The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-08-09
Sound BANKING IS
| first REQUIREMENT
| IN HOUSING SETUP
rs Per Cent Of Home Moderni.
cation Funds Estimated
as Labor's Share
ENHANCE PROPERTY VALUE
Entire Nsig hborhood Profit Seen
Through General I'm.
provemsnt Program
~ JAMES A. MOFFETT
Federal Heuslng Administrator
Copyright, 1884, Dy The Associated


Federal Hsuslng Administrator
Copyright, 1884, Dy The Associated
!. Press)
Washington, Aug. e.-(F-We Of
the federal housing administration
have been convinced since the first
day We undertook this task that II
we are to achieve results Of real value
to the nation in developing the prop
erty modernisation plan, there must
first Of Ill be strict conformance to
the principles Of sound banking.
Let US consider . typical American
community. On the law Of averages,
there will be In this community many
buildings that are run down or are In
need OF more modern conveniences.
Manifestly 1t Is sound practice to
keep buildings in good repair or Inn
prove their efficiency. Therefore,
loans Of this type may be considered
within the scope Of good banking II
the repairs are needed, II the sums
borrowed are applied only for the
purpose intended. II the value and de-
STABILITY Of the property u enhanced
and II the borrower Is In . position to
pay the amount borrowed.
From the standpoint Of their own
self interest bankers will exercise care
In making sure that the property
owner In securing . modernixation
loan u furthering his own Interests.
u Per Cent q Labor
And beyond these transactions be-
tween lender and borrower, there 10
envisaged IN endless chain Of other
interests. I am told, for example, that
in these projects rs cents Of every dol
lar will 60 to labor-44 cents ut the
site, 81 cents ct the factory, mill, or
dealer, Z cents ct the source Of ma
terial, and I cents In transportation:
the balance will 60 to tile building
supply dealers. manufacturers, and
for raw materials and transportation.
But the good work will not stop
there. The loans, having been made
on sound banking principles, viii be
Of such q nature as greatly to en-
nance the value and attractiveness Of
the properties involved; and this, in
turn, will create new standards Of
values for the community rs q whole.
The entire real estate field will be
improved and the value Of the secur.
ity behind al real estate loans will
b enhanced.
Group Projects Discussed
The advantages to an owner Of mod
cruising his property are obvious and
readily understood by the general
public.
What Is less well understood, per.
haps, Is the added advantage to be
gained II q group Of owners In given
block or neighborhood alter or mod
erniSe their properties Is part Of .
general scheme Of neighborhood i'm.
provement.
It should be clear that I'll property
y helped by this Improvement Of
buildings on the block. and this adj
vantage Is al the more marked when
: co-ordinated improvement scheme Is
undertaken for m entire neighbor.
hood.
The success Of any attempt at group
moderni1ation depends upon the
measure Of cooperation obtained from
owners. They must be made
to see not only their advantage In this
scheme. which Is great. but also the
large social picture.