I recommend the establishment of a system of home-loan discount banks as
the necessary companion in our financial structure of the Federal Reserve
Banks and our Federal Land Banks. Such action will relieve present
distressing pressures against home and farm property owners. It will
relieve pressures upon and give added strength to building and loan
associations, savings banks, and deposit banks, engaged in extending such
credits. Such action would further decentralize our credit structure. It
would revive residential construction and employment. It would enable such
loaning institutions more effectually to promote home ownership. I
discussed this plan at some length in a statement made public November 14,
last. This plan has been warmly indorsed by the recent National Conference
upon Home Ownership and Housing, whose members were designated by the
governors of the States and the groups interested.