Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-12-03
Text of HOOvers Address
President Declares Home Ownership Nov. More
Feasible and Desirable Than Ever, in
address to Com ference Here.

TeihIlon 10 the nealtn and protection
OF children. That conference es-
tablished new standards ana new
and higher plane of understanding
and action 1t presented a set Of
standards and conclusions, and those
conclusions, | am informed, have
now been printed in literally mil
lions of copies-through the associa-
lions which were interested, through
State authorities ana municipal au-
thorities. They have penetrated the
thought and permeated the practice
of the Nation Many conferences
have been called by the 60; errors of
many States. by the mayors of m any
cities, to consider and apply their
conclusions Their actions have al
ready welded a powerful influence
in the administrative functions of
government from the Federal Gov
eminent down to the smallest COM
munity. They have been made the
basis of legislative action. They
have lifted the sense Of public and
Individual responsibility In the Ma
ton. And it Is result of this kind
which we are confidently expecting
from this conference.
Ownership Desirable.
notice that some-not the mem
beers OF these committees-have con-
tended that the development Of city
and urban life necessarily has driven
us TO less and less possible owner
ship Of homes. / do not agree with
that. The very development Of
transportation, the advantages Of
distribution of industry today make
the ownership of homes far more
feasible ami desirable than ever be-
fore. But it involves vast problems
Of city and industrial management
which we should have the courage to
face. 1t involves also a great prob
lem Of finance. The newly married
pair setting out upon the stream OF
life seldom come to their new state
with sufficient resources to purchase
or enter upon that great adventure
OF life of building 4 home.
1t has long been my opinion that
We have fairly creditably solved
every other segment of our credit
structure more effectively than we
have solved this one. In normal
times the Federal Reserve System
has given mobility to financing of
commercial transactions The agri-
cultural banks and the insurance
companies have given mobility to
farm credit. The public exchanges
have given mobility to the financing
OF industrial credit through stocks
and bonds. Through various dis
count companies we have established
mobility for the sale OF automobiles
and radio sets and fur coats on the
inStallment plan, where 20 or rs per
cent cash payments are gratefully
accepted.
We have in normal times. through
the savings banks. insurance COM
panies, the building and loan asso-
Citations and others, provided abun-
dant and mobile finance for so per
cent OF the cost of a home through
the first mortgage. But the definite
problem Is not presented by those
who can find so per cent Of the cost
OF = home. Our chief problem in
finances relates to those who have
an earnest desire for q home, who
have a job and therefore possess
sound character credit, but whose
initial resources run to only 20 or
rs per cent. These people would
willingly work and apply all their
rent and all their savings to gain
for themselves this independence
and security and social we'll being.
Such people are good risk. They
are the very basis of stability to the
Nation. To find a way to meet their
need Is one Of the problems that you
have to consider: that is, how we
can make q home available for in
stallment purchase on terms that
dignity the name credit and not upon
terms and risks comparable to the
credit extended by pawnbroker.
Our building and loan and many
other associations have made an eff
fort to ind solution for this group,
but 1t is As yet lartely unorganized
and the question substantially un-
solved.
Many Mere Phases,
recently made 4 public proposal
Tor the creation Of system OF home
loan discount banks. That proposal
Is familiar TO you, and I will not
traverse its details at the present
Tune. 1t was brought forward par
italy to meet the situation presented
by the present emergency, to allevi-
ate the hardships that exist among
nome owners today, and to revitalize
the building OF homes as factor Of
economic recovery, but in its long
distance view it was put forward In
the confidence that through the
creation OF an institution OF this
character We could gradually work
out the problem of systematically
promoted home ownership on such
terms of sound finance as people
who have the home owning aspira-
tion deserve in our country.
And there are many other prob
lens involved in your Investigations
which bear equal Importance to the
problem of home financing. The
surroundings in which such homes
are to be built, the very method Of
their building, transportation and
other facilities which must be pro-
vided for them, and the protection
that must be given to them from the
encroachment of commerce and in
dustry-sll of these and many other
subjects you will compass. You
should be in 4 position when you
complete your work to advise our
country Of new standards and new
ideals for our country.
I wish to express our gratitude, in
which I know you will all join, to
the hundreds of committee mem
bers who have labored SO devotedly
and capably in preparation for your
conference. assure you Of my APP
probation for your coming and my
confidence OF the high results that