WANTED In every community where capital credit is needed responsible people with banking experience and knowledge of credit to organize mortgage corporations.

This is the desire of the Reconstruction Finance Corporation which is willing to lend to such corporations so that they may in turn lend money to businesses that need it and can give mortgages on plant or machinery or equipment or stock on hand.

If the local mortgage corporation wishes to require the borrowers to leave on deposit from ten to fifteen per cent of the sums borrowed, this to be used as a subscription to capital stock, there will be no objection from the Reconstruction Finance Corporation. This is the plan in use in the intermediate credit system in agriculture and the government stands ready to see it applied in an intermediate credit system for business.

The R. F. C. will be in the position of a rediscount agency to which the local mortgage corporations can come for credit. The R. F. C. will examine the collateral--namely, the mortgages--and will make loans based on requirements, anywhere from three months to three years or possibly longer.

If the mortgage corporations are set up with new capital stock, then ultimately they will find their borrowing capacity increased.

This method of furnishing capital credit to the country was approved a fortnight ago by President Roosevelt after conference with Chairman Jesse H. Jones of the R. F. C., but the plan has been slow to get under way due to the difficulties and delays of organization of the local corporations.

Several hundred applications for loans based upon the mortgage corporation idea have been received at the R. F. C. here already, but in not all cases have the corporations been set up in a manner that makes possible immediate lending. Once all the requirements are met, capital will be made instantly available.

The belief of the R. F. C. is that much of the money will be used to buy machinery and new equipment to replace old plant facilities, the hope being that savings in repairs will come out of the use of new machinery. Similarly, purchases will be stimulated in stocks of commodities which would normally be sold over a period of time when fabricated or processed. Banks are not willing to give credit in many of these cases because of the absence of quick assets in the statements of the borrowing companies. The latter have had their reserves depleted by the deficits of the depression, yet have plant and machinery to offer as collateral for their loans. Many companies have assets that are unencumbered by mortgages but banks have not been permitted by bank examiners to accept that kind of collateral or to make what are known as capital loans.

It may be, too, that residential construction will be aided by the new mortgage companies. While there are of course plenty of for rent signs and the owners of properties feel that sufficient mortgage money is outstanding, the truth is a survey of many big cities reveals a housing shortage. This is because families have doubled up during the depression. The moment unemployment is relieved in any considerable volume the demand for housing facilities will reappear.

A certain number of new residences always are built each year and mortgage money as a rule for a part of the construction cost is available when the owner has the balance. The problem of getting money for construction loans has been growing more and more difficult, especially in states where mortgage investments have received a setback by laws limiting rights of foreclosure.

The decline in normal residential construction in America in 1932 was about 90 per cent below 1928 and the indications are that this year's figures will be even less. Industrial and commercial construction is way down, too.

Through these local mortgage companies, the government hopes to revive the market for capital for durable goods. About $500,000,000 of R. F. C. funds is available for the purpose and when congress meets in January more will be appropriated if the plan shows signs of breaking the vicious circle of the depression. The government is going into partnership with its citizens in whose capacity to pay back its borrowings over a three or five year period there is an abiding confidence