Evening star., 1933-08-19
'ONE POLICY URGED
|NA|DAND HOUSING
New York Architects Told
Social and Economic
Purposes.

A reconciliation between plans OF the
Federal Government to finance housing
and the interests Of investors is essen
tial II the real estate and mortgage mar
kets are to be saved from dislocation,
according to q report submitted to the
New York Chapter. American Institute
Of Architects, by Arthur c. Holden, one
Of its members.
r Strange to say" Mr. Holden declares.
"the relation between mortgage relief
and housing seems to be unperceived by
many who are attempting to influence
the policy Of the Government. A little
study, q little more thought, and the
social and economic purposes OF the
two divergent policies might be recon-
ciled and q single policy worked out
which would be less likely to create
chaos"
It Is natural. Mr.. Holden says, that
a storm Of protest should be raised by
the proposal to cheaper homes and at
the same time to improve their quality.
especially when it is proposed to hasten
the day by low interest governmental
financing.
Danger to Investments.
Those who have investments in hous-
ing say that their investments are
already endangered by the economic
situation" he continues They cannot,
they say, face further competition from
cheap housing financed with public
money. Let us not forget that the funds
already invested in housing include
mortgage funds which we have been
accustomed to consider the rock-ribbed
investments for trust funds. We cannot
allow these to be jeopardized. Already
the Government has had to come to the
rescue Of the situation. Through the
r. F. c. 1t has made large loans to
commercial banks. trust companies, and
to savings banks.
"In addition the Government has Gre
ated the Home Owners Loan Corpora
ton. with the power to make loans d.
rectly to small home owners for the
express purpose of releasing the invest
nent funds loaned to them on mortgages
unfortunately frozen because Of the col
lapse of the market for mortgages. and
for real estate. How the private market
for mortgages Is to be restored We do
not yet know. Events that have taken
place. including legislation respecting
moratoria, make 1t extremely unlikely
that things can even 60 on In the old
way
1T the Government Is, at the same
time. to put new funds into housing.
which from a social point Of view is
unquestionably desirable, the Govern
ment should seek to do this in a way
that will not create further disorganiza-
ton. Otherwise the Government faces
the probability of further demands for
loans to institutions to protect their
trust funds"
Better knowledge Needed.
The public needs better knowledge
of the real estate organism and real
estate needs a better knowledge Of its
functional relationship to the public,
Mr.. Holden points out.
Real estate is sometimes considered
the private concern of the comparative
ly few people who buy and sell real
property" he adds. "On the contrary.
it concerns every man. woman and
child in the Nation. In the first place
the method of administration Of land
affects all users Of land, and every one
must use land either directly or in
directly. In the second place it affects
every one who has invested savings,
whether these savings have been put
directly into home or indirectly into
lilOl tSdSc iuOuSA . odNAl6o bdAAA Va O
life insurance company.
Those who are planning to put men
to work know that great many people
suffer because of the bad housing and
because of the high cest of housing.
Hence they say let us put men to work
creating cheap housing. But when
people cannot afford to pay the price
that must be asked for crowded de-
preciated housing how can they afford
to pay for new modern desirable hous-
ipg?"