12 THE CONCRETE AGE April, 1920.
Reserve System, money, during the past few years,
has been drawn away from long term investments in
favor of short term loans, with the result that, while
savings in the United States are estimated to have
increased 200 per cent from 1913 to 1918, and the total
loans and discounts of banking increased 54 per cent,
the combined real estate loans of banks and insurance
companies and building and loan associations in-
creased only 28 per cent in the same period.
In view of these facts, it -appears necessary that
this hitherto neglected portion of our banking sys-
tem should be taken care of through adequate legis-
lation.
One of the chief problems encountered is lack of
funds to finance home building. It is desirable in
the public interest that the funds now tied up in first
mortgages held by the building and loan associations
be made available for dwelling house construction
and that the “Federal Building Loan Act,'' Bills S.
2492 and H. R. 7597 entitled “A Bill to Encourage
Home Ownership and to Stimulate the Buying and
Building of Homes; to Create a Standard Form of
Investment Based on Building Association Mort-
gages; to Create Government Depositories and Finan-
cial Agents for the United States; to Furnish a Mar-
ket for Government Bonds; and for Other Purposes,”
be endorsed by this Conference.
Much money hitherto invested in first mortgages
on dwelling houses is being diverted to non-taxable
investment channels. It is desirable that exemption
from income tax be granted to such investments.
Bills S. 2094 and H. R. 8080, entitled “A Bill to
Encourage the Building of Homes by Providing for
the Exemption from Taxation of the Income from
Mortgages on Real Estate’’ should be endorsed by
this Conference; and we urge that members of this
Conference write to their Senators and Congressmen,
and endeavor to have others do likewise, urging them
to support and favor the prompt enactment of these
bills.
There is now proposed an amendment to the Fed-
eral Reserve Act requiring that National banks main-
taining savings departments shall invest all savings
deposits in such forms of securities as may be directed
by the Federal Reserve Board. Since the object of
the proposed amendment is the adequate protection
of the interests of depositors, and since its effect will
be the diversion of more than two billion of dollars,
now held in savings accounts, from short term loans
to long term investment in construction enterprise—-
a sum equal to the present combined assets of the
building and loan associations of the United States—-
the enactment of this measure is recommended.
Recognizing the fact that the building and loan
associations of America are an important factor in
financing home building and home ownership, and
that these institutions confine their activities to teach-
ing thrift and financing home ownership, we urge all
organizations and individuals interested in promoting
the construction of homes to affiliate ad cooperate
with building and loan associations in their localities
and to assist in forming such associations where they
do not now exist.
As the most difficult financial obstacle to the con-
struction of homes is that of filling the gap between
the amount obtainable on first mortgages and the
amount the purchaser is able to invest, this Confer-
ence commends the work of community housing cor-
porations and employers of labor who are using their
own funds or credit to relieve the urgency of the
present housing shortage.
Design.
To secure results that will satisfactorily meet
present housing needs, safety and economy in the
construction of homes mu ;t be recognized as of para-
mount importance. These materials applied by the
best talent in design and construction.
It is, therefore, recommended that the organiza-
tions and individuals cooperating in the National
Conference on Concrete House Construction enlist
the cooperation of others not yet identified with the
Conference to work with them in securing designs
and specifications for small houses, that will give
proper recognition to the numerous advantages of
concrete in its possible forms of application, and in
this way help to increase and perpetuate the value
of this Conference.
In order that these data may be made available to
all who wish to design, build or buy a home, we recom-
mend the institution of a National Competetion, with
judges of such recognized standing as to inspire con-
fidence necessary to enlisting best efforts of which
contestants are capable, with prizes in number and
value to attract such talent.
As an aid to the furtherance of this idea it is
recommended that all interestedsubmit data on every
method by which concrete can be applied in the con-
struction of houses, to enable intelligent selection and
application of the best in design and specifications.
The conditons of the competition should be made
sufficiently broad to secure the support of engineers,
practical builders or any others who have developed
safe and economical systems of wall, floor and roof
construction or any devices that will make houses
moie comfortable as a shelter, more attractive and
cheerful as homes, and stimulate incentive to build
houses for investment. Economy in erection, low
cost of maintenance, reduction of fire risk and cost
of insurnce should anticipate the use of fire
resisting materials wherever practical.
It is further recommended that a Bureau or Com-
mittee of Information and Research be established to
devise, promote and educate along lines conducive
to more extensive use of concrete and the advance-
ment of concrete design in home building.
EN
