Evening star., 1932-06-06
.HE text Of the White House state
ment after President Hoover's
conferences at his Rapidan
L camp dealing with the relief

TINE text Of the White House state
ment after President Hoover's
conferences at his Rapidan
i camp dealing with the relief
question follows: {.
"The following are the conclusions OF
the Rapidan conference between Presi-
dent Hoover and the directors, Gov
Meyer (of the Federal Reserve Board)
Gen. Dawes, Messrs. Jones, Couch, NC
Carthy, Bestor and Ballantine Of the
Reconstruction Finance Corporation.
They spent some hours yesterday and
this morning reviewing the work which
has been accomplished since the corpo.
ration was established on the I'd OF
February and discussed the boards
plans and recommendations for the
future They also discussed methods
further to coordinate all economic
agencies engaged in assistance to busi-
ness, employment and agriculture.
$500, 1000, 900 Loans Made.
"The review Of the work of the cor
poration showed that in the IA weeks
Of its life loans Of about $500 .000, 600
we're authorized to something ike 1000
banks, agricultural credit corporations,
life insurance companies and other n
nancial institutions, and IN addition
thereto about $4,000 900 to railroads
An analysis OF the institutions and
the purposes served showed that:
First. OF nearly 5000 borrowing
banks. more than 10 per cent are located
in towns of 5000 in population or less;
while "a per cent are located in towns
of 5000 in population or less: and that
only AS per cent Ct money loaned to
banks has gone to institutions IN cities
of over one million in population:
In all these communities these banks
have been able to meet the demands OF
their depositors and to minimize the
necessity of forced collections, fore
closures and sales of securities and have
thus contributed to protect community
values. One hundred and twenty-five
closed banks have either been reopened
or their depositors paid out. And bank
failures which amounted to nearly 100
a week when the corporation began are
now down to about the casualties OF
normal times. 1t is estimated that al
together over 10 million individual de-
positors and borrowers have been bene-
flied by the margins provided by the
Reconstruction Finance Corporation to
these banks.
Other Benefits Declared.
Second: Over $50 building and loan
associations have borrowed from the
corporation in order to enable them on
the one hand to make their routine
payments to their depositors and par
ticipants, and on the other to avoid the
foreclosures Of mortgages. The result
again has been benefits to hundreds OF
thousands Of individuals.
Third: In the agricultural field, the
corporation has underwritteh or sub
scribed for issues placing s68, 900, 900 Of
the Federal intermediate credit bank
debentures, the whole Of which sums
are loaned directly to farmers for pro-
duction and marketing purposes. Loans
have been made to a number OF agrl-
cultural. market and live stock finance
corporations, which in turn has en-
abled them to extend and continue loans
particularly upon live stock and loans
to a great number of farmers. Beyond
this. loans to the extent of $4,000. 900
have been made directly to about 450.-
900 farmers for seed purposes through
the Department Of Agriculture. Alto
gether probably one million individual
farmers have been directly or indirectly
helped.
Fourth, the net result Of approx
mately $l70,0C0,000 authorized loans to
railroads has been on cne hand to in
crease employment by continuing nee
essary construction work, and on the
other hand by preventing receiverships
and thus safeguarding the great invest
ments Of the trustee institutions such
as insurance companies, savings banks,
etc. The deterioration Of service and
other standards which accompany re-
ceiverships have also been avoided.