The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-09-01
money READY
FOR PROPERTY
OWNERS here
Loans Of 500 to $1,000
Available Through the {
State Trust Co.
HOW GOVERNMENT
AIDS IS DESCRIBED

Several business firms interest
ed primarily in home moderniza.
ton today joined the State Trust
company and The Times-News ii
launching an advertising campaign
designed to acquaint the locaI
public with the nationwide pro-
gram of the Federal Housing AID.
ministration to lift the tagging
construction industry out of the
doldrums by encouraging the re-
pair and modernization of city
and country residential and busl-
ness property. :,
In full-page cooperative ad'
vertisement, these firms announce
that money is now available here
for modernization purposes to
those who can qualify, and that
they are prepared to supply the
materials. Today's ad will be fol
lowed by five others at intervals
of one week, each presenting new
phases of the governments plan
to help finance modernization
work. As a source of additional
information, the firms co-operat-
ing are supplied with booklets
stating the financing plan in de;
tail which may be procured with
out cost by any property owner
who is interested.
This local program is in line
with the detectives of Title l OF
the National Housing Act, passed
bv the 73rd Congress as one OF
the most important pieces of re.
covery legislation since the Ma
tional Recovery Act.
Under the terms of the Act,
private financial institutions are
enabled to make investments hav-
ing the same degree of security
and liquidity as is possessed. by
their best collateral loans. The
government makes no direct loans
to property owners, but, rather,
creates the machinery by which
borrowers may obtain funds from
established credit sources with
greater ease than even in normal
times.
Private industry and public Of
ficials alike agree that property
modernization in the United
States constitutes national
need. Millions of homes, apart
ments, offices, stores, factories.
and other buildings have suffered
seriously from lack of normal
care and attention during the past
four or five years of depression.
It is conservatively estimated that
16,5OO,O0O buildings in the Unit
ed States have reached a serious
state of disrepair, and of these at
least 5000, 900 have arrived at
such a physical state that nothing
short of major building opera
ton can save them. The remain
ing 13,500,000 for the most part
require only minor repairs, but
thew are of the character that
must be initiated at once to OFF,
set serious deterioration.
The Federal Housing Admins
tration hopes, in launching the
property modernization program,
to alleviate the distress among at
least a portion of the 4,OOO,OOO
unemployed persons in the United
States who normally depend upon
the construction industry for their
livelihood.
The federal government, thru
the housing administration, Will
insure lending agencies against
100 per cent of all losses, provld-
ed the total of such losses does
not exceed 20 per cent OF the
aggregate amount of funds adj
vanced for property improve
ments. This insurance is virtual
ly an iron-clad guarantee of pro
lection for the financial lnstltu-
tons, since the highest known loss
ratio on similar types of loans
has not exceeded 8 per cent. :,
Experts in, this field have SAID
that it is hardly conceivable that
these credits, extended by prudent
institutions, could result in losses
greatly exceeding this previous
experience. The insurance, they
agree, is tantamount to a com
plete guarantee for financial IN
situations. That is, if lending
agency acquires notes aggregas ing
a total volume Of $100,OO0, II
will be insured against 100 per
cent of loss on all items up to e
total aggregate losses of $2o,ooo'
Losses of this proportion have
never been approached IN Amer.
lea on this type of business, even
in the worst depression years:
The Federal Housing Admins
tration, in its rules and regula,
lions coverfng the making OF
CONTINUED on page threef 4.