V.gabond Editorials

Bv Jack Dionne

I am feeling "higher" right now with regard to business conditions and prospects than I have since June, 1933. Sone of my optimistic enthusiasm is of the spirit spiritual, but a lot of it is based on what looks to me like sound physical facts.

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I am particularly "high" on the prospects for a huge building prograrn under the second phase-new buildings <f the Federal Housing Act. Things I have been hearing make me perfectly confident that the Government is golng to guarante+not only new home mortgages up to 80'per cent-but is going to absolutely and utterly SEE THAT WORTHY WOULD-BE BUILDERS GET THE MONEY TO BUILD WITH.

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Readers of this column will recall that I was saying over and over again more than a year ago-and making the same declaration in many public addresses that I delivered on business conditions-that if the Government of the United States really wanted to get the depression over and put millions of worthy workers and mechanics back to work, all it had to do was agree to finance the building of modest homes for worthy people at low rates of interest with long time terms of payment-and the depression would be ended in thirty days. IT WOULD HAVE THEN AND IT WILL NOW WHENEVER THEY TRY IT.

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Now I am told by men of judgment and discretion that the administration at Washington has finally decided that the one big opportunity for re-employing millions of men is via the building route, and that they have determined to take that route immediately AND TO MAKE IT woRK' * * *

As a matter of fact, the huge sum spent by CWA last winter to furnish "made" work and artificial employment, would have put just as many people to work ifit had peen offered to home builders; and it would have been REAL work, would have been of lasting benefit, and would have started the wheels of industry to turning REALLY instead of artificially.

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CWA came in a time when men HAD to be helped. No tloubt about it. But it was one hundred per cent artificial, F case of putting a mill wheel in a stream and then furnish- ing the motive power to turn the wheel and thus make the wheel turn the stream. But a great building program in a land where there is a series of ybars of building vacuum behind it, will mean that the stream will turn the mill wheel, and the wheel will turn the mill. And THAT'S what we all are aiming at. tf**

I am "high" on this new building prospect because it is an entirely intelligent and practical plan to furnish to millions of worthy people the sort of homes they want and should have and-with a fair deal-<ould pay for. If you will grab your pencil and go to figuring you will discover the amazing fact that a man could build a home under the new housing act, and PAY OUT THE HOME WITH THE SAME AMOUNT OF MONEY THAT IN THE OLD DAYS WENT TO PAY THE INTEREST AND THE CARRYING CHARGES. Laugh that off! ***

In the day of the high priced first mortgage, the infamous second mortgage, and the murderous service charges that the poor man had to pay as a usual thing to get a home of his own, it usually took all he could scrape up to pay the carrying charges. The difference between the cost of his money THEN and the cost of money under the new housing act, WILL PAY OFF THE PRINCIPAL. ***

THAT'S why I am not only optimistic but enthusiastic over the possibilities held out to us by the new building phase of the Federal Housing Act which is just now ready to open up. ***

That there are millions upon millions of worthy people who are ready to take advantage of the opportunity afforded by the act to build homes, I am absolutely certain. That private enterprise+ven with the Government insuring the risk-will furnish the needed millions and billions, I am not at all sure. But with the prospect that the Gov-, ernment is going to say-'(Those worthy people who want homes under this act are going to have them"-then the thing looks like a mortal cinbh. ***

And Southern territories, where winter conditions do not interfere with building-are going to profit particularly,

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