Evening star., 1960-01-21

severest and most sweeping CT
group of a major Government
days.
Convention delegates ass
obviously failed" for boosting
rates beyond the legal limits
of uSury," for having forced a
return to financing methods
proved unsound 80 years ago"
and for bearing down most
unfairly on small businessmen
and moderate-income families.
It was the consensus of OBJ
servers at the home builders
sessions that if the messrs.
Stevenson, Humphrey, Syming-
ton, Kennedy and other Demo-
cratic hopefuls fail to study
the protest, they will be missing
a bet. For it reflects q deep
disenchantment on the part OF
the industry with a basic ad-
ministration policy now being
pushed vigorously in Congress
with a request for an unlimited
intereSt-rate ceiling on long
term Government bonds, AM
effort widely interpreted as
heralding a new round of rate
increases.
Held In Effective
In its protest adopted yester-
day, the association pointed out
that home buyers are the Ma
tion's largest private users Of
long-term credit. For the Gov
ernment to rely on pushing in
terest rates still higher as its
chief anti-mfiationary activity
is both ineffective and unfair,
the organization said.
The attempt to control ex-
cessive total demand for credit
and to stimulate saving 81
through ever rising interest
rates has obviously failed" the
builders statement said.
Interest rates approach
and in some cases exceed-the
legal limits of usury. One ma
jor group of Americans has
been successfully CONTROLLED
the tens of thousand of modest
income home buyers who only
a short time ago could have
bought homes well within their
means but are now disqualified
by the high cost of credit. ). ;"
New Recession?
Warning that a new business
recession could be the result,
the statement said:
I'm 1857, the same combina-
ton of restraints now imposed
on our industry caused a Sc
we're drop in construction that
triggered a general business
recession. Unless immediate
effective action is taken to dis
tribute more fairly the impact
of tight money this pattern
will inevitably be repeated"
Mortgage banker members of
the association and other con-
servative elements sought un-
successfully in board sessions
to soften the criticism, but were
able to head off outright in
dorsement "at this time" Of
the Rains Bill to provide 81
billion in Federal mortgage
buying aid.
They succeeded in accom-
plishing this chiefly with the
argument that builders should
not, as an organization, be
placed in the position of want
ing a "handout." But the Rains
Bill issue was never allowed to
come to a direct vote and build
ers left the way open for their |
organization to support the bill. |
In a press conference last
night after his election as new
NAHB president. Martin L. |
Bartling, jr., Knoxville, Tenn,
said home builders would testi-
fly before the Rains committee
January 26.
Goals Outlined
He said they would seek:
l. Legislation to allow the
National Service Life Insurance
fund, the CT life insurance
reserve, to use "a reasonable
proportion" of its funds for
purchase of Federal National
Mortgage Association deben-
lures so that FNMA could buy
GI mortgages and thus aid
the CT housing market.
2. Legislation to allow
"points" charged by lender for
making mortgage loans to be
included in the mortgage