Evening star., 1934-09-19

ministration already had its home and
commercial building rehabilitation pro-
gram underway and said it was a
great opportunity for the men in the
building industry for service and
profit. THE big drive is underway"
he said, the Government calls on
you for your help. If your local agen-
cies are not functioning properly write
to Washington. Thousands OF the
banks of the country are cooperating
and their response has been very graf
flying. What is needed is confidence.
Don't expect your ship to come in If
you have not sent one out"
Mr.. Waller explained that the hous-
ing act is divided into three parts.
Part one is to create credit for charac-
ter loans, for the alterations, repair
and modernization of improved real
estate Parts two and three will make
funds available for new-home con-
struction and the ref1nancing of exist
ing mortgages on a long-term basis.
Details governing home mortgage in
surance will be available the latter
part of this year. He added:
The moderniZation credit plan Is
very simple. The Government insures
lending institutions approved by the
Federal Housing Administrator.
against losses which may be incurred
by them, by reason of having loaned
money for improvements to property
under the Government plan.
Under this plan reputable owners
Of real estate can go to an approved
financial institution and arrange a
loan from Sl00 to $4,000, to be repaid
monthly in from one to five years.
The borrower must agree to spend the
proceeds of the loan exclusively on
his property. The only other require
ments are that the applicant have an
income of five times the annual pay
ments on his note and that he is in
no danger Of losing his property
through foreclosure or other liens.
I'm order to assure the success Of
the better housing program, it is nee
essary to have the whole-hearted CO.
operation of lending institutions, man.
ufacturers, merchants dealers and the
general public. The response from
the bankers has been especially graf
flying. Although lending institutions
are practically required to set up spe-
cial departments to handle moderni-
zation loans, more than six thousand
financial institutions with assets OF
over thirty billions have been ap-
proved for insurance by the Federal
Housing Administrator, said the
Washington financier in conclusion.
Huge Investment Buying.
Evidence of the large investment
demand for securities, which has not
been hampered by regulatory measures
tending to restrict trading and the
issuance of new securities, is shown by
the fact that approximately 1922
100000 of securities were bought dur
ing 1888 by a group of 816 insurance
companies, according to figures taken
from the 1884 edition of Poor's In
surance Co. Purchases and Sales, just
issued by Poor's Publishing Co.
Purchases of the four largest buyers
amounted to S547 7,905,877, or about
"a times the amount of their pur-
chases in 1882, with the Prudential
Insurance Co. of America ranking as
the largest individual buyer during
1888, its purchases aggregating $188,-
77O,361, compared with $73,596,599 in
1882.
The Equitable Life Insurance Co. is
second with 136,426, 1892, against $26,-
416.596. The Metropolitan Life In
surance Co. is third with Sl21 ,876, ,739,
against $107,412,226, and New York
Life Insurance Co. fourth, with pur-
chases amounting to s1O0,83l. .784,
compared with S35, ,368,044.
The 1894 edition shows that among
the insurance companies there were
approximately twice as many buyers
of United States Government issues
during 1888. as there were sellers. with
the same ratio holding true for State
and municipal issues.
Institute Ahead of 1888.
Registrations in Washington Chap
ter. American Institute of Banking,
are better than last year, according
to first reports of enrollmentS which
are going on during the present week.
Institute headquarters in the Bond
Building now are open every evening
with chapter officials and teachers
present to help prospective students
in the selection of courses.
More than 100 registered during the
first two nights. Only part Of the
classes have started so that this num-
Der will be nearly doubled during the
next few days. Indications are that
the Fall attendance will pass the 22o
mark This will be head of last year.
Oficials we're enthusiastic today
over the outlook. j. Earle McGeary,
chairman of the Educational Commit
tee, and Walton L. Sanderson, chapter
president. expressed great satisfaction
over the results of the educational
campaign which has been carried on
In all of the banking institutions.
Traction Bonds Very Strong.
Capital Traction SIS were very strong
again today, the market opening with
five $1,000 sales, all made at 90.
Later in the session $500 more sold
at 90k, the highest price in the last
five years.
At one time these bonds were down
as low as 80 and in 1888 they sold
down to so. Their comeback has
aroused wide comment among invest
ment dealers in the financial district.
Their recent steady advance has put
them back in the investment class.
Washington Gas SIS, 1860, also were
strong today, registering $500 sale
at 1091a. The rest of the trading was
In stocks. Mergenthaler Linotype
moved at 22%. Capital Transit Co.
stock came out at q, another new high
mark.
No statement has been issued, but
hints from the Treasury indicate that
some definite recommendations for a
more uniform system of bank exam
nations will come out of the recent
conferences among Government Of
f1cialS.
The question of severe bank examin-
ing practices came in for lot of dis
cussion at the meetings here of the
Federal Reserve Systems advisory
council, which has just concluded a
two-day sitting.