Evening star., 1934-06-20
WAGNER PRAISES
HOUSING AID ACT
Radio Forum Speaker De-
clares Many Will
Benefit,

Great benefit to home owners. the
construction industry, workers ana
the public generally is foreseen by
Senator Robert r. Wagner, Democrat,
OF New York, as result of the ma
tionsl housing act passed on the last
day of Congress.
Senator Wagner explained the pro-
visions OF the act in an address last
night in the National Radio Forum,
arranged by The Washington Star
and broadcast over a coast-to-coaSt
network of the National Broadcasting
Co. The address was heard locally
through WRC.
Pointing to the lack of activity in
the construction industry. the New
Yorker forecast definite relief, not
only for the builders but also for the
vast number of unemployed, which in
that field alone accounts. directly or
indirectly, for about 5000, 900" jobless
workers.
Benefits for Home Owner.
More direct benefits, he said, will
be derived by the home owner.
Home ownership, under past mort
gage practices, has been too ex-
pensive," Senator Wagner declared.
This law will rescue millions of
American home owners from a mort
gage system that has been throttling
their economic existence, and that
has had a correspondingly pernicious
effect upon all those engaged in the
mortgage business. :.
Here, indeed, is a charter for the
home owner against unrestrained
avarice. And in freeing the bor-
rover from impossible burdens we
shall also free the lender from retri-
button for his own folly"
Business Must Stand Alone.
After summarizing all the provi-
sions of the act and explaining how
the financing provisions are to be
carried out, Senator Wagner con-
cluded with the statement:
"All this is to be accomplished
through the medium of private busi-
ness, aided by the Government If
necessary, but encouraged above all
to stand upon its own feet and con-
tribute as it has in the past the
largest share to American prosperity.
The security of the home has been
listed by President Roosevelt as one
of the cardinal aims of reform. This
measure takes some very necessary
end fundamental steps in that direc-
ton and it will prove a blessing to
home owners, to me construction in
dustry, to workers and thus to the
public at large
Text Of His Address.
The text of Senator Wagner's ad-
dress follows:
Thesnew deal is a war against de-
preston that must be conducted on
many fronts. The national housing
ACT, which was passed during the last
day of Congress and awaits only the
signature of the President pushes the
line forward at spot where it was
tagging behind, for the construction
industry has not revived as rapidly
as most others. The annual volume
of building operations dropped from
Sl1 900, 100000 In normal times to
$4,000 100000 at present, which sc-
counts, directly or indirectly, for about
5000, 900 of the unemployed. In the
field of home construction and repair.
the building industry has suffered It's
greatest lag, where activity has
dropped from a s3,000,00 100000 normal
annual average to a tenth OF that
amount, or approximately S300.OOO,0 600
Less measurable, but not less real, are
the hardships of countless people de-
prived of their homes or saddened by
the gloom of dilapidated surroundings.
Today there are innumerable homes
In need OF renovation and repair. But
the owner who is saddled with mort
gage debt cannot not finance these
improvements, while the very lending
companies whose vaults are bursting
with money will not make loans upon
the poor security of debt-burdened
borrower. The first part of the new
law cures this difficulty. 1t empowers
the Federal Housing Administration to
insure up to 5000, 100000 loans made
by private financial institutions to
home owners for alterations and re-
pair. Since only 20 per cent of total
private loans may be insured, labor
and the building industry will receive
at least SIS for every 7dollar that the
Government guarantees. All loans
covered by insurance will be subject
to the rules of the Federal housing
administrator as to date of maturity.
interest rate, amortization and other
provisions, so that the borrower is as
sured of a fair deal from the local
lending institution.
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