Evening star., 1932-10-13
FORT SEES HOPE
FOR HOME OWNERS
Loan Bank System Offers
Huge Fund at Low Rate,
He Tells Trade Board.

A graphic picture of how the Fed
eral home loan banks will be able to
fill the gaps in the existing home
finance system of the country was
drawn last night by Franklin w. Fort,
chairman of the new financial agency,
in an address before the first Fall meet
ing of the Washington Board OF Trade
at the Willard Hotel.
When the II regional banks OF the
home loan system start operating sat
urday huge new reservoir OF credit AT
low interest rates for long-term use VII!
be opened for the immediate benent OF
home owners, he explained.
Through funds placed first at the
disposal of the ajor mutual lnStltu-
tions already established in financing
the purchase of the Nations dwellings.
the home loan banks will come to the
rescue of the home owners who face
foreclosure only due to the current IN
suf1iciency of available credit.
Young Worker Aided.
The influence Of the system will ex-
tend beyond this point, however, he
brought out. In keeping with its pur-
pose of strengthening the business OF
money lending, 1t will enable the young
worker to provide a home OF his own
for his family by making available
necessary long-term loans at lower In
terest rates, ha declared.
Mr. Fort revealed also that the tnstl-
tutions funGs would be made avail
able for use for new construction as
we'll as for financing purchase OF those
existing.
He brought out also that the national
agency would serve to carry home
finance funds to areas beyond the
Eastern border of the country, where
adequately supplied.
The general effect Of the operation Of
the banks resulting from greater feel
ing of security on the part Of the home
owners, the speaker indicated, should
be a restoration Of faith in recovery
and in the future
The gathering of more than 800 busi-
ness men also was told OF plans for the
forthcoming budget campaign of the
Washington Community Chest and of
the annual roll call of the American Red
Cross, which this year will be conducted
during the same period
NeWbold NoyeS, general chairman OF
the Community Chest Campaign Com
mittee, outlined the plans to raise the
budget requirement of S2,400,000 for
tOll IlCOdJ oulLl6 15oA
F. Gates, national publicity director for
the American Red Cross, told of the re-
lief afforded by that organization and
the needs for the new year.
The budget has been set after care
full study of the actual requirements OF
the IS agencies affiliated with the Chest,
and with due consideration of the fact
that many contributors to the Chest
have suffered reductions in incomes,
Mr.. Noyes said.
At the same time, he emphasized, the
1888 need is more distressing than last
year. While there are evidences that
the bottom hss been reached in the
economic depression and recovery is
we'll under way, he declared, it must be
remembered there always is lag be-
tween business upturn and tightening
in the calls for relief
"Giving by the Day."
Appealing for the most generous pos
sible gifts from contributors, Mr.. Noyes
pointed out that the order OF the pres
ent dav does not require families to fol-
low the former mode of keeping up
with the Joneses" in their personal ex-
penditures. Pointing to the reductions
in the cost of living, the speaker de-
clared a proper understanding OF the
distress that will prevail this winter
would mean larger gifts by Chest con-
tributorS.
Outlining campaign plans Of the
Chest organization, Mr.. Noyes illus
trated the "giving-by -the-day" plan for
contributors, showing that mere do
nation of 10 cents per day would mean
the use of $3.50 over the year for the
benefit OF Washington's needy.
Ben T. Webster. president OF the
Board of Trade, pledged the support OF
the large membership of the trade body
to both campaigns.
An outline of the benefits and social
obligations for the adoption Of the
Share the Work" movement for relief
of the unemployed was presented by l.
C. Walker, president OF the Shaw
Walker Corporation, who is vice presi-
dent of the Federal Reserve and Indus
a national scale.
Figures Presented.
Mr.. Fort presented a general outline
of the method of ftlnctioBing OF the
Home loan banks, dipping into figures
now and then to illustrate principles
To show the power Of the calculated
force of the operation of the system. hi
explained that in addition to the funt
Of s125,000,000 appropriated by Con-
gress. the banks are empowered to issue
bonds making available a reservoir o.
$l.500O00 900.
These bonds will have the greatest
measure of security back of them of any
investment bond, standing second only
to those issued by the United State.
Government, he said BY the require.