Evening star., 1932-04-09
DAWES CAN'T GIVE
HOME FINANCE AID
Realtors Stress Need to Pass
Watson-Luce Bill as
Alternative.

| Gen. Charles G. Dawes, president Of
the Reconstruction Finance Corpora
! ton, has taken the position that that
| organization is powerless to aid home
| financing, it was reported today by the
National Association of Real Estate
Boards. This makes clear, the aSsoci-
alton contends, the need for immediate
| passage of the Watson-Luce bill pro-
viding for establishment of the proposed
! Federal home loan banks.
The proposed mortgage discount bank
ing system, suggested by President
Hoover as a part of the reconstruction
| program. is designed to provide home
mortgage institutions with their own
independent credit structure, the aSSo-
citation explains.
Dawes IndorseS Bill.
Gen Dawes, testifying at length in
executive sessions Immediately following
the close of the public hearings, in
dorsed the home loan bank bill and
urged its adoption" the realtor body
reports
His statement is Of the greatest i'm
portance in view of the fact that op-
ponents of the new discount plan have
admitted repeatedly the need for emer-
gency action to unfreeze mortgage
making institutions and support home
mortgage credit, but have consistently
raised the cry that the Reconstruction
Finance Corporation should and could
do the whole job Of emergency credit
relief
The American Bankers Association,
in particular through its Interim Com
mittee of six members, has asked that
action on the home loan bank bill, as
specific relief to the small home owner,
he postponed until such time as it could
be seen what effect the Reconstruction
Finance Corporation might have on the
general situation.
The present statement of Gen.
Dawes is the more conclusive since it
comes after the corporation has had
two months of actual operation in
which to begin classification of the del
uge Of applications for loans known to
have been poured upon it by every type
of business, among which are requests
running into the millions from rail-
roads and other giant industries. for
whose relief the potential S2,000000 600
corporation fund was primarily created.
House Hearings in March.
House hearings on the bill were
opened March Is and continued through
March 80. Senate hearings were held
in February.
Representative Michael K. Reilly of
Fond Du Lac, Wis, chairman of the
subcommittee of the House Banking
Committee which conducted the hear
ings announced March 80 that the sub
committee in executive session would
study present State laws on assignability
and negotiability of mortgages and pur-
chase of stocks as now permitted to
mortgage lending institutions. In the
executive session, he said the subcom-
mlttee would try to reach a conclusion
on the question OF participation which
would be possible under the law in the
proposed system.
Representative Steagall, chairman of
the House Banking Committee, follow
ing conference with President Hoover
March II, in which Representative
Brand, Democrat, Georgia; Strong, Re-
publican, Kansas, and Luce, Republican,
Massachusetts, ranking members of the
committee, took part, promised early
action by the House upon the compile
ton of the hearings.
President Hoover has sent word to
the Capitol that he is extremely anxious
to have the bill passed"