The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1919-06-09
Sen. Calder Offers Bill
To Help America Become
Nation of HOn1e-OWnerS
Copyright 1913.
By R L GoldberE.

bined business done by these asso-
Citations aggregated during the past
year 81 $50 600, 900, and that the bust
ness was done at a cost OF about
eight-tenths Of / per cent The mort
cages now held by them total nearly
s., 900, 900 900, and their business is
being conducted practically without
loss, Senator Calder said he had been
told.
Licensing Of the Federal Govern
ment would function to standardize
their bonds" said Mr.. Calder, land
make them most attractive to the in
weston with all the security of the
welI-placed first mortgage, and, in
addition; the security of a collection
of such mortgages, backed by a re-
serve fund against possible loss
at is hoped by those who have
given this matter much thought that
these securities may be sold on such
favorable terms as to permit mini
mum charge of interest to the home
builder and save him the annoyance
and hardship of commissions and
bonuses so frequently suffered.
This bill, crude as it is in form,
will be submitted to the Committee
on Banking and Currency OF the
United States Senate, where 1t is
hoped that through hearings it may
be perfected to accomplish its pur-
pose. /. E.. the supplying Of funds at
the lowest rate to the home builders
and security Of the highest class to
the investor.
Would Broaden Scope.
There is, however. a growing body
of opinion throughout the United
States which holds that the scope OF
this bill should be broadened to make
possible a more modern system OF
real estate banking. They contend
that while the facilities for general
commercial banking have been great
~ improved during the past decade
through the rediscount system, the
facilities for real estate banking re-
main in their Anticipated form, and
that there is a growing tendency on
the part OF Institutions to loan only
to the larger building and real estate
operations, with increasing hardshlp
on the small operator.
This bill also contains a provision
exempting from Federal taxation OF
every character the amount received
bv an Individual as interest on an
aggregate principal not to exceed
$40 600 Of loans secured by mortgages
on real estate.
This body Of opinion maintains that
the real problem is to organize ana
correlate all the sources OF capital
that are normally utilized by the
building industry. in order that a
complete system OF real estate bank
ing may be worked out. which would
in no way conflict with the present
system Of commercial banking, but
which would supplement IT. and In
case Of national emergencies such as
occurred during the war, strengthen
it and bring together toward one
focus the entire banking resources OF
the country.
That there is a great national
shortage Of building is questioned by
none. Building. after all, Is part OF
the war debt. 1t must be paid after
the war is over at an increased cost,
paid for in the cost of building or IN
rent. or in the general high cost OF
living through the shortage OF Ia
Cilities.
No Lower Costs Likely.
authorities offer no encouragement
that there is an approaching lowering
~ cost the consensus Of opinion be-
ING that we are all subject to infu-
enCes beyond our contrOl-the world
shortage of men. materials and plant,
heavy tax burdens, and foreign politI-
cal complications.
Lowering of prices through the
of exports. or the increase
of imports, seem impossible at the
present time.
..The only avenue remaining is the
lowering OF prices through increasing
production"