The Daily Alaska empire., 1935-12-26

it's head Hence his knowledge that during few years of normal times our national debt reduced by more than ten billions, despite frequent reduc- tions in the income taxes in the higher brackets despite the then much heavier interest charges on the debt and despite the generosity of Messrs Mellon and Mills in restoring to their corporation friends more than four billion already paid into the Treas uy in taxes Except for these known favors, read on the floor of the House in 1880 and reiter- ated with notable additions in the Congressional Record in 1882, the national debt could have been much further reduced in preparation for the grand speculative debauch of 1927-29.
 But when Mir ogden Mills and MT. Chester Bolton, Chairman of the Republican National Con- gressional Campaign Committee undertake to strip the skin from those recovery agencies of the Roose- velt Administration which involve financial man agement they invariably excite in informed circles feeling akin to pathos Because much of their bitter criticism has been leveled at emergency agencies which actually-of with the help of Democratic House of Representatives were established during the Hoover Administration These include the Federal Farm Loan Bank Act, passed in July, 1892, and the Reconstruction Finance Corpora tion which started operations 13 months before MT Hoovers retirement. It is interesting to observe just how these Hoover measures which MT. Roose- velt in the multiplicity of his problems when he became President in March, 1883, did not hesitate to embrace in his program
 There were only 115 member banks of the Fed eral Home Loan System at the beginning of the Roosevelt Administration; today there more than 340O It is the largest mortgage reserve sys- tenn in the world and has tremendous value to the public in the abundant mortgage credit available to home owners reasonable terms In the three years since it began operations the system has strengthened these 3,40o private home-financing institutions by expanding their supply of funds for that purpose by than billion dollars to an approximate three billions It has helped very materially to make more liberal loanng terms to home Finally it has stimulated the adop- ton of the economical amortzed type of long term loans by all types of private lending insti- tutons. in place of the expensive short-term home mortgage.
 Organized with the initial aid of Federal sub scription to the stock of all 12 Home Loan Banks amounting to $l247OO0OO of which $85O00O0O has been repaid ultimately the banks will be owned and controlled by the private member financing institutions Their paid subscriptions to stock already aggregated nearly 24 million October 21.
 The story of the phenomenal transition of the REC from it's original sole function as first aid to immense corporations to general utility financing of relief public works, cities, hamlets, road and school districts private business of whatever kind and size is perhaps better known Its latest report issued on November l covered the month of Sep tember, during which its disbursements were $54- 118,5Sl and it's receipts $5466504 Loans amounting to s750OOOOOOO had been approved of which $5,- 7000O00O0 in non-Federal loans had been disbursed and GA per cent of that amount had been repaid up to September 30. The operating profit of the corporation that date stood at sllo0oooOo, which was characterized by Chairman Jesse H Jones as more than sufficient to offset probable losses from uncollectabe loans.
 These two emergency agencies. along with the depression itself nheritances from the Hoover Administration, but that circumstance has not exempted them from the Old Guards blanket indictment.