Evening star., 1933-07-08
REALTY OUTLOOK
BRIGHT IN CAPITAL
Presidents Steps to Settle
Job Middle and Bank Mer-
ger Situation Helpful.

President Roosevelts intervention in
taking steps to settle the job muddle
in so far as it concerns District and
Federal employees, and the imminent re-
lease of $11,000,000 in bank accounts
through the Hamilton National Bank
merger, should remove the last two
major obstacles to rapid and complete
recovery of the local realty market.
the Washington Real Estate Board said
in a statement today summarizing con-
d;tions in the local realty field
The extent of damage to local busi-
ness interests directly traceable to the
uncertainty which for months has
hedged the status of more than $4,000
resident Federal workers is almost in
sis This, with the abrupt impound-
ing through banking difficulties of more
than $32,0OO.O00 of the working or
quick turnover funds of the city
virtually nullified even the most heroic
organized efforts at economic recovery
along any other lines
Now, however, that the President
has centered his attention on the local
Federal employment phase of the re-
organization program. and the neces-
sary subscriptions to reorganization
have been made and only the volumi-
nous details incident to the merging
of eight banks into one remain, it
would appear that the way had been
cleared for an orderly and swift ad-
vance along the entire real estate busi-
ness front"
While frankly dealing with problems
which for more than three years have
bedeviled the local realty field, the
boards summary is decidedly optimistic.
In spite of the tremendous pres
sure of national and international al
fairs since March, Washington, largely
due to efforts of the newly organized
Washington Taxpayers Protective AS
sociation, can point to notable
achievement in tax reduction.
The Importance of this cut in the
tax rate has apparently been under
estimated by the general public. This
reduction of more than IL per cent,
together with the accompanying slash
IN assessments on every parcel OF DuSl.
ness property west of Sixth street ana
north of PENNSYLVANIA avenue, and on
much residential property as well,
means in many instances the differ
ence between paying and losing in
vestment 1t means assured tax pay
ments to the city and added insurance
to the mortgage holder. 1t represents
increasing returns for all investment
properties and is a powerful argument
for the restoration Of confidence In
the future of Washington real estate"
Of the local employment situation
the analysis says:
while assurances repeatedly have
been given that only relatively small
number of resident governmental work
ers would be discharged under the
budget balancing reorganization OF
personnel plan, the uncertainty as to
where the ak would fall threatened
to demoralize the entire army of Fed
eral employees The situation almost
automatically paralyzed from 40 to SO
per cent of the Districts buying power.
I'm consequence many negotiations
for the purchase of homes and the
leasing of apartments were abruptly
terminated while buying. saving for
the most pressing need, ceased.
Although no details Of plans de-
signed to allay this widespread fear
of dismissal have been announced in
any authoritative quarter. knowledge
that the President Is at work on the
problem already has had most whole
some effect.
ITO date some 4,300 local Federal
Jobs have been vacated. In certain
Instances this has meant merely the
transfer of workers from one bureau
to another. In fact, more than 1000
of the old rank and file employees have
been taken care of in this manner. a
check-up made by labor organizations
discloses. Recently the heads of sew
eral executive departments announced
that arrangements were being made
to give all competent. discharged work
ers first consideration for re-employ-
ment in newly created bureaus. In
addition, it is estimated that in June
alone the creation Of new recovery
agencies provided posts for approxi-
mately 1900 fresh workers in Wash
ington. Moreover, as the recovery ma
chinery gains in momentum. hundreds
and probably thousands of positions
will be created in the Capital, adding
to the local pay rolls and proportion
ately increasing buying power.
1T is certain that there is nothing
in this situation to support anything
other than the most sanguine hopes
for the future, and there are already
evidences that realty interests are al
ready beginning to profit by this re-
turn Of confidence"