Evening star., 1934-05-23
ASK AID
/. FORC|TYbU|LD|NG
Would Amend Housing
Measure to Create Three.
Billion Corporation.
BY the Associated Press.

BY the Associated Press.
An amendment to the administra-
tions housing bill, which would set
up a $3,OO0,0OO, 900 Federal corpora
ton for discounting urban mortgages,
was recommended today by the Ma
tional Association of Real Estate
Boards.
Walter S. Schmidt of Cincinnati,
spokesman for the association. submit
ted the amendment to the Senate
Banking Committee in supporting the
housing program.
The corporation would be capitalized
by the Government at $500, 900 900
and would purchase for discount
mortgages on newly built tenant-oc-
cupied homes, housing projects and
business structures at a discount up to
2 per cent and bearing an interest
up to 6 per cent.
Eligible Mortgages.
Eligible mortgages would not exceed
go per cent of the value OF the
property after July l, 1887. but could
run up to 80 per cent until then.
Against the mortgages it held, the
corporation would have power to issue
bonds guaranteed both as to principal
and interest by the Government up
to Is times its capital
"The association believes that only
by some immediate encouragement OF
this kind to all types of sound and
necessary new building can health and
confidence be restored to the mortgages
market" Schmidt said.
Lewis H. Brown, president OF Johns
Manville Corporation and representa-
tive of the Durable Goods Industries
Committee, indorsing the basic prln-
ciples of the bill, said the committee
considered the bill "the greatest sim
gle step" toward recovery.
He said almost 100000 of the g.
100000 people still unemployed were
in the durable goods industries and
that their revival was the key" to re-
covery.
Charles A. Miller, president of the
Reconstruction Finance Corporation
under President Hoover, later eX-
pressed himself as not only gen
timely but enthusiastically" in
favor of the housing bills
William H. Kingsley, vice president
of the Penn Mutual Life Insurance
Co., voiced "unreserved encourage
ment and heart-whole support for
the bills proposal to finance home
repairs and improvements. but saw
what he called dangers in other parts
of the far-reaching measure.
Kingsley told the committee the
proposal for Government insurance
of home mortgages might well be
studied from the viewpoint of ap-
prehension rather than enthusiasm. !"
He also doubted the necessity OF ere
ating Federal mortgage agencies.
May Be Modified.
Committee members predicted the
housing bill will be modified.
Some of the bill l am afraid is not
going to be workable" Chairman
Fletcher told newspaper men. 1T in
wolves a lot of big propositions and I
am afraid is going to be difficult to
work out"
: Fletcher said he did not know
whether it would be possible to frame
a bill in time for consideration at this
session.
There is the question of whether
the Government isn't going into the
mortgage business, instead of getting
out of it. and taking over the whole
mortgage industry he said.
Administration officials told the
committee the bill was designed to
take the Government out of the
mortgage business and encourage
private capital to take up the burden.
Officials of the United States Build
ing and Loan League contended yes
terday, however, that the bill would
tend to drive out private capital and
get the Government deeper into the
business.