Evening star., 1933-12-30
.FR|zZELL APPEALS
FOR HOME LOAN AID
Says Program Offers Real
Relief and Needs Only
D. C. Cooperation.

Striking back at critics of the Home
Owners Loan Cooperation and defend
ing its activities, Paul J. FrizZell, man
ager of the Washington branch, in a
radio address last night appealed to the
public and to mortgage holders in the
District for cooperation in the work OF
the Governments home refnanclng in
stitution in saving homes from the auc-
ton block
Enforced liquidation of real estate in
veStmentS in Washington must be
stopped. Frizzell declared, if home values
and belief in home ownership in the
Capital are to be restored.
Because l know of no other means
to stop it than through the effective
operation of this corporation" he as
serted, i earnestly appeal for the active
/ support Of all the people Of our city,
borrowers and lenders alike, so that our
community may gain the benefits the
home owners loan act affords
Depression Delayed Here.
Pointing out that the full force Of
the depression did not hit the Capital
until 1888. FriZzell said the situation
here reached its most acute stage during
! the last ~ months. Between January
and November he said, real estate FORE
tiOoulCS AL IlIC D4otI4IL lCdCllCu Gllc
staggering total Of LII, an increase of
22s over the same period of year ago
This, he asserted. ''ofers convincing
proof that situation exists which must
be corrected unless all values are to be
destroyed"
The speaker paid tribute to those
mortgage holders who were cooper
atlng, and said it is to the credit of
others that they are doing all they can
to meet the problem by reducing pay
mentS and permitting owners to pay
past due interest and taxes monthly.
etc With reduced ability to pay" he
continued. lit is seldom that an owner
| can catch up with past due items and
keep current at the same time A re-
prleVe stays the execution, but does not
remove the fear Of it,
Two Problems Stand Out.
The two major problems Of the cor
poration's Office here, Frizzell said, are
separating those whose circumstances
require assistance from those who are
| able to carry or with present obliga-
| tions but are attracted by the corpo-
ration's financing plan, and securing
the consent Of first mortgage notehold-
ers to accept the Home Owners Loan
Corporation bonds in exchange for
! their notes,
Skeptlcism regarding the value Of the
bonds is difficult to understand by those
in possession of all the facts, he said
To begin with, the corporation issu-
ing these bonds is an instrumentality
| Of your Government and there is moth
Ing in the history of that Government
that indicates 1t would sponsor securi-
ties OF questionable value. The bonds
are backed by all of the mortgages Sc
curing loans made by this corporation
throughout the United States. They
| homes and on the good faith Of their
| owners. To doubt security of that char
| acter is to be indeed devoid Of hope for
our future,
Value Attitude Hit
I'm Washington much has been made
/ about the present market price of these
bonds. 1t is no more logical to value
their worth at their price in a purely
speculative market than it is to declare
| that first mortgage notes are valueless
! because they have no market and be-
cause banks generally will not accept
them as collateral. The real market for
these bonds will develop when a sufi-
| cient number of loans are closed
, throughout the country and borrowers
begin to take advantage of the provision
IN the law that permits them To make
payments on their debt with the bonds
| at par
misunderstanding Of the bonds and
the workings Of the corporation, Frizzell
| public turns for advice on matters of
| investment, and this is seriously ham
/ perlng the work of the corporation here.