The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-24
R. F. c. CUTS
INTEREST RATE.
ON ALL LOANS
One Half of One Per Cent
Slash Expected to
Help Business.
HINT MORE REDUCTIONS
Future Policy of More Lib
erality on Building
Projects Seen.
BY LEO r. SACK
Times stan Writer

WASHINGTON, Dec. 24.-The
Reconstruction Finance Corporation
today presented two Christmas gifts
to the American people.
l. 1t reduced interest rates on all
classes of loans one-half of l per
cent.
2. It agreed upon future policy
of more hberality in authorization
OF self-liqWdating loans.
The reduced interest rate prob
ably will be the forerunner of other
reductions within the next few
months, and it paves the way for a
future policy whereby rates on self
liquidating projects will be revised
downward as financial conditions
justify.
The r. r. G. agreed upon the two
new policies in the hope of stimu-
lating a business revival and of
putting more punch into the recon-
struction drive which was supposed
to follow the establishment of the
81 ,800000,0 900 fund for self-liquidat-
AAA6 NOAAohA ACeAOAA RNA ROoNos
Cut All Loans Interest
Formal announcement of the
lowered rates, which officials hope
will offset the criticism that r. F. G..
interest rates are too high, may be
made today. The policy was agreed
upon after prolonged discussions be-
tween directors and with business
men and officials outside of the cor
poration.
Existing rates now vary from
per cent for state relief loans to 6
per cent. Closed banks pay 5 per
cent; operating banks So per cent;
state, municipal and private self
liquidating projects 6 per cent, and
railroad and assurances companies
per cent.
The one-half of per cent reduc-
ton means an annual saving of
$lO,000000 to present R. F. C. bor-
rowers, and the corporation believes
1t Will stimulate new borrowings for
construction purposes.
Loans to Be LiberaIized
The determination to liberalize
construction loans results from con-
1erences of the directors following
dinner conference between Direc-
tor Harvey c. Couch, in charge of
the Self-liquidating division, and
Senators Robert F. Wagner IN. W
and Robert La Toilette (Wis).
Both senators have been critical
of the policies of the r. F. c. and
both feel that the directors have
stuck too close to the letter of the
law In authorizing loans.
They feel that the CORPORATION
has been too conservative, and as a
result has not executed the will OF
congress when it authorized
81 100000 last spring as a means
OF breaking the depression.
Couch Disappointed, Too
Couch told the senators that he
too, is disappointed with results &C
complished heretofore, but he felt
that the corporation has been re-
stricted by the letter of the law
which clearly defines that self
liquidation means just that.
This has restricted the class OF
applications upon which the cor
poration can act, with the result
that only $145, 1863, 500 has been
loaned, a sum, according to Couch
that merely scratches the sur
face"
Before leaving for Arkansas tC
spend the Christmas vacation. Mr.
Couch ordered an extensive investi-
cation of prospective loans in al
parts of the country, not only fol
bridges and public works, but fol
public markets, housing develop
mentS. schools, Stadiums and other
worthy projects which will fill &
communitN and sectional need