Evening star., 1934-01-04
r. F. c. END IN June
| limited IN BUDGET
President Favors Extension
Beyond January 22 Limit
for Five Months.
BY the Associated Press.

BY the Associated Press.
President Roosevelt today limited the
administration might give thought be-
fore next June 80 to the possible re-
tirement of the Reconstruction FL
nance Corporation from its task ol
pumping credit into the veins Of the
Nations business.
In submitting his 1885 budget esti.
mates to Congress, the President &C
knowledged the lending life of the
r. F. c. should be renewed vnen II
expires January ~, but added:
If its loaning authority is extended
beyond June 30, 1884, it is contemplated
that any additional loans by 1t would
thereafter be taken from the new and
additional recovery fund hereinafter re-
ferred to-"
Asks No Appropriation.
No appropriations were asked for the
corporation in the Presidents message
The corporation now obtains its funds
The only estimates for 1885 con-
tanned In the r, F. G. budget is S..
administrative
needed for winding up the corpora
tion's affairs; 5000, 900 to be advanced
TO communities hit by fire, earthquake
or tornadoes: s3e,0OO,00O for the land
bank commissioner to relend to joint
stock land banks and s3,250,000 fol-
capital needs Of agricultural credit cor-
porations. Against this is balanced ar
estimated $584, ,o00,o 900 of repayments
In the normal course OF events the
corporation would expire as lending
agent by statutory limitation on Janu-
airy %. The budget estimates, how.
ever, carry estimates Of expenditure,
both to January % and to June 80.
The estimates show 1869 TAO 900
of expenditures anticipated If the cor
poration's life is extended to June 80
and Of $3,066, TAO, 300 If it is allowed
to lapse January %
The corporation on January I hac
commitments totaling around $1,000.
100000 for purchase of preferred stock
and capital notes in around 5000 banks
scattered throughout the country and
approximately the same amount fol-
loans and other advances to banks, rail.
roads and other borrowers
The budget estimates for the veal
ending June 30, 1884, include expendi.
ture of 81 ,520. 600 900 in loans to banks
railroads and other financial institu.
tions, with repayments Of $4,000 900
thus leaving net expenditures of s8O2,.
100000 for this purpose
However. If the corporations life L
not extended these loans are estimated
at l,l69000,000 with repayments O,
600000,000. leaving net loans oi
S569, 900, 600.
Relief Advances Given.
For purchase of preferred stock ano
capital notes in banks, expenditures OF
81 $50 100000 are estimated to June 81
and $1,000 100000 if limited to January
%. Relief advances to States for the
needy. under the 1882 act, are estimated
at sl,460,l5l for both periods; advance.
under the 1888 emergency relief act
s462 ,069, 858 for both; reflnancing OF
irrigation districts, $50,000,000 for the
June 80 period and $25,O00,000 fol
January %; self-liquidating loans. se3,.
600 900 for BOTH financing agricultural
surpluses in foreign markets, s10O, ,O0O.-
600 to June 80 and S55,000,000 tc
January %; orderly marketing loans
including the commodity credit corpora.
tion. s500,000, 900 and $3.50, 1000, 900, anc
to the Secretary of Agriculture for cot.
ton purchases, s3.300,000.