The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-15

NSA-oNA
whose activities touch cities. citizens.
and pocketbooks-to say nothing OF the
stomachS of Chinese coolies-quite in
timateiy The r. F. c. apparently is
entering upon a new and more vigorous
phase OF its tremendous operation. two
appointed.
By Scripps-Hotcard Newspaper Alliance
WASHINGTON, June bigger
than the House of Morgan. more
powerful and affecting more direct
ly the people and their pocketbcoks
is the governments great bank, the
Reconstruction Finance Corporation.
now apparently entering upon
new and more vigorous phase of its
tremendous operations.
The R. F. G. just has announced
that it henceforth will assume con-
troll over the salaries of borrowing
concerns. and while this is but a
detail alongside the fact that the
corporation has authorized loans of
more than $2,000,000, 900, It indicates
for the first time the effect of the
new deal on this institution.
Meanwhile, the corporation con-
tinueS to shovel out money at the
rate of about $4,000 every minute
of every eight-hour day. In some
respects it has become the source Of
federal funds, supplanting the
treasury itself.
Two Billions Loaned
Within the last thirteen months
other banks have closed their doors,
voluntarily or otherwise; insurance
companies and railroads, building
and loan associations and farmers.
cattle raiSers and trust companies
have had hard shedding But the
Reconstruction Finance Corporation
has been lending money. Since Feb
ruary, 1882, it has loaned $2,O00,-
100000.
This is a sum not easily under
stood; it is a cold astronomical
figure. And yet there is in the dis
bursement of this towering total of
dollars the deepest of human in
terest.
A cotton farmer down in Ala
bama needed funds to buy seed and
feed and fertilizer this year. Last
years crops had yielded so little.
his debts were so large, that the
meager returns were eaten I'D be-
fore any profit appeared to carry
him over into another planting
season.
r. F. c. to the Rescue
But in Washington was the Re-
construction Finance Corporation.
and by congressional order it turned
some $60,000,000 over to the depart
ment of agriculture, which through
its red-taped channels finally loaned
the Alabama cotton grower S35 or
$40 or $500 to make his crop.
In Chicago was bank about to
close its doors. Its failure would
have added to the growing distress
OF a city already plagued with
financial problems; the effect would
have been felt throughout the wide
ramlflcationS of the banks CORE
spondent banks all over that region.
The R. F. G. put up $80,0O000O and
the bank stayed open.
In China, puzzled coolies starve
as their disorganlzed nation fights
or fails to fight the Unsuitable jap
anese. In Washington the r. f c.
lends $50,O00,000 to buy wheat and
cotton to feed and clothe some of
the Chinese milliors.
In the east and the west and the
north and south thousands of
American unemployed have been
put to work, fed, sheltered and
clothed by R. F. G. millions.
Every minute of every eight-hour
day since February, 1882, the r. F.
Q. has passed out about $4,000.
About half has gone to banks and
trust companies; approximately Is
per cent to railroads; almost the
same proportion has been distribut-
ed to the states for work and I'M
endowment relief