Evening star., 1933-05-22
RANK RE0PEN|NGS
INCREASE IN May
Average of 125 a Week in
April Being Raised, Accord
ing to R. F. C. Chief.

Banks were being reopened at the
rate Of 125 week during April, and
that rate has increased during May,
according to Jesse H. Jones, chairman
of the Reconstruction Finance Corpo-
ration.
Actual and conditional purchases of
preferred stock in banks by the Reserve
Finance Corporation. he reported, so far
total more than S52000,000. The Gov
ernment. he explained, stands ready to
'eXpand that partnership wherever pos
sible and necessary"
Pouring of money by the corporation
into business has decreased materially,
Jones said in formal statement. He
added that repaymentS to the corpora
ton are increasing.
Repaying 100000 Daily.
Farmers and live stock men who bor-
rowed through the corporations re-
gional agricultural credit corporations
were described by Jones as repaying
loans at the rate of 100000 a day.
They obtained S130000,000 in seven
months, he said, and have paid back
$7.500,000.
Banks and other borrowers who re-
ceived more than a billion and a half
have repaid s5O0,00O,0oO, he added.
The advance toward national reccv-
erv. of which there has been decided
evidence now for a period OF two
months" Jones said, sis supported by
information reaching the Reconstruc-
ton Finance Corporation. Two essen
tial elements on which this statement
is based are the decrease in the num-
Der of applications which the corpora
ton is receiving for loans to banks and
- af 61fidofinp lnQnS 01lt-
standing.
Reports to Washington from the
loan agencies throughout the country
substantiate both of these conclusions.
a clear indication that the period OF
extreme gravity is behind us.
up to the present time, the corpor-
alton has been repaid approximately
$500 5000 of the money which 1t put
into the financial and credit stream OF
the Nation prior to the bank holiday.
Repayments to the regional agrlcul-
tural Credit Corporations, which have
loaned S130 900 900. are being MADE at
the rate of 100000 a day and now
total s7,500,O00. These repayments seem
a clear indication that the now OF
money is being restored.
Banks Being Restored.
"The most important duty Of the cor
noration today is the restoration OF
sound banking in those communities
where such facilities are either lacking
or greatly curtailed. Figures now avail
able for the month of April, show that
through their own efforts and the as
sistance of Federal agencies, including
the Reconstruction Finance Corpora
ton. banks were being reopened at the
rate of more than 125 a week. There
has been an improvement in that rate
during May.
The extent to which the Reconstruc-
tion Finance Coropration has definitely
shared in banking restoration may be
Judged by the fact that actual and con-
ditional purchases of preferred stock
made by it so far total more than So2'-
600 600.
"The Government to that extent has
become a partner with various local in
ferests throughout the United States IN
resumption of credit facilities. 1t STANDS
ready to expand that partnership wher-
ever possible and necessary. 1t mas
been the aim of the corporation in each
instance of preferred stock purchase to
participate only in plans which woulo
result in the creation of sound nnan-
cial institutions"