Evening star., 1934-11-17

/ terest rate on such loans will be S
per cent. This rate will reduce the
cost of small homes and stimulate
home buying and building. The need
for new construction in many sections
of the country Is becoming acute. The
actual shortage of homes today Is
placed at as low as 750,U00 and as high
as double that figure. 1t is estimated
that not more than $4,000 ZONES we're
built in the United States last year.
The new building machinery of the
housing act was not expected to start
turning until January /, 1895. at the
earliest. But James A. Moffett.
housing administrator, has actually
started operations in that field two
months ahead of schedule, and the
Guaranty Trust Co. of New York. the
worlds largest institution dealing in
mortgages, recently made the first ap-
plication for approval as mortagee
under the terms of the act. Other
important leading agencies will soon
follow suit and within comparative
ly short time many loans for new
construction should be granted.
The home repair and improvement
phase of the program, however. is al
ready well under way. Definite re-
suits are visible in communities all
over the country. The 20 per cent
guaranty against loss on the total
loans made by lending agencies for
such work is the vital cog in the home
improvement machinery. II is as nee
essary to its proper functioning as
gasoline is to the operation of an au-
tomobile. 1t should ultimately make
81 ,000, ,000, 900 available from private
agencies for financing alterations. re-
pairs and improvements on all types
of property.
S2,000,0O0 Daily.
1t is estimateo that a total of
100000 is now being spent daily
on building modernilation and re-
pairs throughout the country. Cleri-
cal workers compose the largest group
of property owners so far applying for
such loans. The average loan is in
the neighborhood of $3.50. Interior
decorating, heating and outside
painting work arc the most prevalent
types of Improvements under way.
The possibilities of Turing millions
Upon millions of dollars back into
circulation through this program are
tremendous. Modernization cam
paigns in IS cities have resulted in
an average expenditure of $943 a per-
son on the basis of the 1880 population.
Philadelphia 1888 home improve
men program resulted in expenditures
totaling $2l 100000 or sll a person.
In Minneapolis, the total so spent
amounted to as much as $3.50 a per-
son and in Providence and a group of
surrounding cities to sl1 SO a person.
While many lines Of business and
industry are showing improvement,
activity in the so-called heavy" in
dustries is still tagging. Industries
producing cement, iron. steel. lumber
glass. copper. bricks, etc, come under
that heading.
If home owners and lending
agencies fully cooperate to hasten
needed repairs and Improvements in
hundreds Of thousands of homes the
building industry will again become
active. Not only building workers
but those normally employed in the
heavy industries mentioned will be
called back to work. This will mean
more business for the railroads,
steamship and trucking companies.
All Lines Benefit.
The electrical. machinery and paint
industries will step up their output to
meet the increased demand for their
products. Eventually all lines of busi-
ness will benefit by the increased pur-
chasing power Of workers shifted
from the relief rolls to private pay
rolls. AS the number of the unem-
ployed is reduced, the crushing tax
burden now required to support them
will be sharply cut. This will allow
business and industry to devote to
wages and expansion money now
needed to pay excessive taxes.
The millions taken off the dole will
again engage in constructive and pro-
ductive work. Any marked increase
in the productivity Of our basic indus
tries and the resultant Unemployment
will greatly stimulate the desire and
need for new homes and business
buildings.
Where property is devoted to busi-
ness, improvements will pay for them
selves in attracting new customers.
holding old ones and increasing eff
cheney. Landlords will find that i'm
provement to their properties will JUS
tify higher rents. Homes so repaired
will bring higher prices if their own
ers are forced to put them on the
market. Real estate values will i'm
prove on all classes of property.
How can home owner obtain
money under the housing act to re-
pair leaky roofs, install new heating
plants, electrify houses, put in new