Evening star., 1934-01-20
BANK To DISCOUNT
MORTGAGES URGED
BY j. s. REALTORS
Demand for Federal inStitu-
ton Renewed at Conven-
ton in Florida.
INCREASE IN BUSINESS
IN FUTURE PREDICTED
William C. Miller, Retiring Presi-
dent, Says Tide of Foreclosures
on Property Is Receding.
BY VINCENT TUTCHING.

The demand for a Federal mortgage
discount bank cropped up again this
week as the outstanding feature of the
MidWinter convention of the National
Association of Real Estate Boards in
Coral Gables, Fla.
The realtors, assembling from all
parts of the country, were given a
roseate picture of the future of real
estate by several speakers at the ses-
sions, according to Associated Press re-
ports.
The Federal mortgage discount plan
was proposed as paramount among
needs for the ultimate solution of real
estates ills. Foremost among its pro-
ponents is William c. Miller of this
city, retiring president of the national
association
Turning the gavel of authority over
to Hugh Potter of Houston, Tex, his
successor, Mr.. Miller told the realtors
that real estate is swinging back to
its place in the SUM-"
Credit Is Loosened.
Through the Home Loan Bank sys-
tenn and the Home Owners Loan Cor
poration, Miller said, well over $780,
100000 of mortgage credit has been
loosened in this country"
Through these agencies" he con-
tinued, properties being taken off a
market that was formerly glutted with
sacrifice properties and as a conSe-
quence of their activities the tide of
foreclosure has almost receded."
Urging the adoption of a Federal
mortgage discount system, the realtor
head said:
in po
dustry will not be re-employed through
any activity the Government may un-
dertake, be it ever so large. The hope
for unemployment of these men lies
in a revival of the private construction
industry and not in 4 per cent inter-
est or 80 per cent loans, but lies in
the availability of mortgage money on
q fair interest basis in an amount con-
sistent with good mortgage practice"
Reviewing State real estate taxes,
Miller said the past year has marked
the turning point in this situation. He
was optimistic over the outlook for the
coming year.
With the Government actually in
the financing business, and with banks
actually gorged with deposits which
they have not dared to lend, 1 believe
we can look to better real estate fnanc-
ing than ever Sefore." he said. He said
he believed longer term, lesser interest
rate financing was in the immediate
ofdng.
Petition President.
The n,.tional association went on
record reaffrming its previous action
that Federal mortgage discount bank
be created for perfecting the national
financial structure. The group re-
uuested that President Roosevelt grant
q personal hearing to the associations
representatives to present their plan.
Roy Wenzlick of st. Louis, technical
adviser to the N. R. A. on all real eS-
tate codes, told the realtors that al
most every phase of the present ma
tional policy would enhance the value
OF real estate.
ally by 1888 or 1889 that prices on real
estate will equal or exceed the 1925
1926 level" he said. "One cannot see
how a national policy could be de-
signed that would affect real estate
more favorably than the present ad-
ministrative policy"
His prediction, he said, was based on
the expected rise in building costs,
which would sufficiently delay new con-
struction to bring about very rapid
absorption of existing vacancies.
This absorption, he asserted, Will
first stabilize rentals and later result
in a very sudden and rapid HSe IN
these rentals. AS rentals go up, ne ex-
planned, replacement costs slmllarl1' IN
crease and all present buildings lp-
preciate in value.
Increase in Values.
The present period, Wenzlick de-
clared. "is the only guar
anteed bull market that the United
States has ever had Practically every
Government policy, even the reval-
uing of money, will bring this about
Increase in real estate values Is meVl-
table"
Walter S. Schmidt of Cincinnati pre-
sented the report of the Committee on
Mortgage Financing. He reviewed the
Baltimore convention of 1881 action OF
adopting resolutions urging Congress to
pass legislation creating a Federal
mortgage discount bank.
Edward A: MacDougall OF New YORK,
chairman of the associations Housing
Committee. presented a similar reSo-
luton asking the national body to re-
affirm the Baltimore action relative to
the discount bank.
Mr.. MacDougall'S committee based It's
plea for the discount bank on the dry
ing up of sources of loanable funds
for housing and the need of rehablll-
tation of the entire mortgage situation,
declaring tpe problem enormous in
extent" j..
Estimating the urban mortgages at
S35 900 100000, the committee report
ed approximately 81 per cent have
been aiIocated among the various lend
ing agencies, and about one-third OF
these. representing mortgage loans by
banks. title companies. mortgage COM
panies and real estate bond houses,
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