New York. Also the New York Real Estate Board. I am a member of the board of governors. It is claimed that we represent quite a substantial amount of the improved properties in the city of New York. Then I present a resolution to the Brooklyn Real Estate Board. That is quite a representative institution. And then the Long Island Real Estate Board. If agreeable, I will submit these resolutions for the record. Senator WATSON. Very well. How many of them have read this bill? Mr. MACDOUGALL. I think many of them have read it. That is about all they have to do at this time, Senator-read this bill. It is the only constructive piece of legislation that has come to our attention in many, many years. Senator WATSON. No; that is not an answer, because it is not so. Mr. MACDOUGALL. I think it is. Will you give the information, Senator? I am a builder, and I would like to know. Senator WATSON. I am not talking about the building. I am talking about other things. Mr. MACDOUGALL. I did not say that. Senator WATSON. Yes; you said the only constructive piece of legislation that has been enacted by Congress. Mr. MACDOUGALL. I did not say that, sir. May I correct the testimony? In the interest of home building. Senator WATSON. Well, that is a different thing. Mr. MACDOUGALL. Thank you. I want to make that clear. Mr. MACDOUGALL. I certainly would not presume to make any such statement other than one that I have referred to. Senator WATSON. Very well. Mr. MACDOUGALL. I am only prepared to speak on that. (The resolutions and letters presented for the record by Mr. MacDougall are as follows:) In re C-20. EDWARD A. MACDOUGALL, Esq., NEW YORK BUILDING CONGRESS, Washington Hotel, Washington, D. C. MY DEAR MR. MACDOUGALL: The following resolution was unanimously adopted by the executive committee of the New York building congress on December 11, 1931: "Resolved: (1) That the executive committee of the New York building congress hereby indorses and approves in principle the recent proposal of the President of the United States for the creation of a system of home loan discount banks; "(2) That such home loan discount banks be established on a permanent basis to meet a continuing need and act as a continuing stabilizing force in the economic structure of the country; "(3) That said home loan discount banks in the case of superior risks and under proper safeguards and certified standards of design, construction, and surroundings be given the power to increase the maximum amount suggested by the President to be advanced against the mortgage collateral; "(4) That continued effort be directed toward developing a plan to make funds available for long-term first mortgages with reasonable yearly amortization payments and for a larger percentage of the appraised value than has been usually granted where homes, as pointed out by several committees of the recent conference on home building and home ownership, are properly 98195-32-PT 3-4 designed and built and protected against obsolescence and depreciation by planning in advance for the social and economic stability of the neighborhood.” As it will be impossible for me to be in Washington during the Senate hearing on the bill that has been introduced to carry out the recommendations, it will be very much appreciated if you will call to the attention of the Senate committee our resolution favoring the proposal. With kindest regards, I am, Sincerely yours, H. H. MURDOCK, President. CHAMBER OF COMMERCE OF THE BOROUGH OF QUEENS, Mr. E. A. MACDOUGALL, President the Queensboro Corporation, Jackson Heights, N. Y. DEAR MR. MACDOUGALL: Our executive committee at its last meeting approved in principle the bill now before Congress, known as the Federal home loan discount bank bill. I should appreciate it very much if you could participate in the hearings in connection with this bill, acting as the representative of the board of directors and membership of our chamber. I sincerely trust that you will find it convenient to accept this appointment. With kind regards, I am, Very truly yours, L. A. COLEMAN, President. CHAMBER OF COMMERCE OF THE BOROUGH OF QUEENS, City of New York, February 8, 1932. Following letter sent to Senators and Congressmen representing the Borough of Queens, also committees as follows: House Committee on Banking and Currency, 21 members; Senate Committee on Banking and Currency, 19 members. DEAR SIR: The Queensboro Chamber of Commerce, an organization of approximately 1,650 members, representing the Borough of Queens, city of New York, has studied carefully the proposed Federal home loan discount bank bill. They respectfully request that you support this legislation when it comes before you for consideration, as they believe it will provide increased funds for the purchase and construction of homes. May we ask your favorable consideration. WILLIAM J. RUSSELL, NEW YORK ASSOCIATION OF REAL ESTATE BOARDS, Mr. EDWARD A. MACDOUGALL, The Queensboro Corporation, Jackson Heights, N. Y. MY DEAR MR. MACDOUGALL: I understand that you plan to attend the hearing before the Senate Committee of Banking and Currency in Washington on February 16, and I should be glad, as president of the New York State Association of Real Estate Boards, to authorize you to represent that organization in the matter of furthering the proposal made by President Hoover for the creation of a central mortgage bank. The mortgage situation in all of Greater New York is in a distressing condition and it seems that some national relief will be the only cure. Very truly yours, J. IRVING WALSH. MINEOLA HOMES COMPANY (INC.), Mr. EDWARD A. MACDOUGALL, The Queensboro Corporation, Jackson Heights, N. Y. MY DEAR MR. MACDOUGALL: On December 5th you wrote Mr. Childs requesting him to send you copy of a resolution he furnished you with for the President's conference on home building and home ownership. Mr. Childs is away on a vacation and expects to be gone about three weeks. I discovered your letter and found that it was unanswered. If the following is not the resolution you requested, will you kindly advise me just which one you wanted and I will forward it to you? "Whereas the New York State Association of Real Estate Boards finds that in certain sections of this State there is the danger of working people losing their homes through the inability to refinance first mortgages, and "Whereas President Hoover has called a conference on home building and home ownership and has recognized the need of assisting home owners in the refinancing of their homes, and "Whereas conditions prevailing in some sections of the State has shown that real-estate mortgages were a prime investment in the time of emergency, and "Whereas in some sections of the State there is an abundance of money available for first mortgages and in other sections a dearth of capital available for this purpose: Be it therefore "Resolved, That we commend the National Association of Real Estate Boards in giving consideration to the question of creating a central mortgage bank to meet the situation which confronts the country and that we give assurances of our hearty cooperation in the making of such study and in the attempt to solve this problem of great importance." Yours very truly, Mr. E. A. MACDOUGALL, HELEN M. BECK, Secretary to Mr. Childs. THE REAL ESTATE BOARD OF NEW YORK (INC.), Queensboro Corporation, Jackson Heights, L. I. DEAR MR. MACDOUGALL: I understand that you are going to Washington next week to represent certain other organizations at the hearing before the Banking and Currency Committee of the Senate on the home loan bank bill. Will you please at the same time represent this board in the same matter? In anticipation of your acceptance of this request, I am sending you inclosed a copy of the resolution adopted by the executive committee of our board of governors and a copy of a letter sent by us in the same matter to Senators Copeland and Wagner and to the introducers of the bill and the chairman of the Banking and Currency Committee. Thanking you in advance for your representation of the board, I am, JONES W. MERSEREAU. I hereby certify that the following is a true and correct copy of an extract from minutes of the executive committee of the Real Estate Board of New York (Inc.), taken at the November 30, 1931, meeting. ADIE BOEHME, Secretary of Committees. WEDNESDAY, February 10, 1932. FEDERAL HOME LOAN BANK: On motion duly made, seconded, and carried the proposed plan of President Hoover for a Federal home loan bank is to receive the board's hearty support, and the executive vice president acting with the president of the board is to bring the matter to the attention of the members in such form as will give the greatest effect. Copy of same to Hon. James E. Watson, Senate Office Building, Washington; Hon. Henry Steagalls, chairman Committee on Banking and Currency, House of Representatives Office Building, Washington; Hon. Peter Norbeck, chairman Committee on Banking and Currency, Senate Office Building, Washington. Hon. ROBERT LUCE, REAL ESTATE BOARD OF NEW YORK (INC.), House of Representatives, Washington, D. C. SIR: This refers to H. R. 7620 (successor to H. R. 5090), a bill to create home loan discount banks, to provide for the supervision thereof, and for other purposes. The legislation and taxation committee of the Real Estate Board of New York has considered the bill and approves of the same in principle. It is expected this bill will do for real estate what the Federal reserve bank has done for the banking business, and the Federal farm loan banks have done for the farming industry. It will nationalize the market for real-estate mortgages with resulting lower interest rates to borrowers and will overcome a great stumbing block in the present real-estate security market-the inability to freely liquidate securities. The board therefore respectfully recommends the speedy enactment of the proposed legislation into law. Respectfully submitted. JONES W. MERSEREAU, Executive Vice President. BROOKLYN REAL ESTATE BOARD, Brooklyn, N. Y., February 13, 1932. Mr. E. A. MACDOUGALL, Washington, D. C. DEAR MR. MACDOUGALL: At the suggestion of Mr. Howe, I am sending you herewith a letter addressed to the Hon. James E. Watson, chairman of the Senate Committee on Currency and Banking, relative to our position on the home-loan bank bill. We would appreciate it very much if you would be good enough to present this letter, on behalf of the Brooklyn Real Estate Board, at the hearing on Monday. With kindest regards, I am Hon. JAMES E. WATSON, ARTHUR W. GELSTON, BROOKLYN REAL ESTATE BOARD, Chairman Committee on Currency and Banking, The United States Senate, Washington, D. C. DEAR SIR: The members of the board of directors of the Brooklyn Real Estate Board unanimously endorse the home-loan bank bill and urge that every effort be made to facilitate its immediate enactment into law. In our opinion, the passage of the bill is highly desirable for three reasons: (a) It would liquefy funds now frozen in mortgage securities and make them available for new construction, thereby doing much toward relieving unemployment. (b) The creation of a permanent system of mortgage discount banks would stabilize construction and allied businesses, the success of which depends largely upon the prosperity of prospective home builders. (c) Loaning institutions, by being able to discount sound first mortgages for the purpose of acquiring liquid capital, could avoid the necessity of having to call for reductions in outstanding loans. Very truly yours, BROOKLYN REAL ESTATE BOARD, Mr. F. RAY HOWE, LONG ISLAND REAL ESTATE BOARD, The Queesnboro Corporation, Jackson Heights, Long Island. DEAR MR. HOWE: I am inclosing a letter for Mr. MacDougall containing the resolution requested by you over the phone this afternoon which I trust you will find satisfactory. Yours very truly, LORENZO PANDO, Executive Secretary. LONG ISLAND REAL ESTATE BOARD, Mr. EDWARD A. MACDDOUGALL, President The Queensboro Corporation, Jackson Heights, Long Island. DEAR MR. MACDOUGALL: The following is a copy of the resolution adopted by this board with relation to the establishment of Federal home loan discount banks. Whereas there has been introduced in Congress a bill providing for a system of home loan discount banks; and Whereas in the opinion of the leading real estate and financial interests the establishment of such a system will operate not only to relieve the present financial strain upon savings banks, trust companies, but also will have a permanent value to the Nation as a whole, as a means of promoting home ownership in the future; Therefore be it Resolved, That we indorse the plan for home loan discount banks and pledge our support in securing the enactment of such legislation. We should be pleased to have you represent this board and present this resolution at the hearing to be held on February 16 before the Senate Committee on Banking and Currency. Your cooperation will be greatly appreciated. Yours very truly, Mr. EDWARD A. MACDOUGALL, LORENZO PANDO, Executive Secretary. LONG ISLAND REAL ESTATE BOARD, President The Queensborough Corporation, Jackson Heights, Long Island. DEAR MR. MACDOUGALL: In addition to adopting the resolution which I have embodied in a second letter, this board sent copies of it to over 200 organizations on Long Island, including chambers of commerce, civic organizations, and service clubs, requesting immediate and favorable action. I am inclosing a copy of the circular. Yours very truly, LORENZO PANDO, Executive Secretary. LONG ISLAND REAL ESTATE BOARD, Jamaica, Long Island, January 16, 1932. To chambers of commerce, civic organizations, and service clubs in Queens, Nassau, and Suffolk. GENTLEMEN: Your cooperation is desired in support of the following resolution adopted by the Long Island Real Estate Board with reference to the establishment of Federal home-loan discount banks for the purpose of relieving the present "frozen" condition of real-estate mortgages and provide means to prevent the return of the present conditions. In the House of Representatives bill No. H. R. 5090 has been introduced by Mr. Luce and a companion bill has been introduced in the Senate by Mr. Watson; and they have the support of the insurance companies, building and loan associations, savings banks, National Association of Real Estate Boards, and |