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Show V THE SAUNA. SUN. SALINA. UTAH t tVMtUI The Home Owners Loan Corporation W eek This b Arthur Brisbane Distance and Sympathy Still Three Score and Ten Valuable Railroads Gulls Help Farmers " Distance kills sympathy. Ten million dead on the planet Mars, it then-bany inhabitants there to die, would interest us very mildly. News that a next door neighbor has died is more important than toda;' dreadful hews of 1.000 killed ,bi drought in Central China. We tell that we are sorry for those iri habitants- of Shensi Province, whose lands, formerly fertile, have had no rain since 1928, and whose suffering is made worse by outbreaks of cann! balism and attacks by wolves and ' . banditry. We may learn to take our own troubles le seriously when wi '. . read such news. s - (Continued from page 1) gage from the home owner at 15 years payable as in the other cases, with interest at 6 per cent. This is the method of making loans except that where a home owner has no encumbrances on his home but is :n default in taxes and in danger of losing his property from tax sale, the corporation will loan him the money on the home to pay the taxes and amortize that for 15 years, just as in other cases. It is desired to emphasize the fact that this corporation will only deal with the redemption of homes valued at not over $20,000 and it will not loan over $14,000 on any one home, iither in bonds or in cash. The borrower may have an exten-;io- n of 3 years on the principal if he teeps the interest paid, and the board .nay extend the payment of both principal and interest in cases of inabil-t- y to pay, owing to stress of but the total extensions dur-'n- g the period must not ex3 ceed. years. ;To give a. specific example: Mr. A rwns a home arid lives in it; it is unfortunately encumbered; the house is worth $10,000; the mortgage is for ?7,500; his neighbor, who holds the mortgage, Mr. B, needs cash or. its quivalent and yet he does not like to jell put his neighbor. Mr. A applies to the manager in his state who him with a blank and .assists urn in filling out the bl.ank, giving he entire facts about the case. The mortgage- necessarily was on record lunq 13, 1933. Mr. A gets an agree-newith Mr. B that 43 will take 7,500 of the bonds of the corpora-on- , guaranteed as to interest by tire United States, and assign his rport-- , gage without recourse, to . the corporation. The corporation that Mr. A owes $475 in taxes. Mr. A. is unable to pay the taxes; the corporation then furnishes Mr. A with $7,500 of bonds and pays the $475 taxes, .pays expense of registration and investigation, of the title with the other $25, making $8,000, which is 80 per cent of the value. Then he takes a new mortgage from Mr. A, cancelling the old mortgage or. extending it, and in this way they give Mr. A 15 years to pay the $8,000 ma'de up as above stated. .If Mr. A is a laboring man, getting wages, they will want him to. pay monthly. If It suits him 'better they may allow him to pay annually, or under certain condand itions,' give him 15 years to redeem his property, lie may also pay quarterly. But what if Mr. B will not ake the- bonds?- Then if the debt is over 40 per 'cent of the value of the property, nothing can be done, but suppose the debt, instead of being was $3,500. The corporation will loan the cash op that amount and take irp the- taxes and everything so it does not run over $4,000, and complete the transaction with a cash settlement, but the owner gives a new mortgage at 15 years just as jn other cases with- a rate of interest at 6 per cent instead of 5 per eent, which is the rate where bonds are loaned. That is the illustration of the manner in which it is to be handled. Finally, the second part of the act provides for the establishment and organization oT building and loan associations under national charter and supervision. The building and loan associations are now the principal source of money to be had by people who desire to acquire or build a home, and there are 1,500 counties in the United States in which there is no such association. The idea is to promote the organization of such associations by this corporation taking 50 per cent of the stock right along with the citizen of any local community who desires to establish such an association. The association, when established, would be a source from which the local people could borrow the money to build, buy, or improve their homes, and all the associations therefore would be a cooperative effort to save and c.onserve capital in local communities. The corporation says to a community: If you want to organize a building and loan association of this type, we will put :n a dollar of capital for every dollar that you can figure. If you take $10,- 000 capital we will take $10,000, pay it in as fast as you pay yours in, and that, association will become a mem; her of one of the, federal home loan banks, as it loans to its members in a --local community it can take that uaper to the federal home loan bank to which it belongs and use' it for pro- uring money from the home loan bank to reloan to the people inr it community. It is to encourage thrift, in the first place, and to build up a great cooperative financial structure, (dealing strictly with homes. ' - . The Government 'Research Com mittee on Social Trend" tells you that babies, children and younger adulu live longer now than they used to live. But their elders length of life is about "the' same. When the human machine reaches the Biblical three score and ten, it usually breaks down But there is comfort for the thre" score . and . ten army that was not known in ancient days" when eye glasses and false teeth were unknown Priam was probably not more than fifty, probably younger, when he went to beg Achilles for the body of his son Hector. He suggested to Achilles that he might also have a father "on the hateful road ofold age." That age Came early thent when there were n .false teeth, or spectacles, no doctors to regulate blood pressure. Now a mar of Priam's age might be on the pleas Reno. ant road to St. Moritz-o- circum-tance- s, 15-ye- ar . fur-tish- es - nt , The Interstate Commorce Commfs sion .says United States railroads ai billion ninety-o- n worth twenty-si- x million dollars. . They- - will be worth more than that to their owners, when their lnvalu able, nonsto.p rights of way are fully used' by light vehicles, going 125 to 150 miles an hour, at less than hall the present fares. Pullman car, weighing . The modern 180,000 pounds, or- - more, now carries fewer than twenty passengers on th. average, or 9,000. pounds of vehicle fo: each passenger. Suppose a small auto mobile, carrying five, weighed 45,00! pounds. It would he In the modern railroad clas, as regards transparta . tion. s Nature contrives ingeniously to con .trol Farmer's around Wolfville', X. S... watching With .over-productio- despajrthe grasshoppers eating the!) crops, suddenly smiled, as flocks of sea gulls, arriving from far away, began eating the grasshoppers by. the millions. Similarly, not long ago. as Mr. Vernon Eailey, of- - the Agricultural department, tells you, gulls flying over mountain ranges came to the rescue 'of northwestern farmers, watchins field mice devouring their alfalfa The gulls devoured the field mice, the crops were saved. How do the gulls know of thesfeasts? Are certain gulls delegated ts fly In. all directions, seeking good news prospecting? semi-annual- - - Doctor McKinley of the 'Georg Washington School of Medicine and Doctor Soule of- the University, of Michigan School of Medicine have iso lated and cultivated oujtside of tin human body germs that cause lep rosy, once the most dreaded of all discompared eases, now. unimportant with cancer, tuberculosis, sleeping sickness, heart disease and others. Experiments on two species of mon keys, their blood and tissue closely that of their alleged resembling human cousins, have demonstrate' the success of the leprosy experimen' The next step, perhaps, will be im munization through vaccination and - Doctors announce that the most im bortant work of medical science, today, is learning how to prevent, rathei than how to "cure diseases. The new born human being a hun dred years hence may start with r im dozen or more immunizations planted in his blood. The Bible tells us that man is mad a little lower than the angels. Ex ceptionally bad samples seetn to tonsiderably lower. d collector for a mill A business, sympathizing with a bought him a hearty meal, re veallng the fact that he carried mono with him. The next day the sam beggaf with a friend waylaid the kind hearted collector, beat him dangerously, and took $85 from him. . A citizen held up by a young mat was robbed of $18 and told: . will help me through "Thanks,-thacollege. ' . kind-hearte- , t ' Hugh Johnson, Presiden Roosevelts industrial director," hope and expects to have four million men d of the country's idle, buck a work not later than next October. Th. factory payrolls and employment encourage tlie belief that Gen eral Johnsons hope will be realize: one-thir- Dorothy Dix. who knows about me; wipes our the old Idea about big strong, silent men. Such men, accord Ing to Miss Dix. are all right in fiction and In western films, but in real life they make the most aggravating s In the live with would be. ( 9 i :S sir kine Futures Syndicate Inc ) - $7,-50- 0, - General ly - Gnu ral Statement as to I.aw. Home Owners Loan corporation is for the relief of home owners in distress with their mortgages, and the corporation proposes to make every reasonable effort to carry out the purposes of the bill. It will be located in the Commerce building, Washing- - Slates to take and pay for stock in and will have agents in these associations up to $100,000 in ton, D. every state in the union, and notices any one association, paying the same will appear in the public press and in dollar for dollar as members of the the names of the agents in the differ- - associatin pay money therein. These ent states and the addresses of the associations will be members of the offices of the corporation. Citizens de-- j federal home loan banks and can additional funds from that relief should make their appli-cur- e cation direct to the nearest agent, who j.source for lending on homes, will be provided with forms and ap- Persons interested in organization plications and have full information 0f such an association in their com-i- n reference to the ability of the cor- - munity should communicate with the poration to serve. It is hoped that Federal Home Loan Bank boafd in ' these agents can be selected and Washington, D. C. these offices opened and public an-- 1 The probem of homemortRafre re. nouncement be made thereof within a Ul.f is a very grave one. The adniinig. week or ten days. 'tration has made very reasonable ef- The Home Owners Loan act of 1933 fort to solve the problem and to proprovides for a corporation to deal with vide for adequate relief to home ownhomes occupied by the owners, or held ers in distress. A grave responsibility by them as their homesteads, although rests upon the Federal Home Loan temporarily not occupied by the owner, Bank board to adminisetr the relief in of a value not exceeding $20,000. No keeping with the wishes of the presiclear line is drawn between farm dent and the direction of congress, homes and city homes, but typical and members of the board are anxious farm loans should be handled by the to accomplish the purposes of the legfederal land banks. Homes will be islation and to give reasonable relief eligible, although incidentally the quickly. premises may be employed for some Citizens should keep in mind, howother use, such as gardening or a ever, that our people owe more than small business, but no home built for $20,000,000,000 on their homes and more than four families is eligible. that no large percentage of this inThe bill is primarily for the refund- debtedness can be liquidated or reing of mortgages and not for the li- funded by the instrumentalities at our quidation of mortgages in cash. It command. It is hoped that all mortprovides for taking up mortgages on- gage lenders will continue to lend homes by the exchange of the bonds money to the very best of their ability of the corporation, interest on which and that all persons owing money on is guaranteed by the United States for) mortgages on their homes will con-- a period of 18 years at 4 per cent,jtinue to carry on the best they can for the mortgage and payment in without making efforts to refinance, cash of any accrued taxes, assess-- : A big enough job exists in mortgages ments, necessary repairs, or mainten- - that have matured and cannot be and incidental costs of the trans-- newed and in mortgages so seriously action, provided the total amount does jn default that home owners are about hot exceed $14 000 or 80 per cent of, to lose their homes. If good citizens the value of the property, whichever who are liable to do so will carry on is small, all of which will be refunded there is a of relief for possibility in a single mortgage and paid ..off,: those who are unable because of unprincipal and interest, over period of employment or other unforseen n years.. The interest rate is 5 culties. per cent and 'the owner may be re-- j have been made lieved of payments of principal over b1 ;!able for solvi thft as a period of 3 years. It is possible to so f0n0ws. ' refund, not only a first mortgage but First the federal home loan bank a second or any other lien up to the! system whlch 18 nowJn, peraRoh, is. total of 80 per cent of value. a reserve system which will enable It mus be noted that in order to m to lending accomplish this refunding it wi 1 be bctter servi and it ,g h oped rqnder necessary for the lender to accept the tbat this tem win be able to ex bonds of the corporation in lieu of the available pand capital for the fin- the mortgage now held. . homes several hundred mil-of ancing In addition to refunding of mort-- ; ion dolars Jn the next few monthggages up to 80 per cent of value, the federal savings and loan asSecond, bill provides for making loans in cash sociations are authorized and funds to home owners on homes not other- avai,ab, Promote V1086 mad.e wise encumbered, for the payment of,are associations and take stock therein to taxes, assessments, necessary repairs ' and maintenance but not exceeding ,Ievf.loP new !cal thrift and home- ' agencies m communities not 50 per cent of value. any such facilities, and it Also, the bill provides for making 8 boPed loans to take up mortgages in cash ,that several hundred million devel-nwhere the owner of the mortgage will do,lar8 of "fw capital may be 1,ed through Ibis means to supply the accept bonds, and where the home owner can not obtain funds elsewhere demand for home 0WT,ers for money from ordinary lending' agencies, and0 fefinance them homes, and it must be n mind ftat ,the federal home provided such loans shall not excehd 40 per cent of the value of the pro-- j ,oa"1bank system and federal savins and lon assoclats must be made to prrty, and such loans shall be carried function in the normal mortgage mar at the rate of 6 per centum arifl paid ket will be more and more or there off, principal and interest, over a period of 15 years. Attention is called to distr.ess cases. Third, Home Owners Loan corpora- the fact that no large volume of mort- s provided as a relief agency to ti0n can unbe in cash gages liquidated with its bonds and in a very refund der this section, first, bocause most limited homos are mortgaged for more than way with cash those 40 per cent of the value, and second, mortgages in such distress that the because sufficient funds are not avail- - lender and the borrower cannot work able to liquidate any large percentage their problem out in cases where the of the indebtedness home owner still has an equity in his ' of the country. property, and it is hoped that this cor- In addition to the refunding of poration will be able to refund the substantial-num-ermortgages as above steted, home own- - mortgages on a very j of the homes of may redeem or recover their ber e t'1 homes lost within two years, oh the country, 'thereby putting the ami f'rs position saving terms, provided the present holder will accept the bonds in the them, and at the same time, relieving same manner as bonds would be re-- , the real estate market by removing quired to be accepted for a mortgage. these homes from the market, and it The market on the bonds of the appears to be within the bounds of corporation will be held up, among possibility that this corporation can million of American other things, by the fact that any per- save son indebted to it may pay his debt homes. with the bonds at face value. The matter of appraisal is the most Nobody would object to our recog difficult problem to be dealt with by nizing Russia if it would only shave the corporation on account of the off its bolshevik whiskers. : ' chaotic condition of- the country withi Who says things arent improving? reference to values. The act 'directs that the board shall make rules fori Just think of the hundreds of brokers the appraisal of property .on which loans are made so as to .accomplish the. purpose of the act, and the purpose of the act is tq relieve home owners. Therefore, it must be the purpose of the corporation in making appraisals to arrive at the fair worth of the property and definite .rules, will he laid down in an effort to accomJim Farley has found out that you plish 'this purpose.. The act provides for federal savings, cant pay seventy billions of debt with and loans associations in territories four billions of gold. He is also now- - seryed by local .thrift and ginning to- leara that you cant fulfill home financing institutions, and these seventy .million campaign promises associations will be organized, as pro- - with four thousand jobs. . . vided in the act, under the rules and In the' congressional baseball game regulations made by the Federal Home Loan Bank board. These rules at Washington American league park ;md regulations made by the board the other day the Republicans defeat-arnow in preparation and it is thelod the Democrats in a hot finish, hope of the hoard to be able to pro- - Which is the first time the elephant vide all forms for the organization has had a chance to do any honking and operation of- these associations since 1928. j - re-ari- ce 1 diffi-fiftee- j . - , g I ot A BANK REFLECTS THE LIFE ABOUT IT Loans and Investments on Which Condition of a Bank Depends Determined by the Kind of Business Surrounding It DOLITICAL and popular mtsappr- - hensions toward banking are due to little else than failure to realize tbat It la what the people tbemselvei do tbat the condition of banking reflects, sod that banking cannot of Itself reflect events and conditions other than those that actually originate from surrounding circumstances, Francis H. Sisson, President of the American Bankers Association, says in an article In Forum Magaziue. The character of an Institutions notes and investments indicates whether it is in the farm regions, a manufacturing center, a mercantile neighborhood or a great financial district, he says, and furthermore, besides identifying tbe Institution as to Its locality, a study of its notes will equally clearly indicate the economic conditions surrounding It. If a farm district banks note history shows that its loans rise and fall wlib the normal cycle of production and marketing of the products of the region. It may be taken as an index of economic good health for the locality, he says. But if, over a period, the loan volume shows a dwindling trend it may mean a region that is losing ground, becoming exhausted or being robbed of business by another community. Or if a large proportion of tbe loans are not paid at maturity but are chronically renewed, or if stockB or bonds or real estate have to be taken as additional security, these too have economic significances, reflecting perhaps crop failor Inefficient, ures, high cost farming methods In a highly competitive national or world market, such as wheat. Inevitably all these facts are reflected in the condition of the local banks. . n City Banks, Too If tbe loans of a bank in a manufacturing or merchandising field show a with Biuoothly running coordination production and distribution they, too, mirror a healthy economic situation. Or there may be here also signs that reflect growing unfavorable condition's, such as excessive loan renewals, and therefore over-expasion of credit extended to makers or dealers in particular products, and similar circumstances. Similar conditions apply to banks engaged in financing the activities of the securities markets. The foregoing is merely suggestive of tbe infinite aspects of ihe life outwardly surrounding the banks which form and control their Internal conditions. Although these facts seem obvious enough, the discussions and criticisms tbat have raged about the banks often appear to set them apart as somehow separate from the lives of our people, casting forth a malignant' influence upon agriculture, industry and trade from forces generated wholly within themselves. The truth of the matter is that the fate of the banks is inseparably interwoven with the fate of the rest of the people and of tbe nation. What happened to the country happened to the banks and what happened to the banks is in no way different or detached from what happened to the people. They are all part of the same pattern, of the same contlnuoua stream of events. No one element in tbat stream can be called tbe cause of business depression. If tbe banks caused trouble to some of our people it was because they were irresistibly forced to pass on troubles that came to them from other people. These troubles impaired the values of their securities and customers notes and rendered some unable, in turn, to pay back to other customers their deposits that had been properly used to create these loans and investments. Unless these truths are kept continually in mind there is no such thing as approaching an understanding of tbe banking problem or of properly safeguarding tbe very heavy stake of the public in that problem. The Bank as a Rebuilder TN place of a 3 per cent loss on an In- vestment of $40,000 a large New York savings bank Is now getting 6 per cent profit on an investment of it bad tbe good business judgment to spend $40,000 in modteneernizing a group of ment houses on tbe lower East Side which it was forced to take over on mortgage foreclosure, says an article in the American Bankers Association Journal. A year or two ago the owper, who bad always kept up his mortgage payments, began to neglect the property, it became run down and the tenants began to leave. The bank remodeled the buildings completely, putting In an heatlpg plant, Incinerators and other modern changes, with the result the buildings are now entirely rented, and there is $14,000 a year coming in instead of several thousand going out. At that rate the Improvements will pay for themselves in three years. This same bank has done 15 other renovation Jobs similar to this, and all have proved profitable. The bank has its own architects and Is employing Seven painters who are kept busy continuously. $80,000, because Business is sure picking up. Friend of ours boarded the train to Chicago the other day and said he found enough passengers in the Pullman to start a bridge game. j i home-mortga- j s owner-occupie- d SALINA . own-sam- j one-ha- Trade With Satina Merchants a lf -- - I be-n- j ot - , t .'Support Satinas Industries Read Satinas Newspaper i j e' - or 4 weeks. These assoc ia- tiuns will he cooperative mutual sav- ings funds, substantially all of which funds will be loaned on homes in the They, will be organized under 3 federal charter but-wil- l oper-lnoate locally and be .managed locally. The act .provides for the United within 3 w Illustrating how it is possible to w idespread organization in the 'United States on the slightest text, a writer asserts that there are 18,000 members of the Society for the Prevention of Calling Pullman Porters George. form a Talk Salina to your friends and acquaintances X A |