Vagabond Editorials

By Jack Dionne

So far as business folks are concerned, regardless of location, vocation, or political faith, cuss and discuss have become synonymous terms as applied to the New Deal.

I knew how it was in *, r"**r stomping grounds. I knew the savage things the cotton, oil, lumber folks say about it. But I just got back from visiting six states f am not so well acquainted with, and the farther I went the 'worse it got. I often ask myself-"Is there really a New Deal business man any place?"

*** one of my pet n"ro""**J" i ,urro* they used to telt about who worked and worried himself into his grave, trying to solve a certain elusive problem which intrigued him so that he devoted his life in vain to unraveling it. He said that sometimes in his endeavors he felt that he was very, very close to the answer; but always it faded away and eluded him. The problem was-lVHY ARE THERE MORE MEN, WOMEN, AND CHILDREN IN A CITY OF LARGE POPULATION THAN THERE ARE IN A SMALL TO\VN? For the past yeaf I've regretted that man's passing. What an addition he would have been to AAA ! rve been reading " ,* lr"lr, Jn" ""*r"-" heat in washington this sumrner and how it has been afrecting those poor old boys in Congress, but I never had any idea how bad it must have been until I read the new Tax-the-Rich bill.

Johnson, our best known American explorer, left for the jungles of Africa the other day, and told the newspapersand they told the world-before he left that he was glad to go to the jungles to get away from the "cock-eyed New Deal." Lucky Johnson ! A vast majority of the business men of this country would just love to go with you.

*** r read where trrey cauel J ;. Morgenthau, the Secretary of the Treasury, and asked him to say something to sorta daddy the new Tax thing: I gather from what I read it took several strong men to hold him in the room.

Then some of those funny ones they passed last winter must have been the cold !

Says Walter Lippma"", *rrd"* in many newspapers throughout the land with regard to the new Federal Income and Inheritance Tax Measure: "Rarely has a measure of comparable importance been railroaded into law so casually, so carelessly, so hastily, so superficially." Well, all I've got to say is, that's talking mighty nice about it.

Next thing we know *"nU l" n"* Dealing the Ten Commandments, the Sermon on the Mount, and the Lord's Prayer; and when they get through we'll have to start learning our Bible all over again.***

The other day we passed a law forbidding holders of U. S. gold bonds from suing the Government for repudiating its promise to pay in gold. At about the same time, and almost certainly timed in that fashion to give the rest of the world something to think about, poor, despised Russia announced that she would pay her 1943 gold bonds AT ANY TIME IN GOLD OF A FIXED WEIGHT AND FINE. NESS.

News reports say uoyl ;;" wants to borrow some New Deal ideas. I'll bet I know who put that story out.

Wouldn't it be grand ,, ta *"r" really true, and we could transfer hirn all our rights to the cotton program that is destroying the American cotton industry, and the live-stock program that made vegetarians out of this once meat-loving nation?

The cotton industry or;" *ra t the world burgeons and blooms as ours fades and dies.. And, the American housewife groans at the price of meat, while this nation that killed and suborned millions of food animals, imports meat.

The cotton men of an" ,""an, many of whom are right smart and know all about cotton, say the Government program is destroying the American cotton industry. Postal rules and regulations prevent my quoting just what they do say. Secretary of Agriculture Wallace says it ain't so.

Mr. Wallace is from ,"ir. ,i t",n. daddy of the don'traise-cotton program. They didn't raise cotton in Ioway so he naturally figured it wasn't a good idea any place. (Ioway's chief crop is hogs, so they killed off all the other hog supply).

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Building-Loan Associations Can Now Malce Modernization Loans

W. G. Bingham, Associate Director, Southern California District, FHA, announces that under the provisions of Assembly Bill No. 1300 passed by the re,cent California state legislature, building and loan associations are now permitted to make loans for the purpose of financing alterations, repairs and improvements pursuant to Title I of the National Housing Act, upon real property securing a loan now held by such an association.

Title I of the National Housing Act was designed to protect property values from the destructive efiect of long continued neglect; to provide employment for workers in the building and allied trades, and to provide adequate credit for property owners with income, but whose liquid assets have become depleted.

Provision is made for FHA insurance of loans for this purpose up to $2,000 in amount, for single residences, and up to $50,00O in amount for property improved by or to be converted into apartments, hotels, office, business or other commer'cial buildings, hospitals, orphanages, colleges, schools, or manufacturing or industrial plants.

Prior to May, 1935, building and loan associations were required by state law to secure such modernization loans by mortgage, but under the Assembly Bill passed, such associattons which have qualified as approved lending institutions by the Federal Housing Administration may now make such loans without the necessity of mortgage ,collateral. In other words, building and loan associations may handle modernization loans the same as banks and other approved lending institutions, providing the loan is made to their present customers.

Many building and loan associations have already qualified as approved lending institutions which simplifies the procedure for their own customers in securing loans for the purpose of modernization, repair and alteration of their properties.

Under this same Bill, the law has also been amended to permit building and loan associations to make Title II. NHA insured loans.

Title II of the National Housing Act was designated "to encourage improvement in housing standards and conditions, and to provide a system of mutual mortgage insuran,ce". It seeks to reestablish the security and stability of mortgage investments and real-estate values.

Provision is made for FHA insurance of loans for this purpose up to 80 per cent of the FHA appraised value of the completed property, up to $16,000 in amount, for the construction of nell' horqes, for the pur'chase of existing houses, and for the refinancing or refunding of existing mortgages on such properties.

Building and loan associations throughout the state are showing interest and are generally considering all reasonable applications under Titles I and II of the National Housing Act.

Back From Northwest Trip

A. T. Pelton, Pelton Lumber Co., Los Angeles, has returned from a business trip to the Northwest.

Interest and Inguranc€ Rates Reduced Bv FHA

Interest on insured refinanced mortgages has been reduced by the Federal Housing Administration lrom Sf/o to 5/o; thus making a uniform interest rate for the classifications of mortages eligible for FHA insurance.

While the interest rate formerly has been 5/o insofar as new construction and acquisition of property is concerned, the rate on mortgages or trust deeds which involved refunding or refinancing up to this date has been 5l/o. This new rate, so far as refinancing and refunding of mortgages is ,concerned, gives the benefit of the low interest rate, made originally by proclamation of the President of the United States, to the present home owner who desires to refinance under the FHA terms, ac'cording to F. W. Marlow, District Director, Southern California.

The successful operation of the FHA has also brought a reduction ol I of. l/o in insurance rates insofar as refunding of mortgages is concerned, and thereby materially reducing the cost of insurance under FH;A terms. This rl of 1/o reduction is retroactive and will apply to all loans insured up to date by FHA; the rate now being I of. l/o on all loarrs. It is the purpose of the NHA to give to the home owner, mortgage insurance at the lowest possible rate consistent rvith the operation of the insurance plan, and also to give to the home owner the lowest possible interest rate that is consistent with good lending by Finan'cial institutions.

The regulations have been changed also in respect to mortgage companies, now making possible approved mortgages of mortgage companies that have a ,capital of $100,000 or more.

A simplified form of application blank has also been received and is pronounced by lending institutions as meeting with their approval. Lending institutions may charge a maximum service fee of , l/o on the mortgage on existing construction; 2%% on new construction, and the mortgagor shall not be obliged to pay any further charges except as approved by the FHA.

In view of the liberalization of the Housing Act, I am expecting an additional flow of appli,cations through lending institutions and this office. We will reach the $10,000,000 mark in applications received before July lst; approximately 50/o of. which are for new construction; 25% for the pur,chase or acquisition o{ property, and 25/o f.or the refunding and refinancing of mortgages on existing construction, states Mr. Marlow.

The cooperation of the public and lending institutions, so far as the FHA is concerned, is very gratifying to the District Director and the Staff.

"Previous to this date up to 2l days was needed for the purpose of processing a loan through this institution due to the very heavy demands; the office is now staffed so that this time is reduced to 14 days with the possibility that it will be further redu'ced to ten davs." said Mr. Marlow.

GEO. MELVILLE

George Melville, manager of Puget Sound Associated Mills, San Fran,cisco.

VISITS S. F.

the Los Angeles recently paid a office of visit to