The midland journal. (Rising Sun, Md.) 1885-1947, 1933-07-21
by William Bruckart

/ the bonds is somewhat better than
average when it is remembered the
interest will be paid by the govern
ment If not otherwise. The mortgage
holder obtains long term bond, he
is freed from the necessity of making
advances to keep the property in
shape or pay taxes, etc., and he takes
only the usual chance on the princi-
pal.
Now, from the standpoint of the
home owner, there is the probability
that the home owners loan corpora
ton will be more lenient in the matter
Of enforcing the terms of its mort
gage by foreclosure, which it would
have the right to do. That ought to
make home owners feel more secure.
The mortgage holder has another
alternative. He may borrow up to 40
per cent of the value of the property
and give the home owners loan cor
poration his mortgage as security.
When the home owner seeks to
use the home loan act privileges, he
gets benefit in the
Nav Rum shape of postpone
1S Yeor. ment Of the matur-
ity date of his debt.
That is, there is new mortgage writ
ten and it may run as long as fifteen
years. In addition, if the home own
ers' loan corporation agrees, the home
owner may be allowed what amounts
to a moratorium in the payment e
either the interest or any installment
on the principal That gives the home
owner a breathing spell so that If, for
example, he is out of job but his
reputation for paying his debts is
good, it is not necessary for him to
lose his home.
Then, the home owner can obtain
funds from the corporation without
the necessity of paying commission
to anybody, and say what you will,
these commissions for obtaining a
loan are a burden. The law makes
sure there will be no commissions
charged by making such an act a
crime.
Another available benefit is pro-
vided for the home owner in the pro.
vision allowing him to pay off a part
or all of his mortgage with bonds
of the home owners loan corporation.
It may be readily seen that II by
any chance the bonds Of the corpora
ton should sell below par. borrower
might be able to buy the bonds. say,
at IS per cent of their value and turn
them in at 100 per cent. OF course,
everybody here connected with adj
ministration of the act insists that
the bond price will never fall below
par, yet there are some who think
that condition may eventuate.
/ hope in a few weeks to be able
to discuss the set-up arranged by the
home owners loan corporation by
which home owners can take advan-
tage of the legislation's terms. The
machinery is being created slowly
and it is obvious why that is so be-
cause there will be two agents of the
home loan board in virtually every
county of the nation. They will be
the point of contact for the individual
home owner and it will be from those
agents that all necessary details can
be ascertained and with them that
individual problems may be solved.
The farm loan structure is some
what further advanced. There was
some machinery already in existence
for use under the terms Of that law
and Henry Morgenthau, Jr., the farm
credit administrator, is getting things
in shape so, that his organization soon
will be making loans on farm lands.
We have Just witnessed the United
States treasury adopt a new system
of reporting its con-
NeU Treasury ditiop. 1t is required
c.... by the Constitution
and by law to make
public a statement of its receipts and
expenditures, and a daily statement
of these items has been issued con-
sistently for many years. Now, how
ever, the statement has appeared In
a new suit of clothes, and an explana-
ton of why this has been done ap-
pears to be important.
For the first time in the history Of
this government the treasury actually
is running a double budget system.
That is, it is segregating in one set
of accounts all of the regular ex-
penditures such as salaries and ordi-
nary running expenses. In another
set of accounts, it is listing the so
called extraordinary expenditures. In
these items are the long list of relief
payments, the emergency construction
expenditures, the payments to farm
ers for crops destroyed. and other
outgo of a similar character.
have heard both criticism and
commentator of the new policy. Pres
ident Roosevelt has maintained that
the emergency expenditures should
not be included in the regular budget
hacauca thav arg extraordinary in