PRESIDENT’S MOVE

Hokitika Guardian, 30 November 1937, Page 5

PRESIDENT’S MOVE

MESSAGE TO CONGRESS. (United Press Association—lW Electrn Telegraph—Copyright). . . WASHINGTON, Nov. 28. The most amoitious move w.uch President ivoosevelt has so iar made to save the. United States from tne consequences of a business recession is contained in a message he lias sent to Congress on the sueject of tue private construction and financing of housing. The message said: ‘These proposals are an important part of our programme for the increasing of general lousiness activity and of employment. A long-continued lag in building is a drag on all industry and trade, presenting an urgent problem, which is tue common concern of industry and labour and of the Government. A revival mus£ be based on a reduction or the costs. Houses must be'produced at prices that can be afforded by the masses! Private enterprise and private capital must bear the bui den of providing the great bulk of the new . nousing.

“I recommend the adoption of measures to facilitate the financing of every type of housing, for which 1 suggest amendments to the National Housing Act, in order, firstly 7, iurt.ier to reduce the financing costs; secondly. to extend the insurance of mortgages to the types of housing that inadequately are provided for at present; and thirdly, to make funds from institutional and individual investors more easily available for the financing of large scale operations. “I ask Congress to fix the mortgage tile insurable premium as low as one half per cent on the diminishing balance or the insured mortgage on large constructions, and as low as a quarter per cent where the value of the construction does not exceed six thousand dollars.

“I only ask for legislation to raise the insurable limit to ninety per cent in the. case of loans to owner-oceu-pants, where the value of the property dues do not exceed six thousand dollars.

“I further propose that measures be designed to facilitate the construction of groups of houses for rent, by explicitly authorising the National Mortgage Associations to make loans on large scale properties which would be subject to special legislation by the Federal Housing Administration. “Pursuant!} 7 , i intend to ask the Reconstruction Finance Corporation to provide fifty million dollars for capital purposes, thus laying the basis for one thousand million dollars of private funds, through the sale of National Mortgage Association debentur-

“Summed up, tin- terms would be the most favourable generally available in the United States for housing purposes. Large and continuous activity would be put on a practical basis. Government action alone would not be enough to ensure success. It would depend, mainly, on the willingness of industry and of laboui to cooperate.”