Evening star., 1934-02-21
U.S.F|RM[Y HOLDS
CREDIT STRUCTURE
Dozens of Agencies Ready
to Extend Loans to
Wherever Needed.
By DAVID LAWRENCE.

Uncle Sam, as lender, has
branched out into so many differ
ent fields of credit the public Is prob
ably not conscious OF the extensive
hold which the Federal Government
has on the flow of money in America.
Originally the Reconstruction FL
nance Corporation was the only ma
jor agency lending money, and 1t
was confined to loans for banks, in
surance companies and railroads.
Today not only have the R. F. c.
functions been enlarged, but there
are literally dozens of agencies and
branches which are in position to
extend credit to the individual,
whether he be farmer or business
man, O home owner or an exporter.
Types of Credit Available.
Here are some Of the different types
Of credit which are available through
the Federal Government:
l. Cotton farmers can borrow 10
cents pound on their product
through the Commodity Credit Cor
poration Corn farmers can borrow
As cents a bushel the same way.
2. Home owners can borrow money
with which to refinance their mort
cages through the Home Owners
Loan Corporation. Money is soon to
to borrow in order to make repairs
or remodel their homes.
90 Farm owners can borrow,
through the Farm Credit Administra-
ton, money to ref1nance their mort
cages at a lower interest rate. The
farmer can borrow money to buy seed
and plant crop. He can borrow
money on his live stock and his build
ings or equipment and get short-term
credit through the production credit
associations now being organized by
the Federal Government.
"a City dwellers who may have
invested in building and loan associ-
ations can under certain conditions
realize on their investment because
of R. F. c. loans to these associations,
whose assets now are made more
LIQUID than before. The r. F. G. In
these cases extends credit only to
sound1y managed building and loan
organizations.
$500, ,O0O, 900 to Banks.
(5) Banks can borrow from the
r. F. c. by putting up adequate col
lateral About $4,000, 100000 has been
loaned in this way. Government
purchases of preferred stock amount
ing to another $1,OO0,0O0,00O have
made available that much credit to
the banks, so as to strengthen their
capital structure and enable them to
handle loans more satisfactorily.
About 6O0000,O00 of Government
money has gone to closed banks,
which, In turn. have made It available
to depositors of those banks.
(6) Insurance companies, including
life and fire corporations, have been
protected by Government credit, so
they are able to meet the obligations
they have to policyholders. Only
about sl0o,o0o,O00 has been made
available in this fashion. and happily
very little more is expected to be
needed in this field.
Cd Railroads have been loaned
money by the R. F. .C.-about $780,
ooo, ,0o0-to keep out of receiverships
and so that they may meet payments
Of interest. Also loans have been made
to railroads for construction through
the Public Works Administration. This
means unemployment of large num-
bers Of workers and big purchases Of
materials. which are just beginning
to be evident in the upward trend of
business volume.
$4,000, 600, 900 Credit Available.
(8) People who want to finance ex-
ports to countries all over the world
will shortly have credit made available
to them. For the moment an export
bank set-up by Uncle Sam will lend