New-York tribune., 1919-02-11
Launch Campaign
For Expansion of
New Building g
Movement to
Secure Scientific Amor
tization of Mortgages to
Increase Funds for Loans

A nationwide movement to make
available sufficient funds for new
building throughout The country is
under way. A special committee of the
American Bankers Association yester-
day appointed six leading bankers or
insurance company officials in every
state in the union to supervise local
campaigns which will be launched
forthwith.
The specific aim of the movement
will be to introduce scientific plans
for the mortizaton of real estate mort
cages This reform, it's advocates =
ieve, would do much, not only to fl
nance new building operations which
have been suspended during the war,
but also to make the investments of
savings banks, trust companies and in
surance companies more liquid. More
than $4,000, 100000 worth of such in
vestments are held in the field already
covered in a preliminary canvass, and
all but Is per cent of the mortgage
holding institution officials questioned
heartily approved the suggested
change.
Fifty Plans Considered
More than fifty special plans of
amortization which might be adopted
are being considered by the Commit
tee on Amortization of Mortgage
Loans, Of the American Bankers AS
sociation, of which John J. Pulleyn,
president of the Emgrant Industrial
Savings Bank. of this city, is chair
man. A representative of the commit
tee is studying the amortization sys-
TENS in use in Great Britain, and the
original manuscript of a survey of
German and Austrian amortization
practices, which was made just before
the war. has reached the hands of the
committee.
In connection with its interest in the
employment of labor during the forth
coming months of read justment, the
government through the Department of
Interior and Department of Labor has
taken cognizance of the movement.
The League of Building and Loan AS
sociations. which is also interested in
more widespread use Of the amorti-
zation principle, has urged on the Fed
cral government the need of passing
legislation (which would enable an in
crease Of mortgage credit that the
treasures of building and loan asso-
war, may be replenished to meet the
demands of peace readjustments." An
other side to the question, the Bankers
Association committee points out, is
that it would give the savings banks,
whose deposits will presumably be
sweled when the competition of war
savings ends. a better outlet for their
funds available for investment.
The amortization idea, one of the
leaders OF the movement which is just
crystallizing. said yesterday, is to en-
courage thrift in the borrower, to make
him pay off portion of his debt, or
mortgage, periodically. Heretofore, he
said. lenders on mortgages depended on
the appreciation Of the value of the
land to take care Of the depreciation
of the value of the building, but it
is now proposed that they should rely
liquidation of the debt, so that the
turity becomes more certain.
Few Scientifically Aportized
Only about per cent of the amount
Of mortgages held by the savings
banks, trust companies and insurance
companies of the nation, it is authori-
tatively estimated are now scientifically
amortized. Most of the mortgages held
by building and loan associations
rather than on large Industrial build
ings, are either amortized or carry an
equivalent arrangement. 1t was pointed d
out that, though most of the mortgages
held by the banks arc callable on de-
mand, it would be impossible to call
great number of them suddenly
under the present arrangement.