Evening star., 1938-07-07
BUSINESS GAINS
CHEER PRESIDENT
ON EVE Of TOUR
F. H. A. Reports New Home
Financing Increase of
IS Per Cent.
POSTAL EARNINGS ARE
HIGHEST ON RECORD
R. E. A. Makes First Pump.
Priming Grants, R. F. c. Moves
to Ease Treasury Burden.

By the Associated Press.
A sharp increase in home financing
and encouraging reports of other bust.
ness activities .cheered President
Roosevelt and his advisers today.
Amid the hustle of last-minute
business before starting his month.
long tour tonight. the President re.
ceived word Of these economic de.
velopments:
/. The Federal Housing Administra.
ton reported that home financing &C.
tivity reached a new high in June
some phases gaining 60 and rs per
cent over June, 1887. Administrator
Stewart Mcdonald said the F. H. A
would insure $1,000, 1000, 900 Of new
building this year.
2. Postmaster General Farley said
postal earnings for the last ~ months
were the highest on record.
r. E. A. Makes Allotments.
3. The Rural Electrification Admin.
istratfon made its first allotments in
the new ''pump-priming" program
setting aside $11 ,229, 200 for 66 rural
power projects in 1s States and Puerto
Rico.
4. The Interstate Commerce Com.
mission authorized Eastern railroads
to increase coach fares u cent q mile
The carriers estimated this would
boost revenue $50 900, 900 a year.
5. Chairman Jesse H. Jones an
nounced the r. F. c. would borrow
more than 100000, 900 In the next II
months to repay loans made by the
Treasury.
6. Senator O'Mahoney, Democrat. OF
wyoming. chairman Of the Monopoly
Investigating Committee. predicted
that businessmen generally would be
pleased by the fact-flnding nature OF
the inquiry.
7. Conway P. Coe, patent commits.
sioner, interpreted recent increase ir
patent applications as strong indica-
ton OF industrial recovery.
8. The Interstate Commerce Com.
mission reported that class l railroad,
employed 1858 more persons in June
than they did in May. The commits.
sion said the roads employed 914.76s
persons IN June compared with 904 ,897
in May.
Administrator Mcdonald announced
that small home mortgages selected for
appraisal in June totaled $55,184. $40
an increase of IS per cent over June.
1887. Mortgages accepted for inssy-
ance during the month, he said,
reached $73, 1853. 400, a so per cent gain
over the same month last year, and
brought the total of F. H. A. insurance
to $1,645. .440,965.
He reported that "a, ,468 property i'm
provement loans totaling $l7,370.7 .785
were insured in June, bringing to $751;
293,558 the total since the amended
Housing Act became effective in Feb
ruary.
Mr.. Mcdonald said the increasing
tempo Of construction work consider
ably brightens the industrial picture. +"
His estimate of billion dollars in new
building loans for the year anticipated
a demand more than double that Of
last year.
Postmaster General Farley, while
not disclosing exact figures, said his
department had kept well within the
budget" and that postal earnings were
slightly larger than the $726, ,O0O, 600
for the 1887 fiscal year.
To Cut Treasury Borrowing.
The r. F. G. decision to borrow from
the public will reduce by like amount
the borrowing which the Treasury
must do to finance the new spending
lending program.
A part of that program was the
$40, 0,000,000 voted by Congress to the
Rural Electrification Administration
Its first allotments were for projects
intended to extend 1880 miles o1
power lines and bring electricity te
10000 farm homes and rural churches
and schools