Evening journal., 1919-06-12
EFFORT TO relieve
SHORTAGE UF HOMES
Bill in U. S. Senate Would
Assist Persons to Buy
Own Houses
Is GREAT AID
TO CITY DWELLERS

WASHINGTON, June Members OF
Congress, civic betterment association.
and people in all sections Of the coun-
Try are showing interest in the bill in
troduced in the Senate by senator VII
liam ;. Calder Of New York, few days
ago TO establish a system OF federal
home loan banks, aimed to relieve the
shortage OF over 100000 homes in the
United States.
This bill, if passed would provide a
system for assisting persons, particular
ly city dwellers to buy their own homes
in the same way the farmers now OBJ
tain assistance purchasing farms
through the federal farm loan banks.
IL Is generally believed this bill viii
DO more than anything else TO relieve
the serious shortage Of houses for work
ers, the agBravaiing ousting Of tenants
ana tie rapidly rising house rental
charges.
The Calder bill provides for a federal
nome loan board, OF which the sec
retary OF the treasury is a member. the
Tour other members to be appointed by
lhe President Of the United States with
The consent OF the Senate. Under the
direction Of this board regional hanks /
would be established and the member /
ship in them would be restricted 10 |
and loan associations. No hank
could be established with "a capifal Of
ess tiiah siO0OOJ, and whenever ten or
more IN given district formed an as
'ocidtloh win aggregate assets OF not
css tlan s0'OOOOO, they could organize
district federal home loan bank.
me purpose Of the projected federal
lolne loan bank system is TO enable
'ullding and loan associations to realize
N their mortgages and thus to make
more money available for loans 10
home owners.
The bill has been referred TO the
enate banking and currency commit
oe, which has announced it will hold
earrings on it shortly a number OF
OF city associations.
uildng and loan associations and la O
or organizations are expected to an O
ear at these hearings to urge passage .
the bill which is expected t0 make d
possible for many thousand city C
Nellers TO own their own homes who
DIV ilnd it impossible ami are con- .
antly at the mercy Of the thrifty r
ndlOrd n
The movement to establish the sys- St
I'M was started by the United States c,
abor Department when the after-the- n
ar revival OF building in all parts Of
e country demonstrated the need OF ;
method by which money could be O.
allied on The longtime mortgages a
9ld by the building and loan associa- a
Ons. M
It is proposed TO work out the fed al
al home loan bank system in this 81
amer:
A group Of building and loan associa- IN
ons could combine for the organiza- tv
on OF a federal home loan bank in di
hich they would depOsit a block Of
origages taken in the regular course Sc
business. Against these mortgages Gu
G bank could issue bonds zip to so I'M
r cent OF the value represented. The Co
nk would sell these mortgages in thi
market turning over the proceeds so
the association which had deposited pli
IN, the association executing a note les
the bank for the amount thus re- orc
we'd su,
he mortgages thus deposited as Sc OF
'ity are not to be sold by the associa- Sta
TO the bank. but would remain the wh
perty Of the association, which sue
uld continue TO collect the regular tioi
ments from the borrowing members cor
ose mortgages have thus been de Co
tied, just the same as before the de- {
1t was made. II borrower whose saiC
'tgage had thus been hypothecated the
5 Off his loan in full. the association eml
lld recall that mortgage from the tha
k, either by turning over the cash unC
le Of The mortgage TO the bank TO "Tf
applied on the debt OF the associa- he
, or by depositing another mortgage wOr
equal value. and
le bonds Of The federal home loan is q
IS would not draw more than
cent. interest per annum and il is an
wed they can be sold at a lower ~
possibly 4 or IL per cent. The IL
ciation would pay TO the banks in
u on the amounts advanced at the r
rate which the bonds bear, an adj
nal = per cent. per annum being
we'd to cover the expenses OF main
ng the banks. Associations would
semi-annual payments on the DR.,
~ borrowed, thus amortizing their -
;. II Is suggested that the bonds vi
Id run twenty years. associations
: permitted to repay their loans at
lime within that period
the federal home loan bank plan I'd
Of an association woul1 SN
ltirely optional and an association
does not join in the banking plan
! not be affected in any way by
lew system. The business Of the Cor
would be conducted by boards Of Scho,
ors elected by member associa- at 10
IL is the purpose to provide for Four
lpervision OF the entire system OF Tn,
by such federal authorities as given
eSs may provide. more
: federal supervision would be ex- say
d at the expense OF the govern Sailin
as is the case with the federal Bells
loan system and the Federal RE and
Bank system. tions.
THE
SIGMA PHI DANCE. Of To
IA Phi Epsilon Fraternity OF The
are College, gave a dance last made