Evening star., 1936-11-24
America voluntary man power for any
emergency.

America voluntary man power for any
emergency.
Interest Should Be Low.
In large measure recovery has been
achieved, and Government should
withdraw from the lending field as
rapidly as private initiative is prepared
for 1t to do 30. To be specific, when
private lenders are able and willing
to meet credit requirements on q
proper basis. Most Government credit
agencies are curtailing their activities
and operating expenses, but ! doubt
If the country is ready for them to
withdraw entirely. High interest rates
and severe credit requirements would
cause another setback. They would
retard building and expenditures for
capital goods in general, and would
take away from the country, particu-
larly users of credit, q feeling Of Sc
curity they now have in the knowl-
edge that such agencies as the r. F.
c., Federal housing, farm credit and
public works can, II necessary, pro-
vide credit. It should be remembered,
too, that interest and credit charges
are directly and indirectly paid by the
masses and should be kept as low as
possible, with reasonable return to
the lender.
It is desirable to protect the farmer
against the necessity Of selling his
crops at harvest time, regardless OF
price. Also mortgage money at fair
rates and upon fair terms Is essen
tial to stabilize the mortgage situa-
ton; this will help real estate values,
and new building of all character.
some of which is becoming badly
needed. The Government should also
be in position to make railroad loans,
in order that the roads may be able
to get their credit requirements at fair
rates. Some further lending to indus
try may be desirable, although that
situation Is adjusting itself more
rapidly.
CurtaiIment Desirable.
Whatever the President and Con-
gress may determine with respect to
Government lending, certainly cur
tailment is desirable. It can be ac-
complished through administration.
The r. F. c. has been restricting its
loans for more than year, lending
only when it appears that a worthy
borrower is unable to get credit from
other sources on fair terms. 1t may
not be generally known that the Home
Owners Loan Corp. has made no
new loans since June IL. 1896, and
can lend no more without new legis-
lation; also that demands upon the
Farm Credit Administration 1or farm
loans are diminishing at rapid rate,
as are crop and seed loans by this
agency. Crop and seed loans aggre-
gated $57,000,000 in 1888, $3S, S,o00, 900
in 1884, s57,0O0, 900 in 1885 and $16,-
900 900 in 1896.
The Public Works Administration
has used less than one-fourth of the
$500, 600, 900 authorized for grants and
loans by the last session Of Congress.
The Federal Housing Administration
continues to insure home mortgages,
which greatly stimulates new home
construction, but the Government
guaranty will not be behind its in
sured mortgages on loans it insures
after July /, 1887. unless new legisla-
ton provides for it.
There need be no fear on the part
Of money lenders that Government
lending will take their business If
they perform their functions. How
ever. this is the first time Government
has fought a depression as deter
minedly as it wages war, and since
we have more panics and depressions
than wars. economic preparedness
could well be part of our national
policy. BY this I do not mean to
indicate that ! favor government In
business one day longer than neces-
sary, but would counsel against alb
ruptly discontinuing all Government
lending. Interest rates would i'm
mediately 60 up and they are high
enough now.
Cooperation Is Necessary.
1t is clear that we are in for q
period Of good business and II we
will be little more cooperative, each
having consideration for the afbar