Evening star., 1933-04-22
Home Mortgage Plan Placed
Among Costly Enterprises

1t is testified that many home owners
of the country are in need of the relief
that would be provided under President
Rocsevelt's plan tor mortgage aid in
connection with such ownership. It is
also estimated that there is a possibility
of the expenditure of large amounts on
such relief, and the success is believed
to be dependent on the approach to the
individual cases and the caution shown
by the Government officials in charge.
1.-The Presidents program of economic
and social restoration" in the opinion
of the Charleston (S c. Evening Post,
has come none too soon to the security
of the small owner of home. in his
possession of this essential to the family
life upon which our whole scheme of
society is based" The Evening Pest
states that the measure seems sound
enough and will prove greatly beneficial,
provided it be so administered as to
extend assistance only to those who are
actually staggering under mortgages or
are about to lose their property"
1T is possible that the whole plan
will stimulate considerable refinancing
without recourse to Government aid"
thinks the oakland Tribune with an
explanation of the plan: The main
item offering relief is that which pro-
vides for the exchange of mortgages
for Federal bonds at 4 per cent interest.
The investor whose money is in mort
cages abcut which he may have reason
to be doubtful thus will have bonds the
interest upon which is guaranteed by
the Federal Treasury. The home owner
will be reflnanced, starting of new, and
with lower interest rate, per cent, in
addition to protective provision which
permits him, in cases of extreme need,
to postpone both interest and principal
payments. 1t would seem obvious that
there will be a great number of persons
in both cases who will eagerly accept
the opportunity"
Its simplicity and its soundness are
its great virtues" advises the Rochester
Times Union, while the Cleveland News
believes that 1T should relieve the wage
Garner OF the worry incident to the
possible loss Of his home through lay
offs or curtailed income" The Tcpeka
Daily Capital calls it "an experiment
worth Undertaking" while the Nashville
Banner sees reason for the system be-
cause many owners negotiated loans
four or five years ago, before the depres-
sion began, and find increasing diff,
Guilty" The Portland Oregon Journal
comedies that new plans fer national
policy amaze and startle many an ultra
conservative, but change Is ordained as
a part of destiny"
Reduction of the mortgage burden,
where it is beyond the power of the
mortgagor to carry it," says the Phila-
delphia Evening Bulletin, ''is generally
approved. but the procedure ought to
have careful consideration" The Bull
letin also points to the existence Of
building and loan organizations, but
tressed by the Federal Home Loan
Banks, and suggests that "it is not clear
that there is greater service under the
new plan than might be had through
the perfected operation Of the old"
The Sioux Falls Argus-Leader declares
that "the credit of the United States
Treasury Is not inexhaustible and it
can be strained to the breaking point. {"
The Salt Lake Deseret News sees the
danger Of "socializing the farm and
home mortgage investment field" This
view is taken also by the Lincoln State
Journal, while the Port Huron Times
Herald emphasizes the fact that this
is purely emergency and temporary
measure" The Fort Worth star
Telegram agrees that "the wage Garner
struggling to cling to an equity in a
home IS one of the most worthy OBJ
jects of relief anywhere on the eco
nomic horizon" but adds that under
millions of such circumstances, the
problem is appalling"
There will be substantial unanimity
in, the country in support Of the pur-
pose," states the Spokane Spokesman
Review, "but with considerable division
as to the plan of approach" The