Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-10
EARLY BUILDING
PLANS ARE URGED
Setting Forward of Program
Advocated to Put Funds
in Use.
BY LOUIS 7. McFADDEN,

n,
House of Representatives.
The energetic support of business
leaders throughout the country should
be given the effort now being made
by the National Building Survey Con-
ference to set forward the start OF
Spring residential construction by a
month or six weeks and to continue
1t as far into the Summer as possible.
This is important not only because
It will shorten by so much the PERIOD
of abnormal unemployment In the
building trades and building material
producing industry, but also because o.
the fact, AS shown by reports TO the
Building Survey Conference, that there
is a large amount of small mortgage
money now available for residential con-
strlction and which is not at present IN
full use. ~
II is highly important that this
money be nut to work on constructor
in order that it may not be forced by
idleness to seek an abnormal Marker
in another field. Such abnormal de-
mands, in whatever fields OF business
bring on panics, business depreSslonS
and the resultant unemployment, que
70 the absorption by one field of an
excessive proportion of the credit re-
sources of the country, thereby starving
other business groups.
Too Much Cash Idle.
Recently there was very quick re-
turn of funds from speculative heloS
to smaller financing institutions anc
many of these, without realizing IL, are
holding too much cash in idleness
which should be out working In the
residential and commercial constructor
GolIe tiniilarIv the former.
In the normal process of business the
period of unused money is not OF lone
duration. But since, in this case, que
to cooperation of Government ane
business agencies, the money has beer
made available more quickly than usual
there is greater need for acceleratlne
the demand for its use in Residential
construction fields. The benefits OF the
return of these funds to small institu'
tions from the concentrated funds ir
wall street cannot be fully felt unit
the money is employed. To accelerate
such employment, the demand tol
prudent residential construction ShoulC
be stimulated by all proper means.
While high money rates are OTTER
described as exerting stranglehol6
on business and construction, unused
money creates a Stagnant conoltlol
which has dulling effect on all com
mercial enterprises. resulting IN con
ditions of unemployment and busl'
ness pessimism.
Second Mortgage Problem.
Financial leaders may also conside'
how best to increase this demand To-
residential construction by eliminat
ing the necessity for the highly ex
pensive second mortgage. Closer super
vision in the purchase OF material
and in design, location and construc'
ton will make it possible for small
mortgage sources, such as building ant
loan associations, to increase the rela
tive size and possibly the length Q
time ON first mortgages, making ]
practicable for the person desiring
home to build with relatively less CAPT
tai and still insure to the mortgage
holder high and safe resale value II
the event of foreclosure. Closer CO
operation between financing agencies
contractors, realtors and producers o
building materials to this end is hight
desirable.
The same is true with respect t
rnodernization financing, which II prop
erly encouraged and directed can b
depended upon to further extend tn
residential-constructio period and Oh
viate the sharp Summer and Winte
seasonal lulls. l understand the Ma
tional Building Survey Conference.
paying particular attention TO tnl
phase of the problem.