Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-29
TO TRY
FOR HOUSING CURE
conference This Week at Har-
risburg Will Consider Prob
$s lem in All States
SMITH TO BE ONE SPEAKER

The housing shortage will be consd-
ored as n national problem at con-
ference of governors this week at lIar-
risburg.
. Most states of the Union will be rcr-
resented. Tho governors will devote
much of their attention to the housing
problems.
The problems in each state and plans
for coping with them will be presented.
One of the principal addresses will be
delivered by Governor Smith, of New
York, on housing relief legislation.
The conference will take place We'd
nesday. Thursday and Friday and Gov
crnor Sproul left this city yesterday
morning for the state capital to prepare
for the event. Leaders in municipalities
throughout the state arc watching the
outcome of the conference with closest
interest. especially in view of tho Gov
crnors expressed belief that the removal
of the income tax wholly or in part
from investments in mortgages would
result in immediate relief.
p Stokes IndOrscs Plan
The Endorsement Of a program ad-
vanced by the Philadelphia Operative
Builders Association. by former Gov
crnor Stokes. of New Jersey. in his
address before the Philadelphia Real
Estate Board at the Bellevue Stratford,
on Saturday. caused widespread com
mcnt and approval yesterday.
John y. McGarvcy. chairman Of tho
executive committee of the operative
builders, expressed his qualification
that n man of such eminent standing
as Mr.. Stokes should have 50 strongly
brought out the points which builders
have been advocating for several months.
Mr.. McGarvcy rcfraincd from com
menting specifically upon Mr.. Stokes
Liberty Bonds as basis Of new and
liquid credit. because Mr.. McGarvcy is
one of the first men who brought thi2
plan to public notice as Il means for
general business relief.
1.-The address Of former Governor
Stokes has offset the crOakingS of some
of our pessimists. said Mr.. MrGarvcy
and | am particularly impressed with
his recognition of the fact that sup
ply of additional credit is about the
only thing that will really aid the stu.
alton in Il large way.
Arraigncd Reserve BankS
"NIr. Stokes arragncd the Federal
Reserve banks for their attitude and
his statement that these banks in Il
manner destroyed credit is borne out
by the actual facts with reference to
certain trust companies within my own
knowledge. Before these COmpaniC,
joined the Federal Reserve system the
largest part of their investment was
in mortgages, but after connection with
the Wcdcral Reserve the market for
mortgages with those companies rapidly
disappeared and investments were made
in different directions.
''ln recent conference with George
W. Norris, governor OF the Federal
Reserve Bank. | asked the reason for
this condition. and he answered that it
was mere coincidence. ilo not think
it is merely cOinCidCntal, but the result
of set policy,
1--WE have learned from our cOnvcr-
sationS with some of the foremost
financial men in the city that there is
no real question of liQuidity or non J.
iquidity with banks us far aS mortgages
are concerned. in the investment market
mortgages saved many II bank in
the panic of 1907 when securities of all
kinds hit the bottom. Mortgages do
not find as ready II sale as bonds or
other such papers, but when has it been
impossible to borrow on II mortgage
even beyond the limit fixed by bankers
on any other form of security?
"Mr. Stokes glowing description Of
the manner in which faith and credit
and the activity of the city builders
changed Atlantic City from a sand hill
TO the greatest plCasur" resort in the
world within Il comparatively few years,
is illustrative of the part the builder
takes in our national development.
"ln Philadelphia the same condition
applies as in Atlantic city. If it. had
not been for the operative builder in
this city who put up the houses first
and sold them aftcrward, and if houses
were only put up on individual order
or when, as in the case of Now York
and Chicago. iinancCrs saw chance
for big returns by erecting apartments,
whore would Philadelphia : 800 900
homes have been today?
"Many Of them would not have been
built. and thousands of acres of our
built-up sections still would be grow o.
ing scanty crops or serving as dumps
and grazing grounds. producing little
even in the way of taxation.
d, 1.-The enterprise which has increased
the city's size and its fame through .
out the world as the City of Homes
must be maintained. Credit must be-
provided to erect more houses. which
are the need of at least 2J,GOO fami -