Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-16
U. S. WILL AID WAR
. ON FORECLOSURES
Government Officials in
Movement to Reduce Mort
gage Loan Calling.
BY WILLIAM BRuCKARr.

Government leaders in economic ats
fairs, in conjunction with some Of the
country's outstanding bankers, have In
stftuted q determined effort to reduce
the high rate of mortgage foreclosures,
and It was confidently predicted here
today that results soon will begin TO
show in various places
The purpose behind the move is one
&C relief. Lying deeper, however, Is
the hope that a breathing spell win
have salutary effect on commerce and
industry. for, it was pointed out. the
holder Of property with maturing
mortgage staring him in the face Is not
likely TO develop plans to do much bust
ness. The uncertainty constitutes q
milestone.
Government May Aid.
Such information as has been allowed
to leak out indicates that the Govern
ment Is expecting the bankers to work
among themselves and among the. life
insurance companies and other holders
OF trust funds, spreading an idea that
this Is good time to go easy. The
Government itself may be expected to
assist in the general movement by less
severe pressure on mortgages from the
Farm Loan Board and the joint stock
land banks. This phase of the pro-
gram Is circumscribed by cold statutory
requirements, but IL has been suggested
that there is much discretionary power
available, despite the laws, that the
Farm Loan Board may employ
Although none of the details of the
program has become available, and 10
Is probable that there will be no shout
Ing of them from the roofs of banks or
Government buildings, it is made to ap-
pear that several governmental leaders
are convinced there should be ref
nancing employed in many instances As
means OF giving the mortgaged prop
erty chance to pay out, That course
certainly is considered necessary in
projects where the evils of overfinancing
obtained or 10 years ago. Conclu-
sions reached by investment bankers
who have investigated the problem Jus
tlfy the course as method for fresh
start.
Whether the rank and ale of bankers
ana mortgage holders can be convinced
that they should follow the bellwether
IN this direction is another matter.
There Is optimism here, however, be-
cause, as 1t was explained, the chances
Of obtaining full settlement in cases of
forced Liquidation In these DAYS are
rather remote. The answer is that there
Is much more to be gained by extending
helpful hands than by bearing down
aIter the manner OF story book mort
gage holders.
Qfhcials feel also that there is more
to be considered than just the effect
on the MORTGAGE. Under present BUSH
ness practices the ramifications OF
credit are admittedly widespread. and
TO foreclose In every case where the
legal right to do SO exists may be
comparable to the injection of poison
into the bloodstream of the Nations
industrial life
Obvious Method.
any possible way out is available mort
gage holders should look for that wav
rather than take the immediate gain.
II such there be, in foreclosing. Look
ing at the picture from q national
viewpoint, as the Federal Government
oncia1 must see it, the administration
spokesman fostering the idea declare
that they are proposing the obvious"
method. Further, they think it viii
pay rich dividends later as a general
policy
Some of the New York bankers have
agreed to participate actively in pro-
noting the plan. 1t is said that they
are men Of SUFFICIENT consequence in
the financial field that their obServa-
tons may be accepted as the best
available Judgment. Bankers of less
consequence and officials of institutions
holding trust funds have paid atten-
ton to them in the past, and the be-
lief prevails that they will listen TO
reason again.
CCopyrisht. 1917