Evening star., 1952-12-22
RFC Pays lis Way,
Mcdonald Reports in
Listing Fiscal Data
By Robert X. Welsh

N~SSsa NJ N0tSu
The Reconstruction Finance
Corp. facing another fight for
life in the new Congress, believes
1t is paying its way in efficiency
as we'll as earnings.
Administrator Harry A. McDon-
aid said in the 1852 fiscal year re-
port. released today, that the
agency's net income from lending
activities was $109 million. This
was about $3.3 million more than
for the previous year.
Pays S12 Million Dividend.
The net income. plus about $1.4.
million which had been reserved
for contingencies. enabled RFC to
pay the Treasury a $12,293 $50
dividend. Such annual dividends
are based on the amount by which
the corporations accumulated |
profits exceed $3.50 million. The
dividend a year ago was approx
mately SIG million.
The agency's administrative and
other expenses amounted to about
1892 million, as compared with
the total income of $341 million
from lending activities, mainly in
terest on loans.
RFC also continued to make an
overall profit from it's operations
in synthetic rubber, tin and abaca
fiber manila hemp programs,
Mr.. Mcdonald said. The net in
come was about SIS million.
The abaca, tin smelter and re-
fined tin import programs showed
net losses ranging between $400,-
600 and 100000. These were more
than offset by net gains exceeding
SIG million in the synthetic rub
ber program.
THE success of these programs"
Mr.. Mcdonald stated, "has pro-
gressively reduced our dependence
upon foreign sources, largely mac
cessible in wartime, for natural
rubber, tin and abaca. The
worlds supplies of natural rubber
and tin also have been controlled
by small groups which by arbi-
trary price increases were able to
exploit our needs for these ma
terials.
The availability of synthetic
rubber and of refined tin produced
at the Texas City smelter largely
from western hemisphere ores has
gone far toward placing this Ma
ton, the largest consumer of rub
Der and tin, in a more favorable |
position to cope with problems
which in the past have operated
to the disadvantage of the national
economy"
1851 Loans Authorized.
RFC authorized 1851 loans for
q total of $3782 million in the
fiscal period. During the previous
year it authorized 3.271 totaling
1920 million. OF the 1882 million
in loans. $2045 were for direct
defense purposes as compared with
$16O.6 million the year before, Mr.
Mcdonald reported.
Mr.. Mcdonald noted that the
report covered the first year OF
the agency's operation under the
reorganization ordered by Presi-
dent Truman and approved by
Congress after opponents fought
to abolish RFC.
''I am pleased to report that the
reorganization has done much to
strengthen the corporation" hel
said. This is reflected in the high
morale of the staff who are effec-
lively and efficiently carrying out
the corporations responsibilities. ="
A new loan policy. he said. con-
tributed to administrative, eff
cheney and better supervision of
loans in connection with defense
production, small businesses and
assistance to disaster areas.
Most Loans under $4,000.
About 80 per cent of the loans
during the fiscal year were for
100000 or less. The agency grant,
ed 3,055 rehabilitation loans. a
record number, for disaster relief
in % states and Alaska. About 80 |
per cent were for $4,000 or less.
They were for the benefit Of home
owners and business enterprises
that suffered in regions visited
by disasters.
The ITS loans granted for ex-
pansion or conversion of facilities
for defense mobilization work
totaled almost 5000 million. An
other SIS loans for a total Of $4.2
million were authorized for direct
defense production purposes byl
private concerns.
Total assets of RFC at the close
of the fiscal year last June 80 were
1896 million. a decrease of $170
million from the previous year
This resulted from repayments in
all classes of loans except disaster
loans, Mr.. Mcdonald explained.