Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-06
NEED Of HOUSING
BECOMES URGENT
ProbIeH, of the Cities Waits
on Mortgage Money
for Solution.

There Ii no question more acute In
American cities than the matter OF
housing the steadily growing popula-
ton.
Washington. according to reports of
lessened numbers of government en-
pioyes. should begin TO feel an improve
ment In housing facilities. but the con-
trsry pertains.
Never in the history Of the city has
sistent effort to obtain apartments and
homes in separate houses; never so
many tenants put to the discomfort Of
moving and seeking new locations at
one time
Real estate men are willing and
anxious to go ahead with their building
operations. to meet the high cost of
building material and labor il they could
obtain the needed financial aid. but the
stringency In money which has been
felt for the last few months and Is even
now factor, with the great crops to
be moved. has prevented much con-
structiOn work.
Savings deposits have been great fac
tora in the upbuildins of communities:
the war developed an investment buy
tNg movement in which savings deposits
were largely diverted from building anc
like employment and diverted to the
purchase OF liberty bonds to the crea-
ton of just such housing problems as
are now calling loudly for solution.
Views 81 4. b. A. Omeial.
L. D. Woodwork. secretary of the
savings bank section of the American
Bankers Association. sent out the fol-
lowing comment on the condition re-
ferred to. He says:
The big question Is, will the savings
bankers be forced by illusory laws. by
noisy talk of politicians and uplifters,
or by lapses of sound economic judg-
ment. to withdraw their support from
local real estate and mortgage mar
kets.
The matter is. of course. receiving
the close attention of the America
Bankers Association, through it's saw
ings bank section, which solicits in
formation and data from all sources.
IT calls special attention to three
outstanding facts of current signifi-
canoe.
First. New York. and the District
Of Columbia have taken the first steps
in governmental control of housing,
the futility of which in New York Is
already flour months) SO apparent
that the legislature is soon to meet in
special session on the question. Wheth-
into the hands Of those who would de-
stroy private property in land either
by obnoxious regulation or by confisca-
tory taxation remains to be seen.
Second, the chairman of the Unit
islative committees have attacked
both the qualifications and methods
OF bankers to aid building constPuc-
ton In this period OF uncertain and
sniftsng values. These chairmen are
payers subsidy by the costly precedent
OF exemption from taxation, the for
mer also urging the further expedi-
ent OF nationalizing and further sub.
siding our building associations.
Gever.nent's Needs
Third. the United States Treas
urys savings organi1ation represent
argued that as the savings banker
may exercise caution in allowing
loans to be used in construction dur
Ing the reign Of excessive costs; he
ing his clients to invest in govern
ment securities, Also,' he continued
az the average savings deposit0r does
not invest In securities. it 10 clearly
ns dut Y Of tns savings banker
latter stating four obvious invest.
ment reasons) 1t is infinitely better to
hold government securities than
mortgages under the very excessive
curities unless they are appraised al
debated values"
signs are multiplying. which indicate
that the capitalxing Of hysteriS 10 daily
becoming more difficult" says a state,
ment from the savings bank sections
office, that Americans generally viii
reject and resent all socialistic effort tc
drive private initiative from the develop
ment of real estate as IL the case in
Britain, that the relative importance Of
governmental and Industrial financing
and their respective claims upon the
savings of citizens will be considered
with accura cy-and that the suprema cy
of economic law in supplying us with
housing and other necessities will soon
be evident to even the most clamorous
agitator."