COMMITTEE ON BANKING AND CURRENCY UNITED STATES SENATE EIGHTY-FIRST CONGRESS SECOND SESSION ON AMENDMENTS TO S. 2246, TO AMEND THE NATIONAL FOR OTHER PURPOSES 60838 PART 2 FEBRUARY 16, 1950 Printed for the use of the Committee on Banking and Currency UNITED STATES WASHINGTON: 1950 CONTENTS Page Statement of McCabe, Thomas B., Chairman, Board of Governors, 355. Letters, statements, etc., submitted for the record by Architectural Forum: Article, FHA's impact on financing and design 417 Bryant, Drayton S., Director of Research, National Housing Con- 409 III MIDDLE-INCOME HOUSING THURSDAY, FEBRUARY 16, 1950 UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, The committee met, pursuant to call, at 10:30 a. m., in room 301, Senate Office Building, Senator Burnet R. Maybank (chairman) presiding. Present: Senators Maybank, Fulbright, Sparkman, Frear, Douglas, Bricker, and Ives. The CHAIRMAN. The committee will come to order. Senator Bricker is expected to come in. His administrative assistant is here. I think Senator Ives is on the way. Last week the committee voted to ask the Federal Reserve to come up this morning and explain their feelings regarding the housing legislation now before the committee. We were anxious to know what the Federal Reserve thought might be the impact of the housing program on the economy of the country. The committee voted to ask the Chairman, Mr. McCabe, not only to discuss the impact of the so-called middle-income housing section, but also the continuation of what is known as the old title VI, or FHA. In the bill there is authorization for a considerable amount of funds in both of these titles. So I will ask Mr. McCabe if he will be good enough to come up and give us his opinion as to what the Board thinks about the impact upon the economy, and what the Board thinks about the middle-income housing program and also the continuation of, as I said, the old title VI, or FHA, with the additional authorization of some $2,000,000,000. Mr. McCabe, if you will be good enough to give us the Board's opinion, please. Would you like to be questioned while you make the statement, or would you rather complete the statement first? Mr. MCCABE. It makes no difference, Senator. The CHAIRMAN. Then proceed in your own way, sir. If the gentlemen want to ask questions, they may do so. STATEMENT OF THOMAS B. MCCABE, CHAIRMAN, BOARD OF GOVERNORS, FEDERAL RESERVE SYSTEM Mr. MCCABE. Mr. Chairman, gentlemen of the committee, in response to a formal request made by the chairman of your committee, I am presenting this statement on behalf of the Board of Governors of the Federal Reserve System with respect to the effect which various sections of S. 2246 might have on the national economy. This is a complex bill. A thorough appraisal by housing, as well 355 |