The Washington times., 1934-12-21
]. 8. LOAN CURB
FACES FIGHT.
ON HILL
By FRANKLIN G. SARTWELL

Congressional opposition, which
Is rapidly developing, to the et-
forts Of the Home Owners Loan
Corporation to go out of business
Is giving the Administration a
sorry foretaste Of the difficulties
it will encounter when, and if, it
reaches the point Of liquidating
the many recently created "emer'
gency" organizations.
Although the corporation an
nounced about month ago that
1t has spent all its money-that is,
that it had loaned it-and that it
believed it had covered the field
for which it was created, and.
therefore, that it should discon'
tinue its loaning operations, it was
indicated here today that it will
not be permitted to be the first OF
the New Deal agencies to go out OF
business.
More Loans Sought
Determined sc n tim ent has
sprung up in congressional circles
to keep the corporation going, and
going as a lending agency reach
ing into hundreds of thousands Of
homes.
This sentiment probably will
take the form of bills which
would appropriate at least an
other thousand million dollars
for the corporation to lend to
citizens desiring to preserve their
equities in their homes.
The present decentralization
program of the Home Owners
Loan Corporation, instead Of
tending to curb the inSistence Of
Congress that it continue in bust.
ness, is likely to strengthen that
insistence and result in the even
speedier passage of the bills grant.
ing the corporation more money
which it says it doesn't need and
doesn't want.
Pressure Heavy
AS long as the affairs Of the
corporation were administered d.
rectly from Washington, the cor
poration had at least the sem.
blance Of being able to Withstand
local political pressure. There
have been, Of course, claims that
it was unable to withstand that
pressure even with the central Or
ganization.
Now, however, it is spreading
its organization into so-called
regional" offices which will make
many of it's officials and en-
ployes local politicians in the COM
munities in which their offices
are located. Naturally that Is
going to bring about a lot OF
criticism. some Of which undoubtr
edly will be justified.
That wouldn't be so bad, even
from the standpoint of anti-New
Dealers, if the Corporation were
to be allowed to carry out It's own
program Of dissolution.
Loans Handled Locally
But with the establishment of the
"regional" offices the corporation,
under the plans Of some congress
Sional leaders, is to be given add.
tional money. This money will
have to be put out through the
regional offices, and that Is what
is worrying some Of those who
fear the effect Of political pres
sure upon locally appointed off,
cials Of the Corporation.
The apparent reluctance OF
Congress to permit the Corpora
ton to go out Of business accord
ing to the expressed wish Of the
Corporations leaders is taken |
generally as an indication Of the
fact that other of the existing
tending" agencies of the Govern
ment likewise will have difficulty
in going out of business even af'
ter their expressed purpose has
been fulfilled.
This, it is held in some con-
gressional circles, might lead to a
perpetuation of the present ex-
panded condition Of the Federal
Government.