Evening star., 1934-03-31
HOME RENOVATION
PROGRAM BRINGS
DIVIDED OPINION
Construction Industry Ap-
proves While Realtors
Are Fearful.
DEALERS FEAR PLAN
WILL DECREASE VALUES
Governments Purpose Is to Re-
vivify Capital Goods and Spur
Employment.

With public discussion of the Gov
wide home renovation and housing
program of huge proportions. a di-
vision of opinion in real estate and
construction circles becomes apparent.
On one side is the construction in
dustry which whole heartedly favors
any reasonable plan for liberalization
of credit permitting it to swing into
full speed activity.
On the other are the realty dealers
and financial institutions holding real
estate. much of it taken over in mort
gage defaults, who are trying hard
to get back what they have invested.
Many in this category are little
afraid of what would happen to the
value of their holdings were there a
flood of new construction at costs
considerably below pre-depreSion
standards.
Plans Rather NebulOus.
Plans of the Federal Government
80 far as they have been made pub
lie, still are rather nebulous. The
general idea is for the Government
figuratively to stand at the side of
private capital and encourage loans
by means Of partial guarantees of re-
payment. The present understanding
Is that comparatively little Govern
ment money would be needed.
The purpose of the plan is the
revlviflcation of the capital goods in
dustries and, thereby, the absorption
of the remaining unemployment, par
ticularly in the building trades.
As a result of the N. r. A. and the
improved purchasing power of the
farmers. the consumers goods in
dustries have been considerably stimu-
lated. The capital goods industries,
however, have continued to lag until
they now account for about two-thirds
of existing unemployment, according
to popular estimates.
Cooperation to Be Sought.
The cooperation of the railroads,
the building supply industry and the
building trades workers also would
be sought in the matter of creating a
bargain counter" for the reduction
Of rates, prices and wages to the
mutual benefit of all.
The position of the construction
industry relative to the general plan
is expressed by Edward j. Harding,
managing director of the Associated
General Contractors of America and
secretary of the general contractors
divisional code authority. He said:
Credit expansion and unemploy
ment relief are two indispensable
needs for substantial and sustained
prosperity. and any constructive move
ment toward those ends. such as is
contemplated in the proposed plan
must be encouraged to the fullest ex-
tent.
Some arrangement must be made
to furnish easy longterm capital for
the heavy OF durable goods industries
of which construction is the foremost
There are in this city, and the coun-
try over. countless construction prof.
ects, both public and private, awaiting
only the necessary financing to get
under way so as to play their rightful
part in absorbing unemployment and
restoring prosperity.
Developed With P. w. A.
"A perfected plan along the lines
suggested for the direct stimulation Of
private work by the Government
should be developed in conjunction
with the public works program anc
not with view to have it imme.
diately replacing the latter In other
words, the two should be pushed
simultaneously until that happy day
when the two together are absorbing
the construction industry's norma
share of employment, at which timt
public works could be tapered of IL
ratio to the expansion of private
work"
Opponents are more reluctant tt
express their views publicly. They
feel, however. that it is inconsistent
for the Government to attemp
through the N R. A. and other agen.
cies to restore value to what exist.
and at the same time to encourage
new construction at costs consider.
ably below those in effect when prop.
erty now on the market was built.
When property values began drop
ping at the beginning of the depres
sion, they point out, many mortgage
were foreclosed. Houses passed int,
the hands of the mortgagor and soor
deprecated until their market pric,
was less than the money invested
They feel that nothing should be dom
to further cheaper them on the mar