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Show THE SEARCHLIGHT Post-War Planning money than at present would be business change. expansion Men from and — women a available for wholesome returning to economic civilian life the armed services should be given prefer- ence in allocating loans. should be extended Similar preference also to production and _ other workers whose purchases of war bonds were substantial. In fact priorities for building loans could be given to bond purchasers on a schedule about as follows: Worker whose net bond purchases were $3,000 —First priority Worker whose net bond purchases were $2,000 —Second priority Worker whose net bond purchases were $1,000 —Third priority Worker whose net bond purchases were $ 500 —Fourth priority The immediate effect of such a provision in legislation providing for a national building fund would be to stimulate current purchases of war bonds. And fewer bonds would be presented for redemption. Holding onto war bonds by purchasers would be made highly attractive. More of the current excess purchasing power of the people would be diverted into bond pur- chases, thus aiding in arresting inflation as well as contributing to the preservation of price ceil- the percentages of defaults and foreclosures would shrink to negligible proportions. With 3% money the average carrying charge on. loans could be expected to drop four or five dollars a month compared to present FHA or private lending schedules. The cost of acquiring a home for an American worker, or return ing soldier, would drop more than 20%. A house that under the best financing plan available today (or in the pre-war period) would cost $4,500 to own, would on a basis of 3% cost around $3,600 money with comparable labor and material costs. Banks and other financial institutions would be benefited through profits arising from servicing loans, and through vast improvement in general conditions. Greater industrial activity always benefits the higher income classes and the professions, through expanding trade and the availability of a greater reservoir of purchasing power upon which to draw. Consequently, a major low-cost building program would also reflect itself in a comparable increase in the construction of homes in the higher cost range—a lucrative field for existing lending agencies and insurance companies. Lower income classes throughout the country would be better housed. Slums would virtually disappear. The impetus given to the material and construction industry under such a building plan ings, etc. Working be devoted to liquidation of the principal. With steady employment and lower financing costs men and women would plan and scheme to get into the top priorities for building loans at 3%. They would forego many useless expenditures now in order to be in the first class when building should begin at the close of the war—or even sooner. PERMANENT ADVANTAGES The enduring benefits to the entire nation of such a building plan are apparent. Simultaneous construction of about a million homes would be feasible. Repayment of loans would be some what faster than prevailing FHA loans if the same schedule of payments were retained, be- cause a larger proportion of the payment would would contribute substantially toward a new and sound prosperity in every line of business. Building of low-cost dwellings, limited to about 15% of the nation’s housing construction imme- diately before the war, would become the most important phase of post-war building. Above all, in such a wholesome building program, the basis of the new prosperity would be absolutely safe and sound because it would rest entirely upon the creation of new wealth— created with benefit to all and injury to none. The bogey cry of “inflation” could not be raised against such a program because of the fact that for every dollar put into circulation by the building fund, several dollars worth of construc: |