Evening star., 1933-11-02

JESSE
system and to free deposits which now
lie frozen in closed banks at the service
of no one.
1t desires to be of benefit to agricul-
ture through loans on commodities.
1t intends to fulfill its functions in
connection with the Presidents none
tary plans and plans to increase the
price of commodities.
! Despite the comparatively recent date
on which some of these new duties
i were given to the r. F. c., all Of them
are now in motion. They have been
absorbed into our existing machinery
without loss of time and with the
greatest possible efficiency.
The organization of the community
mortgage companies especially to aid
A. naturally takes little time, but they
are actually being organized and we
are making some such loans. The prin-
ciples and policies governing COM
munity mortgage loan companies have
been established and as people become
more familiar with them the employ
ment Of this means of borrowing from
the R. F. c. will be greatly increased.
We are anxious to cooperate with
every section of the country in the or
ganization of such companies so that
the benefit of the recovery administra-
ton may be as widespread as possible.
Loans Easy to Obtain.
The Commodity Credit Corporation,
an even more recent development, Is
now making loans on cotton. The bene-
fits under it are available through any
bank, county agricultural agent, or the
r. F. c. Loan Agency. Any producer
, of cotton need only present, prior to
July l, 1884, warehouse receipt for
cotton. low middling or better as to
grade. and 7s as to staple, accompanied
by his note on the corporations form.
to obtain a loan of 10 cents per pound
on this grade of cotton. If cotton goes
up he wins. II cotton goes down ne
surrenders his cotton In payment OF
his loan.
The note and the warehouse receipt
constitute a document as easily negoti-
able as a certified check. There are no
complications and there need be no
delays.
One of the features of the Com
modify Credit Corporation which gives
me great satisfaction is that it provides
a means whereby banks and other lend
ing agencies in the cotton sections may
have an opportunity of employing their
money proftably with an absolute
guarantee of safety.
The terms Of the cotton loan plan
enunciated by the President provide
that the R. F. c., which discounts these
loans, does SO without recourse except
fu COYnnrQt10n
ANY bank, therefore, may put its liquid
funds to work for the next eight months
at the attractive rate OF per cent,
with absolute certainty that whenever
need is found for the money, it can be
obtained at once and without question.
This should mean the circulation OF
money in the ton-producing States
and the subsequent encouragement OF
other industries.
The Governments loan value on cot
ton is q fair one and high enough to be
of incalculable benefit to sections OF
the country in which cotton constitutes
a major crop, and there is no reason
why all cotton producers should not
take advantage of it, and the banks and
lending agencies provide the cash to
their own profit. ;,
The President has just now requested
that we make advances to the Com
modify Credit Corporation that will en-
able it to make loans on corn In the
crib on the basis of so cents per
| bushel on DecembeI Chicago merchant
able corn, which will help those Sec
tions Of the country where corn Is the
major crop.
Total Amount Not Set.
The amount of money to be allocated
for loans on corn has not been set, but
it is the Presidents wish, and shall be
the purpose of the r. F. c. and the
Commodity Credit Corporation, to make
these corn loans as rapidly as possible
and to the greatest extent that can be
done.
You will recall that about three weeks
ago the President authorized the ap-
pointment within the r. F. G. OF
special board for speeding loans to
| bank receivers of those banks closed
since the 1St Of January, 1888, for the
purpose of freeing as much OF these
deposits as possible, and with the great
est speed possible. It was his hope,
as expressed at that time, that as much
as a billion dollars could be distributed
to depositors in these closed banks.
That board is under the direction
of Mr. c. B. Merriam, director OF
this corporation, and Is composed OF the
Undersecretary of the Treasury, the
director of the budget. the controller
of the currency, the chairman of the
Federal Deposit Insurance Corporation,
and the chairman of the Reconstruction
Finance Corporation.
This board has created special COM
mittees throughout the country to act IN
conjunction and cooperation with the
| several State banking authorities as to
| State banks, and the controller Of the
currency and his many receivers for
national banks. These local commit
tees are named by and are under the
! direction of chairman in each Federal
| Reserve district.
Work Will Be Speeded.
All facilities of the r. F. c. agencies
are available to these new committees
and this work, under the direction Of
Mr.. Merriam, is moving forward in q
| satisfactory manner and loans are being
YN.2T Q.'