Evening star., 1934-06-28

steps to reduce material costs by
10 to Is per cent.
Negotiations have been started with
construction labor TO reduce wages.
1t will be 80 days, officials said, be-
fore the machinery will be complete
enough for the tagging construction
industry to show any substantial i'm
provement. But banks were reported
to have increased their lending activi-
ties in anticipation of the right to
insure loans.
Principle of Program.
When everything is ready, the plan
will work about like this:
A man has a $4,000 home. He is
good credit. and a bank holds an
$4,000 mortgage against that home.
Because of uncertain conditions. how
ever, the bank is not sure that the
$4,000 mortgage is a 100 per cent
asset.
1t asks the Federal Housing Ad-
mlnlstratOr to insure the mortgage
After proper investigation, and the
payment of fee of not less than
2 of l per cent, the administrator
may insure the mortgage. He may
even accept it himself and pay the
cash to the bank.
No individual mortgage insured may
be for longer than 20 years, bear more
than per cent interest, or be for
more than 80 per cent of the ap-
praised value of the property the day
the mortgage IS executed. Nor may
an insured home mortgage exceed
$4,000. Such mortgages also may be
insured on new homes.
Another phase of the bill allows the
Federal housing administrator to in
sure up to 20 per cent of the total
loans made by bank for moderniza-
ton and repair.
These loans may be simple personal
notes, and for the smaller sums. Off
Gals say, they probably will be- No
loan in this category could exceed
$4,000.
Associations Authorized.
To help the home owner find a mar
ket for his mortgage, the bill authorizes
the creation of national mortgage as
sociations, which are empowered to
rediScount the paper. They must
have a S5,OO0OOO capital and may
have stock outstanding to a total of
$4,000, 600.
To encourage depositing in building
and loan associations, the bill sets up
an insurance system for them. After
passing required examinations as to
soundness, and paying a minimum of
one-fourth of l per cent of their total
deposits, these associations may tell
any depOSitor that he is insured against
loss On any deposit up to $4,000.
Furthermore, the capital of the
Home Owners Loan Corporation is
increased from S2000.000 600 to So
600, 100000, the new money to be used
for reflnancing existing mortgages.
And Sl00,000000 of the increase is
earmarked for modernization and re-
paid loans through building and loan
associations.
President Roosevelt's radio speech
tonight is expected to deal with events
Of the last six months and prospects
for the future.
Hopes to Get Away Saturday
The President still hopes to get
away Saturday to start his Hawaiian
cruise. but if there is too much work
he will delay until Monday.
Mr.. Roosevelt yesterday signed more
than 120 bills. vetoed 81 others.
studied the labor situation and turned
to the selection of the personnel for
the new Government agencies to con-
troll the stock exchanges and COM
munications
In disappearing the 81 pieces OF
legislation the President again dis
dained use of a pocket veto" and
formally vetoed each measure with an
explanation of his action
The VetoeS included bills authoriz-
ing $4,000 900 improvement in the
Pensacola, Fla. Naval Air Station and
the travel of the Marine Band to the
G. A. R. encampment in Rochester,
N. Y, and to the convention of Dis
abled American War Veterans in Colo
RADIO Springs.
Among the bills he signed was one
establishing a Federal credit union
system to provide loans for people of
small salaries.
Another was designed to afford
some relief from processing taxes on
jute, cotton. brlaL and hogs. One
portion of the bill strikes at the
practice of having farmers kill their
hogs and pay the taxes before pack
srs will buy them.