Evening star., 1932-08-09
HOME LOAN BOARD
MEMBERS SWORN
Group Holds Conference,
Then Calls on President
at White House.

Swinging into action in behalf OF
the Nations mortgage-pressed home
owners, the new Federal Home Loan
Board was sworn into office today and
Immediately went into formal confer
ence on the large task that lies ahead.
Speaking for bipartisan member
ship Of the board, Chairman Franklin
w. Fort expressed optimism over the
prospect of relief held out for home
owners under the recently enacteo
home loan law, which sets up a Fed
eral mortgage discount system Of Ma
tion-wide scope.
Following the first meeting of the
full board in the conference room of
Secretary Of Commerce Chaplin. the
board members went to the White
House TO pay their respects to Presi-
dent Hoover The members, in addi-
ton to Fort, are Nathan Adams of
Texas, H. Morton Bodfish of Illinois,
William E. Best Of Pennsylvania and
DR.. John M. Cries of Ohio.
They we're photographed with the
President, who, as they left, said: Good
luck and God bless you
VIII DEFINE Districts.
Chairman Fort said the initial step
in the setting up Of the home loan SyS.
tenn will be the definition of boun-
daries of from to IL Federal home
loan districts, in each of which the
discount bank. The next step will be
the organization of the banks, each of
which will be governed by IL directors
residing in the district concerned. Two
of these directors on each board will
be chose by the Federal Home Loan
Bank Board and the remainder by
banking and mortgage institutions
holding membership in the regional dis
count bank.
1t was said that nearly every large
city in the country has applied for one
of the regional banks. Contrary to
popular belief, the regional banks, be-
ing prohibited from engaging in a gen.
eral banking business, will require moth
ing more elaborate than q suite Of Of
fees for working headquarters.
Temporary Offices of the Federal
Home Loan Bank Board have been es-
tablished in the office of Dr. Cries, who
is chairman of the division of public
instruction Of the Department Of Com
merce. Hundreds OF applications for
jobs already have been received there.
Sworn In Today.
The board members were sworn in
this morning by Z. w. Libby, chief
clerk of the Department of Commerce.
News photographer were on hand TO
record the event-marking realization of
the last of President Hoover's recon-
mendations to Congress for depression
relief.
Several preliminary conferences we're
held by a majority Of the board men,
berS prior to the arrival here last night
Of BodfiSh and Best, who are officials
of the United States Building & Loan
League. c. Clifton James Of this city,
past president of the league, wit
messed the induction into office Of the
board members.
Chairman Fort, in his first interview
with the press after the induction cere-
mony, said the board would facilitate
of the home loan credit
system and predicted that it would be
within reasonable period.
We hope we can ease the mortgage
situation IN this country, the former
New Jersey Representative added.
To Halt Foreclosures.
The board expects to accomplish
this through the regional banks, which
will lend money to home loan institu-
tions in return for home mortgages
which the loan associations and banks
need 10 Hquidate in order to carry on
business. This, it is contended. will re-
suit in relaxation of credit to home
owners and prevent thousands of
threatened foreclosures.
1t was indicated here today that sew
eral building and loan associations OF
Washington are planning to subscribe
to the stock of the Home Loan Bank
System, as provided in the act as part
Of the plan for making the loan fund
Of the new banking system available.