Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-06-24

chief provisions Of the gigantic s2,30o,-
600 COO unemployment relief bill, as
passed by the Senate late yesterday:
The first section authorizes the Re-
construction Finance Corporation to
increase its loans or contracts by the
specific amount of s1.46o 900, 900. From
this. it may lend TO States, munich
palities, political subdivisions OF States,
public agencies of States OF munich
palfties and of political subdivisions OF
States, public corporations, boards or
commissions and public municipal IN
strunientalities of one or more States,
authorized under Federal, state or
municipal law, and under regulation as
to service and rates by said authority.
funds to aid In financing projects
which are self -liquidating in charac-
ter"
The self lquidating" term Is de-
fined as intending to apply to projects
(which will be made self-supporting
and financially solvent, and If the con-
struction cost thereof will be returned
within a reasonable period by means
OF tolls, fees, rents or other charges"
An enlargement Of this definition was
accomplished in a proviso that SELL
liouidation" character may be deemed
to attach to projects for which part OF
the income is supplied from taxes
imposed by State law heretofore en-
acted"
Loans TO Private Firms Restricted.
BY a specific proviso, from the fund
there may be made advances to private
corporations Of two classes only. the
first being corporations formed wholly
for the purpose Of providing housing
for families of low income or for recon-
struction of slum areas, which are regu-
lated by State or municipal laws as to
rents, charges, capital structure, rate
of returns, areas and methods OF opera
ton" and the second being private
corporations to aid In the carrying out
of construction, replacement or i'm
provement OF bridges, tunnels, docks,
viaducts, waterworks and canals de-
voted to public use and which are self
liuuidating in character"
Porto Rico and the Territories are
included within the scope Of the bill
for loan applications.
A total Of SAC, 100000 more Is made
available from the Reconstruction FL
nance Corporation to the Secretary OF
Agriculture, "for the purpose of financ-
ing sales Of agricultural products IN
the markets OF foreign countries IN
which such sales cannot be financed In
the normal course of commerce" Dur
ing debate the sum allowed was treated
as disable in endeavors to dispose OF the
Federal Farm Boards surplus of agri-
cultural products.
Another agricultural provision per-
nits, the Reconstruction Finance Cor
poration to create IN any Of the IL
Federal land bank districts where 1t
may deem the same to be desirable" a
regional agricultural credit corporation
with q paid-up capital OF $4,000. 900.
Such corporations, under supervision
of the Reconstruction Finance Corpo-
ration, are empowered to make loans
or advances to farmers or stockmen, the
proceeds of which are to be used for
an agricultural purpose, or for the rails
ing, breeding, fattening or marketing OF
live stock" The credit enterprises
which they might make with the Re-
construction Finance Corporation, Fed
eral Reserve Banks or Federal Inter
mediate Credit Banks.
Limited TO s1,5o0, o00,o00.
Section . of the measure arranges the
source of the funds which the Recon-
struction Finance Corporation is au-
thorized to advance That institution
may issue notes, bonds, debentures or
other such obligations in an aggregate
amount of not to exceed 81 500, 000, 900"
for the purposes previously set out. A
limit of maturity for the corporations
rnoney-raising obligations is set at 10
weeks, and the terms and conditions
applying to its original issues, by which
Nd TO he ha a
are to apply to new issues. Principally,
this authorizes the Treasury to take up
the corporations security issues.
subsection precludes the use OF any
OF the new authorization Of advances
for purposes covered by the original
enactment Another orders monthly
reports Of the Reconstruction Finance
Corporation procedure to be submitted
both to the President and to Congress,
which shall show loans and advances
approved by it. The authority of the
corporation to lend to financial insti-
tutions, railroads and the like is ex-
tended to Porto Rico and the terrific
ries by the third section.
In section 4, relating to Federal
works, for the purpose Of providing
for the carrying out certain authorized
public works." there is set up an emer-
gency construction fund Of 100000 600.
For expenditure on the Federal-aid
highway system there Is allotted $780,
600, 600 with the direction that such
tary of Agriculture to the several States
In the method provided in section 81
of the Federal highway act as amended
and supplemented"
THE amounts apportioned to the
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