Evening star., 1932-08-29
j. s. ALREADY FEELS
HOME LOAN RELIEF
Fort Ayers Credits Eased
as Drive Opens for
Subscriptions.
BY the Associated Press.

BY the Associated Press.
Franklin w. Fort, chairman of the
Home Loan Board, said today there
had been a noticeable easing of the
mortgage situation in the face of de-
veloping plans by the board to put the
systems IL banks in operation.
The board was working out arrange
ments today for opening the capital
stock subscription books in the various
districts and was considering ap-
pointees fer the IL banks directorates.
Fort said the hope that the setting
up of the system would revive demand
for mortgages as investments already
was materializing.
Many Still in Trouble.
ALREADY there has been a relaxa-
ton of tension of mortgage money"
Fort said, adding, however, that there
were thousands of cases" of mortga-
gors in difficulty.
A S128,O00,000 sales campaign. upon
which will depend the amount of Fed
eral subscription to the home loan
banks, today was begun by the system S
directing board.
Chairman Fort was hopeful the en-
UAAC o66i iC6oOC NoPAeoA ea~o-
signed to the IL banks in as many dis
tricts-will be subscribed by institu-
tions eligible for membership in the
system. These are building and loan
associations, insurance companies and
savings banks.
But if subscriptions fall short the
Reconstruction Finance Corporation is
authorized to buy up to $125,000, 900
of the systems capital stock.
The first step in the sale of stock will
be the opening of books for subscrip-
tions to eligible institutions in each dis
trict. They must remain open 80 days.
Original subscriptions for each of the
dozen banks must equal l per cent of
the aggregate unpaid principal Of the
subscribers home mortgage loans, but
not less than $500 to each eligible
member.
Par Value Is S1O0.
Shares will have a par value of S100
each. The amount to be subscribed in
each district and the headquarters of
that district are:
District Cambridge, Mass; capital,
District 2-Newark, N. j.; capital,
District 3-Pittsburgh, capital, $l2,-
500, 1000
District -Winston-S Salem, N c.;
capital, S10,OO0,0OO.
District 5-Cincinnati, capital, S15,-
100000
District g. indianapolis, capital,
SO, ,00000
District 7-Evanston, ILL.,; capital.
SIS 100000.
District 8-Des Moines, capital,
$7,5o0000
District 9-Litle Rock, Ark; capital,
100000.
District 10-Topeka, Kans.; capital,
81 500, 900.
District l1-Portland, Greg; capital,
$4,000, 600
District 12-Los Angeles, capital
$40 100000.
To keep hard-pressed home owners
from losing their property until the
home loan banks begin functioning,
about October IS, the board has
launched move to suspend for go days
foreclosures of mortgages held by
closed banks.
Banking authorities of approximately
half the States have assured the board
of their cooperation, and the suspen-
sion already has been ordered so far
as national banks are concerned.
Decides District Lines.
1t was the amount of mortgages held
by institutions eligible for membership
that decided the geographical locations
Of the dozen home loan bank districts
and the amount of capital for each in
! stitution.
The biggest bank will be at Newark,
N j., serving New York, New Jersey
| Porto Rico and the Virgin Islands and
capitalized at $20,000,000 The board
| said that in this area mortgages held
| by institutions eligible for membership
amount to $9,500,000, 900.
Washington is in district 4. which
takes in Maryland, Virginia, North and
! South Carolina, District of Columbia
Georgia, Alabama and Florida.