Evening star., 1925-05-24
BY I. a. FLEMING.

Dl Il. n. II TlICNIlINu.
There seems to be a revival of in
terest in the old housing problem just
now, being more largely directed to
the possibilities of supplying homes
for employees of the United States,
desiring homes Immediately adjacent
thereto.
Various causes have been advanced
for the high cost of property and
rentals of desirable property in equal
ly satisfactory locations. One reputed
authority has gone far affield to put
the onus of the burden on the broad
shoulders of the banking fraternity,
ignoring a variety of much more
palpable and self-evident reasons for
the existent conditions.
Since 1917 values on practically
everything have advanced enormously,
in many cases the increase passing
the 100 per cent mark. not only in
Washington, but all over the country.
Included in the advance, perhaps
leading the procession, paced the
wages of the skilled artisans in the
building trades, and as years have
gone by they have not only held to
the wartime peak. but have steadily
tried to push for a little further
advance.
Real estate itself has increased in
price with almost each passing day.
Some interests have refused to recog-
nize the estimated value of realty in
certain favored districts. but there
seems to be not the slightest chance
for concessions that would stimulate
trade.
One Need Plentiful.
One of the most needful supplies in
any forward venture Is in ample sup
ply, and that is money, noted for abil'
ity to make the mare 60"
1t was never in better supply; rates
were rarely easier than they are and
every banker and investor is anxious
to get the dollars down to hard work,
where there will be a resultant in
come. Rates are generally between
5I2, the minimum, and 612 per cent,
the average, steady rate of brokers
and others who take into corsidera-
ton the one-half of l per cent intang1-
BILE tax which is passed along to the
borrower. There are some rates still
higher, but the loan cannot be as de-
sirable. 1t is the borrower own fault
If more than 61a is paid on first trusts.
1t is true that the great resources
of the national banks of the city are
not available for real estate and build
ing loans, other than for loans for one
year or in the purchases of loans orig
inally for a longer period that have but
one year to maturity.
Bankers Are Insistent.
Bankers are insistent that their esti-
mates Of the value of realty and build
ings be accepted and that their loans
shall be limited to 60 to So per cent OF
their valuation. Then. too, they want
first trusts. The home buyer has lit
/, L. la - ny1t
first trust loans and for original sec
ond-trust loans, which also carry fair
interest rates. but on renewal rates
vary very materially.
Bankers are also making consistent
efforts to remove the handicap from
national institutions that their re-
sources may also be brought to the
aid of the money market-or. more
to the point, that the realty and build
ing field for the employment of mil
/, lions may be made available.
Bankers paying interest on savings
and time money on deposit with them
and not infrequently on checking ac
counts, find that a s per cent interest
basis is practically necessary. They
make many loans for the account OF
their institutions, and they also make
loans for customers. The intangible
tax, wisely or otherwise, has imposed
one half of per cent tax on all mort
cages, and 1t is invariably passed
along to the borrower, even though
the banks do not have to pay 1t, but
are taxed on their gross earnings.
In the enactment of the intangible
tax law exemption was rendered the
stocks of corporations doing business
in Washington, with offices here, and
subject to local tax assessments.
This law has made favorable in
vestments of local utilities shares and
the stock of some few other corpora
tions, but has not been applicable in
any way to bonds.
The same exemption granted to
mortgages would mean much to rea1
estate mortgages, for there is one OF
these plasters on practically all prop
erty, and not infrequently more thar
one. 1t would be an aid in the line OF
reducing direct taxation, and certainly
make for a help to home builders il
this tax was repealed. 1t Is almost in
the nuisance" class.
Realtors are not enthusiastic or