The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1932-08-11
r. &c. PROVES
OF VALUE TO
ALL CITIZENS
Congressman Summers Tells
of Working of Federal Re-
lief Bill; Smaller Commun-
tiles also Benefit


Corporation Act was the outstand-
ing legislation enacted during the
early days of the last session of
Congress-" said Congressman John
w. Summers in recent inter-
view. "The Corporations activities
from February to the end of June
show that it has served directly or
indirectly every citizen of the
United States. During this period,
the corporation made loans aggre-
eating a billion dollars to more
than four thousand institutions;
The shock and paralysis to bust
ness that resulted from a closed
bank was averted in thirty-six
hundred towns and cities. The de-
.positors and stockholders were Oft
en- saved their lifetime savings.
The corporation has assisted in
liquidating more than three hun
dred banks that had already clos
ed. Four hundred eighteen build.
ing and loan associations were aid
ed and through this action sever
al million homes may have been
saved. Loans have been made to
joint stock land banks and live
stock corporations.
MANY railroads have been kept
from the hands Of receivers by
loans secured. Thus farming and
the United States have their usual
transportation facilities and a
million railway employees have
been kept steadily employed. The
laboring man, the producer and
business in general is assisted.
"The corporation has stood
ready at all times to assist FEEDER
al Land Banks and Federal In
termediate Credit Banks which
serve six million farmers.
"When the corporation makes
loans to life insurance companies,
it is not for the purpose of pro-
tecting the life insurance company
as such, but to protect half of the
population of the country who
carry a hundred twenty million
life insurance policies. When fire
insurance companies are kept on
a sound basis then the fire insur-
ance policy on practically every
home in this country is made
safer.
"From these few illustrations, I"
said Representative Summers, ct
is readily seen that the Recon-
struction Finance Corporation,
recommended by the President and
authorized by Congress, is not for
the purpose Of serving big bust
ness as the demogogue claims, but
that it serves a hundred twenty
five million of our people in all
walks of life.
Nothing is given to any one.
These loans bear interest and are
only made on the very best Of Sc
curities. About a hundred million
dollars have already been repaid.
"The loans authorized by the
Corporation have been widely dis
tributed throughout the country.
"Of the 5000 banks and trust
companies to which loans were au-
thorized, 20 percent were located
in towns of less than 5000 popu-
lation; 80 percent in those of less
than $4,000 and 95 percent in
those of less than 100000 popula-
ton. Of all institutions to which
loans were authorized, numbering
Abs (excluding railroads) 20 per-
cent in those of less than 10000;
SO percent in those of less than
100000; and go percent in those
of less than 100000 population.
"When a business breakdown
is averted in any community then
the whole community is benefited.
"The Reconstruction Finance
Corporation is not a permanent in
stitution, but as a stop gap to tide
up thru our part of this world
wide depression, which even now
seems to be receding, it is proving
its great worth and abundantly
justifying the President and the
Congress in its enactment"