The Indianapolis times. [volume], August 09, 1934, Home Edition, Page PAGE 6, Image 6

About The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965

Image provided by: Indiana State Library

                
PAGE 6
MILLION JOBS
SEEN AS BOON
OF HOUSING ACT
Law Hailed as Big Factor in
Long Pull Toward
Recovery.
fl* Ttm't Sp'rini
NEW YORK Aug. 9—Operation
of the nfw housing act, facilitating
the fl r.ancir.g of home remodefir.g
and hom*> building. was hailed
today by buainevs men as a m f -an*
of employing 1,000,000 workers and
as a major factor in the long pull
toward economic recovery.
Lew; H. Brown, chairman of the
subcommittee on the national
mg ar* of the durable good' md is
. said that he be
lieved the million workers would
get job over period' as long a> four
mor.-h thi year through operation
of that part of the act which pro
vides for modernization of homes
through Irons faci.itated by the
government.
But the most far-reaching aspect
of the law, he predicted, would
prove to be the gradual, continued
revival of the building industry
until anew era of stabilized rea.
estate values was reached.
iliplain* New System
He explained then why lie believed
the new system would prove to be a
benefit not only to home nv ners and
to industry but eventually to the
man in the rtreet.
Through the law. home owners
will be allowed to borrow as much
as $2,000 from bank-, and other
financial institutions for home al
tera'ion, with r.o more security than
proof of reputation.
A government agency will in c ure
the in titutions agair. t loss up to 20
per c* nt of the total loans, and so
release the credit. The loans will be
repaid over periods of one to five
years.
2fi.fMMi.lHH) Humes in I'. S.
"A modernization program
amounting to possibly $750,000,000 a
year over the next two years would
stimulate an employment of more
than 1 000.000 men for four months
of each of these years.” Mr. Brown
said
“There are 26.000.000 homes in
this country, a large percentage of
which not only are in vital need ot
repair work to maintain their use
fulness as homes but practically
every one of which can be modern
ized."
The contemplated program, he
pointed out, would stimulate the
circulation of money and aid busi
ness not even related to the building
industry.
But the phase of the building pro
gram which concerns new' construc
tion is the one which Mr. Brown,
who is president of the Johns-Man-
Yille Corp. and other business
leaders believe will do more than
anything else to speed general bust- !
ness recovery.
Had to Pay Premium
“In the past.” Mr. Brown said, ‘if
a man wanted to build a home oiij
small capital he first obtained a con- ;
struction loan at high cost. When j
the hou e was finished he got a first
mortgage up to half of ns value and
a second mortgage up to 80 per cent |
ol *the value. Because of the risk
inherent in the system, he had to .
pay a premium for the second mort- i
gage and ito total cost often ran to
8 to 13 per cent and sometimes
much higher.
“Under the new law. there will be
only one mortgage and it will cover i
80 per cent of the property value. |
The home owner will begin to j
amortize it |he minute he gets it.*
paying back small parts ot the loan
at fixed times over a period of years
that may run as long as twenty.
“He can borrow the money at 5
per cent plus a small premium he
must pay into a mutual insurance
company which will insure pll bor
rowers. The premium, say. may be
1 per cent, but after seventeen years,
if it is found that losses have not
cut too severely liuo the reserve of
the company, the home owner will
■ receive what will be tantamount to
\ dividend.
Actually to Be Owners
~ ' One oi the old fallacies of real
>'estate was that “you should have a
mortgage on your house, as it makes
it more saleable.” The depression
came and multitudes of home own
ers—with mortgages on their homes
—last their entire equity and their
homes, too.
“Foreclosure and .-ale of course
depre'x ,1 real estate values every
where. The new sysytem will make
tnts an unpa-sibiiitv Home owners
are going to have anew seme of
security. Th* v rr actually going to
be owners, paying regular install
ment' cn th-.ur dwellings until the
property is fully paid for. “We ex
pect to see r-’al estate va’ues conic
up as bonds came ud ”
That in mi'-' in realty values will
benefit not a few but virtually every
one, supporters of the new act are
convinced. Every one who has a
bank account, every one who has
an insurance policy, will benefit
they pom: out. tor the banks’ and
insurance companies' real estate
loans will be made more secure.
The new mortgage system, sup
porters hope, will be extended to in
clude mortgages already issued;
they hope to have present mort
gage' transterred into long-term
ones to re-establish confidence and
improve property values.
Could Convert .Mortgages
This would provide an opportunity
for those with fir.-t mortgages, or
first and second mortgages, to re
fund them, to convert them into
tong term amortizing instruments
at rates of 5 or 6 per cent, depend
ng on the state or community, plus
THE ITCH
Prevalent in Indianapolis
Go to Hook's or any good drug
tore and get a bottle of Gates
Sanative Wash. Guaranteed to
Hop the embarrassment and dts
romfort of itch. 60c large bottle.
—Advertisement.
Pimples Itched and Burned
Severely. Healed by Cuticura.
"My trouble starred with a breaking out of pimple* on my scalp.
From this it affected my ears and neck and it spread rapidly, causing dis
figurement. My skin was sore and red ar.d itched and burned severely,
causing lua of sleep. My hair fell out considerably', causing it to become
tlnn ar.d dry. *
"I tried different remedies, but they did not do any good. Then I used
Cuticura Soap and Ointment. They relieved me so I bought more and
in a month's time I was healed.” (Signed) Jim Moseley, 13661 Reynolds
Atw, Detroit, Mich., Feb. IS, 1934.
Soap 25 1. Ointment 2Sr and W. Talcum 2Se. Sold everywhere.
ItlTlLUrfl C’Be sample each ire*. Ad<lrr: "Cutlcura Laboratoriaa,
11 4 Dtpl. Dl. Maldm, Mau.”
IN GOVERNOR RACE
f
A lormerNcKv York socialite,
Mrs. William I.figer, shown here
in anew portrait, l the storm
■ • ■: of one r,j tlio most bitter
if to battles in North Dakota his
tory. Nominated as Republican
candidate for Governor after her
husband withdrew, following his
federal felony conviction, she will
wage a whirlwind drive for elec
tion.
j not more than 1 per cent insurance.
A home owner, accept ng that op
portunity, will be truly an owner in
fifteen or twenty years, by paying
Ins interest and moderate amortiza
j non.
Thus men having houses now on
which they can not meet mortgages
due. or soon to be due. could con
vert first and second mortgages to
gether Into the long-term, “end up
by actually owning your home” in
s struments.
Finally, advocates of the system
conclude, as values go up to actual
replacement cost, the new building
cycle will begin and the building
industry, second only to agriculture
in the United States, will be saved,
with all the remainder of the popu
lace benefittuig.
A guest is n person who
drinks what his host
serves unless he remem
bers to tuek a bottle of
Crah Oreliard into liis
hag. Straight Kentucky
whiskey, no artificial
aging.no artificial color
in*;, it*s bottled from
the barrel and sold at a
reasonable price.
Chckmd
STRAIGHT KENTUCKY WHISKEY
Accept no substitute
a prodcct of MnoiuL mmuns
hiarllf^ALE! HP
■ r 0 ,° t * V jjjfjjljl | : gi) • j %ft jv- ••
TO ** it’ P \ JBSSSIiw i S \ i
f E ' BLOCK’S— Downstair* I
THE INDIANAPOLIS TIMES
'AUG. 9,103 t