Evening star., 1934-11-23
Proposal Also Clashes With
Ideas of Private
Capital.
L0W-COST, L0NG-TERM
HOME CONTRACTS URGED
Secretary Decries Delay of Private
Capital in Entering Build
ing Field.
BY the Associated Press.


Clashing viewpoints within the Gov
ernment and outside emphasized to-
day the prospect of momentous strug-
giles in which the winners will be de-
cided b. President Roosevelt, by Con-
gress, and perhaps by the direction of
the business curve
For the moment, at least, housing is
the rock on which waves of opinion
break most sharply. Secretary Ickes,
Public Works Administration chief,
has just outlined the possibilities of a
housing g-for-recovery campaign which,
in several respects, is strikingly diff
ferent from the drive being conducted
by James A. Moffett, housing admin
iStrator.
Ickes, speaking of potehtialities ami
not Of sure thing, indicated his be-
lief that P. w. A. could hasten en-
ployment and help exercise the mort
gage bugaboo by pouring out large
sums on new and inexpensive houses.
He spoke of long-term contracts di-
rectly between the Government and
the home owners. with interest of 8
per cent.
Business Spokesman Oppose.
Many spokesmen for business and
banking oppose the idea of the Gov
ernment's taking such direct part in
housing. Rallying leaders of such Or
ganiZations as the Chamber of Com
merce of the United States behind
him, Moffett is pressing the cam
paign in which new homes are built
agencies. The Government merely
sets the basic maximum interest rate
at per cent and arranges insurance
on mortgages up to 80 per cent Of
assessed value.
Such men as Moffett and Henry l.
Hartman, president of the Chamber
of Commerce, picture such a drive as
one bellwether to lead the Nation out
Of the economic morasS, just as auto
mobiles led the way out Of a previous
depression.
Ickes raised the question OF how
quickly and how effectively private
business would take hold in this field.
While p. w. A. would welcome large
investments Of private capital in
housing, he said, there is no evidence
Of such trend.
Ickes Decries Delay.
"The Government is not looking for
any extra work and responsibilities,
he declared yesterday, but we can't
sit around indefinitely waiting for pri-
vate capital to come in. We must go
ahead on the basis of present condi-
tions."
Ickes expressed the opinion the Gov
ernment can build better and cheaper
homes than private capital 'on one
straight mortgage at per cent" He
spoke of costs as low as 81 800 dwell
ing, possible elimination of down pay
ments and perhaps an agreement
whereby union labor might cut hourly
wage rates in return for more money
per year.
Most observers believe the issue is
one of several on which the trend of
business will have great bearing. If it
pick up sharply by the time the next
Congress reaches its point of decision.
it is said, pressure for Government out
lays will relax.
Tax Problem Watched.
That the state of business will hhsi
strong influence, also, on the tax proe-
| lem likewise was emphasized by Chair
man Buchanan of the House Appro-
/ priations Committee. Although he
| saw mot a reasonable chance" Of bal
ancing the budget for the 1886 fiscal
year unless relief funds are curtailed.
he said:
Continued recovery will increase
| he 70
| legislation, because expenditures
would decrease. I hope there will be
no need for a new tax bill, but II
! one is passed in the coming Congress,
it won't be a big one that will inter-
fere with recovery. I hope we can
get around it."
That is one reason why high Off
cials are watching all business sta
| tisticS anXiouSly. They heard with
satisfaction the Labor Department
announce last night that there were
! $50 900 more persons at work In in
dustry in october than in September
and that weekly pay rolls increased
s11, 800, 900.
Housing Drive Given Credit.
Secretary Perkins said a 3.9 per
cent increase in one important dura-
BILE goods industry, building construc-
tion, was due in part to the housing
drive headed by Moffett.
| In discussing his housing proposal.
Ickes pictured a program that would
not be confined to present operations
| in the field of low-cost housing and
slum clearance. He not only spoke
/! of the possibility of homes for as little
as S., 500 or 81 500, but also of letting
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