Evening star., 1937-01-14

Federal Savings and Loan Insurance
Corporation, the Reconstruction FL
nance Corporation, the Federal Emer-
gency Administration of Public Works,
Export Import Bank of Washington,
Rural Identification Administration,
Electric Home and Farm Authority.
United States Railroad Administration
in liquidation), and the War Finance
Corporation Gin liquidation)
Early Supplemental Report.
The Brookings Institution promised
an early supplemental report on re-
lated supervisory agencies such as
controller Of the currency, Board of
Governors of the Federal Reserve
system, Federal Reserve banks and
the Federal Deposit Insurance Corp.
1t pointed out also that a number of
other agencies which exercise some
Incidental lending authority in con-
nection with other more. important
functions will be included in the next
report. These include the Resettle-
ment Administration, Federal Prison,
Inc; Tennessee Valley Authority, In
land waterways Corp. and the United
States Maritime Commission.
Under the recommendation sub
mitted today regarding the agencies
lending Federal money, the Brookings
Institution estimated that the saving
to the taxpayers would amount to
$50. .161 900 annually.
Senator Byrd, chairman of the Sen
ate committee, explained that of this
$50, 100000, $24,500,000 would come
from the consolidation of the Home
Owners Loan Corp. and the Federal
Housing Administration. He pointed
out that this is field in which prompt
action may be taken, inasmuch as If
the lending activities of these agencies
are to be continued 1t will neceSsitate
prompt action at this session Of Con-
gresS.
He called attention that the lending
activities of the H. o. L. c. expired
last Summer and are now in liquida-
ton. while the F. H. A. expired on
April /.
All members of the special Senate
committee attended the executive ses-
sion this morning. Besides Chairman
Byrd they are Senators Robinson and
McNary, leaders of their respective
parties in the Senate; Senator O'Ma-
honey of wyoming and Senator Town
send of Delaware.
The recommendations of the Brook
ings Institution on the agencies lend
ing Federal funds were summarized
for the committee as follows:
Q) That the preferred stock Of
banks be transferred from the Recon-
struction Finance Corp. to the Federal
Deposit Insurance Corp, the Govern
ment buying stock in the Federal De-
posit Insurance Corp. to cover the in
vestment. Payment by the Govern
ment to the Federal Deposit Insur-
ance Corp. for new stock and payment
by the Federal Deposit Insurance
Corp. to the Reconstruction Finance
Corp. for the preferred stock Of banks,
to be made with Reconstruction FL
nance Corp. bonds now held by the
United States Treasury.
Industry Direct Loans.
ca That the direct loans to indus
try made by the Reconstruction FL
nance Corporation be sold to reserve
banks If the latter are to continue
making direct loans, or sold to the
Treasury in the event that direct
loans are presently to be discontinued.
90 That regardless of the DISPOSE
tion made of the outstanding direct
loans, if the making of direct loans
to industry is to be continued, by
either the Reconstruction Finance
Corporation, or tn ereserve banks, the
industrial advisory committees be
abolished.
a. That the production credit cor
porations purchase the stock Of the
regional agricultural credit corpora
tions from the Reconstruction Finance
Corporation, and the Government pur-
chase stock in the production credit
corporations in corresponding amount,
payment to be made in both cases
in Reconstruction Finance Corporation
bonds now held by the United States
Treasury.
90 That all the assets Of the Re-
construction Finance Corp. other
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