The Republican. [volume] (Oakland, Md.) 1877-current, 1958-03-27
experts calculate that

between II2 ana ndn-yedrS OF
employment, Thus, assuming a
volume of 100000 units, this bill
would create from 100000 to 60O,-
coo jobs.
In addition, during 1858 it would
provide markets for an increased
2la billion feet of lumber, 900 to
$50 million bricks, 400 million
pounds of cement, 100000 tons of
steel, 100000 doors, 2 million
kitchen cabinets, 2 million asphalt
roofing shingles, 5 million wall
plug outlets and % million electric
switches.
Here is what the bill provides:
l. Special assistance mortgages
81 ,OOOOOO,OOO. At S13,5OO per mort
gage, this will produce $4,000 homes.
The bill authorizes lower down
payments on modestly priced
homes and provides for the fl
nancing at par of these units
2 Authorization to the President
to use at his discretion, additional
funds for the purchase Of Federal
National Mortgage Association Mort
gagcs-$5OO 100000. This authori-
cation, providing the financing for
$4,000 homes, would replenish
existing funds and give the Presi-
dent an additional anti-recession
weapon.
3. Funds for the purchase of
Capehart housing mortgages-S25,-
100000. At an average of $16,500
per unit, this would build ISIS
homes.
d. Funds for the purchase of FILA
Section 800" mortgages-S25, 0O0,-
00O At an average of $4,000 per
unit, this would finance 2,083 units.
Money for both the Capehart and
the FILA purchases would be COM
mitted Immediately, and construc-
ton of housing under both can go
on as soon as the bill is signed.
5. Veterans Administration direct
loans-$15O,O 100000. This will also
permit immediate construction and
can produce 1000 units in each
of the next two years.
6. Extension of the VA loan
guaranty program and revision of
FILA down payment schedule This
extends the loan guaranty pro-
gram for two years and authorizes
a ceiling of 4a4 per cent Az per
cent for Capehart housing).
The purpose of this last provi-
sion was to spur on business by
attracting more private money into
the CT program, which, along with
the FHA-insured housing resulting
from the. new down payment
schedule, should produce at least
1880 homes.
The interest-rate provision was
the most controversial part of the
bill and merits some explanation.
One group in the Senate tried I'M
successfully to strike it out by
amendment.
In the first place, the bill does
not increase the CT rate from Az
to Az per cent. 1t merely permits
the President to raise it to the
larger amount if he sees fit.
The situation is this. There is
plenty of private capital for hous-
ing, but the CT program has bog
ged down because, with the interest
rate at 5l2 per cent on FILA hous-
ing, there is little market for the
VA mortgages with the present Az
per cent ceiling.
The bill provides that when the
President raises or lowers the rates
either for VA or FILA, he must
keep them within one-half of !
percent of each other so that the
VA mortgages can be sold. Private
industry is not buying the CT paper
now. 1t may be assumed that it
will once the two rates are brought
closer together.
1t is an effort to relieve the Gov
eminent of the burden of financ-
ing directly this housing program
when private industry from all in
dicationS is ready to do it.
On this point, / should like to
quote from letter written by NelS
G. Serverin, President of the Ma
tional Association of Home Builders.
He said:
we believe that the bill as re-
ported out by the Banking Com
mittee is the best possible means
of assisting private industry to
create more jobs, use more materi-
ais and supply much-needed hous-
ing for the American people.
This is the view of the entire
BODYBUILDING industry speaking
through this association which
represents 10000 members affil-