Evening star., 1934-12-13
FAHEY WOULD END
us. HOME
Private Loans Must Be
Fair, However, Chairman
Tells Insurance Group.
By the Associated Press.

BY the Associated Press.
NEW YORK, December 13.-The
Home Owners Loan Corp. should
complete its work and withdraw from
the lending field as soon as possible"
John H. Fahey, chairman of the cor
poration, told the Association OF Lie
Insurance Presidents today.
"But," he added, II do not believe
that public sentiment will permit It's
withdrawal unless or until it Is evil
dent that private lenders will carry
on with lending plans, which are ac-
cepted as eminently fair"
Thomas I. Parkinson, president OF
the Equitable Life Assurance Society
of the United States, reported to the
association that payments and credits
of United States life insurance COM
panies to policyholders and benef1c-
iaries during 1884 will total S2,700,-
100000. Parkinson is chairman Of the
convention.
Natural Revival Need.
James Layton Ralston of Montreal,
former minister of national defense
Tor Canada, declared natural revival
of trade" was needed to bring about
business recovery.
Fahey asserted in his address that
the Home Owners Loan Corp. had
kept families representing some 4,0O0.-
900 persons from losing practically
ell their savings"
"In less than IL months" he said,
sthe Federal Government has lent over
62,000,000, 900 to more than $4,000
families to assure them undisturbed
possession of their homes. Soon it will
have disbursed another 81 ,000. .000, 900.
This means that $3,0oo,ooo 900 will
have been distributed and nearly
100000 homes saved.
''If this had not been done families
representing some four million persons
would have lost practically all their
savings and large proportion Of them
would have been turned into the
streets"
Resumption Uncertain.
Whether the H. o. L. c., forced last
month to suspend the receipt OF any
more applications, will resume the
making of loans, he said, rests with
President Roosevelt and Congress.
THE Home Owners Loan Corp"
Fahey continued, was devised as an
agency to meet an extraordinary emer-
gency. It should be kept to that con-
ception of its functions. The Govern
ment should not be expected to go on
indefinitely financing the home mort
gage needs Of our people when the
privately managed lending institutions
of the country, with their long expe-
rience and highly developed efficiency,
are abundantly able to meet the de-
mand and rates and for terms COM
parable with those which the corpora
tion has extended.
1.-THE Home Owners Loan Corp.
should complete its work and withdraw
from the lending field as soon as pos
sible"
He called upon the life insurance
companies to make vigorous efforts "in
every possible way to the end that as
soon as practicable the responsibility
for supplying the mortgage needs OF
the United States may again be as
sumed fully by the private lending in
stitutions.'
Insurance Disbursements.
OF the s2,7O0,000,o0O disbursed by
life insurance companies during 1884,
Parkinson said, $1,000, 100000 was to
living policy holders in matured en-
dowments, annuities and the like, and
the remaining 5000 900, 900 represented
death payments to beneficiaries.
Ralston said it was doubtful
whether Eve can get far on the road
to recovery without some measure OF
sterilization between the trading
countries Of the world"
"If monetary measures could bring
sterilization of exchanges, and other
trade restrictions, such as tariff walls,
could be lessed, there is every reason
to hope" he said, that a new eco
nomic era would be before use; and
since most of the misunderstanding,
suspicious and distrust between va
rious countries are based on the deep
dissatisfaction of the public with ex-
isting conditions, peace and good will
might also 60 hand In hand with
Y,rosperitv"