The journal. (Caldwell, Ohio) 1934-1961, 1958-05-15
M.GladhU,qton
with Rep. John Henderson

| have received many inquiries
about recent changes in the law
relating to direct housing loans
for veterans. The bill passed by
the Congress and signed into law
last month seeks to encourage
new residential construction for
veterans housing in rural areas
and towns by raising the maxi
mum amount in which direct
housing loans may be made from
$4,000 to $13,500. The new law
also authorizes advance financ-
ing commitments, appropriated
$3.50 million per year for the
two year program, and extends
the guaranteed loan program for
World War II veterans for two
years.
Congress defined what is
meant by rural areas and towns
as areas where the population is
less than 10000. On the other
hand, the Veterans Administra-
ton was given authority to in
clude larger towns in the pro-
gram where there has been a his
torical shortage of mortgage
funds.
The new law provides that an
advance commitment can be
made to a builder upon the pay
ment of commitment fee of 2%
of the amount of the loan. This
provision was included in the
law to provide a means under
which builders can obtain financ-
ing for new construction in small
cities, towns, and rural areas.
The law also takes into ac-
count more reasonable terms
with respect to requirements for
homes to be constructed under
such loans. Although it does not
allow deviations from minimum
construction codes, it does allow
homes to be constructed in keep
ing with standards of the area
where they are built In the past,
the Veterans Administration re-
quired that a builder in a coun-
try town would be required to
install curbs and pave streets in
front of the house, and make
other improvements even though
they were the only such improve
ments in the town.
FILA Changes
Minimum down payments un-
der FHA were also lowered in
this law Previously, the FILA
loan down payment on a $4,000
house was $500, or three percent.
This rate is maintained. How
ever, there are substantial reduc-
tons in down payment require
mentS on homes valued up
! $4,000. Above that figure, the
down payment rates remain the
same.
Unemployment Compensation
Last week, the House acted
upon the long discussed bill to
extend unemployment compen-
sation benefits to persons who
have exhausted their eligibility
| to receive such benefits.
Although it had been strongly
| proposed that the unemployment
| compensation system be, in
effect, placed in Federal hands
the House action leaves the pro-
gram under State jurisdiction
where it has been for many
years.
What was done in the House
bill is provide loans to States tc
extend their programs to per
sons who have not been able to
find employment after their com.
| penSation had run out before
April /, 1858. The proposal makes
| the loans retroactive to July /
1857, at the discretion of the
| States.
The bill now must go to the
Senate where the outlook is fol
considerable disagreement anc
debate on this issue which ha:
been pending already for many
weeks since the President firs'
made his request for legislation
Excise Taxes
One of the most distastefu
taxes are the excise levies placed
upon transportation tickets, tele
phone calls, jewelry retail sales
electrical equipment, and many
other items which people pur
chase from time to time. Mos
of these taxes were originally
contrived as wartime measure!
to discourage the use of over
crowded trains, buses, and tele
phone lines, as we'll as to dis
courage spending at time wher
| initiation was a constant danger
Although initiation is still a prob
lem, these taxes have long out
lived their original purpose. Like
so many other government pro
grams, the purpose is either for
gotten or has changed to some
thing else. Now, the taxes are
defended as necessary for raising
revenue for the fast-spendinl
Federal government.
All of the talk of tax cuts ha,
helped focus attention on these
particular taxes and there i
growing sentiment in Congress
for reducing many of the exist
ing excise taxes and eliminating
many more. The test will come il
several weeks when Congress
will begin considering whethe,
to renew some of these "tempor
ary taxes" which are due to ex
| pire at the end of June. This viii
be the appropriate moment for ,
broadside attack in Congress OF
the entire excise tax system. Al
indications are that the attacl
will be made.
| A.