The Waterbury Democrat., 1934-01-10
Financial Report or REC. Was Submitted
Appropriations of More Than $6,OOO,OOO,OOO Was
 Revealed By Chairman Jesse Jones

to extend It's life and increase its lending powers.
 Meanwhile, new financial prob- lens developed at the treasury de- partment where the withdrawal of Executive Assistant Secretary Wal ter J. Cummings to head the Con- tinental Illinois National Bank and Trust Co increased major vacan- cies in the treasury staff to three. This has developed at a time when the treasury faced the greatest peace-time financing problem in history-the raising of $10,000,- 100000 over the next six months.
 Jones' report of the activities of the REC for the period from its organization on February 2, 1882, to December 31, 1883, showed huge recovery loans and commitments, many of which have not yet been completed. They were $4,142,- 9O7,976 in loans, mostly to banks, $816,811,85O preferred stock and capital note purchases in banks; $991,391,921 financing of govern ment relief agencies, including un- employment and $78,726,187 in gold purchases in pursuing the ad- ministration's dollar depreciation program.
 Only part of this huge sum has been poured out in actual cash and loan repayments have been large. The treasury has furnished the REC with $2,850,00O,000 in cash including $5O0,000,000 for its capital stock, but the later has power to increase this advance to $4,575.OO0,00O if needed.
 In addition to the government cash, the REC has realized $1,031.- 68S,58O from repayment of loans; 1O1, ,299,666 from sale of its notes to banks; $70,951,347 from oper- ating income, and $2O,309,506 from miscellaneous sources making total cash received of $4,O74,24S,099.
 All this money except $9,674,61S in cash had been paid out to De- cember 31 as folows: Disbursed for loans, $2,749.277,461; preferred stock purchases $249,9SS,1 116; gov ernment relief agencies, $991,391,- 921; expenses of regional agri- cultural credit corporations, $3,- 406,374; expenses, $6S,654,793 and miscellaneous disbursements $1,- 05,914.
 With the revelation of the huge commitments of the REC and the pressing necessity of raising some $iO,0OO,00O to finance the govern ment over the next six months, administration officials considered strengthening of the treasury de- partment personnel and studied two measures to continue the REC which were prepared yesterday at the capitol.
 A resolution was introduced in the house to continue the REC for three years, with an increase of 5O0,0O0,000 in the corporations potential indebtedness, and making REC debentures acceptable for rcdiscount at federal reserve banks.
 The senate banking and currency committee met with Chairman Jones and discussed bill which Senator Fletcher, dem., Fla, plan ned to introduce today.
 The Fletcher bill would prolong the REC for only one year, until Feb. l, 1885. It would increase the lending power of the corporation by $850, 100000.
 Still vacant at the treasury were the positions of undersecretary, as- sistant secretary, and executive as- sistant to the secretary. The de- parture of Earle Bailie, fiscal assistant to Secretary Norgenthau required the administration to find a successor in order that his plans for selling new government bonds can be carried through.
 The post vacated by the resigna- ton of Thomas Hewes recently as