Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1934-08-31

BANKS FAVORED
BY THE GOVT
These Will Make Loans To In
dividuaIs And Others For
Better Housing
ARTHUR f. HUNGERFORD
CALLS MEETING SUNDAY

Thirty-four banks covering the en-
tire State have been approved by the
National Government as coming un'
der the Federal Housing Administers
ton Plan. These banks will make
loans to individuals, firms, corpora
tions, for use in bringing about bet
ter housing.
By far the larger part of these
banks are national banks. Mr.. Thorn
as H. Fitchett, Vice President of the
Equitable Trust Company of Balti.
more, has been appointed Liaison Of
ficer between the banks and the State
Director, Arthur +. Hunerford, Di-
rector for Maryland for the National
Emergency Council.
In order that the banks Of the State
may be acquainted with the details
of the plan Mr.. Fitchett is calling a
series of meetings in various parts
of the State. The first will be held
on the Eastern Shore at Chestertown
and Ocean City. To Chestertown will
go representatives of banks of the
four northern counties. The five
southern counties will send their
banker representatives to Ocean City.
After the matter has been present
ed in addresses, there will be an OPP
portunity for questions to be asked
and answered. Problems which have
faced the banks will be discussed. Eff
forts will be made to answer them. In
some cases, however, it will be neces-
sary to send to Washington for in
terpretations.
The banks Of Baltimore responded
promptly and Loyalty to the call Of
the Government. Eight of the larger
banks Immediately agreed to use the
Morris Plan Bank of Baltimore for
their Central Service Agency. Direct
loans to hOuseholders will be made
for these banks by the Morris Plan
Bank. They will loan money to the
Morris Plan Bank at three per cent.
In this way the Morris Plan Bank
which has a splendid credit system of
it's own, will be responsible for the
credits and collection of these &C
counts. This use of central loaning
agency will probably be adopted by
many cities throughout the country.
It is called the Baltimore Plan.
Other banks will make their loans
directly, or to contractors, supply
houses and other customers. A num-
Der of loan associations and finance
companies will also make loans direct
ly to house holders and owners of
buildings.
With Government insurance, the
loan requirements will be about the
same as though one were purchasing
something from department store
on the installment plan. There will
be no red tape. The householder will
deal directly with the bank.
The bank will loan it's own money.
In this way, the idle money which
is piled up in the banks of the coun-
try will be used to put idle men to
work, and both together will make
repairs to homes and buildings which
have been neglected for five years.
A survey shows that sixteen million
buildings are in need of repair; about
three million of them are in such bad
repair that they should be junked or
subjected to a minor building oper-
alton.
1t is estimated that half of the per-
sons now out Of work are connected
with the Building Trade or allied in
dustry. In the Spring the Govern
ment will take up the other half of
the Housing Act, which is the building
of homes.
Arthur E. Hungerford, Director for
Maryland for the National Emergency
Council, has called meeting for next
Sunday evening at six o'clock. To
this he has invited number of news
paper men for the purpose of dis
cussing the Better Housing Plan.
The meeting will take place at the
Roosevelt Hotel, and Mr.. Holcombe,
editor of the Berlin Times, will pre-
side. The news side of the Better
Housing Campaign will be discussed
Miss r. Belle Wilson has returned