The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-06-14
Home LOAN BILL
IS NOW BEFORE
u. S SENATE
PROPOSED LAW WOULD AID CITY
/ JEWELLERS TO OWN HOME AS
> FARM LOAN SYSTEM HELPS
I FARMERS.
ev cEoRoE y. MANNING.

Washington, June 13.-Members Of con-
gress, civic betternent associations and
people in all sections of the country are
showing unusual interest in the bill intro
duced in the senate by Senator William ).
Calder, of New York, a few days ago to
establish a system of Federal Home Loan
banks aimed to relieve the shortage OF
over 1000, 900 homes in the United States.
This bill, If passed. would provide a
system for assisting persons, particularly
city jewellers, to buy their own homes in
, the same way the farmers now obtain
assistance in purchasing farms through
the Federal Farm Loan banks.
1t is generally believed this bill viii do
more than any thing elese to relieve the
serious shortage of houses for workers,
the aggreevating ousting of tenants and
the rapidly rising house rental charges.
The Calder bill provides for a Federal
Home Loan board, of which the Secretaly
of the Treasury is a member, the four
other members to be appointed by the
president of the United States with the
consent of the senate Under the direc-
ton of TINS board regional banks would
be established and the membership in
them would be restricted to building and
loan associations. No bank could be es-
tablished with capital of less than
500. 900, and whenever ten or more in a
given district formed association with
aggregate assets of not less than s5.0OO,-
Geo, they could organize district Fed
eraI Home Loan bank.
The purpase of the projected Federal
Home Loan bank system is to enable
building and loan associations to realize
on their mortgages and thus to make
more money available for loans to pros
pective home owners.
The Calder bill has been referred to
the senate banking and currency commit
tee which has announced it viii hold
hearings on 1t shortly. A number of
faf ixya= Of pffx ia
ing and loan associations and labor or
ganizations are expected to appear at
these hearings to urge passage of the
bill which is expected to make it posi-
BILE for many thousand city jewellers 70
own their own homes who now find it
impossible and are constantly at the mer-
cy of the thrifty landlord.
The establishment of the proposed Fed
eral Home Loan bank system would set
w a number of federal home loan banks
which would act as clearing houses COR
building and loan associations.
The movement to establish the system
of Federal Home Loan banks was started
by the u. S. Labor department when the
after-the-war revival of building in al
parts of the country demonstrated the
NEED of a method by which money could
be realized on the long time mortgages
held by building and loan associations
1t is proposed to work out the Fed
eral Home Loan bank system in this
manner:
A group of building and loan associa-
lions could combine for the organization
of a Federal Home Loan bank in which
they would deposit a block of mortgages
taken in the regular course of business.
Against these mortgages the bank could
issue bonds up 20 so per cent of the volue
represented. The bank would sell these
mortgages in the market, turning over
the proceeds to the association which had
deposited them, the association executing
note to the bank for the amount thus
received.
The mortgages thus deposited as Sc
curity, are not to be sold by the assoica-
ton to the bank, but would remain the
property of the association, which would
continue to collect the regular payments
from the borrowing members whose