Evening star., 1934-08-16

sent to some $4,000 financial insti-
tutions throughout the country.
The immediate response has far ex-
ceeded our expectations. Contracts
have been accepted by institutions
having assets exceeding $4,000, 900 900,
and serving q territory with q popula-
ton OF more than $1,000. 900 people.
Business men, chambers of COM
nnerce, and civic groups in hundreds
Of cities throughout the country have
sought our advice in regard to organ
izing local campaigns of education
and promotion. They want to make
sure that the new type of financing
is generally understood and made the
basis for extensive property improve
ments. To assist these local committees
we have developed public relations
division, which is operating through
regional. State and district directors
Pamphlets containing information
for the owners of homes and other
property are being distributed locally
throughout the United States.
Thus property owners will be able
TO secure the benefits of this plan
through contacts in their own COM
munities with the local financial in
stitutions, contractors, and building
material dealers, which have been
provided with full information from
our Washington headquarters. We
thus plan to keep down the size of
our organizati ton in washington.
Price OF Materials.
One question which constantly
arises in one form or another Is that
of prices for building materials. labor
and railway transportation. We hear
arguments that our program is pre-
mature, or that it should be made
conditional upon drastic reductions In
the prices for these items.
Surely, II industry generally Is
operating with little, If any, profit,
1t Is not In position to make a
radical reduction In prices. see no
reason why repairs, Improvements and
modernization, and the building Of
new houses should be done without
O fair profit to industry.
Our position Is simply that fair
prices must be fair to both the pro-
ducer and the consumer. On the one
hand we and the local committees will
be alert to expose any cases where
profiteering might arise, and on the
other hand we, shall not lend our
selves TO any drive to force industries
to chisel on their wages or go bank
rupt.' ......
We find that all Of the leading
items entering into building costs are
below the 1926 price level, and. con-
eeouently, that investments for re-
nairs or new constructions at the pres
ent price level constitute proper
basis for investment on the part Of
the American people. Even after ad-
Vances In the existing price level to
the level OF 1926, money spent on
building would still represent q good
investment.
Taking the matter as straight
business proposition, II general i'm
movement in business is to occur as
a result Of the increase in moderniza-
ton and repair work and In the con-
etruction OF new homes, and II indus
try is to make fair profits, q, general
advance In price levels is to be ex-
pected.
The business Is In sight. The esti-
mate that 81 500 900 900 would be re-
quired to put the homes OF the coun-
try back into good physical condition
may or may not be correct. but rep
resenting q little over $50 for each
family, It does not cover potential ad-
ditions, alterations, or thoroughgoing,
modernisation projects, nor does 1t
cover improvements to stores, ofhces,
factories, garages and other buildings.
Potential Market Big.
we have been falling behind In our
home construction program ever since
1880, and q potential market Of many
billions OF dollars hes ahead in that
field. Through this program ample
credit viii be provided, and it will be
made available to those who are en-
titled to 1t.
The amount of insured credits will
not fully measure the amount of
property improvements. Campaigns
in a number Of cities have shown that
In addition to the work that required
financing, almost twice as much was
undertaken on cash basis.
This program will directly increase
employment, especially in the many
building trades, which have been
among those hardest hit by the de-
preston. Every employed worker will
immediately spend part Of his earn
inss for better food and clothing, and
for other articles. Thus general
business will be toned up.
There Is certain to be marked i'm
provement In the building material
Industries. and this improvement will
extend to many allied industries, such
as coal, railway and motor truck
transportation, and many others. An
immediate result Of the building of
new homes and the improvement of
existing ones will be increased ex-