The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1935-06-20
Depression Almost Over Schilblin Says;
Cites Credit Loosening, Building Gains

an increase Of 90 per cent Of sales for
the first quarter of 1885 compared
with 1884. Paint manufacturers are
showing increased sales from IL per
cent to SO per cent. Building mater
ial manufacturers show increases
building material firm which has a
national distribution and contributes
26 per cent of the building material
that goes into the construction of a
new home reports an increase of IS
per cent of sales for the first quarter
of 1885.
Under the recent amendment in
creasing the maximum of moderniza-
ton credit loans from $4,000 to $780,
600, the national housing act will un-
dertake to make it safe and profitable
for banks to finance an industrial re-
construction program variously esti-
mated at IL billion dollars or more.
With confidence restored this tre-
mendous undertaking will not only
put additional building craftsmen to
work but will again put to work the
millions now unemployed in the heavy
goods industries.
Loans Larger Sums
Regulations governing the extern
sion of moderniZation credit by fin
anciaI institutions for Improvement of
property under the $4,000 provision
of the amended national housing act
opens a new market which should be
OF direct benefit to practically all in
dustries and of direct benefit to the
nation as a whole. The amendment
seeks to provide credit for improve
ment where $1,000 is not sufficient.
This line of credit is being handled
as a separate class to be utilized for
additions, alterations, repairs and
improvements or multiple-famlly
houses, hotels, office buildings, apart
hnSnita1S schools COLLEGES
orphanages, manufacturing and in
dustrial plants. 1t will also be avail
able for the purchase of installation
of eligible equipment and machinery
which is an improvement to the real
property. Determination of the credit
risk involved and all charges includ-
ing interest is left largely to the dis
erection of the financial Institution adj
vancing the funds. This was sub
stantially true under the old regul-
atiOnS.
The amendments to the national
housing act covering the extension of
moderniZation credit for improve
ment, conversion or equipment or
commercial properties are of direct
interest and benefit to everyone pro-
ducing goods or services requiring
buildings or permanent equipment.
They are of particular interest to all
those who manufacture or deal in
machinery.
Taxes, assessments and payment
on principal and or interest on mort
cages on the property to be improved
need only be in such standing as is
acceptable to the financial institution.
The status of such items, whether
delinquent or not, shall not affect
the eligibility of a note for insurance
if the financial institution. IS willing
to extend the credit. The question
of the financial condition of the bor-
rnx &c loft RI the soma hlQ 1IldR-
ment of the financial institution as
credit matter.
In line with the desire of the presi-
dent of the United States to provide
"a more abundant life" in the nation
the mutual mortgage insurance phase
created. The hoped for result Is
great surge upward in the construct
ion industry out OF which will ap-
pear thousands of new and modern
conveniences and appliances. Even
the least informed person can en-
vision the reaction Of such activity
in community life. New homes will
cause an improvement in general real
estate values and in the rental mar
ke.t. New homes will produce an up
grade in retail business. Dealer pro-
fit will be in turn transmitted into in
creased buying. The merchant, the
professional man, likewise, will bene-
fit from the general Improvement.
While the potential results OF
nationwide recovery in the con-
struction industry are of immense
Importance, those administering the
national housing act do not pretend
that they are solving all of the coun-
try's economic problems. The NUT
ual mortgage insurance plan is offer
ed at it's face value as a means to
better living. What results it may
produce will depend largely upon full
Continued on page eighty