Evening star., 1937-12-21
By ]. A. O'LEARY,

Inc pending housing bill provides
all that should be required "to facil:-
tate large flow of private capital into
the field of residential construction
for rental or home ownership" Sen
ator Wagner, Democrat, of New York
told the Senate today as it began de-
bate on the measure.
Senate leaders will try to pass the
bill before evening in the hope con-
ferees may be able to adjust the Sc
ries of major changes made in the
House measure before the special ses-
sion closes tomorrow or Thursday.
At the outset, Senator Borah, Re-
publican, wanted to know if the COM
mittee obtained any data on the num-
Der of vacant houses now available
throughout the country.
Senator Wagner said that question
was not gone into directly, but that
indirectly it was shown "tremen-
dous deficit" in residential facilities
has accumulated during the last seven
years. with accompanying unemploy-
ment.
hsSS AIhcP III
"Of course, we need more houses
in which people could live" replied
Senator Borah, but would they oc-
cupy them when reports indicate
vacant houses all over the country?"
To show the accumulated need,
Senator Wagner said that between
1923 and 1880 an average Of more
than 100000 housing units were con-
structed annually. From 1880 to date,
he added, the annual average has been
10000.
Emphasizing that the bill Is de-
signed to attract private capital into
the home construction field, the New
Yorker said he firmly believes "it
will go long way toward solving our
unemployment problem and enable us
to achieve that lasting recovery toward
which we have been bending all
efforts
Major Changes Made.
Several major changes from the
House plan were made by the Bank
ing Committee before reporting the
bill late yesterday. There are no in
dications of protracted fight, how
ever, and leaders will make an effort
to obtain a conference agreement and
send the measure to the White House
before they pack their bags to go home
for Christmas.
In order to hasten consideration Of
the bill, Majority Leader Barkley
made an agreement which forecast
trouble for the regular 1888 session.
He consented to making the contro-
versial anti-lynching bill a special
order Of business for January 6, three
days after Congress reconvenes.
Bar Modernization Loans.
Important changes made in the
housing bill by the Senate committee
include:
Elimination of the sections that
would have revived Federal Housing
Administration insurance on repair
and modernization loans, which ex-
pired last April.
Placing of ceiling on the discre-
tionary power of the President to in
crease the present 81 900 100000 limit
Oll VIC dS6ICSdtC
obligation of all mortgages insured by
the Federal Housing Administration.
The House bill contained no limit on
the discretionary increase. The Sen
ate committee authorized a possible
$1,000, 100000 additional.
One of the main features of the bill
is to allow F. H. A. to insure up to 80
per cent of the value of $4,000 homes.
and on homes costing not more than
$4,000 to insure 80 per cent of the
first $4,000 of value and 80 per cent
of the remaining value.
Amortization Plan.
It was first proposed to require
amortization of these individual home
mortgages in 20 years. The Senate
committee provided that on such
mortgages approved up to July /,
1889, the administrator may grant rs
years for amortization, in order to re-
duce monthly payments with a view
to encouraging home ownership.
The Senate committee also pro-
vided, however, that such mortgages
may be insured, without the 25-year
privilege, until July l, 1912.
Another important difference be-
tween the two bills relates to the scope
Of activity Of proposed national mort
gage associations, creation of which
the bill seeks to encourage. The House
provided such associations could issue
debentures up to 20 times their paid
in capital. The Senate bill cut this
ratio down IN 15 times tho car,ita1
While the bill seeks to encourage
creation Of these associations by pri-
vate capital to make funds available
for home construction, the Presidents
recent message to Congress suggested
the Reconstruction Finance Corp.
might invest $50,OO0,0 900 in such asso-
ciations.