Speech #830201975

I am merely asking that we help that government to help itself in a cause that is surely most worthy of our support. and in a problem which they themselves cannot solve. I am asking that we help them to borrow the money that is needed in our free capital market. at interest rates they can afford to pay. and at an amortization rate we know they can stand. The German Government. through its Lasten Ausgleichs Bankthat is. its bank for equalization of burdenswill issue $250 million in bonds. at an interest rate of from 3 to 4 percent. and redeemable in 5year intervals. up to a maximum of 30 years. with the principal and interest to be repaid in dollars when due. and with the proceeds of these bonds to be used solely for the purpose of granting first mortgages at interest rates not exceeding 5 percent. and annual amortization not to exceed 11/2 percent of the principal. to refugees. escapees. and those who lost their homes through bombing. for individual home ownership housing 1 to 2 families. These refugees and escapees can then borrow on a first mortgage from the Lasten Ausgleich Bank up to 90 percent of the requirements for building a new home. at an interest and amortization rate that they can afford to repay. Germany. at present. lacks the capital to do this job. Current intere�t rates for mortgages are very high. 7 to 9 percent. which the average refugee simply cannot afford. Because Germany could not market today a bond issue in this country without paying a prohibitively high interest rate. I am asking to declare the interest received by our citizens on these bonds to be exempt from Federal taxation.