Evening star., 1933-11-30

into service wherever they can possibly
be used and no effort Is being spared
| to speed up. With the patience and
assistance Of home owners who have q
right to consideration and the cooper
alton Of the banks and other mortgage
lenders, 1t Is hoped that this important
feature Of the recovery program will
presently be making new records.
Strides Made In Closed Banks.
Within the last two weeks the cor
poration has been able to make great
progress in dealing with home mort
cages tied up in closed national and
State banks. / Loans against homes
amounting to over 5000, 1000 900 are in
volved in the affairs of these banks.
In co-operation With the controller OF
sioners and the Reconstruction Finance
Corporation, the Home Owners Loan
Corporation IS now taking over these
! mortgages. 1t is giving its bonds In
exchange for the mortgages and the
Reconstruction Finance Corporation
will promptly advance 80 per cent in
cash against the par value Of the bonds.
This will enable banks which are be-
ing liquidated soon to pay out large
sums In cash to depositors to the great
advantage of thousands of cities and
towns. The Reconstruction Finance
Corporation is already taking over
large numbers Of these mortgages in
block and advancing cash against them
in order to save time while We pro-
coed with the slower work Of making
appraiSals and examining titles. Not
only does this process release large
amount Of money for general use, but
the plan will bring relief to many
| thousands Of home owners who were
otherwise in danger Of foreclosure be-
cause Of the obligation of bank re-
| ceivers to collect loans held by closed
banks. It is not difficult for any
thoughtful person to appreciate the i'm
mense opportunities for help to the en-
tire country presented by the opera
tions of the Home Owners Loan Cor
! poration. And yet 1t is but one unit In
the great constructive program COM
prising the efforts of the Farm Credit
Administration, the National Recovery
Administration. the Public Works Ad-
ministratior, the Agricultural Adjust
ment Administration, the Commodity
Credit Corporation, the Civilian Con-
servation Camp. the Civil Works Ad-
| ministration, and the Reconstruction
Finance Corporation. This great net
| work Of interlocking activities closely
| related to the regular Government de-
partments and driving ahead in so
many directions to defeat depression, is
| so inclusive and compelling that COM
| paratively few Of our citizens really
comprehend its significance and power
The home owner in common with all
the rest Of our people Is affected by and
| concerned with every one of them.
Future Building Is Planned.
Your Government Is interested not
| alone in saving from foreclosure every
| home which this corporation can deal
with under the act, but 1t Is also In
| terested in helping people to build new
| homes in the future. With this end in
| view. it incorporated the home loan act
provision Tor the development Of Fed
eral Savings and Loan Associations in
| those sections of the country which do
4 not now enjoy the advantages of such
associations. Practically half the
counties Of the United States have no
such associations, through which people
may accumulate their savings and ac-
| quire their homes on an economical
| basis. Many counties which already
4
insufficiently served The opportunity
| for their useful development Is very
great and the Government has made a
liberal appropriation to aid and en-
courage their establishment. 1t is also
| prepared to subscribe on an attractive
basis half the necessary capital to start
such associations where the need exists
Unfortunately. there is not time to ex-
plain to you in greater detail the ad-
| vantages and the necessity for the de-
! velopment of these constructive associ-
ations. Every community which does
not have them and can support them
i should organize to develop them at the
earliest possible. date. If you will
write to the Federal Home Loan Bank
Board in Washington, full information
will be sent to you. and every possible
assistance will be given in forming as
sociations in localities where the need
exists and where there will be no con-
fict with existing organizations now
able to serve the community fully.
I wish there was time to tell you also
something about the great mortgage
discount bank system, the Federal
Home Loan Bank, which. built along
lines similar to the Federal Reserve
System, is in a position to render great
service to the country in expanding the
|