New-York tribune., 1919-08-09
Asks Senate to Support the
Federal Loan Banking
System and Relieve Tax.
alton on Mortgage Income
Points Out Housing Need
Hopes to Reduce Cost of
Construction by Making
Financial Part Easier
Neto York Tribune
Wdshir0ton Bursou


WASHINGTON, Aug. s.-Hand in
hand with the high cost of living goes
the high cost of home building, Senator
Calder, Of New York, told the Senate
to-day. In the State Of New York, and
particularly in New York City, condi-
tlons have become acute because of tho
lack OF adequate housing facilities for
the people, he said
=. senator Calder urged favorable ac-
tlon upon his bill to create a Federal
nome loan banking system through the
building and loan associations of the
United States to enable the people To
OBTAIN money on reasonable terms for
building homes. He recommended also
that the income on limited amount Of
real estate mortgages in the hands of
individuals be relieved from taxation.
tnereoy encouraging investment in
these securities and assisting in MAX
ing sufficient funds available for build
ing purposes
In the City of New York, Senator
Calder said, mortgages on real estate
total approximately $4,000, 100000. Of
this sum about $4,000, 900 900 is lent by
savings banks, insurance companies and
building associations, the income from
which is exempt from all Federal taxa
ton.
Loans Called In
The remainder he said, is lent by in
dividuals, and because of the tax on
incomes nets the lender so small q
return that these mortgages are being
called in in large volume, thereby re-
ducing the available money for build
ing development.
Something must be done to improve
''and rather than have the government
go into the housing business, which
has already cost us more than $780,
100000 with little appreciable relief, it
would be infinitely better to encourage
private industry by passing the two
bills | have described
The great difficulty to-day is in OBJ
tanning the necessary financial assist
ance for the construction of homes.
There is an unusual demand for houses
all over, despite the prevailing high
prices, and there would be great build
ing activity if it were possible to Sc
cure financial encouragement. The en-
actment Of these two bills would tend
materially to relieve the situation, and
it is the only practical thing the gov
ernment can do to help"
Explaining the purposes of his bill
Tor the creation of Federal home
town banking system, Senator Calder
said:
The building and loan associations
of the United States have encouraged
saving for the purpose of home own
ing. am told that these associations
already have some 1000 branches. The
combined business done by these ag-
gregated in the last year 81 1,25O 900, 900,
and this business was done at cost
Of q iybt nf
Further, the amount of the mortgages
now held by them totals nearly $1,000
100000, and their business is conducted
practically without loss, their mort
cages being ontinually reduced by sys-
lcmatic amortization.
Purpose of Home Town Bank Bill
THE purpose of the home town bank
bill is to make part of the S20O0,-
100000 Of good assets held by these
associations Immediately available for
building.
1T is proposed that the government
license these associations to form in
group organizations or local home loan
banks with which they may deposit
their mortgages and receive long term
loans upon them, the funds becoming
available through the issuance by the
district home loan banks of salable
bonds against mortgages deposited.
"lt is hoped that these securities
may be sold on such favorable terms
as to permit minimum charge of in
terest to the home builder and save
him the annoyance and hard ship of
commissions and bonuses so fre1 1lently
suffered"
Union Wage Scale
The table showing the union scale of
wages in the building trades in New
York City follows: