Evening star., 1936-10-24
DENIES AMERICA
LAGS IN HOUSING
U. S. Program Far Ahead
of British, Administrator
Mcdonald Asserts.

Conditions in England and America
are so dissimilar that any attempt TO
copy the British housing program mere
would be unwise, Stewart McDonaid,
Federal housing administrator, sale IN
o statement today.
Mr.. Mcdonald believes that America,
Instead of tagging behind Great
Britain in housing, as some persons
have asserted, is actually 10 years
ahead of England.
II base my belief on a careful analy-
sis of reports made to me by DR..
Ernest M. Fisher, chief Of our division
of economics and statistics, and Rich
ard U. Ratcliff, his associate, who have
Just returned from two-morth sur
vey of housing conditions in 10 Euro
pean countries" said Mr.. Mcdonald.
'This survey was made under the
joint auspices of the Federal Housing
Administration and Harvard UnlVer-
sity. DR.. Fisher has made flrst-hand
observations of housing conditions in
England on three separate occasions.
Denies British Leadership.
"Any belief that England's housing
activities point the way for future
handling OF this problem in the United
States represents purely superficial
and sometimes even amateurlSh-
study of the situation. Time was when
any elementary grade school teacher
could go abroad and come back with
the solution of all our ills. That day
Is past. We might just as well hope
to establish foreign form of govern
ment in the United States as to
solve our housing problem by estab-
fishing a foreign housing program.
Canada, for instance, is setting up
housing program definitely based On
the principles and objectives of the
national housing act.
ITO understand the true picture Il
conditions in England it is necessary
to probe little deeper than me sur
face and let the facts firmly estao-
lish what course England S taking.
First, it should be remembered tnat
q great deal of English home building
Is subsidized by government money.
Interest Rates Reduced.
1.-THE facts show since the war
preat volume of house building mas
been done on more favorable terms TO
borrowers and that the equity require
ment has been reduced quite openly
and frankly to 10 per cent, ana Id
some cases per cent; that interest,"
rates on mortgage money have peen
driven down to ATS per cent, and that
there is an increasing tendency tc
lengthen the term of loans beyond any
term customary in this country at the
present time.
There is definite evidence-ade'
cuately supported by the opinions OF
Informed English authorities-tha'
credit is being extended unwisely ano
that a great volume of purchasers are
undertaking obligations which they
cannot meet. There are definite signs
that some jerry building is beng mar
keted in England. Finally, there is
pronounced tendency in England
toward abandonment of the large, Old
fashioned single-family house Tor the
smaller labor saving apartment. AL
these developments will sound strange
lv familiar to those who remember the
events that led to our own real estate
crash.
English observers currently agree
that a decline in house constructor
lies directly ahead, some insisting thai
the decline already has set in. This Il
an old story in the United States. We
have experienced all these conditions
and we have seen the results in the
depression days which necessltateo es'
tablishment of the Home Owners
Loan Corp. =.
Thus I do not believe We shoulc
pattern our program after that OF tht
English. In fact, it is my belief tha
we may be 10 years ahead OF England
We have established home financing