Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
FIVE STATES GET
MILLIONS OF R. F. c.
$9,020,573 Loaned to Ease
Destitution and Drain
on Public Funds.

By the Associated Press.
The Reconstruction Finance Corpo-
ration yesterday made available millions
to relieve restitution in communities of
five States.
Loans totaling S9,O2O,573 were granted
to Ohio, Illinois, Missouri, Michigan
and Kentucky. Forty-one Kentucky
counties, seven Missouri cities and
counties, two Michigan cities, one Ohio
city and county and the entire State of
Illinois are to receive funds.
widespread restitution was reported
to the corporation by Governors of
these States. Behind the announce
ments of the loans were stories of heroic
work and sacrifice by the cities and
communities. Absolute exhaustion of
private and municipal and county funds
for relief were repeatedly reported In
many instances public officials told of
diverting public funds to aid in pre-
venting starvation.
Additional Aid Blocked.
Legal inhibitions in several instances
had placed officials in a position where
they could do no more. The corporation
took cognizance of these situations.
The loans authorized yesterday bring
the total SO far allowed for relief under
the Garner-Wagner law to $4,000 $50
Twenty-Five States have benefited. The
corporation has S266,998,041 still avail
able
The loans authorized yesterday in
clude:
Ohio-For Cleveland and Cuyahoga
County, $2,807 200.
Illinois 100000
kentucky-For Al counties, $672, $50.
Michigan-For Flint, $685. 900; Mus
kegon Heights, $4,000.
Missourl-Kansas City, $189,89o; st.
Francois County, s6,OO8; Galloway
County, $3.50; Joplin. $1,000; Marion
County, $4,000; Moberly, $6,250, and
Pike County, 1925.
The reports presented in asking the
loans showed both the southeastern and
southwestern lead belts in Missouri
were centers of restitution, and that
reached their limits of taxation and
borrowing.
Bond Issue Planned.
Illinois, which already had received So
000 900 of loans, got quick action. Only
day before committee appeared to re-
port that most of the Keller stations in
the State would have to close by to-
morrow if the money were not forth
coming and that the special relief ses-
sion of the State Legislature could not
act in time to care for the situation.
The State will vote on $2O,OOO,oOO
bond issue in November.
The Governor of Kentucky asked for
SllO7,O94 to care for the situation in
1O8 counties Sufficient supporting data
was lacking from 81 counties. but the
corporation found it could lend $672,55o
to care for the other Al.
Cleveland had attempted unsuccess-
fully to sell S470,000 OF relief bonds.
The corporation bought them and made
available S2,377,000 more to be spent IN
equal monthly installments over the
next four months.
The Reconstruction Corporation also
issued Yesterday regulations for con-
trolling leans to depressed farmers,
these providing for per cent interest
rate on such advances.
The corporation announced that only
farmers and Stockmen or firms engaged
in farming or raising, breeding, fatten-
ing or marketing live stock are eligible
for these loans from the regional
Agricultural Credit Corporations.
On issuing the regulations, tne CO!
poration said these may make possible
granting of the first loans soon after
the managers return to their districts
Applications are being received daily.
Although the interest rate OF per
cent is higher than that asked for rail-
road loans, there will be no service OF
inspection fees. This latter situation
makes the credit corpc - ton rate COM
parable to the lowest Eanking rates in
this class of business. it was stated.
All loans will be made direct to the
applicants.