Show SEEN and HEARD around tho National Capital By By CARTER FIELD WashIngton Washington The The chief hope bope ot of the Federal Housing admInIstration for Its home reno aHon Is that the sill pro a activity from now until ne net t March Then tt it Is hoped the new home bulI building cam carn will begin in earnest Actually the e It if one could can call It a Is beIng left largely larely to the companies which some some- somethIng thIng to sell Ver Very little is beIng done by bv the government and the banks though frIendly have not so fir been rushing out to this business nut But experts here figure that thIs t type le of business gill lU be very vet y profit profitable able nd Ind eminently safe for the loan lag Ing Institutions In the first place the government go guarantees a full 20 per percent cent ent of mil the loans lons made by bv an anone an one Institution This phase has been sery ery generally misunderstood The hr belief belIet has hns been even among bank b bankers ers that the government guaranteed only 20 O per cent of each loan So that the bank loaning a man to install a new beating heUng pl pI tnt mt In hIs house or to put on a new root roof would stand to lose If the owner 0 ner proved I able to pay nothing The 20 per cent does not apply to each lon loan It applies to all the loans of this character made by each Thus If a bank loans a total ot of JOO and the net losses on tho those e loans amount to the bank s sill III be reimbursed In full for Its losses In the second place the interest rate from the banks bank's standpoint Is fairly good On a loan lonn as small os as pas payable able In one year the bank earns carns about 9 a 6 per cent Intel interest cst Some ot of this would be eaten up In service of course Ing the twelve monthly pa payments ments enterIng them on the books etc AgaInst thIs might be credited the point that this loan mIght turn out to be an enterIng wedge for what might easily become a profitable profit account for the bank In the past It ItIs itis Is pointed out out banks have gone to more trouble for smaller pro prospects ot of new accounts as for e example mple theIr handling of Christmas savings funds actually paying 3 per cent interest on them etc Interest Not High But while this 9 per cent odd sounds like a high Interest rate for the hou house householder e holder to pay actually It does docs not work out that way ay On a loan ot of 95 cash In he hind pa pays s 5 Inter Interest Interest est for the year The rate rises over 9 per r cent because the bank begins to have bave the prIncipal of the debt reduced at the end of the first month and to toward toward ward the end of the month e-month pe- pe period period Is actually owed only a small fraction ot of the total But the point here Is that while hUe the bank earns more than 9 per cent on such a small loan there Is no way the borro borrower er could get an anything thing like that rate on his monthly pa payments ments When he pays 12 at the end ot of a month the bank hM has that amount to put with others which it can loan out at the high rate But the best the borrower could do on his money would be to get 3 per cent saVIngs bank In Int interest terest t rest and not that Many savings sa banks ba hale bae e reduced their In Interest interest terest rate below 3 per cent and vir virtually no InstitutIOns are now paying Interest on checking accounts So In fact the borrower Is not penalized b by the hIgh Interest rate produced by his pay payments meats ments on the principal before the end of the year The bank actually gains but the borro borrower er does not really lose Besides most Installment buyers as asfor asfor for on automobiles bought through a financing company or reo re- re refrigerators or heating plants have been pa paying Ing a much hIgher rate of In Interest Interest terest than Is provided In these loans o the gO government Is rather cheerful a lot of business will result pond pend pendIng Ing new home building next year Faith in President President Roosevelt Is still sUIl profiting I and to a really enormous extent from the fact lct that a great many people who i actually are desperately opposed to his policIes sImply pcr persist In believing I that the President really agrees wIth them Instead of with Ith hIs own fre frequently frequently spoken words On his return from his vacation trIp he found himself obliged to knock knockdown do down n n a great many stories which had hadI theIr Inspiration to in that sort ot of rea reasoning I People who ho did not belIeve and for that matter still do not be- be believe believe I I lieve In ans am ot of thIs so called radical t I pouch s were responsible for an all the II I storIes about iris hIs turning to the rIght sere ere rudely jarred by his dI cu slon of prIvate pro profits ts In his Green By Bay Wis speech But no amount of reiteration on the part of President ent Roosevelt seems to jar these followers loose They take their venom out on Under Secretary Tugwell or some ISOme other of the Pros Pres President's ident's nanny appoIntees They never hold hIm responsible They constant constantly ly Iy belle bellese e that tomorrow or next week at the latest t Mr l Roose eU eft will step stepIn stepto to In an and save Ve the country by throwing these false advIsers overboard and re to hat they regard as his normal e a attitude Not Like Mussolini he De does not even seek to placate them as does Mussolini II Duce very familiar with the old principle that loyalty lo alty lIes only to the king not to his mInisters worrIes only about loyalty loy- loy loyalty alty to himself Some bitter critics say ay be Is not willing to permIt anyone I else to have any glory Maybe ao 10 but It is not only the lieutenants who become popular or threaten to become popular vho are overboard There ls is a slow but inevitable chang chang- changIng changing Ing ot of nil all his subordinate officers Signor Sig Signor nor Grande came to this country on a mission and made a bIg hit lIe flour flour- flourIshed flourished for a chile 11 11 c but who can remember remember ber offhand the obscure pOst whIch he heIs heis Is now nov occupying All through history It has been the kings king's ministers and advisers ers who be became became came unpopular It Is albo true of Roosevelt's administration But the Hoose- Hoose difference ence between President elt and PI emler Mussolini is that the PresIdent does docs not throw his advIsers overboard o Sometimes they get In Quarrels among themselves as the case ot of Secretary of State Hull and Chief Dram Brain Truster Moley and something some some- something thing tIns fins to happen But Dut even that did not destroy Mr Moley's power powel He advIses with the Pr President almost as much a as before e the break breal with Sec Sec- Secretary Secretary Hull at the London conference abIlity ot of PI President Roosevelt by no risible means to hold the sup support support port of those who ho actually dIsagree with him but will not admit It It Is es especially remarkable In contrast with other recent public figures figure body who was agaInst anyone any one thing that Mr Hoover dId seemed to turn against Jg hIm People silio bo were enthusiastic about Imam Jennings Bryan turned hIm time he announced a new policy As for example ample gov- gov government government ownership o of railroads Whereas PresIdent noo Roosevelt Is be- be beIng being Ing enthusiastically supported by per per- persons persons sons who ho actually do not agree with him about any Important governmental policy poncy Future historians and com com- commentators menta tors will be rather about that fact Fights Saloon federal Alcohol Controller Joseph JosephII II 11 Choate Jr In his fight to pre present ant the return ot of the brewery controlled saloon with all Its evil has st struck uck a heavy blow at the al- al already already ready polItically pestered electric electric- com com- companies In lOning a court decIsion pre pre- preventing preventing venting the furnishing of expensive signs to beer dispensaries Much publicity has been gIven to the decision by the federal Alcohol ad- ad administration mInistration putting stress on the idea that th this giving ot of signs to Chi Chi- Chicago cago beer parlors saloons or what what- whatever whatever ever was just an opening wedge It If the plan had succeeded Mr Ir Choate be- be cs the steps that would have fol- fol followed lowed would have led ine Ines Stably to ev- ev every ery place that sold beer being ow 0 ned OV-I OV by some brewery or other that the brew brew- brewery ery would ha hale hae e compelled the sale ot of Its product e exclusively In th t establishment that eventually to make both ends meet the saloonkeeper would has e a been driven to the pray tires tIces so objectionable In most old time saloons There are two angles to the situ situ- situation aHon which are not stressed by the government to in this Instance One Is that the brewery in thIs case sells a beer whIch Is more expensive than most of Its competitors Unless It does some some- somethIng something thIng In addition to consumer ad aher- aher er- er the chances would favor the era a average e saloonkeeper or beer parlor proprietor dispensing a beer on draught whIch he could buy more cheaply ThIs problem Is especially keen in inthe the minds ot of the brewer just now because In many states local regula- regula regulations regulations aImed at presenting pre the return ot of the saloon do not permIt the cus- cus customer customer tomer to see the beer actually dra drawn n from the spIgot or faucet These reg- reg regulations regulations are aimed at presenting the return of the bar So If It happens that a beer dis dispenser has two of beer on draught one costing perhaps 50 per percent percent cent more than the oth other r or even twice as much he Is under constant temptation when asked for a glass of the higher priced beer to substitute the cheaper Hits Customer So that the customer may he be cheat cheat- cheated ed and fooled or even worse from the standpoint of the bre brewer er of the more expensIve beverage may come to the conclusIOn that what hat he had thought his favorite beer had deteriorated and hence stop ordering lt It As the brewers of more e beers see it their only protection against t this sort ot of thIng Is to have havea a number of outlets which dIspense their beer e If the retail retailers retailers ers Iran ha hae e a no other draught beer to sell there Is no temptation to substitute a cheaper One of the wa ways s to Induce these re- re retailers retailers to sell only one varIety and that higher priced Is to make some other conces concessions lons Such as the fur fur- furnishIng furnishing of an expensive e electric sIgn which the retailer would not be apt to purchase for himself himself-a sign stat stat- stating Ing not only the name of the establish establishment meat ment but the variety of draught beer on sale There Is no doubt that pressure on the part ot of the breweries erles to obtain the m ma number of outlets led to terrIfic B In the past An And 1 the salve ame guts for pressure from the distilleries to a much smaller extent One ot of the famous old bars of Wash WashIngton Ington a oldell aU all such entangle entangle- entanglements meats ments In the pre prohibition days by simply declining to sell draught beer at nil all ThIs was Shoemakers now one of the old traditions MeanwhIle the electric companies are wonderIng It if this faIr trade prat tires Uces drIve of the government will lead e eventually to forbidding of all electric light signs furnIshed to re rc tillers by manufacturer manufacturer- as the result ot of exclusive ive sale contracts Just an another another other attempt th they y y to skIm the tho cream oft off their profits Copyright wail |