Evening star., 1931-12-12
HOUSING PROGRAM
MEANS OUTLINED
Wise Stimulus to Private In
vestment Held Way to Huge
Annual Construction.

II wise stimulus is given to private
building investment. with proper safe
guards, provided the necessary legisla-
ton is enacted, $1,000 100000 annual
housing program can be developed, ac-
cording to Dwight L. Hoopingarner, eX-
ecutiVe of the American Construction
Council
Speaking before the Presidents con-
ference on housing here last week, Mr.,
Hoopingarner. a member Of the Com
mittee on Blighted Areas and Slums,
declared, however, that If any revival Of
building activity is to be permanently
helpful, artificial and uneconomic i'm
petus must be prevented.
Would Readjust Credit.
The desired stimulus and control
can be provided" he told the confer
ence, through a readjustment OF our
general credit structure so as to provide
equity financing for worthy projects
without peril to existing financial agen-
cies and without jeopardizing private
investment and without transgressine
the requirements of sound public policy
But in all cases the safety Of the build
ing-investing public as well as supplying
the need for satisfactory housing must
be fully protected.
The way out Of our housing dificulty
IS to adopt the same general approach to
building finance as already exists for
soundly financed industrial projects
whose securities have been proved in a
non-speculative market, in which the
proper relationship between the senior
or first mortgage security and the junior
or equity security is frankly recognized
and proper provision made therefor in
our general credit structure on per-
manent basis.
The junior securities or equity
financing for worthy projects should
have rediscounting facilities comparable
to those found in other acceptable lines
Of finance and Investment. Properly
applied, such rediscounting facilities fol
the equity paper can and will discour-
age speculation or imitation, by placing
a reward in the form of safeguardec
eligibility, reduced rates of costs anc
projects carefully determined. Better
building, rather than boom building
with all of its dangers, can thus bt
secured.
Would Create Many Jobs.
Such plan will also make one dol.
lar do the work of ten. and create 9
dozen jobs for labor, where only one
job otherwise exists. If set up as a
revolving fund, with rediscountins
privileges, such equity financing car
insure a continuing large volume o.
building many times the size of the ini-
tlal fund itself and render enormous
service over substantial period o.
years, thus insuring a permanent con.
Struction program of real magnitude.
Whatever can be wisely done Il
hquefy frozen first mortgage real estate
securities OF a conservative characte,
and to achieve reduction in the cos
OF such primary financing, by providins
acceptable rediscounting facilities ir
that field will be most helpful.
1t is imperative, however, to provid,
safeguards against overselling of build
ing projects" the speaker continued
Construction, wherever encouraged
should serve timely and real econorni
need: Each and every individual projec
should be safeguarded, so far as pos
sible, against speculative elements with
IN itself, including provisions agains
/ { le 'skyrocketing' of appraisals and tn,
kltlng' OF loans, as well as against mis-
leading or deceptive advertising an
publicity"