Evening star., 1936-10-17
HOUSING ACT HELD
LABOR AID FAILURE.
BY LOAN LEAGUE.
Resolution Asks June 90
Deadline for Guarantee
Of Debentures.
"PERPETUAL LANDL ORD"
ACTIVITIES OPPOSED
Drastic Cut in Federal Expendi.
lures and Realistic Account.
ing" Of Funds Asked.
~ the Associated Press.

~ the Associated Press.
NEW YORK, October 1.-THE
United States Building and Loan
League contends the national housing
act utterly failed" in its purpose OF
encouraging the now OF mortgage
credit to boost employment in the
building trades.
A resolution adopted at the closing
session Of the annual convention yes
terday urged that the Housing Ad-
ministration and Government guaran-
tee Of debentures be discontinued after
next June 80.
The league also spoke against the
continuation of centralized house.
building and renting activities tend
ing to make the Federal Government
q perpetual landlord" This resoiu-
ton commented upon the cost OF
such projects as greater than would
be incurred in the conduct OF tnese
activities by private enterprise.
The league recommended drastic
reduction of Government expendi-
lures" and realistic accounting OF
the type required Of other institu.
lions handling other peoples money.
Speakers at the final session IN
kluded John H. Fahey, chairman OF
the Federal Home Loan Bank Boaro'
and United States Senator Royal ..
Copeland, Democrat. New York.
Onicers elected included: President.
Harold T. Donaldson, Lansing, Mlcn.'
vice presidents, Edward c. Baltz'
Washington, D. c.. and Clarence l.
Rice, Kansas City, Kans.
1900 Attend Sessions.
Revival in home construction and
relations Of private mortgage lenders
with Federal Housing agencies were
dominant themes of discussion.
Onicials accepted the attendance OF
more than 1900 building and loan men
from all sections Of the country, one
of the largest In the leagues history
rs evidence Of keen interest IN tho
problems of financing the rising build
ing tide and making adjustments TO
Uncle Sans new role in the field.
Undercurrents of antagonism to the
Federal Housing Administrators s
mortgage insurance program found
expression In , report of special
committee on the r. H. A.
It held the emergency necessity for
s.. H. A. had passed and that If 1t re-
manned . long program would
operate as q threat to the national
credit. It opposed renewal Of the full
Kuarantee of r. H. A. debentures
when it expires next July l.
/ For Commercial Banks.
| TT Is generally understood that the
r. H. A. plan is designed particularly
for commercial banks" said Morton
Bodfish, Chicago, executive vice presi-
dent Of the league. in his general re-
hort to the convention on develop
ments in the building finance INDUS
try.
"They have been invited and urged
20 make long-term mortgages and are
making them in substantial numbers.
Commercial banks can obtain money
on these mortgages at Reserve banks,
q rather startling departure In central
banking procedure.
Commercial banks in many COM
munities can buy money from the
public at q cost of from nothing to 2
Der cent, while our thrift institutions
must pay 4 and ~ per cent.
I'VE should ask ourselves II we
should support the development Of q
mortgage system which can put the
commercial bank into the savings and
loan field on q dollar and cents basis
that can demolish the building and
loans."
Many saw these remarks as sum-
ming up a major problem agitating
(See LOANS, Page C-2)