Evening star., 1935-02-16
MEDIUM INTEREST
CHARGES ADVISED
Conservative Lending Plan
Recommended in is. by
British Expert.

Institutions which finance homes
should not follow every variation in
interest rates, but should make for
stability by following an intermediate
course between high and low extremes,
writes Sir Harold Bellman. leader in
the British building society business,
in an American book, Building and
Loan Annals of 1884," off the press
this week.
eff borrowers sometimes pay little
more than the rock-bottom rates in
times of low rates, they have the
very considerable advantage of avoid
ing the payment of the top rates
during a period of extremely high
rates." he writes.
The Bellman chapter on British
Building Societies in 1888" is part of
the 900-page volume published by the
United States Building and Loan
League and forming comprehensive
outlook on the 1885 and later pros
poets in real estate values, the home
mortgage market, the effects OF the
various government agencies and
stimuli to better dwelling facilities.
Copies of the book were received today
by 1000 member Building and Loan
Associations of the League.
Optimism Is Noted.
Optimism regarding the future Is
voiced in many chapters which deal
with the American situation.
Speaking of the development of
demand for home modernization, AL
bert L. Deane, deputy Federal Hous-
ing Administration administrator, in
charge of title /, says:
Buying on the part Of those who
have money to spend has been en-
couraged largely by the example OF
those who have had the courage to
borrow in order to finance their home
improvement. We are more than
half way on the road to full resto-
ration of the buying power Of all the
people when those whose buying
power has not been seriously impaired
come into the market and prove, by
action, that they no longer refrain
from buying because of fear"
sThe results which have been
achieved are small compared to the
possibilities that lie before u.s. writes
Chairman Henry B. Steagall of the
House Banking and Currency Com
mittee. Recent surveys disclose that
of 100000 homes in the United
States 16 900 900 have deteriorated be-
yond the hope of successful rehabil-
itation. A large percentage Of the
remaining 100000 need reparatlon
and improvement"
Business Cycle Predicted.
"Air conditioning, radio heating,
and a dozen other pending changes
are going to revolutionize buildings
writes Economist Roger w. Babson.
What has happened to transporta-
ton during the past decade will hit
housing during the next decade. Most
Of the next business cycle will focus
on real estate and housing.
Except following the depression
Of 100 years ago there never has been
q time when such great real estate
opportunities existed as shere are
today at bargain prices. We are
facing a great era of new home
building.
Although there may be temporary
decline in interest rates, it will not
be permanent. Ultimately if every
thing else goes up, interest rates will
60 up too. They always have and they
always will"
other writer's in this encyclopedia
of home financing practices and de-
velopments during 1884 include for
mer Representative Robert, Luce Of
Massachusetts,, j. Howard Ardrey,
deputy administrator of the Federal
Housing Administration; Senator John
H. Overton of Louisiana, Chairman
John H. Fahey of the Federal Home
Loan Bank Board, Board Member
Fred w. Catlett, Philip Lieber, i'm
mediate past president Of the United
States Building and Loan League, and
Executive Vice President Morton Bod
fish of the United States Building and
Loan League, as well as some Is other
leaders in the savings, building and
loan business.
Development Of ways for bettering
the dwelling facilities of the people
is traced through the various chap
ters. The Federal Home Loan Bank
system is shown entering its third
year Of operation with a membership
having resources of $500, ,00O,0O0 the
Home Owners Loan Corporations
mingled beneficial and adverse in
f1uences upon the market for home
mortgage money are brought out, and
the results of the Federal Housing
Administration and the record of the
building and loan association opera
tons with their $435 ,000,0 900 of home
owner loans in 1888 are included.
A directory of building and loan
associations with the assets and total
number Of borrowing and saving
members for each is included at the
back Of the book, as we'll as a COM
plete directory of the IL Federal
Home Loan Banks, with the direc-
tors and officers of each.