Milford chronicle., 1938-09-16
ECONOMIC HICHLIGHTS
HAPPENINGS THAT AFFECT THE DINNER
PAHs, DIVIDEND CHECKS AND Tax
bills or EVERY INDIVIDUAL
National and {HfernahoHai ProbiePJ
IH5eBarabie from Local Welfare

\ United States News, is today the ma.
tion's largest single owner Of homes
and farms.
This is one Of the fruits Of the
federal building and lending pro-
gram. II all began in 1898. At that
time, depression was at its peak, and
private mortgage holders were fore
|, closing on properties by the thous-
ands, because the mortgages could
no longer make their payments. The
government then came forward with
its credit, and took over the mort
cages, giving the holders bonds in
their place. In most cases, the prin-
cipal was scaled down before the
deal was made.
This work was done principally by
the Home Owners Loan Corporation,
which made loans to the extent of
nearly 100000. 900. Afterwards,
about 100000 in loans on a
similar basis were made by the Fed
eral Credit Administration.
The government made It clear that
in no instance were mortgages to
regard the loans as gifts, or as obli-
cations WHICH could be paid at some
vague future time. Interest rates
were reduced to per cent and the
length of time in which payment
could be made extraordinarily
to Is years, on a monthly INSTALL
ment basis. In 1886. largely because
OF the series of great drOughts which
seriously impaired the incomes of
Middle Western farmers, the interest
rate was reduced to 31s per cent BY
act Of Congress. At the same time.
Congress made provision whereby
borrowers, Is necessary, could defer
the time when they must start re-
ducing their principal obligation.
To a large part Of the borrowers,
these remedies proved sufficient, and |
they have been able to make their |
installments as specified. But to an !
other large part, even the easier
terms were not enough It is this |
fact which has put the government |
into the farm and home business on
an unprecedented scale And the
situation has been growing worse.
not better.
Between 1888 and 1886, inclusive.
the government foreclosed on sc, 1876 /
properties, whose original loan value /
was 100000, 900. By the end of 1887.
the number of foreclosures reached /
124.SO3. with an original loan value
of 49O,O0O.OOO. And by July, 1888,
inclusive, the total was 160.O83 fore
closures, with an original loan value
in excess of $685., 200, 900.
Thousands of other farm and
home-Owners are also behind in their
loans, and are in danger of foreclos-
ure.
On the credit side of the ledger is
the fact that three-quarters of the
borrowers have managed to meet
their cOntracts-and every one of
them was in distress at the time the
government loans were made. Also
to be credited is the fact that the
Hole has never experienced a def
cit. and has actually earned a mod
est profit.
There is the lending picture as ii
exists today. There is a strong Con-
gressiOnal drive in prospect for fur
Their reducing interest rates and per-
haps extending the time of payment,
on urban homes, which in :
the past have been less favored than
farm properties. The Hole, whose =
officials are apparently trying to
keen their bureau operating on :
business basis, oppose this, and in
sist that it would cause operating
deficits, and would not materially
lower the rate Of foreclosure.
Which point of view will win. re-
mains to be seen. In the meantime, {
The government has 100 900 home
and farm prODerties on its hands
which make 1t the biggest real es- s
ate dealer in American history.
o. Il
You can interpret the recent pri- {
nary result almost any way you
want ii. If you are a New Dealer, I
'ou can find evidence of continuing {
support for the President. If you OPP
hose this Administration, you can s
ind evidence to prove that the tide !
s running away from the New Deal.
nd that the conservatives have the p
dge. n
Nearer to truth than either OF
hese views. is the observation that s.
he primaries have proven practical 3
y nothing. Maury Maverick, one of
he 100 per cent New Dealers. lost in q
'exas, by a very close vote, to
democrat who Is cool to some of the
policies. In the Vir- D
mia primaries, more or less anti .
lew Deal Democrats won nomina-
ons. On the other hand, strong New a.
'eal candidates swept the slate in y
Fest Virginia.
Generally regarded as most i'm X X
ortant was the bitter Kentucky pri- -
iary. where Senate Majority Leader
arkley won denomination in a rel q,
lively close contest with Governor =
handler. Mr.. Barley was given an
warm endorsement by the 10 10
resident. which is generally re- 3
arded as having turned the tide in -
IS favor. ~,
Summing up. the primaries indi- 10
tie that the New Deal is managing sl
hold its territory-but by narrow :
G margins in many instances. And Co
e so-called Administration purge" W
not proving as successful as some sly
lticipated
SOCIAL SECURITY ISN'T NEW b. b.