Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-02
HOME FINANCING
SOLUTION SOUGHT
President Calls Conference in
Effort to Remove 0bStruc.
tive influences.

CO-OrQlnateQ eIlOIt 10 ISHloNe hliu-
ences which are depriving thousands
of Americans of the advantages OF
home ownership was set in motion to-
day at the direction Of President
Hoover.
PRIVATELY financed and with its
studies directed at co-ordinating ana
stimulating private effort rather tnan
seeking relief through legislation, ma
tional conference on home ownership
and building has been called by the
President. A score of associations
representing the majority OF the IN
terests touching on the problem, were
invited to detail their chiefs as mem
bers of a planning committee which
will make up the conference program
Bad Financing Conditions.
Mr.. Hoover pointed out that hnanc-
ing conditions surrounding home oullo-
ing have been extremely bad and are
particularly III need of adjustment. but
this. he said, would be only one phase
of the conferences work.
Secretary Lamont will head the
Planning Committee and John M.
cries. chief of the division OF build
ing and housing of the Commerce De-
nartment, will be executive secretary.
The Planning Committee itself Will SET
the date for the conference.
Text of Address.
The President said:
after wide consultation with inter-
ested leaders I have decided TO unoer-
take the organization of an adequate
investigation and study on nation
wide scale on the problems presented IN
home ownership and home bullolng,
k11a a
better understanding OF the questions
involved and the hope of inspiring
better organization and removal of In
fiuences which seriously limit home
ownership in both town and country.
"The conference will be organized by
a planning committee comprised OF
REPRESENTATIVES of the leading national
groups interested in this field under the
Craftsmanship of Secretary Lamont.
This planning committee will in turn
set up nationwide subcommittee to
determine the facts and to determine
the different phases of the question.
1.-The conference will deal with the
whole broad question of home ownership
and home construction. 1t will embrace
such questions as finance, design. equip
ment, city planning, transportation and
etc.
Other Credit Branches Stronger.
Zone of the important questions is
demand. The present depression has
given emphasis to the fact that the
credit system in home building is not as
soundly organized as other branches of
credit. Commerce, industry, inStallment
buying and to a large extent farm
mortgages all have more effective
financial reservoirs. There have been
months during this depression when
shortage of capital available for home
building purposes has been so acute that
this branch of construction has fallen
off greatly, while other forms of credit
have been available throughout the
depression. In order to enable the pur-
chase of homes on what amounts to
the installment plan it is necessary to
place first and, often enough, second
mortgages. Building and loan associa-
tons have performed great service in
this field, but they cannot without
assistance carry the burden. First
mortgages, carried so largelyiby the saw
1ngs banks and insurance companies
have been affected by competition with
bonds and other forms of investment
Second mortgages, which are also
necessary to many people, have. If we
take into account commissions, dis
counts and other charges. risen in rates
In many cities to the equivalent of 20
to 25 per cent per annum, all of which
not only stiles home ownership, but
has added to the present depression by
increasing unemployment in the trades
involved.
THE finance question, however, is
only one of many. Greater comfort
and the reduction in cost of construc-
ton IN many parts of the country
through improved design, the better lay
out OF residential areas are all of first
Importance.
The expansion and betterment of
homes in its bearing upon comfort, in
creaslng standards of living and eco
nomlc and social stability are of out
standing Importance"
Initial Members Named.
The heads of the following associa-
lions have been asked to act as initial
members for the commission: Ameri-
can Civic Association, American Farm
Bureau Federation, American Fedora.
ton OF Labor, American Home Eco
nomlcs Association, American Institute
OF Architects, Associated General Con-
tractors, Association of Life Insurance
Presidents, Better Homes in America.
chamber of Commerce of the United
states, General Federation of Women,s
Clubs. National Association of Builders
Exchanges. National Association of
Real Estate Boards, National Congress
OF Parents and Teachers, National
Farmers Union, National Grange, Rus
sell Sage Foundation, Savings Bank
Divis1on-American Bankers Associa-
uon, United States League of Building
and Loan Associations and Wonen's
NatlonaI Farm and Garden Association.