Evening star., 1938-03-12
HOME OWNER ADDS
TO j. S. STABILITY.
Has Feeling of Real "Stake"
in Countr,, DeIano
Declares.

The man who owns his own home
not only protects himself and his
family. but also contributes to the
national stability and defense be-
cause of the feeling that he has a
real stake" in his country.
This was the viewpoint expressed
today by Preston Delano, governor
Of the Federal Home Loan Bank
System, in discussing the relation Of
the home owner to his Government
Mr.. Delano pointed to the social.
economic and political changes and
problems that have arisen from Amer
ica's transition from primarily agri-
cultural Nation of home owners to a
great industrial giant. whose popula-
ton exists, mainly, on income from
pay rolls.
THE early history of the United
States" he said, lis the story of a
pioneering people overcoming a will
derness and living almost entirely on
the land. They owned their own
homes as matter of course.
independence Is Lost.
"As the wilderness was overcome
and population grew, America began
to feel the far-reaching effects of
the machine age. Gradually this pio-
neering self-sufficiency, this inde-
pendence that went with a livelihood
drawn from the soil, was lost.
Roughly, it can be said that in
1880 as much as 10 per cent of the
population of these United States
lived in rural areas. In 1880 the sit
uation had almost exactly reversed
itself in that 10 per cent of the pop
ulation lived in congested urban
areas.
1T becomes clear that home owner
ship as one of the Nations safeguards
Is seriously undermined by such a
change in the habits of it's people"
Mr.. Delano pointed out that home
ownership not only inspires a man
to protect his State against alien
enemies, but is a safeguard Of domes-
tic tranquility.
Problems of Today.
Against this historical -philosophi-
cal background. Mr.. Delano sketched
the problems of the home owner to-
day. The last depression. he pointed
out, threatened many citizens with
the loss of their homes. Such losses,
however, were curtailed by the Fed
eral Government. which, through the
Home Owners Loan Corp. aided more
than 100000 home owners with
loans totaling in excess of $4,000, ,OO0,-
600.
Two primary factors, Mr.. Delano
said, are necessary to aid the Amer
lean who would build or buy home:
First, the adaptation of modern mass
production methods to the construc-
ton field; and, second, the esta blish-
ment of system of long finance,
both safe and liberal
Regarding the first factor, Mr.. Del
ano said:
One of the most important forces
In this era of change is mass produc-
ton If we are to give value to the
home investor in the future, there
must be some conscious planning on
the part of business authority to bring
the advantages of mass production
from highly industrialized plants out
into the field of small-home construc-
ton
Revolution Of Thought.
In the field of finance, Mr.. Delano
pointed out, vast and cataclysmic
have been going on since
1929-disturbances which may lead to
revolution Of thought.
Money and credit are by way Of
being organized to serve industry-in-
cluding home building-not control it,
and this change Is of the greatest i'm
portance.
Our goal is stability of values and
security Of employment. A measure
Of achievement along these lines prob
ably means more toward giving the |
home owner value received than all |
the subsidies which paternal gov
eminent could offer him"
Would Stabilize Credits.
The United States Government,
through the Federal Home Loan Bank
System, Mr.. Delano said, is attempt
ing to stabilize and increase the credits
available for home building. The Fed
eral Home Loan Bank System, with
its 1888 members having assets Of
$4,040, 100000, provides the greatest
pool of home building credit in the
world
Through its IL member banks, he
continued, the system is able to reg
ulate the flow of credit from sections
OF the country with an abundance of
funds to those where there is a scarcity.
and also to hulwark individual build
ing and loan associations in time of
adversely.
The bank system. through sponsor
ship Of the MISREPRESENTATION" type of
loan, is attempting to make America
. Nation of home owners in fact,
rather than in theory, Mr.. Delano
pointed out
Only One Mortgage.
Under the old system of mort
cages, now rapidly being outmoded,
he said, the home builder placed a
hrst and second mortgage on his
fASPS4ey' &A1VSA Vic SCCOLlu UlOTU&dRS |
was paid off the borrower frequently
allowed the first to run indefinitely,
keeping up interest payments and ar
ranging frequent and costly renewals,
often without reducing the principal.
Thus house often attained ripe old
age with a mortgage over its roof
while the owner paid out in interest
far more than its original cost.
The "direct-reduction" plan now be-
ing sponsored by the bank system and
adopted by many modern savings and
loan institutions provides for only one
mortgage.
WOODMOOR||