Evening star., 1933-08-12

Associated with the work Of the
Home Owners Loan Corporation Is the
tendency in several parts Of the coun-
try to create q mortgage moratorium.
in order that property which is in
danger OF foreclosure may be saved
while the Government system is being
put into full operation. Practically all
mendous task of saving the homes Of
the country. Its magnitude is indi-
Gated by the statement from the Rock
ford Register Republic that Govern
ment estimates place the number Of
urban dwellings in the United States
at 100000 while cit is believed that
approximately one-half Of these have
mortgages outstanding against them" "
As evidence that relief is under way,
the Philadelphia Evening Bulletin
points to the case Of q piece Of prop
erty in its own city. owned by Q
woman who was Struggling against q
sellout for taxes" 1t records that "the
appraisers found the home was worth
saving, the owners plea was deserving !;
unless unforeseen obstacles appear, she
Is going to have a chance on her
credit for honest endeavor" The con-
ditions under which the work will pro-
ceed are presented by the Norfolk
that ut is too early to estimate the
benefits Of the home-loan experiment,
but. given liberal cooperation by
mortgage owners. it may work q large
measure Of relief; without such coop
Grafton its good effects will be limited"
The proposal for q State moratorium
on foreclosures. from Gov Lehman of
New York, Is interpreted by the Rut-
land Herald as indicating that Uncle
Sans Home Owners Loan Corporation
does not work quickly enough to suit
him. and that the need of relief in
that direction is serious and impor-
tant." The Rochester Times Union
views the New York proposal as "fair
and reasonable" and makes the COM
ment: "A law drawn in accordance
with the recommendations to the
Legislature would not permit the owner
Of the equity in the property to disre-
gard payment Of taxes and interest
But 1t would bar foreclosures based
upon demand for reduction or complete
repayment Of the principal until ex-
piration Of the moratorium period on
May l, 1894. To permit disregard OF
tax obligations would conflict with the
need for public revenue. Non-payment
of interest would be depriving the
holder of the mortgage Of his Just re-
turn. With these limitations the pro-
posal appears one which would serve
the public interest by protecting home
owners in this difficult period"
While warning against the danger
that persons who have borrowed
money will lose the sense Of personal
responsibility" the Salt Lake Deseret
News declares: Highly commendable
Is the agreement of financial institu-
tions of Utah to declare q truce on
foreclosures for 90 days. Within that
time 1t Is hoped that the two great
Government agencies for the relief OF
urban and farm home Indebtedness will
be functioning and the worst Of the
foreclosure evil can be mitigated."
An obstacle is reported by the To.
peka Daily Capital. with the decision
Of district judges in Kansas that q
moratorium resolution Is unconstitu.
tionAl. The Capital comments on the
decision: Presumably the question viii
be taken to the Supreme Court and. te
say the least. there u q strong probA.
bility that the higher court will sustain
the opinion Of the lower court on thu
ground that right Of redemption u Z