honesty and for a rapid