Evening star., 1937-03-24
U.S.AGENC|ESABLE|
TO LEND IS BILLION
R. F. c. Balance Is $2,0N,.
100000, Capable of Ex-
panding to 5 Billion.

iMOhgI pdTIeLy OF teUUlUg
agencies Federal funds regularly
pour out to farmer and railroad
president alike in sums ranging
from less than hundred to mil
lions OF dollars. In the tolloWing
story the Washington bureau of
the Associated Press reuiews the
SeruiceS OF these agencies and the
funds they still may lend
Government financing agencies
have today potential lending power
of 000,00O,00O.
A citizen may sit at conference
table and ask for millions to build
streamlined railroad trains or may
file brief application for a few
dollars to repair food damaged
country store
To farm borrowers the Govern
ment makes a dozen kinds Of loans,
ranging from short-term crop ad-
vances to long-term mortgage credit
In the upper bracket of the lend
ing network is the pioneer Recon-
struction Corp, which has finan-
cial finger in half dozen other
agencies in addition to its direct
dealings with borrowers.
Organized in January, 1882, and
subsequently expanded, the R. F. c..
is listed with an unexpended balance
of about S2,000,O 100000. If it utilized
full powers to issue obligations and
reloaned expected repayments its
possible lending would reach close to
5000, 900, 900.
Has Broad Powers.
The corporation has the broadest
powers OF any agency, lending to
railroads. commercial establishments,
mines, fisheries, public schools and
numerous other enterprises.
In the agricultural field far-flung
operations Of the Land Bank sys-
tenn, Land Bank commissioners and
several short-term credit agencies are
knit together under the Farm Credit
Administration
If authority to issue securities were
utilized fully, these agencies could
pile up about s7000,000 1000 for loans
in addition to those outstanding. OFF,
cials do not contemplate that loan
demands ever will approach this
figure.
The Commodity Credit Corp,
which draws on the r. F.. c. for cash,
could provide about 100000 900 for
/ financing carrying and orderly mar
| ketlng of commodities.
! For farm rehabilitation the Reset
| tlement Administration has exhaust
ed its lending fund for this fiscal
| year. The recently enacted def
cheney appropriation bill, however,
gave the administration $4,000, 900,
part of which may be used for loans.
The Home Loan Bank system and
the Federal Housing Administration
stand at the apex of the Govern
ment's home financing set-up The
R F. c. and the Public Works Ad-
ministration also participate in this
field
Direct F. H. A. Loans Ended.
Direct loans by the Home Owners
Loan Corporation have been discon-
tinued, but the bank system provides
an important reservoir of credit for
building and loan associations. The
system now has sl63, 100000 avail
able for advances, plus receipts from
any amount of securities issued
against its mortgage holdings.
No direct loans are made by the
r. H. A., but 1t may insure loans by
banks and other institutions without
limit.
The R. F. C. participates in home
financing through its mortgage COM
pany. The P. w. A. makes direct
loans and grants for slum clearance
projects.
Grants and loans are made by the
P. w. A. for numerous public projects
other than housing, and it still could
advance about $470,000,O0O. Unless
extended, however, the agency will
discontinue activities June 30.
The Rural Electrihcation Admins
tration has S20,000,000 available dur
ing the remainder OF the fiscal year
to make advances for distribution
systems. The Electric Home and
Farm Authority has unlimited power
to discount paper for purchasing ap-
pliances.
The Export Import Bank, operated
under the R. F. c., has $4,000. 900
to help finance foreign trade in COM
modities.
Another offshoot of the r. F. c.
the newly created Disaster Loan
Corp.-has s20000,0OO for rehabili-
tation lending in the Midwest food
areas.