Evening star., 1932-08-08
First Formal Meeting of New
Board Will Be Held
Here Tomorrow.
MAY BE
IN COMMERCE BUILDING
DR., Cries Explains How System
Will Work Out for Owners
Pressed for Ready Cash.

Federal machinery for the relief of
| home owners of the Nation was being
rushed into form today at informal
conferences preliminary to an inaugural
meeting here tomorrow of the new Fed
eral Home Loan Bank Board
Already besieged with appeals for aid
in stemming the rising tide of mort
gage foreclosures in various parts Of
the country. Chairman Franklin w.
Fort and two of his board colleagues.
appointed Saturday by President Hoo
yer, were in consultation behind closed
! doors today at the Department of Com
merce.
Prior to the conference DR.. John M.
/ Cries, chief of the division of public
/ instruction of the Commerce Depart
ment, who is one of the five members
of the board, said the headquarters Of
| the organization will be in Washington.
/ probably in the new Commerce Build
| ing.
Adams Joins Conferences.
| Nathan Adams, Texas Democrat
named on the board, took part in the
! discussions yesterday and today. The
initial meeting of the full board was
deferred until tomorrow morning, pend
| ing arrival of the two remaining mem
bers. William E Best, president, and
H. Morton BodhSh, executive manager,
| respectively, Of the United States Build
ing & Loan League. Best is on his
way here from Pittsburgh and Bodfsh
is coming from Chicago.
! DR.. Cries said the board tomorrow
will make organization plans and map
out its agenda. The first big task of
the board is the establishment of from
! 8 to II Federal home loan districts,
in each OF which will be set up a Fed
! eral home loan discount bank. The
number of districts within the limits
fixed by law will be decided by the
board. These regional boundaries pos
slbly may be made to coincide with the
existing Federal reserve districts, of
/ which there are I2
How the home owner who has lost
his job and has fallen behind in his
mortgage payments, taxes and repairs
may reap benefits from the new loan
system was explained today by DR..
Cries.
Could Increase Mortgages.
Suppose the mans home is worth
So,0OO and he owes $4,000 on it," DR..
!
the plan. He has fallen behind in his
mortgage payments. owes taxes and his
mouse is in urgent need of painting. He
! can go to his loan association and in
! crease his mortgage to $500 or more.
/ thereby obtaining the cash with which
| 10 orlng his payments up to date. paw
ms tax Dill and paint his house"
| heretofore, loan institutions, swamped
| WIN unprecedented Withdrawals of
| FUNDS and IN need of cash reserves. have
| DeSn pressing home owners to discount
| tnelr mortgages. Renewals have been
! denied N many cases, due to the tight
ness OF the credit situation. The home
| loan banks will place at the disposal of
| Such institutions funds designed 70
| loosen up credit and ease the mortgage
! situation
Inc new regional banks will be capi-
tallzed at S5,000,000 each, as a mini
mum, with boards of directors com
| posed OF IL residents of the bank area
Two OF the directors will be chosen bv
the Federal board and the others by
loan institutions having membership in
, the Federal Discount Bank. The
| regional banks will issue shares of s1OO
par value to raise funds with which to
| come to the aid of loan associations
and other members A Federal sub
Scrlpt1on by the Reconstruction FL
nance Corporation not to exceed SI25.-
! 100000 is authorized, but this subscrip-
| ton, 1T is hoped. Will be retired as
puoIlc subscriptions come in.