The Courier News from Blytheville, Arkansas • Page 12

BLYTHEVILLE (ARK.) COURIER NEWS MUMMY, SEPT. 21, 198S lousingSlowdownMayCause Government to Take Action By STERLING F. GREEN WASHINGTON (AP) Housing Administrator Albert M. Cole said today the government may take "direct action" unless private mortgage credit is available to sustain reasonably high home building activity. Cole's address, prepared for the American Bankers.

Assn. at its 79th convention here, was the first official acknowledgment of government concern and surprise over the housing slowdown. Many builders have blameJ a shortage of credit mal than wore the artificially low rates of the past 20 years." Wendell T. Burns, president the Savings and Mortgage Division of the Bankers Association senior vice president of the Worth western National Bank, Minneapo lis, said 1953 has been an importan: year for the citizen who saves. "No longer is he the forgotten man of the federal dollar." Another banker assured the delegates that the dollar" policy of the administration will be eased promptly if a business recession should loom.

"Importance is attached to protecting the value of the saver's Burns declared. "The administra- in Washington appears determined to stabilize the dollar and 10 encourage an expanding economy without inflation. Roy L. Referson, vice president of the Bunkers Trust New York, assured the group's f9th convention here the government will stick to its "mildly restrlc- ive" credit policy while business booms. But the Federal Reserve Board's quick corrective action this spring, vhen swiftly rising interest rates and a credit squeeze "distressed ind disorganized" the financial narkets, proved the alertness of he money managers in Washing- on, Reierson said.

He added: "In an economic downturn, the ulhorities will almost certainly hift rapidly toward a pronounced asing of credit." Reierson suggested that interest ales have reached their peak but New home starts In August, Co reported, were down to rate 970,000 a year, not seriously belo the 1,121 000 in 1952. But a sharp- future decline is indicated by drop in current applications Federal Housing Administrate (FHA) mortgage insurance, said. This may mean some difficult next year, the head of the Housin and Home Finance Agency wen on, in keeping residential con struction up to a level consistcn with a sound economy. He tol the bankers: "I submit to you the very serlou reminder that if we are unable I maintain a reasonably high con tinuing volume of home produc means an adequat continuing flow of mortgage credi may be required to resor to some means of assistance avoid unnecessary wrenches to ou entire economy. "On this somewhat sober note suggest in sincere candor that bankers weigh carefully the prob lem they share with housers.

To gether you have the opportunity to demonstrate that private Indus try can and will handle the job without a return to direct govern ment action in the housing In harmony with the "sound money" policy of the Eisenhower administration, Cole said, the housing agency increased interest rates on FHA-insured and Veterans Administration-guaranteed mortgage loans and took other steps to free the mortgage market from federal Intervention. Builders Complain "A readjustment period was ex peeled, and most certainly has occurred," he declared. "Frankly, it is more of a readjustment than was contemplated either in or out of government, and there are many housers arid many bankers who express con- cez'n about the present situation." Builders' organizations in widely spread areas have complained of a shortage of housing credit. The National Association of Home Builders has forecast curtailed activity and layoffs in the construction industry unless lenders make more funds available. Cole said he realized that "abnormally high" demands for credit from many areas of the economy are competing with housing; he voiced hope that this pressure would ease in the near future.

Sen. Wallace P. Bennett (R- Utah) called on the bankers to support and defend the administration's economic policies which, he said, protect the average citizen and aim at "the greatest good for the greatest number." Despite some protests over boosts in interest rates, Bennett said in prepared remarks, the rates are now "more nearly nor- UTTLB Some girls are willing to go through anything for a his bankroll. MODERN BEAUTY with ECONOMY This modestly priced 1 bathroom set features the new Mlnocqua bath with low 14" side, flat bottom, Triton shower fitting. Hampton lavatory has shelf back, roomy basin and compact mixer fitting.

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He said credit may be moderately tighter the rest of this year, but "a business downturn would accentuate the seasonal easing of credit in early 1954." Few of the 7,000 delegates seemed to expect more than mild and brief readjustment in the wake of the mobilization boom. Most of those interviewed avoided even the word To a man they approved the "sound money" policy of the Republican administration. Assn. President W. Harold Brenton, in an interview, described the economy as "very healthy." He suggested that business activity has reached a high plateau "where it will remain for several months Brenton, president of the state Bank of Des Mdlnes, said some shipping Is to be expected on the basis of current trends in autos and farm machinery.

But he added: "I believe the long run trend of the economy will be up." Reierson's address was prepared for a meeting (0 a.m., EST) of savings and mortgage division one of the four major units which make up the organization of 16,873 banks and branches. The other divisions state banks, national and trust scheduled separate sessions. All or as many as can crowd will assemble in Constitution Hall tomorrow (8 a.m. EST) to eceive greetings from President Elsenhower and an address by iecretary of the Treasury Hum- )hrey on "Three Pillars of Sound Gen. Dean Heads for United Katies TOKYO MaJ.

Gen. William p. Dean, the prize prisoner of the Communists (or more than three years, left today for the United States with 10 other Americans on a regularly scheduled fljght. Eight of his fellow passengers were also prisoners of the Communists who were returned In Operation Big Switch. The other two were soldiers whose Illnesses required medical care In the United signed the armistice agreement that States.

I preceded Big Switch. "It was 11 regularly Kheduled flight," an officer said. general wanted It that The 54-year-old Medal of Honor winner said goodbye at the airport to Gen. o. P.

Wevland, Far East Air Forces commander, a longtime friend. Also at Tokyo's international airport was Li- Gen. William K. Harrison, U. N.

deputy chief, who These Baskets Were a Real Bargain BALTIMORE George czak, who put all his cash in one i basket and then sold the basket I has his 53,278 back thanks to the honesty of a farmer. The 63-year-old Gerczak had reported last Friday the money was in a bag on a pile of bushel baskets in his produce store and apparently was left In one of 33 baskets he sold to a stranger. Fred Schlaile, Randallstown 99-Year Convict Charged with Fatal Stabbing PRESIDENT'S Priest; nf Arlington, daughter of United States Treasurer Ivy iiaker Priest, has been chosen to reigu as Queen of Hie 1353 President's Cup Regatta, at Washington, D. C. Reierson told the bankers "no ilgnlficantly damaging effects" were noticeable from last spring's redit crisis.

It was eased when he Federal Reserve lowered the eserve requirements of its mem- banks by about a billion dollars, thereby boosting their lending power by about six billions. But the money shortage and some misinterpretation of official statements, he said, caused "increasing anxiety regarding the future and contributed to the evaporation of market confidence." rears have been dispelled, he said, by the reserve board's willingness to alter Its position, plus Treasury promise to meet federal money needs without undue strain on the economy. Reierson said Treasury officials have been "temperate and restrained." He said they "are not likely to be overly zealous" in their program to convert as much as possible of the public debt Into tion with the bag of money shortly after reading of Gerczak's plight, He said the cash was among the baskets when he unloaded them and he figured the man who lost the money would tell the newspapers. So he watched the papers -r- Gerczafc got his money back. HUNTSVILLE, Tex.

A State i Prison inmate a 99Tyear rob- Mcl bery sentence is charged with mur- der as a result of a fatal stabbing at the Wynne State Prison Farm yesterday. and fx-POWs Wife Skeptical About Her Cooking SAN FRANCISCO W) It may be the sergeant's wife lacks confidence. When Sgt. IjC. Henderson L- Woolever of Exter, debarked from' the transport Gen.

A. W. cooking." The charge was filed against Charles G. Dobolow, after the death of Marcus Lewis Dennard 59, Port Worth. Dennard, serving 12 years for burglary from Tarrant County, was stabbed with a homemade knife in one of the tanks dormitories set aside for the physically handicapped or ailing.

Brewster yesterday his wife looked hard at the repatriated prisoner of war and declared: "He looks a little peaked to me He needs some of his mother's bond issues which are longer in maturity, higher in Interest rate and less inflationary than the short term securities which have become common in recent years. The bankers were told that government bond prices probably are at their low point and will rise in 1954. The speaker foresaw no return to cheap money. "A moderate business Reierson said, "is unlikely lead to a repetition of the ex- ALFALFA SEED Lb. Oklahoma Top Noxious cessively easy credit and low interest rates that were generally characteristic of market conditions in the past two decades." (End advance for use at 6 a.m.

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