The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-05
INCREASE PRESENT
LOANABLE POLICY
FOR SMALL BUYER
Urges Less Taxation as
One Remedy to Aid
Home Erectors.
ENCOURAGE THRIFT
Many Families Want to Build
But Are Handicapped
By Finances.
ENCOURAGE THRIFT

While there are a great many
things retarding the free operation
Of the building industry at this
time. the chief trouble rests with
the inadequacy of credit facilities
available to those who want to
build houses. and who are able to
give reasonable security for mort
gage loans. according to Charles
oConnor Hennessy. president OF
the Franklin Society for Home
Building and Savings of New York
Speaking in general terms, 1t
may be said that the man of small
or moderate means owning a build
ing site, and seeking a mortgage
loan to improve II, often Is forced
to go to the local building and loan
society.
There are now 5000 of these in
situations in the United states, and
that they are doing a prodigious
collected by the United States
eating that the loans made by them
last year (about $4,000 loan) ag-
greyated s700. o00,o 900.
Cart Meet Demand.
Nevertheless the report from
these associations in New York,
Philadelphia, Chicago and other
large centers at this time is to the
effect that they are wholly unable
to meet all of the demands made
upon them by home seekers for
mortgage loans. One of the asso-
Citations in New York City, during
the last year, has made loans ag-
Eregating nearly 100000, most of
them for construction purposes.
Therefore IL would appear that
one OF the first things to be done
so far as small houses go, Is to de-
the present loanable funds of the
building and loan associations of
the country.
Many a family desires to build a
home OF their own but are handi-
capped on how to finance 1t.
There is a great housing scarcity
throughout the country-especially
in industrial .centers. Because of
the detrimental social and economic
effect upon citizenship, public
health, and Industrial stability, the
government should concern itself
earnestly in relieving the situation.
The problem of housing relief
has many angles. but public as we'll
as private investigation has DEM
onstrated that the chief trouble re-
Iates to the financial aspect of 1t.
\ tremendous increase in small
dwelling house construction would
immediately follow the provision of
adequate mortgage money credit
facilities-that is, il every home
seeker of good character. good
health. a steady job. and a good
margin of real estate security
could get a long term loan. to be
payable in easy installments, with
which to build or buy his home.
The remedy seems clear enough.
1t lies not in the direction of gov
eminent subVentionS for housing,
either by the State or by the nation.
nor in any Of the ill-considered
proposals for spending public
money in doing things for the peo-
PIE that may best be done by them
selves. Any even temporary ex-
pedient for the creation of State
supported agencies to provide hous-
ing. should be discouraged. That
way. as the experience of England
has demonstrated, lies waste, ex-
travagance and ultimate futility.
along with the generalization of
the normal activities Of private in
itiative and enterprise. The way
out is the true American way of
wisely helping the people to help
themselves. by Increasing the in
centives for individual thrift and
Industry and removing the PEN
alties that unwise taxation policies
now impose upon the savings
funds that are employed in the
creation Of homes.