Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-21
MONEY PLENTIFUL
FOR u. S. BUILDING
Public Prefers Automobiles
to Homes, Expert Tells
Mortgage Bankers.
specInl pIspatch to The star.

Special Dispatch to The Star.
DETROIT, September 20. - "Those
who blame the present slowness in city
real estate on lack of mortgage money
always seem to forget the fact that GER
tain mortgage rates become prevailing
as a result of the needs, likes and dis
likes of millions of investors" said A.
A. linn, president Mortgage Bankers
Association of America and vice presi-
dent Commerce Trust Co., Kansas City,
before the annual convention Of the
Mortgage Bankers Association held
here. I'VE will experience renewed ac-
tivity in city real estate and resump-
ton of building operations only when
the individual citizen once more Is able
and willing to own or rent real estate.
"At present there Is swing in buy
ing habits away from homes and home
furnishings to automobiles, clothing and
recreation. There is cautious attitude
on the part of the buying public en-
gendered by the collapse Of unsound
apartment and subdivision develop
ments. There is a trend toward hotel
life, smaller families and more employ
ment of women outside the home. There
is dissatisfaction with the tendency OF
taxing bodies to impose upon real es-
tate more than its fair share Of the
cost Of the government"
Scores Socialistic Short Cuts.
Mr.. linn expressed strong disap-
proval of any such Socialistic shortcuts
to home building and home ownership
as the proposal to create Federal
Building Loan Board with its proposed
tax-exempt bonds.
I'm contemplating any stimulation Of
residential construction throughout the
country we must face the hard fact
that in most communities residential
building is either progressing at a
steady rate, keeping exact pace with
demand. or building progressed at such
an abnormal rate during the boom pc
Rod that 1t Is now problem to find
buyers or renters. Where either Of
these situations exists overstimulation
of building at the present time would
tend to throw out Of balance the oper-
alton of the law of supply and demand,
thereby lowering equity values. Such
losses on the part of many who have
paid all their savings into payments on
their homes can easily prove as serious
as unemployment in the building trade.
AS a matter of fact, building trades
workers themselves constitute a sub
stantial portion of our solid home -own-
ing citizens. It Is desirable that they
be kept employed, If possible, but this
employment must not be obtained at
the price Of overstimulating home con-
struction to the point where their pre-
viously purchased home equities are put
in jeopardy.
Sufficient Mortgage Money.
GAS long as there is one family In
the United States housed under tnSani-
tary or uncomfortable conditions there
is need for improvement in housing. It
is not a lack of mortgage money that
is retarding residential construction,
but lack of public demand for homes.
THE new commission established by
President Hoover to make Nation
wide study of the problem of home own
ership is sane, constructive effort to
get at the facts. The commissions find
ings should clear the atmosphere with
respect to many misconceptions now ex-
listing. It's most important contribution
should undoubtedly consist In pointing
the way to a more evenly regulated way
of public construction-some method
whereby building booms and resultant
depressions may disappear, so that the
construction, real estate and financial
interests may adjust their services to the
pubIic's normal ability and willingness
to utilize their products"
Reviews Farm Situation.
In discussing the farm loan situa-
ton. Mr.. linn stated: I'VE will not see
another great movement in farm lands
within the new decade Farmers are
sharing in the standard of living, which
has risen so rapidly in the past two
decades. That Is, higher standards are
taking larger share of the earnings of
every farm family, leaving less of the
net income to be applied to mortgage
payments and to the purchase of addi-
tional land While industry offers its
products and the opportunity to enjoy
them in the higher living standards,
farm lands must stand IN competition.
This condition will continue until the
earning power Of the farm has risen far
beyond its present index figures"