View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


Chairman Federal Reserve Board,
S i r :v
One of the Radio broadcasts a few days ago,reported you as
saying that the methods being employed;prices paid;method of financing
of new houses, is not what it should be#
Here in Moline,one of the various housing projects of new home
building going on,is some small houses about the size of a comm&neitwo
car garage,4 small rooms,no cellar,heating unit in one small cubby-hoie
in one corner of the house•

All this territory is well adopted for cellars

which are under at least 999 out of every 1000 homes in this territory,and
they are dry,wholesome and healthy,and the absence of the ceiiars is
to save cost.

Sooner,or l&ter,when the depression (or slow down) comes

se small shacks,which are now selling for |9,000# to |9,5OO# now,wil^^
be vacated by the owners,and they will go back to the government,because
the owners of these shacks will be able to buy decent houses here for
less money than they owe the Government for the small shacks,because they
only have two or three years payments in them,and when the slow down comes,
it will be impossible to even rent these small shacks,and the Government
will be holding the sack.

The workmen on these house put in an awful lot

of overtime -plasterers draw down |200»00 to $250*00 per weekand other
workmen in proportion^and the whole proposition is really unsound financing<
I am a man 70 years old,and have been in businessfor myself
for over 30 years,and while we all know that money won't buy what it used
to,and never will,yet these small shacks will have absolutely no value
whatever when the next slow down in business comes in a few years*


small shacks are mot large enough for a couple and two small
children,to say nothing of two large teen aged children,and when
a couple have two or three children,they have to abondon the small
place,and find something larger.