Evening star., 1934-06-16
MEASURE PASSED
BY HOUSE AWAITS
SENATE APPROVAL.
Committee Advocates Bill,
Foundation Stone of Ma
tionaI Campaign.
SPEEDY UTILIZATION
OF LOANS is PREDICTED
First Step After Signing Will Be
Organization of Home Credit
Insurance Firm.
BY VINCENT TUTCHING.

With the housing act as its weapon,
the administration hopes IN start
within the next week its flung
assault on the tagging C. goods
and building industries.
Awaiting final o. K. il Senate,
the housing BILL with VS. all-im-
portant features providing for re-
Vival of home reconditioning and new
house building, is expected shortly
to make its trip to the White House
to become law.
In substantially the same form as
when it was proposed to Congress,
the bill passed the House Wednesday,
and was reported out favorably by
the Senate Banking Committee
Thursday. 1t remains as the last of
the bills marked for approval before
Congress adjourns.
Preliminary Work Done.
With this as a foundation stone,
the administration will proceed with
o Nation wide campaign to revivify
those industries which contribute
most to employment in America-the
capital goods and building industries.
others in the national movement
toward normalcy in the country's
business structure.
Enough preliminary work has been
done in connection with this gi-
gantic program to insure early oper-
alton of that portion of the plan
dealing with home modernization-a
field in which Washingtonians have
evinced keen interest in the past
eight weeks as a result of The Stars
$1,000 Better Homes Contest, now in
progress.
Officials in the National Emergency
Council, which drafted the housing
bill under presidential supervision,
and which. it is expected. will work
out the set-up of an administrative
organization for the act. predict that
first loans for undermining homes
may be made within 80 days after
the signing of the bill. The first step
will be organization of a home
credit insurance corporation with
capital of S2oO,0O0,o0O
This corporation will be empowered
TO guarantee up to 20 per cent OF
loans made by private lending
agencies for repair and moderniza-
ton of homes. The loans, however,
would be limited to $4,000.
Other Provisions in Bill.
Among other things, the bill pro-
Sides for:
Creation of an Office of Federal
housing administrator, to be ap-
pointed by the President for four
years, to be confirmed by the Senate
and to receive $4,000 a year.
Establishment of a mutual mort
gage insurance fund for insuring
first mortgages on homes up to
$4,000 and second mortgages on low
cost housing projects.
Setting up by the administrator OF
national mortgage associations to
discount first mortgages for lending
institutions in the same way the
Federal Reserve System discounts
commercial paper in banks Capital
of at least $5,Oo0,000 for each would
be provided.
Organization of savings and loan
insurance corporation with capital
stock of $100000,000 to insure ac-
counts up to $4,000 in Federal savings
and loan associations and other
building and loan associations that
are members of the Federal Home
Loan Bank.
Extension of the borrowing power
of the Home Owners Loan Corpora
ton from s2,ooo,OooooO to $4,000
100000 with the present earmarked
fund of s2O0,000,00O for loans on
improvements to homes financed by
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