Evening star., 1934-11-26
HOUSING PURPOSE .
CONFLICT DENIED.
Moffett and Ickes Differ on
Approaches to Recov-
cry Problem.
BY DAVID LAWRENCE.

BY DAVID LAWRENCE.
Two fundamentally different ap-
breaches to the recovery problem,
rather than any conflict Of purpose,
may be said to account for the ap-
parent clash between Housing Ad-
ministrator James Moffett and Pub
lie Works Administrator Harold 1ckes.
Both recognize that the heavier
industries, such as construction and
building, must be revived and that
America needs better homes, repair
of old and erection Of new, as well
as a higher standard Of living quar-
ters for people receiving the lowest
wages.
But the question of how to achieve
the objectives causes deviation OF
viewpoints. and it is most unfortunate
that the differences are submerged or
camouflaged rather than aired.
Jobless Prevents Solution.
For there's a good deal to the con-
tenions of each and. we're it not for
the existence of a vast body of un-
employed workmen, it would be easy
enough to resolve the dispute tradi-
tionally and say that we should
merely do what we have always done
keep building entirely within the do
main of private capital and let it go
at that point.
Mr.. Ickes, however, is still conscious
of an emergency atmosphere. He is
impatient to see the construction
drive accelerated. He feels that pri-
vate capital may take up the slack
in due time. but that it needs a
pulmotor now.
Mr.. Moffett believes, on the other
hand, that the construction and re-
pair movement which is going on
through the cooperation of the banks
and lending agencies throughout the
country Is succeeding far beyond ex-
pectations and that volume of build
ing contracts is rolling up which will
be cumulatively and progressively
bigger with every month for the next
several years.
Moffett More Pleasing.
There can be no doubt that Mr.
Moffett's activities are more pleasing
from an orthodox standpoint because
they stimulate the private agencies
and merely give a lift to those who
would otherwise hesitate, or they
modernize credit to permit of time
payments for repairs and new con-
struction.
But the Ickes plan for public hous-
ing involves a direct governmental
subsidy and is plainly and frankly
an emergency measure to tide the Ma
ton over the transition period be-
tween present-day conditions and the
absorption of the unemployed millions
Mr.. Ickes is as eager to see large
relief expenditures cut down as he is
anxious to see large-Scale business
operations begun which can at once
re-employ millions of workmen.
The danger in the Ickes plan is that
low-cost housing cannot be superim-
posed upon any of our larger cities
without bringing a certain amount
of dehation in mortgag ges on existing
property which would not have the
benefit Of local tax exemptions or low
interest rates or other subsidies.
Like T. v. A. Situation.
1t is very much like the T. v. A
situation, which permits Federal
money to assist municipalities to build
plants that give lower electric light
and power rates than private COM
panies. AS matter of fact, If Fed
eral funds are to be used at all to
subsidize cities, it would help recovery
far more to have the money go to
build livable homes and apartments
than to create more electric power
than the Nation can absorb.
The problem is now to find a for
mula for cheap housing which will
not break down surrounding values
Slum clearance projects are being
studied by private capital and can
be consummated as efficiently by
private interests as by cities or by
Federal authorities, If tax exemptions
are allowed.
There is a certain ground for re-
conciliation of opposing viewpoints
here, because cities might be willing
to grant something that would not be
exactly a tax exemption-for 1t would
not be permanent-but a graduated
scale of rebates on taxes because of
the enhancement of certain sections
OF cities which have been more or
less neglected and which are poor
from the standpoint of producing tax
revenues anyway. In other words, a
slum clearance project which i'm
proved several city blocks would cor
respondingly give value to surround
ing blocks and neighborhoods; hence,
cities woulc be justified in giving
reductions in taxes till the newly de-
Veloped property in future years
showed higher earning power There
is already under discussion here a
plan to allow deductions on income
taxes for money spent in construc-
tion.
Vacant Houses Cited.
The argument that there are too
many vacant homes now, and that
these ought to be first occupied be-
fore new building is DONE is, of course,
advanced often, but it only leads to
a vicious circle. For unless more peo-
pie are employed there will be no
chance to rent these vacant places.
Also, the figures of many housing sur
veys show that families are doubling
up now and that when jobs return
there will be an actual shortage Of
homes in many of our larger cities.
Undoubtedly there's plenty of work
in the housing idea for the unem-
ployed. but any plan which means
outright subsidy, no consideration for
surrounding properties and an arbi-
trary interjection of Federal aid in
our principal cities, without regard to
effect on the existing mortgage or
interest situation, is bound to do as
much harm as good.
Mr.. Ickes will find that Mr.. Moffett
Is succeeding because he knows how
to bring government and business
together into active and trustful CO.
operation. The low-cost homes and
rooms in apartment buildings spon-
sored by Mr.. Ickes are needed to i'm
prove the living conditions of the
masses. There is scarcely city that
could not improve its appearance and
the lives of its less fortunate citizens
by better housing.
There's much. therefore, in the