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TO

—

i
THE
MR.
MR.
MR.
MR.
MR.
MR.
MR.
MR.

SECRETARY
BELL
BROUGHTOM
BURDETTE
ECCLESf~-"
GASTON
GIBBONS
HAAS
HARLAN

MRS. KLOTZ
MR. LAYLIN
MR. LOCHHEAD
MISS MADIGAN
MR. MC REYNOLDS
MR. OLIPHANT
MR. ROBERT
MISS ROCHE
MR. THOMPSON


MR. COOLIDGE


January 18, 1955.
S M 0 Hk H DU •
/ i

(a)

The Home Owners1 Loan Corporation should cease taking

mortgages * l @ 8 MM iioldsr or the mortgage can show real n®sd for
m© >
JMiu

l a other words, solvent and liquid Institutions should be ex-

pected fo carry at present the mortgages they have made and deal f a i r l y
with %'miT debtors* "TTae^Lshould continue to a reasonable amount to
take mortgages imder these conditions.
(t>)

!

There should b no additional (Sovernraent funds obtained
©

by the sal© of guaranteed mortgages for the purpose ef increasing the
funds of the H B ® Loan Banks tti subsidiaries or for new lo&a©.
OS

(fhe > '
•-

Hm Loan syatewi should b able to obtain liquidity by suoh action
a©
©
as il.O.L.C# takes under (a), without tta aeed of additional Govemment f^mds.

f

fher© i s no obj@otion to j w showing this aystem
w w

prefereao® in taking over mortgages*}
t h i s pot is in effect,

additional cash thrown into

though not teahnieally, a further unbalancing

of the national budget*
(•)

National banks shall not be permitted to invest in. the

stock of Uii j a t t — i l Vovtm&P corporations*
(d)

The imense suma of the people's savings on which interest

does not © ra @ j&-l/g$, awaiting for investment, should be encouraged
3. e d
to invest in this field ihrou^h the insur&noe of f t t p j H tind by
the psyoholooiGal faot of not h^vin-r more Government moaey poured into
the f i e l d .




This action could well b hastened by inoreasin^ the
@

l i q u i d i t y of aucli investments through baring the power to borrow
©a thtta from %h® Mmrr® fe®Eks. 4 @»mpaig3Ei oa leading i n s t i t u t i o n s
In i i i g i i i t to til® 9@$ piaraat®© plas shoali is©@t %@ requiremeats
^
of loaa© for iis