The provisions of the National Housing Act are of far-reaching importance, and not only will have the immediate effect of reviving the building industry and increasing the value of real estate, but will also help to stabilize real-estate values in the future. If the law achieves what it was intended to--and there is no reason to doubt that it will--then the social and economic measures of the Government will be of decisive importance. It will enable poor but thrifty people to own their own homes and will make the paying off of the mortgage comparatively easy for them. The purchasers of homes are given the greatest protection against possible losses. On the other hand, the rights of the capitalist who wants to invest his money in mortgages are not overlooked; and he is given greater security than before. The only one who is injured by this law is the greedy and unscrupulous moneylender, who will be prevented from doing business.

That the desired results may be attained, the following provisions were 2included in the law; In the first place, a uniform rate of interest has been established for the whole country, namely, five per cent on new mortgages and five and one-half per cent on renewals. Second mortgages and all other debts on a home will be prevented since first mortgages may be for as much as eighty per cent of the assessed valuation, and can be for as long a period as twenty years; hence the sometimes considerable costs of renewing the mortgage are avoided, and also the possibility that the renewal will be refused.

For the payment of the mortgage a plan has been worked out according to which there will be monthly payments like rent. These payments will go both for interest and for retirement of the principle. At the same time there will be special provisions in the law for the renewal of mortgages at moderate cost.

To make this program possible, several supplementary measures have been taken. A system is to be created which will make it possible for capital which is superfluous in one part of the country, to be transferred to another part, where it is needed for this program. A uniform system of appraisal is to be developed, so that the security on which mortgages are based will be the same 3all over the country. To take care of the sale of mortgages, national mortgage companies will be organized, which will also have the task of converting into fluid capital the many mortgages incurred during the depression which are held by banks and financial institutions. To implement the plan, special mortgage debentures will be issued which will be secured by first mortgages. These mortgages will be under the supervision and guarantee of the Government. These debentures should, if everything turns out as desired, be a sound enough investment to attract the capital which is required.