Evening Star Newspaper, June 7, 1935, Page 26

B—6 HOUSING COST CUT BY U 5. FORESEEN Fahey Says on Forum Home | Loan Bank Board to Make /3 Slash. 1In its long time operation. the Fed- eral Home Loan Bank Board and its alifed agencies. including the Home Owners’' Loan Corp. should serve to reduce the cost of housing to the average American urban family about one-third, John H. Fahey. chairman of the board, declared last night in an | address on the National Radio Forum, sponsored by The Washington Evening Star and the National Broadcasting | Co. At the present time, Mr. Fahey said, the actual cost of shelter takes about 30 cents out of each dollar earned by urban families in the small- salary scale. Successful functioning of the Home Loan Banks, the Cor- poration and the Federal Savings and Loan Corp. should bring this cost down to about 20 cents, the chair- man said. In discussing distribution of the new appropriation just granted the Corporation, Mr. Fahey emphasized that loans will be made only to those who qualify under terms of the Corporation and to those who seem reasonably likely to repay the obli- | gation within the 15-vear term. It 1s the determination of the Corpora- | tion not to be imposed upon by those not entitled to such aid. he added The text of Mr. Fahey's address fol- lows: 1 am deeply indebted to the Na- tional Radio Forum for the oppor- tunity of talking to you tonight con- cerning continuance of the work of the Federal Home Loan Banks and the Home Owners' Loan Corp. pro- vided for by the recent amendments to the home loan act passed by Con- gress and approved by the President & few days ago. I am sure all who have had the privilege of hearing the many valuable discussions which the Forum has pre- sented appreciate the great public ser: ice rendered by The Washington Evi ning Star and the National Broad- | casting Co. in making these talks pos- sible. The people of the country should understand fully what the Federal Government is doing. not only to re- | lieve home loan distress, but to make ! better homes possible at lower cost. and to protect investors in home mortgage loans. The various ac- tivities under the Federal Home Loan Bank Board touch very intimately the hearts and the pocketbooks of many millions of our citizens. Their main purpose is to give greater secur- ity to people of small or moderate | means in the ownership of their homes. and in the employment of their savings. | 10 Million Families Own Homes. | I vou have a home of vour own in | any American town or city, or wish to have one, then vou have a very | personal stake in the steps that vour Government is taking to make home | ownership safer and less expensive. More than 10 million families own and live in urban homes in the United States. Most of them have faced. as perhaps you have, the problem of hold- ing their homes against the dangers of economic depression. Yet many of them have very little knowledge of the agencies which the Government has | get up to protect them against the destruction of real estate values. Even if you live in a city apartment, or in a rented house or on a farm, you still have a direct concern in what the Government has done in the field of home finance, in case you carry a life insurance policy, or own & savings account. The savings of 50 million American men and women are | placed largely in home loans by our | insurance companies and savings banks. All of these savers, therefore, have a deep mutual interest in the | program which the Government is carrying out for the purpose of keep- ing those loans safe. The new act of Congress affecting home mortgages which the President | has just signed and in which he has constantly maintained intense in- terest, should have far-reaching ef- fects if the people take full advantage of it. It will assist not only the now relatively small number of urban home owners who are in danger of foreclosures, but also the great multi- tude of families who are not in dis- | tress. Mortgage relief is only a| temporary and incidental part of the work of the Pederal Home Loan Bank Board. It is handled by just one of the four agencies under its super- vision, The other three agencies are permanent. They have for their ob- jective the future development of American home finance, through the | private lending institutions, along | much sounder lines than those which | led 0 many home owners and small | “savers to disaster in the past, and | made home ownership unduly expen- | sive through excessive mortgage costs. Summary of Purposes. ‘These long-run of the board in the interest of the entire public can be summarized briefly in three divisions: First, is the task of protecting through insurance the savings of the people invested in home- financing thrift institutions. Second, making sample credit reserves available to home owners on liberal. terms, through the pri- vate home-loan agencies. Third, is the vital purpose of en- abling American families to finance or refinance the purchase and ownership of their dwellings at lower cost, through an improved type of long-term mortgage loan from private lenders which can be paid off conveniently over a period of years. All three of these objectives of the —_— = STORE YOUR FURS with ex perts.’ For t years furs and woolens have been entrust- ed to us for safekeeping. We provide mothproof chests large enough for {umfly use. These cost even ess than the moderats charges per garment. RUGS Cleaned and Stored FIDELITY THE EVENING STAR, WASHINGTO Explains Home Loan Plans JOHN H. FAHEY. ~—Star Staff Photo. | board are of advantage to all home | default on their mortgages, and who owners who are not in distress at all. All three of them will serve home | owners directly through the private financial institutions. and only indi-| rectly through Government supervi- sion and co-operation under the Fed- eral Home Loan Bank Board. The only part of the new Federal home loan act that is concerned with temporary morigage distress is the authorization of about one and one- nalf billion dollars more for compie- tion of ihe emergency relief work of the Home Owners' Loan Corp. It will enable that corporation to save from foreclosure some 400.000 home owners who have been in involuntary | Lansburghs DIAMOND JUBILER could not be taken care of under the three billion dollars previously author- 1zed. Nearly all of that three billion dol- | lars has now been used up in saving the homes of over 860,000 families which have already received relief loans from the Home Owners’ Loan Corp. During the next three weeks, ending at midnight June 27, the cor- poration may accept new applications from clearly distressed home owners. Any town or city home owner who is in real danger of foreclosure and un able to secure a new loan from a private institution, should make ap- plication to the corporation’s nearest YEAR 1, 8™ and € ANOTHER DIAMOND JUBILEE local office without delay. No other home owners are eligible for corpora- tion loans, and no other should apply. We cannot make loans to persons who are having no real trouble with their mortgages or who can have them taken care of elsewhere. This fund is intended to be used for the benefit of those who are in undoubted dif- culties on account of their mortgages, who have a clear equity in their nomes but cannot obtain necessary help in other directions and who have s fair chance of meeting their obli- gations if assisted by this Government through making & new 15-year loan. We cannot impair the resources of this corporation by making loans to those who are not entitled to them, and we cannot throw away the maney which the public has provided by lending it to persons who plainly can- not repay it at all. It is the purpose of our board to see that the case of every honest, worthy applicant is con- sidered without discrimgnation or favoritism of any kind, and solely on its merits. As good citizens you can be of great service to us if you will bring to our attention here in Wash- ington any cases which come to your .' RUG CLEANING FADED BRILLIANCE RESTORED! If your rugs are dull and lack luster; if their fresh, original beauty is hidden or obscured by dust and dirt, our service will quickly restore them as if by magic. We are expert in every phase of rug cleaning. Our equipment is the very latest. Our work- men Are highly skill- ed. Our charges are moderate Rug stor- age and repairing our spe. clalty. CALL MR. PYLE NA. 3257-3291-2036 AIR WARNING! We Expect a Quick One-Pay Sellout 2,000 washable white Bags WITH 2 INITIALS 1.00 | We expect a crowd big enough to fill the Washington Auditorium. We're afraid there's going to be an overflow rally! Here's why! 44 best-selling styles in brand-new white Summer bags at $1.00. Practically every type from the latest trick vanity to the top-handle “mama” bag! The insides are as impressive as the outsides—lovely fittings. You want to be here sharp at 9:15! LANSBURGH'S—STREET FLOOR—HANDBAGS. Pick Your Favorite SIMULATED ALLIGATOR SIMULATED PIG GRAIN SLEEK SAFFIAN SMOOTH CALF FINISH RODALAQUE , D. C, FRIDAY, | notice which appear to violtte this principle. ‘We intend to deal sympathetically, in & spirit of helpfulness, with all who are justly entitled to assistance under the law. It must at the same time be recognized that it is our duty to see that your Government is not imposed upon, and also that unfortunately there are many cases where it is be- yond our power to extend aid. Fortress of Civilization. Considering the tremendous army of home owners and small savers whose welfare depends to such an extent upon the soundness of Amer- ican home finance, it is easy to see why the National Government is taking such an active part in helping to put home ownership on a stronger foundation. The family home is, after all, the. very fortress of our modern civilization. When the security of that home is weakened, the Nation itself is undermined by bringing fear and loss and despair upon its people. ‘When, on the contrary, you protect the home by making its possession more certain and less burdensome for JUNE 7, 1935. the family you are helping to assure greater security for all the citizens of this country. Then, in addition, suppose that you make it possible for many thousands of families to become home owners by providing a conve- nient way to buy attractive homes on installments through private lending institutions, so that they may live in more pleasant surroundings at more reasonable cost. When you e done all those things you have bulit a strong bulwark against exploitation, discouragement and depression, and given new incentive to the spirit of personal thrift ahd independence which is one of the great heritages of the American people. It was logical and necessary that the Government should throw its own resources behind the urban home owners and the thrifty wage earners whose small savings are loaned out | on home mortgages. In less than three years five different major acts have been passed by Congress for the purpose of giving greater stability to to keep at all hazards. In a few mo- | ments I shall review briefly some of the main features of the latest legis- | Iation, enacted last week, because | many of you who may be listening to | this broadcast would profit by the| safeguards which the Government has | created in your interest. Four Agencies Under Board. Before I go into that, however, let me tell you what has already been done through the four different agencies administered by the Fed- eral Home Loan Bank Board. It is mainly through those same agencies that this new act will serve the pub- lic. The simplest way to make clear the separate purposes of these four institutions is to show why each of them was created, | First of all is the Federal Hom Loan Bank System, which is a perma- {ment credit reserve structure for the | use of the private home-financing in- stitutions. It permits them to expand their lending power by the use of home finance, and more security to those millions of families who have homes of their own, which they wish Let Lansburgh’s Share the Burden of & Getting Him Qutfitted! 3-Pc. Sénforized = It’s built for shocks. COVE Reg. $1.59 their present resources as collateral | very much as the Pederal Reserve Sys- crease their credit for industry. Nearly 3.300 building and loan associations, and several mutual savings banks and life insurance compenies are now | members of the Federal Home Loan Bank System. In less than two years it has grown to be the largest mort- gage reserve institution in the world, with over $3,250,000,000 of resources. The bank system was established in 1932, in order to protect home owners against a repetition of the dangers which they faced a few years ago in the scarcity and high cost of mortgage credit to reet home construction and refinancing needs. The Home Loan Bank System is not an emergency institution. It does not make loans direct to home owners, for relief or any other purpose. It simply places an additional large volume of credit at the disposal of the private home- lending institutions, so that they may make a larger number of mortgage loans to home owners on reasonabie terms, and also meet the cash require- | ments of their investors more readily Corpora. ‘The Home Owners’ Loan tem permits commercial banks to in- ' RT— Suits C tomorrow only ; Save 60c by shopping h day! ere Satur- Save $2.40 on four suits! No shrinking these coverts, either. Gray, blue or brown. Sizes'8 to 16. Wool Retter get several s=o he won't catch cold wearing wet trunks. All wool, with belts. Rea! =mart szhopping, Mother! Sizes 6 to 15. LANSBURGH'S FOR BOY'S FOURTH FLOOR. Swim Trunks 99- WEAR— Mail ‘and Phone Orders Filled-Di. He'll find himself wearing it all the time— it's good-looking and Chromium case with strap or chromium links. accurate. leather In a neat box, ready to give! LANSBURGH'S—STREET FLOOR—JEWELRY. 100% Wool White Flannel S, Slacks For- the Graduate 495 For the great event, strut out proudly in spotless slacks, in snowy, all-wool flan- nel! Have 'em for summer wear, for vacation, for next season. All prep sizes, all leg lengths. Treat yourself, fellow —this is your day! Part Cotton Flannel Slacks, $3.85 STREET FLOOR. 1860 LANSBURGH'S / Accurate! Shock Proof! Short-folding Lawn Chair Folds up on itself so small that it easily stows in your auto. Double kidney strap for extra footrests well finished ! reinforced box seat, comfort. Even the Folding Hardwood Yacht Chair. *1 Here's Lnnaburfh quality! Double canvas seat, gro - erly slanted back, varnished hard- wood, won't snag clothes. Big dollar’s worth of comfort! LANSBURGH'S— FOURTH FLOOR. SMART WOOD BEADS SLIP-COVER LINENS INITIALED LINENS STORAGE - 8m-Y-E-STS . 1420 U Street N.W. North 3400 Na-9800