Reconstruction Finance Corporation

FINAL REPORT

on the

Reconstruction FinanceCorporation

Pursuant to Section 6(c)Reorganization Plan No. 1 of 1957

SECRETARY OF THE TREASURY

UNITED STATES

GOVERNMENT FKttJTING OFFICE

WASHINGTON 1959

For a le by the Superintendent ef Decutacnti, U-S.GovcnracQt Printing Office

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THC SECRETARY OF THE TREASURYWASHINGTON

May 6, 1959

Sirs:

I have the honor to submit herewith the final report on theReconstruction Finance Corporation which is required underSection 6 (c) of Reorganization Plan No* 1 of 1957.

The report was prepared under the direction of Mr* LaurenceB. Robbing, who presently is serving in the capacity of AssistantSecretary of the Treasury. Prior to confirmation in his presentposition, Mr. Robbins served both as Deputy Administrator andAdministrator of the Reconstruction Finance Corporation anddirected the liquidation of that Corporation's affairs.

Secretary of the Treasury

To the President of the Senate

To the-Speaker of the House of Representatives

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FOREWORDThe Reconstruction Finance Corporation was among the largest

and undoubtedly was the most complex of all Federal lending agen-cies. In its operations it disbursed more than $40 billion, and wasconditionally committed to disburse many billions more under guar-anties of loans and investments made by private financial institutions.Organized during a severe economic depression, the RFC passedthrough periods of recovery, preparedness, war, reconversion, eco-nomic expansion, another war and, finally, stability and prosperity.During all these different periods RFC played an active and veryimportant role.

Being a corporation, with unlimited authority to borrow fundsfrom the U.S. Treasury, the RFC had more flexibility than agenciesoperating under traditional Government appropriation procedures.Besides making loans of many types, the RFC subscribed for, pur-chased, and traded in the securities of private business enterprises,State and local government agencies and other agencies of the FederalGovernment. Advances and allocations were made to other Govern-ment agencies. Mortgages, on both residential and income-producingproperties, were purchased and sold by RFC subsidiaries. RFC alsoserved as liquidating agent for discontinued Government agenciesand programs.

Beginning in 1940, RFC organized a group of subsidiaries to handlenational defense and war programs. The operations of these sub-sidiaries were of types far removed from those usually associatedwith financial institutions. These subsidiaries developed sources for,manufactured, procured, stockpiled, and sold a long list of strategicmaterials and commodities. Industrial facilities for war productionwere built and operated. There were programs to collect and salvagescrap materials. Preclusive buying operations were conductedabroad, designed to handicap enemy powers. Subsidy payments weremade to domestic producers and transporters of essential materials,not only to encourage production but to help control prices. Therewas a program to provide insurance against loss due to enemy action.And, finally, for a short period after World War II , an RFC sub-sidiary undertook to dispose of surplus war property.

An overwhelming volume of materials has accumulated on the op-erations of RFC and its subsidiaries. For one example, the minutesof the meetings of RFC's Board of Directors alone occupy about 250cubic feet Including records of the subsidiaries, the total volume


FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION

of RFC material accepted by the National Archives was about 3,250cubic feet The records of testimony before committees of the Con-gress in hearings on matters related to RFC fill many dozens of closelyprinted volumes. Also, there are in the various Government recordcenters countless thousands of documents and pieces of correspond-ence related to RFC's individual loans and other transactions. Tosift and collate this mass of material, to note policy changes and theshifting emphases of operations, and then to put together a com-prehensive, documented exposition of RFC's manifold activitieswould require many years of research.

Under the provisions of Reorganization Plan No. 1 of 1957, theSecretary of the Treasury is required to submit a final report on theReconstruction Finance Corporation on or before June 30,1959. Aftercareful consideration of the vast amount of material available, it wasdecided that the most practicable and useful form of report would bean outline of the various programs which RFC was authorized ordirected by law to undertake, and a summary of the things whichRFC did or did not do under those authorities. This plan has beenfollowed. Subjective interpretations and critical analyses of RFC'soperations have been avoided. I t is hoped and intended that thisreport will serve as a source and reference book for legislators, Gov-ernment officials, and students and researchers in the fields of eco-nomics, finance, and political science. With this in mind, there hasbeen incorporated in the report a considerable volume of statisticalmaterial on RFC lending and investment functions, much of whichheretofore has been unavailable in organized form.

One question frequently raised relates to whether the RFC "madea profit." Nowhere in the basic RFC legislation are there any indi-cations that RFC was established for the purpose of making a profit.The stated purposes for RFC's existence were to deal with emergencysituations and to aid in attaining broad economic goals. To judgewhether or not these purposes were accomplished requires somethingmore than measurement against a dollar yardstick. Asking whetherRFC "made a profit" implies that the Corporation was regarded as abusiness enterprise. In its most publicized activities, the Corporationdid operate as a business, but there were many RFC activities in whichfunds were disbursed with no expectation that any recoveries could bemade. Chief among these were the grants and allocations made byRFC to other Government agencies and to States for relief and relatedprograms during the 1930's, and, beginning in 1940, the subsidies paidand the unusual expenditures made in furtherance of the war effort.In such instances, the Congress recognized the unbusinesslike nature ofthese expenditures and canceled the notes which RFC had issued to theSecretary of the Treasury to obtain the funds so used.

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FOREWORD

In the Corporation's lending activities, loans and investments weremade under the requirement that there be reasonable assurance ofrepayment Taken as a whole, the accounting records of the lendingprograms show that interest income and other revenues exceededlosses and expenses. It should be noted, however, that this did nothold true for each and every program. For example, the Corporationcharged off as losses more than one-fourth of all amounts disbursed onloans to mining enterprises. Also, the administrative costs and otherexpenses incurred in connection with disaster loans and the smallerloans and investments of other programs were not covered by theincome received from them. In most instances RFC's multimilliondollar loans and investments worked out to the Corporation's advan-tage, and much of the expense incurred in administering the smallerloans was absorbed in the income received from large loans and invest-ments. In realizing upon its loans and investments the RFC benefittedfrom the general long-term trend of economic expansion which beganshortly after the Corporation was organized. This was particularlynoticeable beginning in 1940, when the economic activity generated bydefense and war programs accelerated realizations upon outstandingloans and investments.

The responsibility for the necessary extensive research and the prep-aration of this report was assigned to Douglas S. Wilson and ThomasH. Graham, with editorial and stenographic assistance provided byLouise B. Lord and Jean H. Dougherty* All of these individuals hadthe benefit of many years of experience as RFC employees. Theirefforts, and the assistance rendered by other former officers andemployees of the Reconstruction Finance Corporation, are gratefullyacknowledged.

LAUBENCE B. ROBBINS,Assistant Secretary of the Treasury.

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TABLE OF CONTENTSPage

Foreword _ vOrigin and succession of RFC 1Legislative authorities . _ _ - 3Management and organization _ _ 25Financing of RFC _ _ _ 33Lending and investment functions:

Summary > _ _ _ 45Financial institutions _ 51Business enterprises _ _ 65Agricultural financing institutions _ 87Mortgages 93Railroads 97Political subdivisions of States and Territories 99U.S. Government agencies 105Foreign governments _ _ 109Disaster victims.. _ I l lCivil defense _ _ _. 119Minor lending functions _ 121World War II subsidiaries... _ __ 123

Purchases of securities from Public Works Administration 149Allocations and loans to other Government agencies by direction of the

Congress.. _ 151Results of lending operations _ _ 161Functions as agent for other Government agencies:

Defense production loans _ 165Smaller War Plants Corporation 167

Liquidation and dissolution of RFC 169Appendices:

A. RFC legislation - 185B. Directors and administrators _ _ 193C* Statistical tables _ 201D. Selected references 309

IX


Origin and Succession

In a message to Congress on December 7, 1931, President Hooversaid:

In order that the public may be absolutely assured and that the Governmentmay be in position to meet any public necessity, I recommend that an emergencyReconstruction Corporation of the nature of the former War Finance Corpora-tion should be established. It may not be necessary to use such an instrumental-ity very extensively. The very existence of such a bulwark will strengthenconfidence. The Treasury should be authorized to subscribe a reasonable capitalto it, and it should be given authority to issue its own debentures. It shouldbe placed in liquidation at the end of 2 years. Its purpose is by strengtheningthe weak spots to thus liberate the fuU strength of the Nation's resources. Itshould be in position to facilitate exports by American agencies; make advancesto agricultural credit agencies where necessary to protect and aid the agricul-tural industry; to make temporary advances upon proper securities to estab-lished industries, railways and financial institutions which cannot otherwisesecure credit, and where such advances win protect the credit structure andstimulate employment.

An act creating the Eeconstruction Finance Corporation was passedby the Congress, and approved on January 22, 1932. Upon signingthe act, President Hoover issued this statement:

I have signed the ^Reconstruction Finance Corporation Act.It brings into being a powerful organization with adequate resources, able

to strengthen weaknesses that may develop in our credit, banking and railwaystructure, in order to permit business and industry to carry on normal activitiesfree from the fear of unexpected shocks and retarding influences.

Its purpose is to stop deflation in agriculture and industry and thus to in-crease employment by the restoration of men to their normal jobs. It is notcreated for the aid of big industries or big banks. Such institutions are amplyable to take care of themselves. It is created for the support of the smallerbanks and financial institutions, and through rendering their resources liquidto give renewed support to business, industry, and agriculture.

The RFC was organized and began operations on February 22,1932, Originally, the Corporation's principal function was to extendfinancial aid to agriculture, commerce, and industry through the me-dium of direct loans to banks, trust companies, and other financialinstitutions. The Corporation was also authorized to make loans torailroad companies or receivers of railroads with the approval of theInterstate Commerce Commission.

Succession of the Corporation was originally established at 10 years,but new loans could be authorized only during the first 2 years of that

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period. The Congress later extended the lending authority, andbroadened the Corporation's functions by including authority to pur-chase the capital stock of banks, insurance companies, agriculturalcredit corporations, and national mortgage associations. Authoritywas also given to RFC to make loans to business enterprises, mininginterests, agricultural improvement districts, disaster victims, publicschool authorities, and to assist in financing the construction of publicworks. Further, the Corporation was directed to purchase the se-curities of, or make loans, advances, and allocations of funds to,various other U.S. Government corporations and agencies.

Legislation was enacted and approved in 1940 which gave RFCnew responsibilities in connection with the national defense programsthen being undertaken. For the most part, these defense programswere conducted through subsidiary corporations and these activitieswere greatly expanded during the World War I I period.

The act which gave RFC its national defense responsibilities alsoextended the Corporation's succession to January 22, 1947. An actapproved August 7,1946, extended RFC's succession to June 30,1947,and an act approved June 30, 1947, extended the succession to June30, 1948. Finally, by an act approved May 25, 1948, RFC's succes-sion was extended to June 30,1956.

Before the date of final extension was reached, the RFC Liquida-tion Act became effective. This act, approved July 30, 1953, termi-nated the Corporation's lending powers effective on September 28,1953, and liquidation of the Corporation's assets began at that time.The RFC Liquidation Act provided for liquidation of the Corpora-tion in accordance with sections 9 and 10 of the amended RFC Act.Under those provisions, the RFC contmued as an independent agencyuntil June 30, 1954. Thereafter, for further liquidation, the Secre-tary of the Treasury succeeded to and exercised all powers, duties, andauthority previously lodged in the Administrator of RFC.

On June 30, 1957, the Reconstruction Finance Corporation wasabolished as provided by Reorganization Plan No. 1 of 1957.


Legislative Authorities and Limitations

Under the original Reconstruction Finance Corporation Act, theCorporation's major functions were the extension of credit to agricul-ture, commerce, and industry through loans to banks and other finan-cial institutions, insurance companies, agricultural credit agencies,and railroads. The Corporation's functions subsequently were modi-fied and extended both by amendments to the original act and byprovisions in independent legislation. The lending authority of theCorporation was broadened by including authority to purchase thecapital stock of banks, insurance companies, agricultural credit cor-porations, and national mortgage associations. Authority was alsogiven the Corporation to make loans to business enterprises, mininginterests, disaster victims, and public school authorities, and to assistin financing the construction of public works. I t also was authorizedand directed to allocate funds to, to make loans and advances to, andto purchase the securities of, various U.S. Government corporationsand agencies.

During the emergency period beginning in 1940, and during WorldWar II , the responsibilities of the Corporation were considerablyaugumented, principally on the basis of authority derived, directly orindirectly, from section 5d of the KFC Act, as amended, from theFirst War Powers Act, and from the Emergency Price Control Actof 1942. In order to aid the Government in its national defenseprogram, the Corporation was authorized to engage in financing ofplant conversion and construction, to acquire and construct and toown and operate war plant facilities, to make subsidy payments, todeal in and to stockpile strategic and critical materials, to administerthe war damage insurance program, and to conduct a great variety ofother activities unrelated to its normal lending operations.

By legislation approved June 30, 1947, the Corporation's lendingpowers were substantially curtailed and its wartime functions wereterminated, except with respect to the programs for the production ofsynthetic rubber, tin, and abaca fiber. The lending powers thereafterwere confined to business enterprises, including railroads and air car-riers, financial institutions, municipalities and political subdivisionsof States and Territories, and disaster victims. Except for certainlending authorities assigned to the Corporation under provisions ofthe Defense Production Act and the Federal Civil Defense Act of



1950, the aforementioned lending powers remained unchanged untilenactment of the RFC Liquidation Act.

In the following description, the legislative authorities of RFC areshown under four general headings: Part I deals with the authoritiesfor the Corporation's so-called "normal" lending and investmentfunctions. Part I I covers the legislative authorities for allocationsand loans made to other Government agencies by direction of theCongress. Part I I I gives the authorities for the Corporation's non-lending activities, including those undertaken in connection with na-tional defense and wartime programs. Part IV covers the legislativeauthorities and restrictions having to do with the Corporation'sfinancing. A list of RFC's legislative authorizations according todates of approval, statute references, and public law numbers will befound in appendix A.

Part I—Lending and Investment Functions

1. BANKS AND OTHER FINANCIAL INSTITUTIONS

(a) Banks and Trust Companies

RFC Act—approved January B8, 1932.—Section 5 of the originalact authorized RFC to make loans to banks, savings banks, and trustcompanies, including loans secured by the assets of any banks thatwere closed or in process of liquidation to aid in the reorganizationor liquidation of such banks.

All loans made under the foregoing provision were to be "fully andadequately secured," and maturities could not exceed 3 years. Theloans to any one corporation could not exceed 5 percent (reduced onJuly 2, 1932, to 2% percent) of RFC's authorized capital stock andborrowing authority.

An act approved June 19,1934, permitted maturities up to 5 yearsfor loans made under this section 5. In 1935, the maturity limitationwas changed to a deadline of January 31,1945. In 1940, this matur-ity deadline was extended to January 31,1955.

Emergency Bank Act—approved March 3, 1933.—Section 304 ofthis act provided that if in the opinion of the Secretary of the Treas-ury a bank needed funds for capital purposes, he could, with the ap-proval of the President, request the RFC to subscribe for preferredstock of such bank or to make a loan secured by such stock. By anamendment of March 24,1933, this power was limited to cases wherethe preferred stock was nonassessable. In cases where nonassessablestock could not be issued, RFC was authorized to lend on capital notesor debentures. Under the provisions of this act, no limitations similarto those of section 5 of the RFC Act were imposed.


LEGISLATIVE AUTHORITIES

An act approved June 30, 1947, repealed section 304 of the Emer-gency Bank Act, which provided for the purchase by RFC of pre-ferred stock, capital notes, and debentures of banks and trustcompanies. This act, under a new section 4, extended the authoritiescontained in section 5 of the original RFC Act relating to banks andother financial institutions. In this act the term "financial institu-tions" was used instead of specifying types of institutions as was donein the original act. The extension of these powers was intended foremergency use only and the authority was never exercised by theCorporation.

(b) Insurance Companies

Section 5 of the original act also included insurance companies inthe list of financial institutions to which loans could be made îththe same terms and conditions as loans to banks.

The Insurance Company Act approved June 10,1933, authorizedthe RFC to subscribe for, or make loans secured by, the preferredstock of insurance companies. This act followed the provisions of theEmergency Bank Act, as amended, which permitted lending on cap-ital notes or debentures in cases where nonassessable preferred stockcould not be issued. However, this act contained additional pro-visions which prohibited RFC from subscribing for, or purchasing,any preferred stock or capital notes of any insurance company (1)until the insurance company showed that it had unimpaired capital,or that it would furnish new subordinate capital; (2) if any em-ployees of the company received compensation in excess of $17,500 ayear; and (3) unless the company agreed not to increase salaries orto retire any of its capital stock or debentures until the RFC's hold-ings were retired. There was a proviso to the first limitation that theCorporation might make loans secured by such preferred stock orcapital notes if it believed that the loans were adequately secured.As in the case of banks, such subscriptions or purchases had to beinitiated by the Secretary of the Treasury.

An act approved June 30,191ft, repealed the provisions of the In-surance Company Act relating to the purchases by RFC of preferredstock, capital notes, or debentures of insurance companies. How-ever, the authority was restored by an act approved May 25, 1948,intended for emergency use only, and the authority was exercisedin only one instance by the Corporation.

(c) Building and Loan Associations

Section 5 of the original act authorized RFC to make loans tobuilding and loan associations on the same terms and conditions asother financial institutions.



An act approved June 14,1933, amended section 5 of the RFC Actto include authority to make loans on the assets of closed buildingand loan associations.

(d) Mortgage Loan Companies

Section 5 of the original act authorized RFC to make loans tomortgage loan companies on the same basis as loans to other financialinstitutions. As in the case of loans to other financial institutions,such authority existed in the statutes throughout the life of RFC, butwas utilized principally during the depression years.

(c) Other Financial Institutions

The original section 5 also authorized RFC to make loans to thefollowing financial institutions which were mostly quasi-Governmentinstitutions:

1. Credit unions.2. Federal land banks,3. Joint stock land banks.4. Federal intermediate credit banks.5. Agricultural credit corporations.6. Regional agricultural credit corporations.7. Livestock credit corporations.

2. RAILROADS

RFC Act—approved January jftj, 1932.—The third paragraph ofthe original section 5 authorized the RFC to make loans to railroads,with the approval of the Interstate Commerce Commission, for tem-porary financing, to railroads in process of construction, and to re-ceivers of railroads. This authority was subject to the samelimitations as other loans made under section 5. These were theprovisions limiting the amount of advances to any one corporationto 2% percent (originally 5 percent) of RFC's capital stock andborrowing power, and the terms of the loans to 3 years. The loanscould be made only if the railroads were unable to obtain funds onreasonable terms through banking channels or from the generalpublic, and the Corporation was "adequately secured."

An act approved June 10,1933\ authorized the Corporation to makeloans to trustees of railroads reorganizing under section 77 of theBankruptcy Act. On June 16,1933, a law was passed forbidding theICC to approve a loan to a carrier, as distinguished from a receiveror trustee, in the event it believed that a reorganization was neededin the public interest.

The act approved June 19,1934, which permitted 5-year maturitiesfor loans made under section S of the RFC Act also provided that the



Corporation might require railroads to make arrangements for amor-tization as a condition to granting loans for a period longer than 3years.

An act approved January 31,1935^ rewrote the original provisionsof section 5 by eliminating the reference to temporary financing, andauthorized the Corporation to purchase the obligations of railroads,or to guarantee the payment of such obligations, "notwithstanding anylimitation of law as to maturity." This act also changed the securityrequirements from "adequately secured" to "full and adequatesecurity."

Amendments to the RFC Act approved June 30,1947, and May 25,1948, extended these authorities for aid to railroads under section4(a) (1) of the new acts. Limited use of such powers was madethereafter.

3. PUBLIC AGENCIES

(a) Self-Liquidating Projects

Emergency Relief and Construction Act^-approved July £/, 1932.—Section 201 (a) of this act authorized RFC (1) to make loans or pur-chase securities in connection with self-liquidating projects under-taken by public instrumentalities. The Corporation was authorizedto bid for such securities, without regard to maturity, for the purposeof financing any project authorized by law; (2) to make loans tocertain types of corporations to provide housing for families of lowincome or for reconstruction of slum areas, for the construction orimprovement of bridges, tunnels, etc., devoted to public use, and forthe protection and development of forests and other natural resources;(3) to make loans to construct any publicly owned bridge, the cost ofwhich was to be returned part by tolls and part by taxes imposed byState law. The Corporation was authorized to purchase bonds forthis purpose without regard to maturity.

The loans under this section were to be fully and adequately securedand the general maturity limitation was 10 years, although some ofthe loans could have a longer maturity under certain limited conditions.

Section 301 of the National Industrial Eecovery Act, approved June16, 1933, provided that no applications to KFC under this section201 (a) should be approved after 10 days from the date upon whichthe Federal Emergency Administrator of Public Works took office.By an act approved January 31, 1935, the EFC was authorized toexchange any obligations held under this section for other obligationsof the borrower which were more desirable in the opinion of theCorporation.

An act approved April 13^ 1938, amended section 5d of the EFCAct to include a new provision empowering EFC to make loans, on

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terms and conditions determined by the Corporation, to public agen-cies to aid in financing projects authorized under Federal, State, ormunicipal law. This provision gave RFC a broader grant of authorityto make loans to, or purchase the securities of, municipalities andother public bodies than had been contained in the provisions of theEmergency Belief and Construction Act of 1932, and which had beentransferred by subsequent acts to the Federal Emergency Admin-istrator of Public Works.

Amendments to the BFO Act approved June 30,19$, and May 26,1948, contained provisions under a new section 4(a) (3) which super-seded section 5 of the original act. At the same time, section 201 (a)of the act approved July 21,1932> and section 301 of the act approvedJune 16,1933, were repealed.

EFC was authorized, under section 4(a) (3) of the amended act, topurchase the securities of, or make loans to, municipalities, publicagencies, and public corporations for the purpose of financing projectsauthorized by law. This authority was limited to public projects asdistinguished from ordinary governmental and nonproject operatingexpenses. However, it was broad enough to cover the self-liquidatingloans and the loans to drainage districts permitted under the oldauthorities.

(b) Drainage, Levee, Irrigation and Similar Districts

Emergency Farm Mortgage Act approved May 12,1933.—Section36 of this act authorized RFC to make loans to drainage and irrigationdistricts which had completed projects devoted to the improvementof lands for agricultural purposes. The loans were to enable thedistricts to refinance their outstanding indebtedness.

The loans were to be subject to the same terms and conditions asloans under section 5 of the EFC Act, except that (1) the maturitiescould not exceed 40 years; (2) that the loans should be secured byliens on the properties or on the assessments levied, or by other collat-eral; (3) that the borrowers agree not to issue any other bonds sosecured; (4) that the borrowers pay to the Corporation the excess ofassessment collections over cost of operations; and (5) that the bor-rowers agree to reduce the outstanding indebtedness of the land-owners to the borrowers by the amount of the borrowers' reductionof indebtedness.

I t was also required that EFC make an appraisal, that it determinethe project be economically sound, and that it be satisfied that anagreement had been entered into between the applicant and its cred-itors for a refunding of the applicant's outstanding bonds at a reason-able price.



An act approved June 19,1934, amended section 36 to include author-ity for BFC to make loans for repairs or improvements to any drainagedistrict to which a loan had been authorized. By an amendmentapproved June 22, 1936, this was expanded further to permit loans,not only for refinancing but also to permit acquisition or constructionof such a project or appurtenances in connection therewith.

The RFC Act, as amended, Jime 30, 1947, repealed section 36 ofthe Emergency Farm Mortgage Act. Thereafter, authority formaking drainage, irrigation, and levee loans was contained in section4(a) (3) of the amended act under the broad term "loans to publicagencies, etc.," previously discussed in connection with "self-liquidat-ing projects."

(c) Securities Purchased From Federal Emergency Administrator of PublicWorks

Emergency Appropriation Act approved June 19,1934, authorizedthe purchase by RFC of marketable securities acquired or to be ac-quired by the Federal Emergency Administrator of Public Works.This was apparently designed to increase the funds available to thatAdministrator, since he was authorized to use the funds so acquiredin making further loans. This authority existed until June 30,1947,but was not exercised after 1941.

(d) Loans To Secure Public Deposits and to School Districts

Section 5 of the RFC Act was amended on June 10,1933, by addinga new paragraph in which EFC was authorized to make loans, ifadequately secured, to any State insurance fund for the purpose ofpaying compensation to injured and disabled workmen. This author-ity was never exercised by the Corporation.

This amended act added a further paragraph to section 5 whichauthorized RFC to make loans, if adequately secured, to any fundcreated by a State to insure the repayment of deposits of publicmoneys.

By section 16 of cm act approved Jwne 19,1934, the Corporationwas authorized to make loans on full and adequate security to publicschool districts for the payment of teachers' salaries.

An act approved August 84,1935, authorized EFC to make loansto public school districts to enable those districts to reduce theirtotal indebtedness by a refinancing of existing obligations. The actcontained complete provisions as to the steps to be followed by theCorporation before it could make any such loans and as to the termsand conditions of the loans made.

The foregoing authorities in this subsection were repealed by anact approved June 30,1947.



4. BUSINESS LOANS

(a) Loans to Business EnterprisesAn act approved Jvm 19,1934, added a new section 5d to the origi-

nal RFC Act which authorized the first loans directly to businessenterprises- This new section empowered RFC to make loans to anyindustrial or commercial business established prior to January 1,1934, provided credit was not otherwise available at banks at pre-vailing interest rates. These loans were to be "adequately secured"as contrasted with "fully and adequately secured" as provided in theoriginal section 5 of the RFC Act dealing with loans to financial in-stitutions. The loans could be made directly, in cooperation withbanks or other lending institutions, or by the purchase of participa-tions (later expanded to include "agreements to participate"). Thematurities were not to exceed 5 years, and the amounts were not toexceed $500,000 to any one borrower. The loans were to be madeonly when they assured continued or increased employment and onlywhen the borrower was solvent.

An act approved January 31, 1935, extended the functions of RFCfor 2 years and substantially revised the limitations of section 5d.Instead of "adequately secured," the provision "so secured as reason-ably to assure repayment" was inserted. The restriction to busi-nesses established prior to January 1,1934, was eliminated. The ma-turity limitation was changed from 5 years to a deadline of not laterthan January 31, 1945. The limitation on the amount to any oneborrower was eliminated.

An act approved April 13,1938, expanded the authority under sec-tion 5d to include the purchase of securities and obligations of, aswell as the making of loans to, "any business enterprise." The se-curity standard was changed from "so secured as reasonably to assurerepayment" to "of such sound value, or so secured, as reasonably toassure retirement or repayment."

An act approved Jvms 25, 191ft, extended the maturity deadlinefrom January 31, 1945, to January 31, 1955.

AmendmmU to the RFC Act approved Jwne 30,191fl, and May 25,19J8, extended the authorities for making loans to business enter-prises under a new section 4(a) (1) which superseded section 5d ofthe original act. This new section authorized RFC to purchase theobligations of, and to make loans to, any business enterprise, includ-ing railroads and air carriers. This authority was as broad as theprevious ones and remained in effect until the lending powers of theCorporation were terminated on September 28, 1953.



(b) Loans for Prefabricated Housing

Section 102 of the Housing Act of 1948 authorized RFC to makeloans to, and purchase the obligations of, any business enterprise forthe purpose of providing financial assistance for the production ofprefabricated houses or prefabricated housing components, or forlarge-scale modernized site construction. Effective September 7,1950,responsibility for administration of this part of the National HousingAct was transferred to the Housing and Home Finance Agency underthe provisions of Reorganization Plan No. 23 of 1950.

(c) Loans to Business Enterprises for National Defense Purposes

An act approved Jime 25, 1940, added to section 5d new paragraphsto cover aid to the national defense program. Subsection (1) of thisact authorized the Corporation to make loans to, or purchase the stockof, any corporation for the purpose of acquiring critical materialsand manufacturing equipment and supplies necessary to the nationaldefense.

By an amendment approved June 11, 1943, these authorizationswere to be on such terms and conditions and with such maturities asthe Corporation might determine. They were therefore far differentfrom the business loans under the original section 5d, which carriedthe requirements of unavailability of credit, sound value or security,and limited maturities.

An act approved June SO, 1947, repealed all provisions of previousacts which related to authorizations for making loans for nationaldefense purposes.

(d) Loans to Mining, Milling, or Smelting Businesses

Section 14 of an act approved June 19, 1934, authorized RFC tomake loans "upon adequate security" to organizations engaged in thebusiness of mining, milling, or smelting of ores. In January of 1935,this was amended to read "upon sufficient security," and the authoritywas extended to the making of loans for the development of a lode,ledge, or vein when it was believed that an amount of ore would bedeveloped sufficient to pay a profit upon the mining operations. InSeptember of 1940, this section was amended to cover the developmentof any critical or strategic mineral which in the opinion of the Corpo-ration would be of value to the country in time of war.

(e) Loans to Business Enterprises Under the Defense Production Act of 1950

Title III of the Defense Production Act of 1950 empowered thePresident to make provision for loans (including participations inor guarantees of loans) to business enterprises for expansion of



capacity, development of technological processes, and the productionof essential materials. To carry out the purposes of this act, thePresident was authorized to utilize such existing agencies of theGovernment as he deemed appropriate, or to create new agencies.

By Executive Order 10161, dated September 9,1950, the Presidentdirected that the facilities of the RFC be utilized for the purposesof the Defense Production Act. The Corporation served as creditadviser and fiscal agent for the Defense Production Administrationuntil September 28, 1953, when the provisions of section 107 of theRFC Liquidation Act became effective.

Loans under this act were made on terms and conditions determinedby RFC, subject to the requirements of unavailability of credit fromother sources and, except for working capital purposes, a loan couldbe made only upon certificate of essentiality of the loan by thesponsoring Government agency.

5. MORTGAGES

(a) The RFC Mortgage Company

An act approved January 31,1935, added a new section (5c) to theRFC Act. This section authorized the Corporation to subscribe foror make loans upon the stock of any national mortgage associationorganized under title I I I of the National Housing Act or of anyfinancial institution engaged in the business of making loans uponmortgages, deeds of trust, or other instruments conveying, or con-stituting a lien upon, real estate or any interest therein.

In March of 1935, the Corporation organized the RFC MortgageCompany under the laws of the State of Maryland and subscribedfor all capital stock of that Company. The function of the MortgageCompany was to carry out the purposes of section 5c "to assist inthe reestablishment of a normal mortgage market."

An act approved August 7, 1946, authorized the Corporation topurchase, directly or through a subsidiary, loans insured or guaranteedby the Veterans' Administration. Using this authority, RFC Mort-gage Company created a secondary market for veteran home loans bypurchasing such obligations at the request of the originatinginstitutions.

Section 203 of Public Law 132 approved Jum 30,19$, abolishedthe Mortgage Company and transferred its assets and liabilities tothe parent corporation for liquidation.

(b) Federal National Mortgage Association

In April of 1938, the Federal National Mortgage Association wasorganized under title I I I of the National Housing Act for the purpose



of assisting in the establishment of a normal mortgage market- TheAssociation's capital stock was purchased by EFC. The functions ofthe Association were to provide a secondary market for FHAmortgages and, later, VA guaranteed mortgages.

Reorganization Plan No. 82 of 1950 provided for the transfer ofthe Association from EFC to the Housing and Home Finance Agencyeffective September 7, 1950.

6. MISCELLANEOUS

(a) Catastrophe Loans

By an act approved March 23\ 1933\ the Corporation was authorizedto make loans to nonprofit corporations for the repair of buildingsdamaged by earthquake in the year 1933. The loans were to be fullyand adequately secured, with maturities not exceeding 10 years. OnMay 29, 1933, the authority was extended to cover damage by fire,tornado, or cyclone. An amendment to the act approved June 19,1934, permitted 20-year maturities for loans to municipalities.

An act approved April 13, 1934, authorized the making of loansto finance the acquisition of home or building sites to replace sitesdeclared unsafe by reason of flood or earthquake and to finance therepair or construction of buildings or utility systems damaged byearthquake, conflagration, tornado, cyclone, or flood in the year 1933and in the months of January and February of 1934. An act approvedApril 17,1936, greatly expanded the substantive provisions of this sec-ond Catastrophe Relief Act and applied them to the years 1935 and1936.

An act approved February 11,1937, created a Disaster Loan Corpo-ration to make such loans as it might determine to be necessary or ap-propriate because of floods or other catastrophes. EFC was directedto subscribe and pay for the stock of such Corporation from the fundswhich it had been allocated for catastrophe loans under an act ap-proved April 17, 1936. On June 30, 1945, the powers and duties ofthe Disaster Loan Corporation were merged with RFC-

The catastrophe loan authority was extended in the amended RFCAct approved June 30,1947 under a new section 4(a) (4). This au-thority was as broad as previous catastrophe loan authorities and re-mained in effect until RFC's lending powers were terminated on Sep-tember 28, 1953. At that time the disaster loan function became theresponsibility of the Small Business Administration.

(b) Agricultural Loans

Section mi (c), title II, of the Emergency Belief and OomtructionAct of 1932, authorized the Corporation to make loans for the purpose



of financing the sale of surplus agricultural products in foreign coun-tries. Section 201 (d) of this act authorized the Corporation to makeloans to finance the carrying and orderly marketing of agriculturalcommodities and livestock. The loans made under this act were to befully and adequately secured and the maturities were limited to 3years. These authorities were repealed by Public Law 132, 80thCongress, approved June 30,1947.

(c) Loans to Processors and Distributors Subject to Processing Taxes

Section 19(c) of the Agricultural Adjustment Act approved May 18,1933) provided that any processor or distributor subject to the process-ing taxes imposed by that act should be eligible for loans from RFCunder section 5 of the original EFC Act. This provision was repealedby Public Law 132, 80th Congress, approved June 30,1947.

(d) Civil Defense Loans

The Federal GivU Defense Act of I960 authorized EFC to purchasesecurities or make loans (including participations therein or guaran-tees thereof) for the purpose of aiding in financing projects for civildefense purposes. These required the certification of the FederalCivil Defense Administrator, Maturities were limited to 50 years.The total of loans, purchases, participations, and guarantees was lim-ited to $250 million outstanding at any one time. By the provisionsof Reorganization Plan No. 2 of 1954, the civil defense lending func-tions were transferred to the Secretary of the Treasury.

Part II.—Loans and Allocations to Other U.S. GovernmentAgencies and to Foreign Governments

1. AGRICULTURE

(a) Gop Loans

Section % of the original RFO Act directed that one-tenth of BFC'soriginal capital stock and borrowing authority should be made avail-able to the Secretary of Agriculture for crop loans during 1932. Theterms and conditions of such loans were to be prescribed by the Secre-tary. The Secretary's authority to make crop loans was later extended,and by Executive Order No. 6084 dated March 27, 1933, such func-tion was transferred to jurisdiction and control of Farm CreditAdministration.

By section 201 (e) of the Emergency Relief and Construction Act of$#, the Corporation was authorized to create regional agricultural

credit corporations and to pay for the capital stock out of the alloca-tions to the Secretary of Agriculture under section 2 of the EFC Act.



These credit corporations were empowered to make loans to farmersfor agricultural or livestock purposes. RFC was further directed topay all expenses of operating such corporations.

(b) Loans to Farmers

The Farm Credit Act of 1933 authorized and directed RFC to makeavailable to the Governor of the Farm Credit Administration anybalance available under section 2 of the RFC Act for the purpose ofestablishing production credit corporations.

Department of Agriculture Appropriation Acts of 194,1 and 191$authorized and directed loans by RFC to the Secretary of Agricultureto enable the Secretary to make loans under title I of the Bankhead-Jones Farm Tenant Act, approved July 22,1937. By the Farm TenantAct the Secretary was authorized to make loans to tenant farmers toenable them to purchase farms.

Under the Emergen/yy Belief Appropriations Act, fiscal year 1941,the Corporation was authorized and directed to make loans to theSecretary of Agriculture to enable him to make rural rehabilitationloans to needy farmers.

Section 32 of the Emergency Farm Mortgage Act approved May 18,1983, directed RFC to make available to the Farm Loan Commissionerthe sum of $200 million, or so much thereof as may be necessary, forloans to farmers secured by first or second mortgages on any farmproperty. In January of 1934, the Federal Farm Mortgage Corpora-tion was created and given the authority to continue this function.

(c) Rural Electrification

The Rural Electrification Act of 1936 authorized the Administratorof Rural Electrification to make loans for rural electrification and forthe furnishing of electric energy in rural areas. Section 3(a) of thisact directed the RFC to make loans to the Administrator upon thesecurity of the obligations of the original borrowers.

(d) Joint-Stock Land Banks

The Emergency Farm Mortgage Act of 1933 directed RFC to makeavailable to the Farm Loan Commissioner the sum of $100 million forthe purpose of making loans to the joint-stock land banks organizedand doing business under the.Federal Farm Loan Act.

(e) Commodity Credit Corporation

An act approved April 10,1936, directed the RFC to acquire $97million of the capital stock of the Commodity Credit Corporation, theprincipal function of which was to make agricultural loans.



2. HOUSING

(a) Federal Home Loan Banks

On July 22,1932, section 2 of the original RFC Act was amended toallocate $125 million to the Secretary of the Treasury out of the capitalof the Corporation and/or the proceeds of notes, debentures, bonds,and other obligations issued by the Corporation, to enable the Secretaryto make payments upon stock of Federal home loan banks subscribedfor by him under the provisions of the Federal Home Loan Bank Act.

(b) Home Owners' Loan Corporation

The Home Owners' Loan Act approved Jwie 13\ 1933, directed thatRFC allocate and make available to the Secretary of the Treasurythe sum of $200 million, or so much thereof as may be necessary, toenable the Secretary to pay for the capital stock of the Home Owners'Loan Corporation subscribed for by him.

(c) Federal Housing Administration

TJie National Bousing Act approved June 27, 1931*, directed theCorporation to make available to the National Housing Administra-tor such funds as he deemed necessary to carry out the provisions oftitle I I (mutual mortgage insurance) and title I I I (national mortgageassociations) of that act.

3. RELIEFSection I of the Emergency Relief and Construction Act, approved

July 21,1932, authorized the Corporation to make the sum of $300million available to the States to be used in furnishing relief and workrelief to needy and distressed persons and in relieving the hardshipresulting from unemployment, but not more than 15 percent of suchsum to any one State.

An additional $500 million was authorized for relief by section I Iof the Federal Emergency Relief Act, approved May 12, 1933, uponthe certification of the Federal Emergency Relief Administratorapproving the request of a State for such funds. The amounts to beallocated for direct relief were increased by $1 billion by two appro-priation acts of 1935 (Emergency Appropriation Act approved June19,1934, $500 million, and Emergency Relief Appropriation Act ap-proved April 18,1935, $500 million).

4. EXPORT-IMPORT BANKAn act approved September 26, 191fi, added a new paragraph to

section 5d of the original RFC Act by which RFC was authorized tomake loans to, or subscribe for the preferred stock of, the Export-



Import Bank to enable that bank to assist in the development of re-sources of countries in the Western Hemisphere. By amendments tosection 9 of an act approved January 31, 1935, EFC was authorizedto continue to supply capital to the bank through loans or subscrip-tion for preferred stock.

5. FOREIGN GOVERNMENTS

(a) General Authority

An act approved Jwie 10,1941, added a new subsection (4) to sec-tion 5d of the RFC Act which authorized the Corporation to makeloans to any foreign government for the purpose of achieving themaximum dollar exchange value in the United States. Such loanscould be made only on the request of the Federal Loan Administrator,with the approval of the President. A loan to Great Britain wasmade under this authority.

(b) Specific Authority

By an act of August 7,19}fi, RFC was authorized to lend up to$75 million to the Philippine Republic after consultation with theNational Advisory Council on International Monetary and FinancialProblems. A loan of $70 million subsequently was made under thisauthority.

An act approved May £8,19$, directed RFC to make advances upto $100 million for aid to Greece and Turkey. By an act approvedMay 31, 1947, RFC was directed to advance up to $75 million for war-devastated areas. An act approved December 17,1947, directed theCorporation to make advances of $150 million for aid to Europeancountries. In the act approved April 3,1948, the RFC was directedto advance $50 million for aid to China, $50 million for aid to Greeceand Turkey, and $1 billion for foreign economic aid. An act ap-proved August 11,1948, directed the Corporation to make available$25 million for construction of the United Nations Headquartersbuilding. The act approved March %4i 1949, directed the Corpora-tion to advance $8 million for the relief of Palestine refugees. By anact approved April 19,1949, the Corporation was directed to advance$1 billion to carry out the provisions of title I of the Economic Co-operation Act of 1948. The act approved February 14> 1950, directedthe RFC to advance $20 million for Far Eastern relief. And the actapproved June 5,1950, directed the Corporation to advance an ad-ditional $8 million for the relief of Palestine refugees.

The foregoing measures were to be administered under the directionof the President, and RFC was used only as a means of providingimmediate temporary financing. Funds for these advances were bor-



rowed by RFC from the Treasury, without interest, and the sumswere made available to the Secretary of State and the Administratorof EGA. The advances were repaid from funds specifically appro-priated for such purposes.

The RFC was also authorized and directed to make similar ad-vances under the Mutual Assistance Act of 1949 and the India Emer-gency Food Aid Act of 1951, but no advances were required to bemade under these acts.

Part III—Nonlending Functions

An act approved June £6,1940, added to section 5d of the RFCAct new paragraphs to cover aid to the Government in its nationaldefense program. Subsection (2) of this act authorized the Corpora-tion to create or to organize a corporation or corporations for thepurpose of producing, acquiring, and carrying strategic and criticalmaterials, and for the construction of plants to be used in the manufac-ture of equipment and supplies necessary to the national defenseprogram. Section 4{b){3) of an act approved Jwie 10^ 19jl,broadened this authority to include, among other things, the authorityto take such other action as might be deemed necessary to expeditethe national defense program.

There were eight subsidiary corporations organized by RFC underthe aforementioned authority and through these the Corporation'swartime programs were conducted.

Following the close of World War II , three of the production pro-grams which had been undertaken by RFC's wartime subsidiarieswere continued on an active basis. These were: the program forproduction and sale of synthetic rubber undertaken by the RubberReserve Corporation; the program for production and sale of tinundertaken by Metals Reserve Corporation; and the program for theproduction and sale of abaca fiber undertaken by Defense SuppliesCorporation.

Synthetic Rubber

The act of March #0,19$, continued the powers, functions, duties,and authority relating to the manufacture and sale of synthetic rub-ber until March 31,1948, or until permanent legislation was adopted.

The Rubber Act of 1948, approved March 31, 1948, and the actsapproved June 24, 1950, and June 23, 1952, further extended theauthority to manufacture and sell synthetic rubber.

The Rubber Producing Facilities Disposal Act, approved August7,1953, provided for the disposal of the Government's synthetic rub-ber plants to private industry. Section 107 of the RFC Liquidation



Act directed that all authority of the RFC under the Eubber Act of1948 be transferred from EFC not later than June 30, 1954. ByExecutive Order 10539, effective June 30, 1954, the synthetic rubberprogram was transferred from RFC to Federal FacilitiesCorporation.

Tin

An act approved July #5,1946, authorized RFC to continue opera-tion of the Government-owned tin smelter and the program forpurchase and sale of tin ores and refined tin until June 30, 1947.Subsequent legislation relating to the operation and continuation ofthe tin program was contained in the acts approved June 28, 1947,June 29, 1948, June 30, 1949, and August 21, 1950. Section 107 ofthe RFC Liquidation Act, approved July 30, 1953, directed that allfunctions of RFC relating to the tin program be transferred fromRFC. In Executive Order 10539, the President transferred the tinprogram to Federal Facilities Corporation. The act approved June22, 1956, provided for operation of the tin smelter until January 31,1957, and also directed Federal Facilities Corporation to take stepsto sell or lease the tin-producing facilities. After negotiations, thesmelter was sold on January 3,1957.

Abaca

The agreements which had been entered into with the contractoroperating the abaca plantations established by Defense Supplies Cor-poration in Central America were extended until December 1948.Abaca continued to be designated as a strategic material, and opera-tion of the plantations was continued under the general authoritycontained in section 12 of the act approved June 30, 1947. TheAbaca Production Act of 1950^ approved August 10, 1950, providedfor continuation of the program until March 31, 1960, unless earliertermination was directed by the President or the Congress. In theRFC Liquidation Act, it was provided that the abaca program betransferred from RFC. General Services Administration was namedby the President to receive the abaca program in Executive Order10539, effective June 30,1954.

Smaller War Plants Corporation

Smaller War Plants Corporation (an independent agency) wascreated by an act approved June 11, 1942. The purpose of the actwas to mobilize the productive capacity of all small business concernsto augment war production. To accomplish that purpose, SWPCwas authorized to make loans to small business, to purchase land andequipment and lease it to small business, and to enter into contracts



with the Government for the furnishing of materials and to subletsuch contracts to small business. By Executive order dated Decem-ber 27, 1945, the assets and liabilities of SWPC were transferred toRFC for liquidation.

Electric Home and Farm Authority

The Electric Home and Farm Authority was created under theprovisions of an act approved June 16, 1933. The purpose of theAuthority was to finance installment sales of electrical and gas equip-ment and appliances to families of moderate incomes. Under Keor-ganization Plan No. 1 of 1939, EHFA was grouped in the FederalLoan Agency. Executive Order 9256 of October 13,1942, transferredthe assets of EHFA to RFC for liquidation.

Contract Renegotiation

Under the Renegotiation Act of 1942, as amended, RFC was giventhe responsibility for organizing a Price Adjustment Board to rene-gotiate contracts in those cases where RFC business was predominant.In July of 1943, the RFC Price Adjustment Board was created torenegotiate such contracts as were assigned by the War ContractsPrice Adjustment Board.

Purchase of Surplus Property for Small Business

Section 18 (e) of the Surplus Property Act of 1944 authorized theSmaller War Plants Corporation to purchase surplus property forresale to small business. Such purchases were given top priority astransfers from one Government agency to another. When the func-tions of SWPC were assumed by RFC in December of 1945, RFCtook over this function of purchasing surplus property for resale tosmall business*

Marketing Agreements for New-Type Building Material and PrefabricatedHouses

Section 12(a) of the Veterans' Emergency Housing Act of 1946authorized the Corporation to underwrite or guarantee a market fornew-type building materials and prefabricated houses to the extentthat the Housing Expediter found it necessary in order to assure asufficient supply for the veterans' emergency housing program.

Part IV—RFC Financing1 . Capital Stock

Section 2 of the original RFC Act established the capital stockof the Corporation at $500 million. Subscription for this stock was20



made and paid for by the Secretary of the Treasury on behalf ofthe United States.

In accordance with amendments to the EFC Act approved June25,1940, the Corporation retired $175 million of the original capitalstock, and retired an additional $225 million under the provisionsof an amendment to the RFC Act approved May 25, 1948. Au-thority for the remaining $100 million of capital stock was outstand-ing until the Corporation was abolished on June 30, 1957.

2. Borrowings

Section 9 of the original RFC Act provided that the Corporationwas "authorized and empowered with the approval of the Secretaryof the Treasury to issue and have outstanding at any one time inan amount aggregating not more than three times its subscribedcapital, its notes, debentures, bonds, or other such obligations." Ac-cordingly, the initial borrowing authority of RFC for "general pur-poses" was established at $1.5 billion. This initial borrowing au-thority was greatly increased by subsequent legislation. By June 5,1942, the Corporation had been empowered to issue its obligations upto $14,089,528,165 under its general borrowing authority. Thisamount remained unchanged until June 30, 1947, at which time theCorporation's activities were substantially curtailed. A summaryof the changes in the Corporation's general borrowing authorityfrom its inception in 1932 to. June 30,1947, is shown below:

Borrowing authorityEnactment and increase*

Initial authorization. __ $1, 500, 000, 000Act approved July 21, 1932_._ 1, 800, 000, 000Act approved Jan. 20, 1934_ — _ 850, 000, 000Act approved Sept. 26, 1940_ 1, 500, 000, 000Act approved June 10, 1941 — 1, 500, 000,000Act approved Oct. 23, 1941_ _— 1, 500, 000, 000Act approved Mar. 27, 1942 2, 500, 000, 000Act approved June 5, 1942 5,000, 000,000

Total — 16,150,000,000

Decreases:By act approved June 16, 1933 - 400,000,000By note cancellations, act of Feb. 24, 1938 1, 660,471, 835

2,060,471, 835

Note issue power, June 30, 1 9 4 7 — - 14, 089, 528,166

Borrowings for Specific Purposes

In addition to borrowing authority for general purposes, the Con-gress called upon the Corporation from time to time to carry out other



functions for which it authorized additional borrowing authority to beused only to provide funds for those specific purposes. For the mostpart, these consisted of specific allocations, loans, advances to, andpurchases of securities of other U.S. Government agencies. Some ofthese authorizations were in specific amounts and others were not lim-ited, except for whatever amounts were sufficient to carry out the pro-visions of the various acts authorizing the specific functions. At June30,1947, a total of $4,977,500,000 had been authorized for specific pur-poses in which the note issuing authority was limited. There werealso three specific programs for which KFC was authorized to borrowany necessary amounts. RFC had disbursed on these three programs$1,271,721,698 through June 30,1947. On that date, the unpaid princi-pal amount was $170,213,974.

Changes in Borrowing Authority Effective July 1,1947

On June 30, 1947, legislation was enacted (Public Law 132, 80thCong.) which repealed all previous provisions related to RFC's bor-rowings and substituted a single provision authorizing the Corpora-tion to borrow from the Treasury funds in an amount sufficient to en-able the Corporation to carry out the provisions of the RFC Act, asamended, and to perform such other functions as might be assigned toit under any other provision of law. This provision, together withother sections of this act which terminated most of the Corporation'swartime functions, substantially reduced the Corporation's borrowingauthority by placing a limitation of $2 billion on the total outstandingamount of investments, loans, purchases, and commitments made afterJune 30, 1947. Amendatory legislation increased this limitation to$2.5 billion on July 19,1949; to $3.5 billion on October 25,1949; and,finally, to $3.75 billion on April 20,1950. These increases in the limi-tation were granted by the Congress principally as a result of the in-creased mortgage activity of Federal National Mortgage Association,an RFC subsidiary.

Within the general authority of $3.75 billion, the Congress imposedcertain specific limitations. The purpose and amounts of such limita-tions were:For construction by public agencies $200, 000,000For catastrophes 40,000,000For capital of insurance companies l_l 15,000,000For civil defense loans II_™I_II 250,000,000

In addition to the general lending authority, the Corporation wasauthorized by the Housing Act of 1948 to make loans to, or purchasethe obligations of, any business enterprise, under such terms and con-ditions as the Corporation might determine, for the purpose of pro-viding financial assistance for the production of prefabricated houses



or prefabricated housing components, or for large-scale modernizedsite construction, the aggregate amount of which could not exceed$50 million at any one time.

Other borrowings for specific purposes were made from time totime after June 30, 1947, to carry out directives of Congress. TheCorporation made advances to other U.S. Government agencies, prin-cipally to the Secretary of State and the Economic Cooperation Ad-ministration, for the purpose of providing temporary financing forforeign aid programs. Subsequent to June 30,1947, a total of $2,176billion was borrowed by RFC from the Treasury on interest-free notesfor these purposes. The advances were repaid out of subsequent ap-propriations for the programs.

Transfers of Authorities Effective September 7,1950

Under the provisions of Reorganization Plan No. 22 of 1950, whichtransferred the Federal National Mortgage Association from RFCto Housing and Home Finance Agency, the Corporation's lendingauthority was reduced by $2.75 billion effective September 7, 1950.This amount of RFC's authority was transferred to Housingand Home Finance Agency with the Federal National MortgageAssociation.

Reorganization Plan No. 23 of 1950 further reduced RFC's lendingauthority, effective September 7,1950, by transferring to Housing andHome Finance Agency (1) all loans and commitments authorizedunder the Housing Act of 1948, together with the available balanceof the $50 million limitation; and (2) loans and commitments ofapproximately $7 million related to prefabricated housing loans madeunder the RFC Act.

After giving effect to the two reorganization plans, the Corpora-tion's lending authority was reduced to approximately $993 millionoutstanding at any one time of investments, loans, purchases, andcommitments made subsequent to June 30, 1947. This limitation of$993 million remained unchanged throughout the remaining years ofRFC's existence as a lending institution.



Management and Organization

During most of the 25 years of its existence, the Reconstruction Fi-nance Corporation was managed by a Board of Directors. Begin-ning in 1951, management responsibilities rested in an Administrator,and, finally, in the Secretary of the Treasury.

Board of Directors

From inception to May 4,1951, the affairs of EFC were managedby a Board of Directors. At the beginning, the Board was made upof the Secretary of the Treasury, the Governor of the Federal Re-serve Board, and the Farm Loan Commissioner, as ex oflicio mem-bers, plus four others appointed by the President, by and with theadvice and consent of the Senate.

The directorate so constituted continued until August 1,1932. Atthat time, the Governor of the Federal Reserve Board and the FarmLoan Commissioner were eliminated by law as ex officio members,and the number of Presidential appointees was increased by two.

The seven-member Board, with the Secretary of the Treasury re-maining as an ex officio member, continued until February 24, 1938.Provision was made at that time for a five-member Board of Directors,all of whom were to be appointed by the President, by and with the ad-vice and consent of the Senate.

Membership on RFC's Board of Directors was subject to specificqualifications provided by law. Throughout, it was required that notmore than a simple majority of the members could belong to any onepolitical party, and not more than one could be appointed from anyFederal Reserve district. Other qualifications, which were modifiedfrom time to time, related to terms of office, filling of vacancies, sal-aries, time devoted to the business of the Corporation, and the prohi-bition against participation in the deliberations upon or the determi-nation of questions affecting a director's personal interests.

The RFC Act originally provided that each director devote suchof his time as was not otherwise required by the business of theUnited States principally to the business of the Corporation. Thisrequirement remained in effect until June 30,1947. Thereafter, untilMay 25, 1948, the law provided that each director devote his timeprincipally to the business of the Corporation. After May 25,1948,

25



membership on EFC's Board of Directors was required to be a full-time position.

Originally, the terms of Presidential appointees to the Board ranfor 2 years from January 22, 1932, or until their successors wereappointed and qualified. Persons appointed to fill vacancies heldoffice for the unexpired portion of the term of the director whoseplace was being filled. These stipulations continued until May 25,1948, when staggered terms of office were instituted.

In order to bring about staggered terms, the tenures of the in-cumbent directors were extended to July 1, 1950. As of that date,two directors were appointed for terms of 1 year, two for 2 years,and one for 3 years. Thereafter, terms of office were to be for 3 yearsor until successors were appointed and qualified. In the event of avacancy other than by expiration of term, the person appointed tofill such vacancy held office for the unexpired portion of the term ofthe director whose place he was selected to fill.

Prior to May 25,1948, the Chairman of EFC's Board of Directorswas designated by the Board itself, with the concurrence of the Pres-ident. Subsequent to that date, the President designated one of thedirectors to serve as Chairman for a period coextensive with his term.

For the period from 1932 to June, 1947, the salaries of appointivemembers of the Board of Directors were fixed at $10,000 per annumeach. Beginning in July 1947, the annual salaries of the directorswere increased to $12,500, with the Chairman receiving $15,000.

Under the provisions of Reorganization Plan No. 3 of 1947, theChairman of EFC's Board of Directors served as a member of theNational Housing Council. This provision remained in effect untilSeptember 1,1951. Also, by the act approved June 30,1949, the Chair-man served as a member of the Board of Directors of the VirginIslands Corporation.

From January 1932 to May 1951, 37 persons actually served orwere authorized to serve as members of EFC's directorate. Ten ofthese served as members exofficio, and 27 were appointed by thePresident. Presidential appointments to the Board of Directors weredivided almost equally between the two major political parties—15were classed as Democrats and 12 as Eepublicans. They represented21 States and the District of Columbia.

The roster of EFC Board members will be found in appendix B.

Administrators

Eeorganization Plan No. 1 of 1951 abolished the Board of Directorsand established the offices of Administrator and Deputy Adminis-trator. The Administrator and Deputy Administrator were subjectto appointment by the President, by and with the advice and consent


MANAGEMENT AND ORGANIZATION

of the Senate. All functions of the Board of Directors, includingthose of the members and chairman and those with respect to man-agement were transferred to the Administrator, effective May 4,1951.The Deputy Administrator was authorized to perform such duties asmight be designated from time to time by the Administrator. Heacted as Administrator and performed the duties thereof during thelatter's absence or disability, or in the event of a vacancy in that office.Those who served as Administrator and Deputy Administrator of theCorporation are listed in appendix B.

While holding office, the Administrator ajid Deputy Administratorwere prohibited from engaging in any business, vocation, or employ-ment other than that involved in the holding of such office. TheAdministrator and the Deputy Administrator, moreover, were Chair-man and Vice Chairman, respectively, of the Loan Policy Boardestablished by the reorganization plan, which included, in addition,the Secretary of the Treasury, the Secretary of Commerce, and oneother member designated from time to time by the President fromamong the officers of the United States required to be appointed byand with the advice and consent of the Senate. The Secretary of theTreasury, the Secretary of Commerce, and the designee of the Pres-ident each were authorized to designate an officer of his departmentor agency to act in his stead as a member of the Loan Policy Board.

The Loan Policy Board was empowered "* * * to establish gen-eral policies (particularly with reference to the public interest involvedin the granting and denial of applications for financial assistanceby the Corporation and with reference to the coordination of thefunctions of the Corporation with other activities and policies ofthe Government) which shall govern the granting and denial of appli-cations for financial assistance by the Corporation." I t met on anumber of occasions and approved documents establishing the prin-ciples and policies to be followed in the conduct of the Corporation'slending operations, including participation in loans.

Secretary of the Treasury

Section 10 of the Eeconstruction Finance Corporation Act, asamended, provided that if at the close of June 30,1954, the liquidationof the assets and winding up of the affairs of the Corporation werenot completed, the completion thereof "* * * shall be transferredto the Secretary of the Treasury * * *," who was authorized to assignto any officer or officers of the United States in the Treasury Depart-ment his powers and duties in this respect.

The liquidation and windup of KFC had not been completed byJune 30, 1954, so the responsibility for further liquidation passedto the Secretary of the Treasury. Final liquidation of the Corpora-



tion's affairs was conducted under the immediate direction of anAssistant Secretary of the Treasury.

Organization

The activities of RFC were conducted through its principal officein Washington, D.C., and through 31 loan agency offices located incertain of the principal cities of the United States (listed below).All policies were determined in the Washington office and, in the begin-ning, virtually all loans applied for through the loan agencies requiredapproval by the Washington office before being consummated. Thelending operations in the Washington office were conducted throughseparate and distinct organizational units, according to the types oflending activities involved. Operating units such as the ExaminingDivision, Railroad Division, Self-Liqudating Division, and otherswere established to perform the various functions, which includedexamination of applications for loans, and administration of the loanportfolio maintained in the Washington office. Members of the staffsof these Divisions dealt directly with the Board of Directors in pre-senting their recommendations for disposition of loan applicationsand other matters requiring the Board's consideration.

On October 1,1947, there was established in the Washington officeof RFC an Office of Loans, an integrated unit under one management,into which all operating units dealing with lending activities weremerged. This office, staffed by a loan manager and assistants, wascomprised of the Review Committee, the Practices and ProceduresCommittee, the Marketing and Liquidation Committee, the Engineer-ing and Appraisal Service, the Loan Operations Division, and theField Operations Division. Under this reorganization, the responsi-bility for the administration of all loan operations of the RFC wasplaced in the Office of Loans under delegation of authority by theBoard of Directors.

The 31 loan agencies (regional offices) were established throughoutthe United States in order that the Corporation's facilities would bemore conveniently available to applicants for financial assistanceand to others who might have dealings with the Corporation. Withthe exception of a few types of loans, it was required that all appli-cations for loans originate in the loan agency serving the district inwhich the applicant was located.

Each loan agency was staffed with the necessary personnel andheaded by a loan agency manager appointed by the Board of Directorsor, after May 4,1951, by the Administrator of RFC.

During the early years of the Corporation, the authority of theloan agencies to make loans and carry out other related functions wasrestricted by the requirement of prior approval by the Washington



office. However, as the loan agencies became seasoned in lendingactivities, their delegation of authority was expanded.

Generally, the loan agency managers had authority, under certainconditions, to approve direct business loans up to $100,000, and loans inwhich EFC participated with banks up to $350,000. If an applicationwas for an amount greater than the agency manager was authorized toapprove, or if an application, regardless of amount, was recommendedfor decline, it was referred to the Washington office, together with allrecommendations, for review and further consideration. Other func-tions of the loan agencies included the servicing and administration ofloans made in their respective districts and, after January 1948, eachagency performed its own fiscal functions. Prior to that time the ac-counting for the agencies was maintained in the Washington office withthe Federal Reserve banks acting as fiscal agents.

The administrative details in connection with the Corporation'sresponsibilities relating to the national defense programs were handledin part at the Washington office and in part through the loan agencies.In the Washington office these new responsibilities were administeredprimarily through the wartime subsidiary corporations. However, inthe loan agencies the managers were required to accept many newresponsibilities, such as supervising the performance of others undercontracts for the acquisition, transportation, warehousing, and dis-posal of commodities; the collection of war-plant rentals; the auditingand settlement of subsidy claims; and the supervision of the activitiesof residential housing projects operated in conjunction with certain ofthe Corporation's war plants.

The 31 RFC loan agencies were located in the following cities :Atlanta, Ga. Jacksonville, Fla. Philadelphia, Pa.Birmingham, Ala. Kansas City, Mo. Portland, Oreg.Boston, Mass. Little Rock, Ark. Richmond, Va.Charlotte, N.C. Los Angeles, Calif. St Louis, Mo.Chicago, HI. Louisville, Ky. Salt Lake City, UtahCleveland, Ohio Minneapolis, Minn. San Antonio, Tex.Columbia, S.C. Nashville, Tenn. San Francisco, Calif.Dallas, Tex. New Orleans, La. Seattle, Wash.Denver, Colo. New York, N.T. Spokane, Wash.Detroit, Mich. Oklahoma City, Okla.Houston, Tex. Omaha, Nebr.

The Corporation also at times had branch offices located in the fol-lowing cities:

Anchorage, Alaska Phoenix, Ariz.El Paso, Tex. Pittsburgh, Pa.Helena, Mont San Juan, P.R.Memphis, Tenn.

29


[FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION

Subsidiaries of Reconstruction Finance Corporation

The Corporation had two subsidiary corporations and one otheraffiliate (Disaster Loan Corporation) engaged in lending activities,and eight subsidiary corporations engaged in World War I I activities.

The two subsidiaries engaged in lending (the RFC Mortgage Com-pany and the Federal National Mortgage Association) were createdand their capital stock was acquired under the authority conferredupon RFC by section 5(c) of the EFC Act in order to assist in therestablishment of a normal mortgage market.

The EFC Mortgage Company was organized under the laws of theState of Maryland on March 14,1935. The Federal National Mort-gage Association was chartered by the Federal Housing Administratoron February 10,1938. Its organization by EFC was directed by thePresident of the United States.

Specific authority to create or organize corporations was granted toRFC by the provisions of an act approved June 25,1940, in order toaid the Government in its national defense program. The followingseven wartime subsidiaries were created by RFC pursuant to thisauthority:

Defense Plant Corporation War Damage CorporationDefense Supplies Corporation Petroleum Reserve CorporationMetals Reserve Company U.S. Commercial CompanyRubber Reserve Company

The Corporation also acquired the capital stock of Rubber Devel-opment Corporation (formerly Pacific Development Co., Inc.), acorporation of the State of Delaware. This capital stock was pur-chased by RFC from Defense Supplies Corporation, an RFC war sub-sidiary which had advanced funds to finance the Pacific DevelopmentCo., Inc., and had acquired the capital stock when that enterprisebecame inactive.

Immediately after June 30, 1945, the war subsidiaries which werebeing administered by RFC, with the exception of War DamageCorporation, were dissolved by law and their assets, liabilities, andfunctions were merged with those of the RFC. Disaster Loan Corpo-ration, an affiliated lending enterprise, the stock of which was whollyowned by the Treasury of the United States, and the operations ofwhich had been under RFC administration, also was dissolved andmerged with RFC by the same enactment. Liquidation of WarDamage Corporation was completed by June 30, 1949. The RFCMortgage Company was dissolved, effective June 30, 1947, and itsassets and liabilities were merged with those of RFC for liquidation.The Federal National Mortgage Association was transferred to theHousing and Home Finance Agency effective September 7, 1950,



under the provisions of Reorganization Plan No. 22 of 1950. Petro-leum Reserve Corporation became War Assets Corporation on Novem-ber 15, 1945. Rubber Development Corporation's charter expired•on June 30,1947, and the powers vested in U.S. Commercial Companyexpired on June 30, 1948. The three subsidiaries last named hadbeen under the management supervision of the Foreign EconomicAdministration prior to September 27, 1945.

Relationship of Federal Loan Agency to RFC

During the period July 1,1939, to June 30,1947, RFC was a com-ponent of the Federal Loan Agency, which was organized by act ofCongress to coordinate the functions and activities of various Govern-ment lending agencies. This Agency was headed by an Administratoruntil July 22,1945, and from that date the duties of the Administratorwere discharged by the Chairman of the Board of Directors of RFC.Because the Agency had been reduced to a mere administrativesuperstructure over the Board of Directors of EFC, it was abolishedby Congress on June 30,1947.

Employment

The number of employees on RFC's payroll varied widely through-out the years, generally in accord with expansion and contraction inthe volume of the Corporation's activities. The chart below shows thenumber of RFC employees on June 30 of the years from 1935 to 1956.

RFC EMPLOYMENT (As of June 30,1935-1956)

EMPLOYEESThousands

1935



The steady increase in employment which began in 1940 and con-tinued until 1946 was occasioned by the Corporation's national de-fense and wartime programs. For the most part, employees assignedduties in connection with RFC's wartime subsidiaries were carriedon RFC's payroll and were considered to be employees of the parentcorporation.

Not reflected on the chart above is the rapid rise in RFC employmentwhich occurred temporarily in 1945 and 1946 when War AssetsCorporation (then an RFC subsidiary) undertook the disposal ofthe Government's World War I I surplus property. The peak ofemployment was reached in February 1946, when for a short periodthere were more than 35,000 RFC employees immediately prior tothe transfer of the surplus property disposal functions and employeesfrom RFC to the War Assets Administration.


The Financing of RFC

The operations of the Reconstruction Finance Corporation werefinanced by funds provided from subscriptions to its capital stock,from borrowed funds, from the Corporation's net earnings, and fromfunds held by RFC for terminated or affiliated programs.

Capital Stock

The original RFC Act provided that the Corporation should havecapital stock of $500 million subscribed by the United States ofAmerica, and that amount was authorized to be appropriated for thepurpose of making payments on the subscription. In a resolutionapproved January 27, 1932, $500 million was appropriated, and thesubscription made and paid for by the Secretary of the Treasury onbehalf of the United States.

On April 25,1941, the Corporation retired $175 million of its capitalstock in accord with the amendments to the RFC Act approved June25, 1940. On July 23, 1948, the Corporation retired an additional$225 million of its capital stock pursuant to Public Law 548, 80thCongress. There were no further statutory changes in the amountof the Corporation's capital stock. However, from funds realizedduring the course of liquidation the Corporation retired an additional$65 million of capital stock during June 1957*

Borrowings

Borrowed funds constituted the principal means by which RFC'soperations were financed. Under section 9 of the original RFC Act,the Corporation was "authorized and empowered, with the approvalof the Secretary of the Treasury, to have outstanding at any one timein an amount aggregating not more than three times its subscribedcapital, its notes, debentures, bonds, or other such obligations." Thisinitial borrowing authority of $1.5 billion was greatly increasedthrough subsequent legislation for both general and specific purposes.

Under the various authorities, the Corporation borrowed a total of$54,419,485,044, as follows:

Notes issued to the Secretary of the Treasury $51,346,850,497Notes issued to the public 3,072,634,547

Total _. 54,419,485,044


FINAL REPORT O N THE RECONSTRUCTION FINANCE CORPORATION

The timing of RFC's borrowings is shown in the following table:

Summary of Notes Issued by RFC to the Secretary of the Treasury and to the Public

Year and quarter Amount issued Retired orrefunded

Canceled ortransferred

Outstandingend of period

3d...4th..

1st-. . .2d3d4th._._

1st..2d...3d...4th..

1st..

3d...4th.,

1st2d3d4th.....

1st2d3d.4th_...

1st2d3d4th__._,

1st2d3d4th._._

1st..2d__.3d...4th..

1st2d3d.

h

1st.2d_.

4th..

1s t . . . .2d...._3d4th..._

1st...d

3d..4th.

1932

1933

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

$350,000,000250,000,000885,000,000

410,000,0001,700,000,000

135,000,0003,035,025,854

771,271,526323,000,00091,250,000

583,372,000

121,195,500115,332,500

3,908,852,500529,507,167

270,125,00051,045,000

3,995,120,00025,000,000

70,360,00015,050,000

150,366,000121,150,000

41,473,5001,067,854,6661,045,249,3191,113,284,431

328,390,00033,500,000125,100,000352,268,000

5,100,00013,002,39629,200,00025,200,000

297,941,000724,492,000618,463,000918,000,000

726,000,0001,004,320,000699,000,000

1,333,000,000

1,554,000,0001,090,000,0001,839,000,0001,419,000,000

959,000,0001,380,000,000772,000,000212,000,000

$675,000,000

1,335,000,000

"2,"225,"666,"56o"

134,481,0681,645

260,100,00070,000,000

149,093,00017,000,000

3,741,050,000254,621,667

191,000,000196,000,000

4,265,000,000100,025,000

120,900,00041,000,000229,478,000

5,000,0001,152,728,1661,077,589,318971,838,098

389,180,000161,000,000122,000,000302,857,877

15,886,946

35,966,500

60,000,000314,440,692277,357,250409,839,000

310,090,000272,320,000258,548,000674,895,000

740,000,000670,000,000814,397,000765,000,000

430,000,0001,036,363,000280,000,00090,000,000

$2,688,151,3343,156,5004,707,0513,189,062

4,240,1768,508,2515,155,7503,135,554

11,5005,802,396

33,5002,195,750

1,093,8085,094,5001,019,0003,230,000

1,088,00083,554

1,152,50096,500

39,304,000993,322792,000815,000

403,000875,000640,000

$350,000,000600,000,000810,000,000

1,220,000,0001,585,000,0001,720,000,0002,530,025,854

3,166,816,3123,489,814,6673,320,964,6673,834,336,667

3,806,439,1673,904,771,6674,072,574,1674,347,459,667

4,426,584,6674,281,629,6674,011,749,6673,936,724,667

3,886,184,6673,860,234,6673,781,122,6673,902,272,667

1,250,594,8331,162,564,8331,125,517,7831,263,775,054

1,198,744,8781,062,736,6271,060,680,877l | 106,955,446

1,096,157,0001,103,357,0001,096,557,0001,119,561,250

1,356,408,4421761,365,2502,101,452,000i 606,383,000

3,021,205,0003 753,121,4464,192,420,9464,850,429,446

5,625,125,4466 044,132,124

%SS3

ssag3

34


FINANCING OF RFC

Summary of Notes Issued by RFC to the Secretary of the Treasury and to the Public—Con.

Year and quarter

19451st2d3d4 t h . . -

19461st2d . . -3d4th

19471st2d3d4th

19481st2d3d4th

19491st2d3d4 t h : : . . . : : : : . .

19501st2d3d.. - : : . . : : : . „ .4th. . . . . .

19511st2d „ _3d4 t h " : . : : „ : . : : : : : : : : .

19521st2d3d4th

19531st2d3d4th

19541st2d.3d *

Total

Amount Issued

$9,381,947,124223,000,000310,000,00086,000,000

44,000,000341,000,000109,000,00052,000,000

96,000,0001,254,000,000

45,000,00068,000,000

89,000,0001,314,790,449

181,000,000514,000,000

156,000,0001,112,000,000

209,000,000219,000,000

190,000,000122,209,55179,000,000

108,058,527

34,000,00049,000,00024,000,00095,118,034

20,000,00035,000,00046,000,0009,000,000

6,000,0002,000,000

8,500,000154,000,000

54,419,485,044

Retired orrefunded

$9,505,947,124285,000,00075,000,000

215,000,000

240,000,00065,000,000

185,000,000205,000,000

170,000,000190,000,000183,000,00061,000,000

71,000,0001,119,000,000

41,000,00012,000,000

39,937,60936,000,000

1,026,000,000

77,973,91519,000,000

160,143,429

72,946,13352,209,65178,995,38466,000,000

77,000,00029,000,00060,000,0009,000,000

6,000,00026,173,215

1,813,971

23,686,029142,000,000

6,681,667

40,275,555,254


$375,00016,697

200,00026,333

188,244

683,624,482

9,365,306,8177,537,6652,742,865

2,929,990639,11291,99648,922

7,36053,867

1,147,949,4501,033

4,616

147,318,333

14,143,929,790


$9,081,947,1249,019,947,1249,254,572,1249,125,555,427

8,929,555,4279,205,355,4279,129,329,0948,976,329,094

8,902,140,8509,966,140,8509,144,516,3689,151,516,368

9,169,516,368

132,462,335631,719,470

784,789,4801,856,212,7592,029,120,7631,222,071,841

1,412,064,4811,456,246,250

368,296,800316,210,865

277,260,116274,050,565219,055,181248,173,215

191,173,215197,173,215183,173,215183,173,215

183,173,215159,000,000159,000,000157,186,029

142,000,000154,000,000

Borrowings From the Treasury

The first KFC borrowings were on notes issued to the Secretary of theTreasury on April 27,1932. These notes matured in 6 months and bore3y2 percent interest. Maturities and interest rates on notes issued tothe Secretary of the Treasury prior to June 30,1947, were not subjectto statutory limitations, but were set by agreement between RFC andTreasury. The maturities of the notes issued through June 30,1947,ranged from demand to 3% years. Interest rates varied widely,



ranging from % to $y2 percent The average rates paid by EFC onborrowings from the Treasury from 1932 through 1939 were as follows:

Percent

1932 3.5001933 3.0861934 2.4141935 2.3621936 2.3051937 2.250

1938 1.4741939 1.072

From 1939 to June 30,1947, all notes issued by EFC to the Secretaryof the Treasury carried an interest rate of 1 percent, with two excep-tions. The first exception was a note for $124,741,000, with interest atone-quarter percent, issued by EFO on February 2,1941, in paymentfor the capital stock of the Federal home loan banks previously heldby the Secretary of the Treasury; on April 17, 1941, this note wasretired from the proceeds of an issue sold to the public. The otherexception was a series of notes amounting to $175 million issued in Mayand June 1947, for advances to the Secretary of State for European aidpursuant to acts of Congress approved May 22 and 31, 1947. Thesenotes were noninterest bearing and were repaid on August 6, 1947,from funds appropriated by the Congress for that purpose.

Amendments to the EFC Act in 1947 provided that on borrowingsfrom the Treasury subsequent to June 30,1947, the EFC pay interest"at a rate determined by the Secretary of the Treasury, taking into con-sideration the current average rate on outstanding marketable obliga-tions of the United States." The interest-bearing notes issued by EFCafter June 30,1947, totaled $2,367,176,561, and carried the followinginterest rates:

Amount of notes issued17s percent $2,187,176,5612 percent 173,000,0002% percent 7,000,000

2,367,176,561

In addition to the interest-bearing notes, EFC also borrowed $2,176million without interest during the period from April 1948 throughJune 1950. These funds were borrowed to provide advances to theSecretary of State and the Economic Cooperation Administration forvarious foreign aid programs. All funds borrowed by EFC for suchadvances were repaid prior to December 1950 from funds appropriatedby the Congress for such purposes.

The amounts borrowed by EFC from the Secretary of the Treasuryand amounts retired and outstanding are shown in the following table:


FINANCING OF RFC

Notes Issued by RFC to the Secretary of the Treasury

Year and quarter Amount Issued Ketlred orrefunded



19322d3d4th . „_ .

19331st ._2d3d _4th

19341st „„2d3d4tb

19351st2d . . .3d."...:i—:::::.:::::::::.::4th

19361st2d3d4th

19371st2d3d4th

1938lst_..._2d . .3d4th

19391st2d-3d.. "4th

19401st2d3d4th«: . : :

19411st2d3d4th

19421st2d -3d4th

19431st2d3d4th

19441st2d3d4th

19451st2d3 d ™ !„.4th

$360,000,000250,000,000885,000,000

410,000,0001,700,000,000

135,000,0002,855,000,000

590,000,000315,000,00075,000,000

580,000,000

55,000,000115,000,000

3,905,000,000380,000,000

270,000,00035,000,000

3,995,000,00025,000,000

70,000,00010,000,00025,000,000

120,000,000

1,40,000,000

815,945,431

18,000,00033,000,000

125,000,00070,000,000

5,000,00012,802,39629,000,00025,000,000

297,741,00080,000,00047,000,000

918,000,000

726,000,0001,004,320,000

699,000,0001,333,000,000

1,554,000,0001,090,000,0001,839,000,0001,419,000,000

959,000,0001,380,000,000

772,000,000212,000,000

9,381,947,124223,000,000310,000,00086,000,000

$675,000,000

1,335,000,000

"2,'225,"o6o,"6o6"

255,000,00070,000,000

85,000,00016,000,000

3,740,000,000105,000,000

190,000,000180,000,000

4,265,000,000100,000,000

120,000,00040,000,000145,000,000

5,000,0001,151,828,6661,077,589,318672,945,431

389,000,000161,000,000122,000,000302,857,877

15,886,946

"35^9667506'

60,000,000314,440,69265,897,250110,000,000

255,000,000355,000,000

740,000,000670,000,000490,000,000765,000,000

430,000,000465,000,000280,000,00090,000,000

9,505,947,124285,000,00075,000,000215,000,000

$2,688,151,3343,156,6004,707,0513,189,062

4,240,1768,508,2516,155,7603,135,554

11,5005,802,396

33,5002,195,750

1,093,8085,094,5001,019,0003,230,000

1,088,00083,554

1,152,50096,500

39,304,000993,322792,000815,000

403,000875,000640,000

375,00016,697

$350,000,000600,000,000810,000,000

1,220,000,0001,685,000,0001,720,000,0002,350,000,000

2,940,000,0003,255,000,0003,075,000,0003,685,000,000

3,555,000,0003,655,000,0003,820,000,0004,095,000,000

4,175,000,0004,030,000,0003,760,000,0003,685,000,000

3,635,000,0003,605,000,0003,485,000,0003,605,000,000

951,848,666863,692,166614,985,116754,796,064

379,555,878243,047,627240,891,8771089*446

7,000,000

259,451,44219,916,250

804,770,000

1,529,682,0002,533,918,4462,976,765,9463,954,669,446

4,729,365,4465,148,372,1246,496,580,1247,149,765,124

7,678,362,1248,692,487,1249,083,947,1249,205,947,124

9,081,947,1249,019,947,1249,254,572,1249,125,555,427

37



Notes Issued by RFC to the Secretary of the Treasury—Continued




1st2d3d4th-—.

1st2d3d4th.-.-.

1st.

3d—4th-

1st- —2d3d4th—.

lst_.2d—3d...4th_.

l s t . . . .2d.3d4th_—

1st-.2d.~3d—4th..

1st.-..2d—..

4th...

1st.....2d3d

1946

1947

194S

1949

1950

1951

1952

1953

$44,000,000341,000,000109,000,00062,000,000

96,000,0001,254,000,000

45,000,00063,000,000

89,000,0001,314,790,449181,000,000514,000,000

156,000,0001,112,000,000209,000,000219,000,000

190,000,000122,209,55179,000,000108,058,527

34000,00049,000,00024,000,00095,118,034

20,000,00035,000,00046,000,0009,000,000

6,000,0002,000,000

$240,000,00065,000,000

185,000,000205,000,000

170,000,000190,000,000183,000,00061,000,000

71,000,0001,119,000,000

41,000,00012,000,000

$200,000

188,244

"683*624482'

39,937,60936,000,000

1,026,000,000

77,973,91519,000,000

160,143,429

72,946,13352,209,55178,995,38466,000,000

77,000,00029,000,00060,000,0009,000,000

6,000,00026,173,215

9,365,306,8177,537,6652,742,865

2,029,990639,11291,99648,922

7,36053,867

1,147,949,4501,033

4,616

1,813,971

19548,500,000

154000,000 142,000,0006,681,667 147,318,333

Total. 51,346,850,497 37,202,920,707 14,143,929,790

$8,929,555,427.9 205 355; 4279,129,329,0948,976,329,094

8,902,140,8509 966,140,8509,144,516,3689,151,516,368

132,462,335631,719,470

784789,4801,856,212,7592029,120,763ll 222,071,841

1,412,064,4811,456,246,250

368,296,800316;210,865

277,260,116274050,565219,055,181248,173,215

191,173,215197,173,215183,173,215183,173,215

183,173,215159 000,000159,000,000157,186,029

142,000,000154,000,000

Cancellation and Transfers of RFC Obligations

Of the $51,346,850,497 in notes issued by KFC to the Secretary ofthe Treasury, more than one-fourth were either canceled by directionof the Congress or transferred to other Government agencies underreorganization plans. Cancellation of notes by direction of the Gon-gress amounted to $12,848,664,320, as shown below:


FINANCING OF RFC

Notes Issued by RFC to the Secretary of the Treasury and Canceled by direction of theCongress

By the act approved Feb. 24, 1938:Capital stock of Federal home loan banks _ $124, 741,000Capital stock of Home Owners' Loan Corporation 200, 000,000Secretary of Agriculture—for crop loans 115, 000, 000Land Bank Commissioner—for loans to joint-stock land

banks _ 2, 600,000Land Bank Commissioner—for loans to farmers 145, 000, 000Capital stock of Federal Farm Mortgage Corporation 55, 000, 000Governor of Farm Credit Administration. 40, 500, 000Capital stock of Regional Agricultural Credit Corporations- 44, 500, 000Expenses of Regional Agricultural Credit Corporations 23, 341, 776Capital stock of Commodity Credit Corporation.. 97, 000, 000Capital stock of Disaster Loan Corporation 24, 000, 000Federal Emergency Relief Administrator—FER Act of

1933 500,125, 938Federal Emergency Relief Administrator—Emergency Ap-

propriation Act of 1935 500, 000, 000Federal Emergency Relief Administrator—Emergency Relief

Appropriation Act of 1935 _ ._ 500, 000, 000Governors of States—Emergency Relief and Construction

Act of 1932. 280, 025,144Municipalities and other public bodies—Emergency Relief

and Construction Act of 1932 2, 800, 623Interest costs 33,177,420

By sec. 602 National Housing Act: Federal Housing Adminis-trator _ 97, 861, 381

By act approved June 30, 1947:Capital stock of Federal home loan banks 122, 672, 200Unrecovered costs of national defense, war, and reconversion

activities _ 9, 313, 736, 531Costs incurred in handling materials transferred to stock-

piles _ . . 18, 111, 542Interest costs _ _ - - - 46,005,553

By the act approved July 30, 1947:Loans to Rural Electrification Administration. _ 510, 848, 904Loans to the Secretary of Agriculture—farm tenancy pro-

gram__ _ _ 40, 367, 816By the Government Corporations Appropriation Act, 1948:

Title to land and buildings transferred to Federal WorksAgency 9,735,562

By the act approved June 28, 1948: Net investment in proper-ties transferred to Howard University * > 512, 930

Total 12, 848, 664, 320

^Reorganization Plans Nos. 22 and 23 of 1950 both were effectiveSeptember 7, 1950. Plan No. 22 transferred from EFC to the Ad-ministrator of the Housing and Home Finance Agency the functions,capital stock, assets, and liabilities of the Federal National Mortgage

505257—59 4 39



Association. Plan No. 23 transferred to the Administrator of thesame agency the functions of RFC under section 102 of the HousingAct of 1948 and under other laws with respect to financing predomi-nantly for the production and sale of prefabricated houses and pre-fabricated housing components. In each case, a settlement was ar-ranged between RFC and the Housing Administrator under which theAdministrator borrowed from the Treasury amounts determined torepresent RFC's net investment in the transferred programs andpaid these amounts to RFC. RFC, in turn, used the cash so providedto retire its notes to the Secretary of the Treasury in amounts equiva-lent to its net investment in the transferred programs. The amountsof RFC notes retired under these arrangements were as follows:

Under Reorganization Plan 22 of 1950 $1,127,776,840Under Reorganization Plan 23 of 1950 20,170,297

Total 1,147,947,137

Reorganization Plan No. 2 of 1954 was effective June 30, 1954.Under this plan, the functions of liquidating certain assets held byRFC were placed under the jurisdiction of other agencies responsiblefor similar continuing programs. The foreign loans and securitiesthen held by RFC were transferred to the Export-Import Bank ofWashington; the functions of RFC relating to loans to victims offloods and other catastrophes were transferred to the Small BusinessAdministration; and the functions relating to mortgages then heldby RFC which were made or acquired under the authorities of theRFC Mortgage Company and Defense Homes Corporation weretransferred to the Federal National Mortgage Association in theHousing and Home Finance Agency. In each case, a settlement wasarranged under which RFC's notes payable to the Secretary of theTreasury were transferred to the receiving agencies in the amount ofRFC's net investment in the transferred programs. The notes as-sumed by each of the three receiving agencies under ReorganizationPlan No. 2 of 1954 were as follows:

Federal National Mortgage Association $91,768,173Export-Import Bank of Washington IIIIIIIIIIIIIII . 42, 000,000Small Business Administration I I™III_™IIIII I I I I 13,550,160

Total U7f 318,333

Borrowinss From the Public

During the period from October 31,1933, to July 3,1943, the RFCsold to the public a total of 13 series of notes amounting to $3,072,-634,547. The last notes issued to the public were retired April 15,1944, from the proceeds of notes issued to the Secretary of the Treas-


FINANCING OF RFC

ury. Notes issued and outstanding to the public are shown in thefollowing table:

Notes Issued by RFC to the Public



1st.

3d..4th.

1st..2d._3d_.4th.

1st..,2d._3d...4th..

1st...2d.3d4th_...

3d. .4th.

1st..2d__3d..4th.

1st..2d..3d..4th.

1st-2d3d..4th-

lst-,2d..3d..4th..

1st...2d._3 d -4th..

1st...,2d

1933

1934

1935

$180,025,854

181,271,5268,000,000

16,250,0003,372,000

66,195,600332,500

3,852,500149,507,167

125,00016,045,000

120,000

$134,481,0631,645

5,100,000

64,093,0002,000,0001,050,000

149,621,667

1,000,00016,000,000

1937

1938

1939

1940

1941

360,0005,050,000

125,366,0001,150,000

1,473,5001,026,000

211,660,000297,339,000

310,390,000600,000100,000

276,268,000

100,000200,000200,000200,000

200,000644,492,000671,463,000

25,000

900,0001,000,000

84,478,000

899,600

"298,*892,"667

180,000

1942

211,460,000299,839,000

310,090,000272,320,0003,648,000

319,895,000

1943

324,397,000

1944

571,363,000

$180,025,854

226,816,312234,814,667245,964,667249,336,667

251,439,167249,771,667252,674,167252,459,667

251,684,667251,629,667251,749,667251,724,667

251,184,667255,234,667296,122,667297,272,667

298,746,167298,872,667510,532,667608,979,000

819,189,000819,689,000819,789,000

1,096,057,000

1,096,157,0001,096,357,0001,096,557,0001,096,757,000

1,096,957,0001,741,449,0002,101,452,0001,801,613,000

1,491,523,0001,219,203.0001,215,655,000

895,760,000

895,760,000895,760,000671,363,000671,363,000

671,363,000

Total. 3,072,634,647 3,072,634,547

At the end of March and September 1940, and again at the close ofSeptember 1941, amounts outstanding in notes issued to the publicrepresented all borrowed funds used to finance RFC's operations.

41



Many of the notes sold by RFC to the public were taken by bants,trust companies, and similar institutions from which KFC had pur-chased preferred stock, capital notes, or debentures. In some in-stances, the KFC notes held by these institutions were retired bycrediting the amount of the notes against the principal amounts ofloans made to the same institutions.

The first notes issued by RFC outside of the Treasury were givenin payment for newly mined domestic gold or gold bullion from for-eign sources. This action was related to the moves then being madeto devalue the dollar and establish a Government market for gold.The notes were issued from October 1933 to January 1934, and allmatured on February 1, 1934. Interest rates on the notes rangedfrom *4 to 1% percent, discounted. The effective rate on the $134,-482,713 issued was 0.52 percent. Under this program, RFC acquired695,027 ounces of domestic gold for $23,363,754, and 3,418,993 ouncesof foreign gold for $111,037,196. The discount taken by RFC in ex-changing its notes for this gold was $81,763. The gold which RFCtook in exchange for these notes was turned over to the Treasury forcash and the notes retired at their maturity.

The other 12 issues of notes sold by RFC to the public maturedin from 1 to 3 years from the date of issue. Nominal interest rateson these issues ranged from % to 3 percent; effective interest ratesvaried according to whether the issues were sold at par or for apremium. The amount received in excess of par for the five issueswhich sold at a premium was $1,483,524. The average rates of inter-est paid by RFC on its borrowings from the public were as follows:

Percent1933 0.905

1934 2.065

1935 2.187

1936 IJIIIII ™ I 1.7141937 _ 1.567

1938 _ ! . 237

1939 ~ " t 9 3 2

1940 ~ ~ " _ #906

1941 *92l

1942 ~ 1.020

1943 t 047

1944 II"~IIIIII~III~I 1.000Retained Earnings

Prior to June 30,1948, there were no statutory provisions whichcalled for RFC to relinquish any earnings which had accrued fromits operations. Those earnings were held by the Corporation andwere available for the financing of its operations. Under the pro-visions of Public Law 864, 80th Congress, the RFC was required to


FINANCING OF RFC

pay as a dividend to the Treasury that amount by which its accumu-lated net income exceeded $250 million, after reasonable reserves forlosses. The first dividend payment under this act was $307,391,555which was paid in December 1948, based upon the Corporation's ac-cumulated net income of $557,391,555 through June 30, 1948. Divi-dends paid from accumulated net earnings in excess of $250 millionin years subsequent to 1948 were as follows:

1049 $1,345,1851950 18,6T4,0051951 16,345,8121952 12,293,8801953

1954 34,288,019

After the program for liquidation of the Corporation was under-way, considerable amounts of cash were realized from liquidation ofthe Corporation's assets. There being no reasons to hold this cashin amounts exceeding estimated future requirements, the excess wasreturned to the Treasury and the Corporation's retained earnings re-duced accordingly. The amounts of accumulated net earnings held byRFC at the close of fiscal years 1955 through 1957 were as follows:

1955 $163,216,7421956 26,193,7881957 33,744,065

At various times throughout its existence, the RFC also utilized inits lending activities funds held by the Corporation for various otherprograms. The principal amounts so utilized were the profits of theWar Damage Corporation; the proceeds from liquidation of the as-sets of the Smaller War Plants Corporation; proceeds realized fromthe assets of the national defense, war, and reconversion programs;and profits from the sale by RFC of securities purchased from theFederal Emergency Administrator of Public Works (later PublicWorks Administrator). All funds so utilized by RFC had been paidover to the Treasury before final liquidation of the Corporation.

43



RFCs Lending Functions—Summary

The RFC authorized a total of $46,468,722,698 for allocations,loans, and other investments during the period from February 2,1932, to September 28, 1953. That total does not include the loans,advances, contract authorizations, and purchases authorized by sub-sidiaries of the RFC and financed with funds secured from the parentorganization. The total is made up of three main categories, asfollows:

Amount authorizedLoans and investments made at the discretion of RFCs

management $38,541,174,998Loans and aUocations to other Government agencies tinder

congressional directives 7,235,248,449Securities purchased from Federal Emergency Administrator

of Public Works (later Public Works Administrator) .- 692,299,251

Total 46,468,722, 698

In fulfilling its commitments under these authorizations, the Cor-poration disbursed a total of $40,632,648,806, of which amount $40,-555,894,138 was disbursed prior to September 28, 1953, when theprogram for liquidation of the Corporation's assets began as providedby the RFC liquidation Act.

Recoveries of amounts disbursed, in the form of principal repay-ments, note cancellations, and foreclosures amounted to $39,881,414,-031 through September 28,1953.

Amounts authorized, canceled or withdrawn, disbursed, recovered,and outstanding for quarter-year periods from 1932 through Septem-ber 28,1953, are shown in the following table:

Summary of Loans, Investments, Security Purchases, Allocations, and other Authoriza-tions

Year and quarter

13321st2d3d. . . .4 th : : : : . : : : : : : : : : " : : :

1st «. „2d :„.::::.„3d : : „4th

Authorized

$283,934,132851,475 940523,483,618409,904,881

806,669,1281,476,153,389

303,608,6101,340,357,666

Feb. 2,1932-Sepl

Canceled orwithdrawn

$174,40010,047,60434,387,78625,117,894

97,234,95479,549,05842,795,95534,170,978

\ 28,1953

Disbursed

$242,446,308637,803,699389,451,559357,965,572

543,827,758530,943,433388,349,470902,773,528

Repaymentsand otherreductions

$8,892,72872,134,708

114,751,307104,169,706

124,237,998181,670,234248,204,011188,460,882

Outstanding

$233,553,580799,222,571

1,073,922,8231,327,718,689

1,747,308,4492,096,681,6482,236,727,107? 951,039,753



Summary of Loans, Investments, Security Purchases, Allocations, and Other Authoriza-tions—Continued

Year and quarter AuthorizedCanceled orwithdrawn Disbursed

Repaymentsand other.reductions

Outstanding

1st... . .2d"; :3d-. ..4th.

1st.2d3d4th

1st2d_3d. . . „4th. .

1st2 d " "3d4th

1st2d3d4th

1st.2d3d4th

1st2d3d4th

1st2d._3d4th

1st2d3d4th

1st2d3d4th

1st . .2d3d4th

1st2d3d4th

1st2d3d4th

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

1945

1946

$734,961,565468,544,297

878,255,063

164,049,957253,660,388312,543,568773,012,035

298,403,653287,127,008265,566,84470,739,941

51,051,465209,242,303332,396,758169,769,757

104,921,843183,605,062233,364,311212,922,268

160,581,66786,105,85174,050,03397,918,829

126,361,600336,500,855432,885,507529,662.848

713,079,220330,501,672

1,584,0115991,110,343,744

1,182,530,212681,630,871

1,376,705.9491,177,164,678

2,144,495,2691,289,270 7581,703,34<0851,823^ OS, 681

1,609,984,0601,461,666,4611,398,982) 240

1,648,540,2631,641,731,071

776,010,273

$95,690,63767,791,093

217,977,13279,207,046

34,835,08853,884,34521,807,595

110,634,728

65,548,26716,906,625

117,349,41222,457,610

125,891,57623,660,072

336,300,548110,055,697

8,935,29323,879,856

310,768,59415,988,869

23,466,87033,214,26027,010,84921,684,549

19,781,41115,930,29925,422,60812,646,097

12,246,73414,062,94040,634,063114,078,680

17,056,46829,913,05565,321,418

158,78^995

59,005,896126,634,7223184i;084

39,266,20752,407,09162,618,424

111205; 216; 415239,921,425370,741182

-,—>,301141,914,62646,40<901

79,857,68573,152,08243,108; 45049,792,653

$992,333,107544,167,766511,397,624765,461,329

248,130,865280,531,375348,908,206480,234,648

395,716,483213,747,477123,994,566102,194,718

103,889,70881,523,352

180,404,678

114,133,979106,184,371106,051,468189,738,983

75,819,285185,311,32897,869,44675,183,484

111,207,188110,722,660120,458,803166,145,611

433,676,588457,531,027463,006,430697,691,127

820,035,8581,036,102,085l,194,3lf,1961,

1,645,511,6041,722,562,6361,742,70^7841,592,021,961

1,487,563,3981,573,025,3451,54929^0261,606,722,435

1,400,607,4252,069,473,662311904;261,904;261372,922,694

166,192,347165,836,036125,79?, 439158,625,956

$260,215,400225,495,635651,065,602267,204,351

245,366,638165,841,617173,594,166215,049,266

272,850,532360,402,141327,735,023176.314,526

173,898,252103,679,424155,773,14659,540,042

2,748,788,456186,569,491123,811,18986,073,643

111,081,909229,284,87759,475,368105,394,673

99,130,547107,659,557116,970,65959,635,225

87,275,901172,363,327109,653,223285,199,586

351,551,865270,463,311685,785,984775,126,382

821,927,001969,378,081871,852,992872,456,847

942,851,5331,185,322,1161,325,264,5771,399,817,952

1,606,072,2532,085,271,6838,167,423,157300,379,092

314,264,660416,762,231239,691,824108,730,838

$3,683,157,4604,001,829,5913,862,161.7134,360,418,691

4,363,182,9184,477,872,6764,653,186,716i, 918,372,098

5,041,238,0494,894,583,3854,690,842,9284,616,723,120

4,546,714,5764,524,558,5044,457,010,2X84,577,874,854

1.943,220,3771,862,835,2571,845,075,536[, 948,740,876

,913,478,252,869,504,703,907,898,7811877,687,592

1,889,764,2331,892,827,3261896,315,470£ 002; 825,856

2,349,226,5432 634 394,2432^987 747,4503, 400; 238,991

3,868,722,9844 634,362,6585,142,887,8705,8

7 403,812,8088 274 661,6008 9 H 226714

9 926,641,80810,150,670,15710; 357,674,640

2,205,264,2841954 348,089

SfififfiS


RFC'S LENDING FUNCTIONS—SUMMARY

Summary of Loans, Investments, Security Purchases, Allocations, and Other Authoriza-tions—Continued

Year and quarter

1st..2d..3d..4th.

1947

1st2d3d4th_.__,

1948

1st2d3d4th.__

1949

1st....2d._..3d....4th...

1950

1st2d4th.

1951

1st....,2d_.__.3d4th....

1952

1st..2d..3d..

1953

Undistributed ex-penses

Total

Authorized

$374,764,605

68,536,666206,108,139

43,331,2001,178,965,091

118,818,831178,287,010

227,139,5101,290,709,535

345,242,533319,146,886

303,749,143188,386,123153,943,14572,900,682

134,622,81252,493,67341,600,70423,142,010

36,406,81571,691,31329,226,55724,652,786

26,603,08012,268,3134,335,739

56,996,068

46,468,722,698


$150,692,300211,284,840440,947,03464,617,039

59,212,684242,202,49839,461,00038,244,441

39,321,79959,361,67239,251,88950,677,102

63,546,00458,681,47668,464,01644,646,458

60,308,91479,586,15860,839,67322,042,160

16,802,60013,815,80921,034,814

13,279,83018,890,73811,630,972

934

5,802,609,347

Disbursed

$145,062,739711,261,69672,642,19873,306,196

40,882,4991,174,387,691

112,866,050129,323,927

160,910,4661,229,733,836

242,944,455260,679,726

253,551,600167,801,965151,863,70646,487,396

49,949,35062,019,43533,486,49425,676,470

16,581,35215,600,468

54,406,846

29,829,75930,141,77818,030,641

56,995,134

40,656,894,138


$152,122,706501,161,810886,552,85247,074,145

44,205,4191,316,836,716

44,341,09745,896,875

36,409,839182,143,22645,394,592

1,065,537,172

57,198,658141,082,631

1,200,780,510170,127,920

60,638,94172,670,33473,589,24261,375,604

66,869,77979,198,967

42,895,032

43,107,08542,282,92335,456,794

56,995,134

30,881,414,031

Outstanding

$1,883,282,8552,093,382,7411,279,372,0871,305,604,138

1,302,281,2181,159,832,1931,228,357,1461,311,784,198

1,436,284,8152,483,875,4252,681,425,2881,876,567,842

2,072,920,8842,089,640,3181,040,713,514

917,072,990

906,383,399895,732,600855,629,752819,930,613

770,642,191707,043,692705,812,917717,324,731

704,047,405691,906,260674,480,107

674,480,107

d J s t r I b u t e d expenses included in the above table consist of $23,818,648 authorized and $23,817,714SJfJ . f?d for administrative expenses of other Government agencies and $33,177,420 authorized and dia-JST« o r "Merest expenses on borrowed funds, all in connection with loans and allocations made to otherGovernment agencies at the direction of the Congress. The notes which KFC had issued to obtain the

The amount of outstanding loans and investments dropped $7.8billion between the second and third quarters of 1945. This wasoccasioned by the manner in which EFC treated its investments in thewartime subsidiaries which were merged with EFC under the pro-visions of the act approved June 30, 1945. At that time, EFC's in-vestment in the merged subsidiaries consisted of capital stock andloans amounting to $7.6 billion. In the merger, EFC received theremaining assets of the merged corporations, but the original invest-ments were treated as "other reductions" or, in effect "charged off."These transactions were recognized by the Congress in the act ap-proved June 30,1948, which canceled the notes which EFC had issuedto the Secretary of the Treasury in an amount representing the un-recovered costs of EFC's national defense, war, and reconversionactivities.



There was $38,541,174,998 authorized for loans and investments atthe discretion of EFC's management. The composition of theseauthorizations was as follows:

Loans to and investments In financial institutionsLoans to business enterprises —Loans to agricultural financing institutionsLoans to railroads - . „,_.,...-,..Loans to and investments in public agenciesInvestments In RFC mortgage loan subsidiaries"Loans to foreign governments ,Investments in Government agencies. _Other loans and investments.Investments in RFO's wartime subsidiaries

Total

Amountauthorized

$4,815,324,6975,153,294,8152,454,133,4301,059,867,7871,024,203,8921,831,551,598

495,000,000391,991,00097,507,778

21,218,300,001

38,541,174,998

Disbursements toSept. 28,1953

$3,906,201,6812,637,329,6901,452,502,107

938,440,875793,600,115

1,778,093,357460,000,000391,933,00077,098,982

20,877,617,233

33,312,817,040

Summary Table S-l in appendix C is a distribution of amountsauthorized, canceled or withdrawn, disbursed, recovered, and out-standing for quarter-year periods from 1932 through September 28,1953.

During the first 3 years of its existence, KFC's activity in loansand investments was concentrated in providing assistance to financialinstitutions, railroads, and agencies providing financial assistance toagriculture. Beginning in 1935, activity in connection with financialinstitutions was greatly diminished, and that related to business enter-prises, mortgage loans, and public agencies, took over greater relativeimportance. These relationships are illustrated in the chart below:

LOANS AND INVESTMENTS AUTHORIZED, 1932-1939

DOLLARSBillions

! • -

48

ill!111!

*~ Other (Primarily Business Enterprises_ and Public Agencies)

^Railroads

m Agricultural Financing Institutions

Financial Institutions

J IMP

:;;;:;;;;:;;;:1932 34 "35 '36 '37 * ~V38 "39


HFC'S LENDING FUNCTIONS—SUMMARY

During the period from 1940 through 1945, the Corporation's in-vestments in its wartime activities overshadowed all other types oflending and investment functions. During this period, more than 80percent of all amounts authorized were to the wartime subsidiaries.Loans to business enterprises made up the bulk of the remainingamounts authorized during this period. The chart below shows therelationship of investments in wartime subsidiaries to other activitiesfrom 1940 through 1945.


DOLLARSBillions

6 *

1940

Following World War II , EFC's lending and investment activitieswere largely in the fields of business loans and residential mortgages.Mortgage activity was greatest during 1949 and 1950. The peak ofbusiness loan authorizations was reached in 1949; thereafter there wasa steady decline until the Corporation's lending authority was termi-



nated in 1953. The nature of the Corporation's lending activityafter 1945 is shown in the chart below:


DOLLARSBillions

1946

Activity in connection with the $7.2 billion which was authorizedat the direction of the Congress for allocations and loans to otherGovernment agencies was concentrated in the years prior to 1937,and during 1948 and 1949. However, from inception of the Cor-poration until 1947 there were at all times amounts outstanding as theresult of these transactions. Details on the loans and allocationsmade by RFC under congressional directives will be found in thisreport beginning on page 151.

Purchases of securities from Federal Emergency Administratorof Public Works (later Public Works Administrator) were made byRFC from 1935 to 1941. Such purchases amounted to nearly $700million. Although the purchase of these securities was substantiallycompleted before the end of 1940, realizations on this investmentcontinued over a protracted period and some of these securities werestill outstanding when RFC was abolished in June 1957. Detailson RFC's purchases of securities from FERA (PWA) will be foundin this report beginning on page 149.


Financial Institutions

"To provide emergency financing facilities for financial institu-tions" was the first of the purposes stated in the original EFC Act.Immediately upon organization, the Corporation began to operate asa secondary source of credit to aid in the stabilization of the Nation'sfinancial institutions.

The methods through which EFC aid was extended to financialinstitutions included loans, subscriptions for preferred stock, andpurchases of capital notes or debentures. The extent of financialassistance provided to the various types of financial institutions isshown in the following table (as used in this section of this report,the term "financial institutions" does not include the agriculturalfinancing institutions discussed beginning on p. 87, since most of thesewere either Government or quasi-Government institutions):

Authorized Disbursed

Banks and trust companies..— ; e l o a n companies....

Building and loan associations.insurance companiesCredit unions™

$3,081,365,688404,636,731178,989,660169,689,750

642,968

$3,265,450,7313H1«5763H«,140,158,068145,843,210

600,096

Total.. 4,815,324,697 3,906,201,681

More than three-f ourths of the total disbursed to financial institu-tions was paid out during the first 2 ^ years of the Corporation'sexistence. Activity in this field continued at a slackening rate until1945. When the Corporation began its liquidation in the fall of 1953,there was still $44.6 million outstanding in these loans and invest-ments. (See table FI-1 in app.C:)

Banks and Trust CompaniesBy far the largest group of loans and other investments in financial

institutions were in banks and trust companies* Under the provisionsof section 5 of the original EFC Act, the Corporation was authorizedto make loans to banks, savings banks, and trust companies, includingloans secured by the assets of banks which were closed or in processof liquidation. The purpose of this latter provision was to aid in thereorganization or liquidation of such banks, and such aid was limitedto $200 million.

The original act also required that loans to banks and trust com-panies be "fully and adequately secured" and could be made for periodsnot exceeding 3 years, with provision for extensions or renewals upto 5 years. Loans made to any one corporation could not exceed



5 percent of RFC's authorized capital stock and borrowing authority.This limitation was later reduced to 2% percent by the act approvedJuly 21,1932. By an amendment approved June 19,1934, loans withmaturities of 5 years were permitted, and, by another amendmentapproved January 31, 1935, the maturity limitation was changedto a deadline of January 31,1945. This deadline was again extendedto January 31,1955, by the act approved June 25,1940.

In the Emergency Bank Act, approved March 9,1933, it was pro-vided that the RFC could subscribe for the preferred stock of anynational banking association or any State bank or trust companywhich, in the opinion of the Secretary of the Treasury, was in need ofcapital funds for organization or reorganization. This act also author-ized the RFC to make loans secured by the preferred stock of baiiksand trust companies. By an amendment approved March 24, 1933,the authority of RFC to subscribe for the preferred stock of banksand trust companies was limited to instances wherein such stock wasnonassessable. To provide assistance in cases where State laws mightprevent the issuance of nonassessable preferred stock, this amendmentauthorized RFC to purchase the capital notes or debentures of Statebanks and trust companies.

The Corporation's authority to subscribe for or purchase the pre-ferred stock, capital notes, and debentures of banks and trust com-panies expired on June 30, 1947, when the applicable provision ofthe Emergency Bank Act was repealed. On that same date, the earlierauthorities of RFC relating to banks and other jBnancial institutionswere extended by a new section 4, which gave the Corporation au-thority "to make loans to any financial institution organized under thelaws of any State or of the United States." Although banks and trustcompanies were eligible for loans under the amended authority, itwas definitely understood that, with respect to banks and trust com-panies, such power was intended for use in emergencies only, and noloans to banks and trust companies were authorized by RFC tinder thisamendment.

The loans to and investments in banks and trust companies by theRFC are summarized below:


Loans to banks and trust companies, sec. 5Loans on assets of closed banks and trust companies, sec. 5(e)TViand ft-n nratavfii* *+««.*- - * 1 1— — -11 * — •

unui) uu m»«b3 ui ciosea oanss ana trust companies, sec. 5(e)Loans on preferred stock of banks and trust, mYnnnnf a»Subscriptions forPurchases of capital notes and debentures.

Total..

$2,516,821,790118,332,22952,746,026859,592,768433,872,875 343', 261,875

3,081,365,688 3,265,450,731

Activity, by quarters, for loans to and investments in banks andtrust companies is summarized in table FI-2 in appendix O.


FINANCIAL INSTITUTIONS

Loans to Banks and Trust Companies

Under the authority of section 5 of the RFC Act, as amended, theCorporation authorized a total of 15,409 loans to more than 7,300banks and trust companies. The amount of the authorizations was$2,516,821,790, and disbursements on these amounted to $2,027,447,405.Most of the activity in this category occurred prior to 1941. (Seetable FI-2 in app. C.) Loans were made in all 48 States, and inthe District of Columbia, Alaska, Hawaii, and Puerto Rico. Thedistribution of the loans among the States is shown in the followingtable, as of June 30, 1940 (data for activity subsequent to that datecannot readily be distributed by States; however, the data showncover about 98 percent of the amounts authorized):

Loans to Banks and Trust Companies as of June 3 0 , 1 9 4 0

Number ofauthoriza-

tions

31439

312424128783

10315028098

1,26450787129738037211715210581254925762499

4433218

37827

425241154504299226

1,1257

1172524335039486

23437830073041227

15,393

Number oJborrowers

13816

15615972303

2511014650

610276494165179132337748

32827912931452

1779

1314914

19211877

26412780

5292

531221982395537

116147138444

17225

7,347

Amountauthorized

$12,946,0662,061,300

26,690,006126,234,475

5,338,99318,493,218

257,00030,875,0018,926,298

11,773,6803,659,857

218,972,70147,932,77462,920,3658,864,529

20,780,858118,954,40861,827,13462,344,39442,933,700

414,348,93513,749,67918,463,25962,967,0033,120,9877,841,8496,503,7261,794,000

80,847,8921,513,773

118,732,29337,981,1877,649,285

285,393,9004,691,8759,372,881

219,117,1601,911,856

21,579,4465,140,917

73,117,43131,498,4758,261,388

11,314,09720,315,80932,467,51025,089,35641,720,9911,486,574

100,000850,000

2,703,000

2,464,438,291

Amountdisbursed

$9,313,2241,874,252

20,926,437117,702,098

4,209,80116,243,658

249,00027,852,4654,986,1159,340,0632,902,146

184,487,39938,190,96354,399,4516,964,554

17,329,38986,786,56053,946,88053,419,46936,812,320

320,163,78510,240,94215,847,63140,838,0852,715,1136,391,9856,101,1321,437,860

69,902,114974,354

97,791,90928,179,9296,609,404

22*, 314,8473,227,9027,751,202

166,602,1031,651,695

18,861,4094,044,803

66,660,78526,441,6035,828,4559,095,807

16,941,25720,773,84221,404,35531,393,8111,196,533

100,000835,897845,306

1,983,102,099

AlabamaArizonaArkansasCalifornia. „Colorado "ConnecticutDelaware ,District of ColumbiaFlorida "GeorgiaIdaho.Illinois " " " " *Indiana...11 ----Iowa..Kentucky.LouisianaMaineMaryland."!MassachusettsMichiganMinnesotaMississippi

MMontana_mNebraskaNevadaNew HampshireNew J e r ~

Wofc::North CarolinaNorth Dakota ""Ohio _" "OklahomaOregon 11.111PennsylvaniaRhode IslandSouth CarolinaSouth Dakota. "TexasUtah I "VermontVirginia..WashingWest ViiOMWWisconsin... . .WyomingAlaska H .HawaiiPuerto Rico—.

Tota l . . . .



Included in the loans made to banks and trust companies under sec-tion 5 of the EFC Act, as amended, were 10,592 authorizations madeto open banks and 4,817 made to conservators, receivers, or liquidat-ing agents to aid in the reorganization or liquidation of closed banks.The table below is a summary of the loans made to banks and trustcompanies under section 5, according to the nature of the loans:

Loans to Banks and Trust Companies Under Sec.

Loans to open banks

NationalState

Loans to doied banks, to aid in reorganization or liquidation.

Conservators—national and B.CConservators—State...Receivers—national and D.CReceivers—State.Liquidating agents—nationalLiquidating agents—State

Total

5 of the RFC Act, as Amended

Number ofauthoriza-

tions

10,592

2,2248,368

4,817

19738

2,9151,631

927

15,409

Number ofinstitutions

4,922

8134,109

2,421

18119

9551,233

924

7,343

Amount author-ized

$1,335,047,661

360,439,541974,608,120

1,181,774,129

129,813,20433,030,264

537,738,731464,603,94710,028,6646,559,319

2,516,821,790

All of the loans made to open banks had been liquidated prior tothe close of 1947. Repayments on the $1,138,366,280 disbursedamounted to $1,116,918,900; the remaining $21,447,380 had beencharged off. Of the total amount charged off on loans to open banks,$1,262,600 was in connection with loans to national banks, and$20,184,780 was in connection with loans to State banks.

Disbursements on loans to aid in the reorganization or liquidationof closed banks amounted to $889,081,125. Of this, $885,384,197 hadbeen repaid and $2,868,386 charged off prior to December 81,1947. Atthat date, the outstanding balance in this category of loans was$828,542.

Loons on the Assets of Closed Banks Under Section 5(e)

By an act approved June 16,1934, the Corporation was authorizedto make loans upon or purchase the assets of any bank, savings bank,or trust company which had been closed during the period fromDecember 31,1929, to January 1,1934. This authority differed fromthat granted in section 5 of the original act primarily in that theCorporation was directed to appraise the assets in anticipation of anorderly liquidation over a period of years rather than on the basisof forced selling values. The RFC did authorize loans amounting to$118,332,229 under this authority, but the authority to purchase theassets of closed banks was never used. The loans made on the assetsof closed banks are summarized in table FI-4 in appendix C.



Loans on the assets of closed banks were made in a total of 24States. Of the total amount disbursed, more than 90 percent was inOhio and Michigan, as shown in the following table:

Loans on

ArkansasCaliforniaColoradoFloridaIllinois .IndianaIowa _.KansasMichiganMinneapolisMissouriNebraska- _Nevada

the Assets of Closed Banks Under Sec. 5(e) of the RFC Act

Authorized

$793,03435,90210,0601,100

680,68526,600

105,00224,500

42,022,393139,84714,500

253,9526,000

Disbursed

$729,99035,3937,2381,100

604,63522,50075,45513,392

33,623,73493,00214,500

187,529

New York -North Carolina . .North DakotaOhioOklahoma ..PennsylvaniaSouth CarolinaSouth DakotaTexasWashingtonWisconsin

Total

Authorized

$16,92315,005

563,59470,465,493

8,800268,000

2,192,500317,675194,05375,000

101,721

118,332,229

Disbursed

$14,23215,005

523,79628,802,648

8,372265,045

1,992,747229,667101,87360,68715,574

67,438,014

Almost all of the loans made under the authority of section 5(e)of the RFC Act had been liquidated prior to December 31,1947. Tothat date, out of $67,438,014 disbursed, $67,344,566 had been repaidand only $74,221 charged off. The amount which was outstandingon December 31,1947, was $19,227.

Loans on the Preferred Stock of Banks and Trust CompaniesUnder the Emergency Bank Act, approved March 9, 1933, the

Corporation was authorized to make loans secured by the preferredstock of any bank or trust company which, in the opinion of theSecretary of the Treasury, was in need of funds for capital purposesfor organization or reorganization.

The RFC authorized 1,122 loans to 274 borrowers under this au-thority. The loans authorized amounted to $52,746,026, againstwhich $45,096,801 was disbursed. (See table FI-5 in app. C.) Theamounts disbursed on these loans were completely liquidated beforeJune 30, 1948. The amounts charged off totaled approximately$1,800,000.

Subscriptions for the Preferred Stock of Banks and Trust CompaniesThe Emergency Bank Act also authorized the RFC to subscribe for

the preferred stock of any bank or trust company which, in theopinion of the Secretary of the Treasury, was in need of capital fundsfor organization or reorganization. By an amendment approvedabout 2 weeks after the Emergency Bank Act, subscriptions for pre-ferred stock were limited to instances in which the preferred stockwas exempt from double liability.

Beginning in March 1933, and continuing until 1945, the RFCauthorized 4,480 subscriptions for the nonassessable preferred stockof 4,202 banks and trust companies. The amount authorized to be



subscribed was $859,592,768; the amount disbursed for the purchaseof such stock was $782,206,636. (See table FI-6 in app. C.) OnDecember 31, 1947, there was still outstanding $118,317,931 in thispreferred stock. To that date, liquidation of amounts disbursed in-cluded $657,578,063 received in retirements, and $6,310,642 chargedoff.

Purchase of Capital Notes and Debentures of Banks and Trust CompaniesThe amendment to the Emergency Bank Act approved March 24,

1933, authorized the RFC to purchase the capital notes of banks andtrust companies located in States whose laws prevented the issuanceof nonassessable preferred stock. As with loans on and subscrip-tions for preferred stock, the purchase of bank and trust companycapital notes and debentures by RFC was subject to the requirementthat the institutions concerned were in need of capital funds for or-ganization or reorganization in the opinion of the Secretary of theTreasury.

The Corporation authorized the purchase of the capital notes ordebentures of 2,913 institutions. The amount authorized to be pur-chased was $433,872,875; disbursements on these authorizationstotaled $343,261,875, and were completed in 1941. (See table FI-Tin app. C.) Through 1947, there had been repaid $312,876,368, and$3,166,790 of the amount invested had been charged off.

Approximately one-half of all amounts disbursed by RFC on thepurchase of capital notes and debentures of banks and trust com-panies was in connection with such purchases from institutionslocated in the State of New York.

State Distribution of Loans and Purchases Under the Emergency Bank Act

The records of the RFC do not contain a precise statement of thedistribution by States of activity under the authorities of the Emer-gency Bank Act (loans on and subscriptions for preferred stock, andpurchases of capital notes or debentures of banks and trust com-panies).^ There are many instances where all three types of au-thorization were made in a single State, and some instiutions weregranted more than one type of authorization. Since the activityunder the Emergency Bank Act made up a significant portion of theaid furnished to banks and trust companies, it has been considereddesirable to present here some statement of how this was distributedamong the States. Accordingly, there is shown below the distribu-tion, by State, of activity under the Emergency Bank Act as re-ported to December 31,1940. The number of institutions is reportedto be net, after elimination of instances where more than one typeof authorization was made to the same institution. The amount



shown as "unallocated" is that necessary to reconcile to the totalsfor these activities shown above, and is less than 1 percent of the totalamount.

Loans on and Subscriptions for Preferred Stock, and Purchases of Capital Notes orDebentures, of Banks and Trust Companies

Alabama . . . . . . . . . . . . . . . . . .Arizona . . . . » . .Arkansas . . . . .California . . . . . . . . . . . . . . . . . . . . . . . . .Colorado .Connecticut _Dataware. . . . . . . . . . . . . . . „ . . . . . . . . . . .District of CoinmMft. , . .„ „. ,.Florida.Georgia

Illinois. . . .Indiana . . . . .„Iowa . . .

KentuckyLouisiana . . . . .MaineMaryland . .MassachusettsMich igan . . . . . . . . . . . . . . .Minneapolis „MississippiMissouri. ... .Montana .Nebraska . . . . . . . . .Nevada . . . . .New HampshireNew Jersey. . .New Mexico . . . . . . .New York .

Nor thDako ta . . . . . . .OhioOklahomaOregon . . . . . . . . . . .Pennsylvania . . . -Ehode IslandSouth Carolina.. . . . .South Dakota . . . .Tennessee. . . . . *Texas . .

Vermont . . .—Virginia.Washington. . . . . . . . . . *West VirginiaWisconsin .Wyoming . . . . . . . -Alaska!!?. . . . "Puerto Rico . — — -Virgin Islands".. . . M

T o t a l . . . -

Number ofinstitu-

tions

786

1271385942148

469528

254308153221136120416876

20528215925360

161

1624822

5321411414355256

3764

4112813344344

16311295

45425131

6,868

Amount au-thorized

$16,493,2002,455,0005,365,500

108,423.0705,040,0008,609,8002,680,0005,200,0002,332,2006,897, COO2,335,000

95,044,50018,839,25012,665,0006,049,250

11,382,60016,607,00011,173,00011,808,13020,031,00043,965,10018,386,12515,718,15025,923,3004,214,0009,608,300

205,0001,398,000

106,101,8001,077,500

413,006,2008,182,5004,534,500

100,565,76411,301,0002,300,000

56,306,8501,100,0002,946,8004,522,100

14,221,55036,594,7504,360,000

17 90*1 ftfYt12,788,0008,246,500R OOA nnn

38,313,5001,687,500

37,5001,500,000

251,0004,121,480

1,346,211,669

Amount dis-bursed

$16,203,5752,430,0004,419,000

96,029,2254,893,5007,192,126

567,3002,900,0002,201,2004,835,5002,130,000

91,731,11416,966,25010,263,0006,272,7509,079,850

15,547,0009,125,5009,348,170

16,674,20040,725,26117,378,52514,663,15021,034,9254,030,6008,623,050

205,000786,635

96,461,516715,000

336,920,6597,488,5004,044,500

93,432,23710,944,0001,950,000

46,010,097898,500

2,786,8004,438,100

12,599,05031,404,1254,045,000

17 295 00010,694,6506,614,500A lAi 067

33,585,6001,367,500

37,5001,250,000

125,0003,840,105

1,170,565,312

Mortgage Loan Companies

Loans to mortgage loan companies were specifically authorized tobe made by RFC under the provisions of section 5 of the original RFCAct Under this authority, the Corporation authorized 737 loans to432 mortgage loan companies. The first of these loans was made in1932, and activity continued into 194L (See table FI-8 in app. C.)



The amount of loans authorized was $494,636,731, against which$354,149,576 was disbursed.

Some of the loans authorized to mortgage loan companies were forrelending to business enterprises and others were to assist in the re-organization or liquidation of closed banks. According to purpose,the loans authorized to mortgage loan companies were as follows:

For relending to business enterprisesTo aid in reorganization or liquidation of closed banks. . .Other

Total

Number ofauthoriza-

tions

163217357

737

Amountauthorized

$16,422,275122,299,024355,915,432

494.636,731

Amountdisbursed

$5,701,835103,316,761245,130,080

354,149,576

The loans authorized to mortgage loan companies were widely dis-tributed among the States, but about one-half of the amounts disbursedwere in three States—California, New York, and Ohio. The Statedistribution of loans to mortgage loan companies is shown in the tablebelow:

Loans to Mortgage Loan Companies

Number ofauthoriza-

tions

Number ofborrowers

Amount author-ized

Amount dis-bursed

AlabamaArizonaArkansas.C lCalifomiaColorado ,ConnecticutDistrict of Columbia..,Florida ,Oeorgia ,IdahoIllinoisIndiana.Iowa III"!KansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinneapolisMississippi.MissouriMontanaNebraskaNevadaNew JerseyNew MexicoNew York INorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaSouth DakotaTennessee

UtahVirginiaWashingtonWest Virginia-.Wisconsin

Total.

1817

108468

213

471442

181

30649342

17184

385

54251

27189

263

34692

132638

~737

$2,417,760100,000

1,453,50069,742,4031,374,0001,675,0001,114,533

878,0331,811,9952,414,000

10,794,670220,000

2,773,550172,50092,500

6,483,5023,200,000

35,114,85328,667,64814,554,9623,102,500

517,4787,842,104

156,370695,225

1,732,50723,074,189

209,000146,022,300

5,718,95965,000

42,968,0484,879,6501,241,4206,550,5866,576,000

10,072,16622,888,3271,285,0005,939,922

11,483,21872,500

6,488,763

$1,670,420

1,120,67168,259,7431344,0961359,7571114,533782,313

1,328,1302 369,9764 533,440

197,492

50,00050 000

4,325,519

25,239,00925,141,890

'514,2784,578,525

156.168654,246

1,294.60116^737,980

149,000

*8*841,105,967

7,060,1261,844,738

20!07l!222

iSS4,646,377

154^149^76



By December 81, 1947, all except $38,696 of the $354,149,576 dis-bursed to mortgage loan companies had been repaid or liquidated.To that date, repayments amounted to $329,188,068, and principalamounts charged off totaled $24,961,508.

In July 1935, the RFC authorized the subscription of $2 million forthe capital stock of an Illinois mortgage company. In July 1936, the$2 million subscription was rescinded, and a subscription of $1,500,000authorized. In August 1936, the $1,500,000 subscription was rescinded,and a subscription of $1,250,000 authorized. The $1,250,000 subscrip-tion authorized was canceled in the fourth quarter of 1936, withoutany disbursements having been made.

In July 1936, $500,000 was authorized for a subscription to thecapital stock of a New York mortgage company. This authorizationwas rescinded in September 1937, and was not reauthorized. No dis-bursements were made.

Building and Loan Associations

Loans to building and loan associations were authorized under sec-tion 5 of the original RFC Act. Beginning in 1932, and continuinguntil 1944, the Corporation authorized 1,468 such loans to 1,183 asso-ciations. The amount of the loans authorized was $178,989,560, anddisbursements amounted to $140,158,068. All amounts advanced wererepaid in full before the close of 1945. (See table FI-9 in app. C.)

Data are not readily available on the distribution by States of loansto building and loan associations after June 30, 1940. However, theloans made to that date represent about 90 percent of the total, andthe State distribution up to that date was as follows:

Loans to

AlabamaArkansasCalifornia...Colorado „Connecticut . . .Georgia _IllinoisIndianaIowa'K&nsAsKentucky „ „Louisiana . „MarylandMichigan..MinnesotaMississippiMissouri wMontana ___„ . ...Nevada..New Jersey.New York. " _.North CarolinaNorth Dakota „Ohio

Building and Loan Associations as

Number ofauthoriza-

tions

34561181

7316152

163324245414

33936853

239

Number ofInstitu-

tions

32833

181

7016132

1626191634141

20924682

173

of June 30 ,1940

Amountauthorised

$111,0002,795,3789,990,135

110,000549,000

5,0003,988,9891,683,0001,132,800

100,0001,449,5003'?2'?SS2,628,1272,091,288

107,500103,500250,000313,60585,000

45,686,2939,267,1593,580,018

155,00052,178,835

Amountdisbursed

$110,1832,658,3639.448,057

106,737499,758

5,0003,686,0181,660,8211,107,690

45,5811,395,0123,182,9992,470,7521,869,793

104,27495,997

247,770235,53630,000

31,993,0987,306,0253,604,149

151,97729,631,211



Loam to Building and Loan Associations as of June 30,1940—Continued

Number ofauthoriza-

tions

Number ofinstitu-

tions

Amountauthorized

Amountdisbursed

Pennsylvania...South Carolina.South Dakota..,Tennessee. ,Texas ,UtahVirginia ,WashingtonWest Virginia..WisconsinWyoming .

Total

113 1081056

20195

16752

$5,528,1001,668,049

261,077290,000

1,718,16029,000

975,662849,000

1,626,0009,248,000

872,508

$5,206,9661,518,820

246,065289,595

1,612,734

950,611158,409

1,610,3198 784,788

1,339 1,097 164,700,533 122,657,242

By an act approved June 14,1933, the authority under which theseloans were made was amended so as to permit loans on the assets ofclosed building and loan associations. The amount of loans authorizedto receivers and liquidating agents of closed building and loan associa-tions was $86,231,796, of which $3,858,355 was disbursed and fullyrepaid.

Insurance Companies

Loans to insurance companies were authorized to be made undersection 5 of the original RFC Act. Such loans were to be "fully andadequately secured," were limited to maturities of 3 years, and couldnot be used to finance any new enterprise. This last restriction wasremoved by an act approved July 21,1932. Maturities up to 5 yearswere permitted by an amending act approved June 19, 1934. Lateramendments (1935 and 1940) extended possible maturities to dead-lines of January 31, 1945, and January 31, 1955, respectively.

By an act of June 10,1933, the Corporation was authorized to makeloans on or to subscribe for the preferred stock of insurance companies.In general, this Insurance Company Act followed the provisions ofthe Emergency Bank Act which authorized the RFC to make loans onor subscribe for the preferred stock of banks and trust companies. TheInsurance Company Act provided that "if, in the opinion of theSecretary of the Treasury, any insurance company of any State of theUnited States is in need of funds for capital purposes either inconnection with the organization of such company or otherwise, hemay, with the approval of the President, request the ReconstructionFinance Corporation to subscribe for preferred stock of any class,exempt from assessment or additional liability, in such insurancecompany, or to make loans secured by such stock as collateral * * * "

The Insurance Company Act contained some additional provisionsnot found in the Emergency Bank Act. These prohibited the sub-scription for, or purchase of, preferred stock (1) until the insurance60



company showed that it had unimpaired capital or that it wouldfurnish new, subordinate capital; (2) if any employees of thecompany received annual compensation in excess of $17,500; and (3)unless the company agreed not to increase salaries or to retire any ofits capital stock or debentures prior to retirement of RFC's holdings.There was a proviso to the first limitation that RFC might makeloans secured by preferred stock if it believed that the loan wasthereby adequately secured.

The act also gave RFC authority to lend on capital notes or deben-tures in cases where nonassessable preferred stock could not be issuedby insurance companies. This latter authority was never used.

The RFC loans to and investments in insurance companies underthe authorities cited above were as follows:

Sec. 5, RFC ActAct of June 10.1933:

Loans on preferred stock .Subscription for preferred stock

Total

Number ofauthoriza-

tions

209

13

228

Number ofborrowers

133

12

146

Amountauthorized

$104,439,760

65,150,000100,000

159,689,750

Amountdisbursed

$90,693,210

66,050,000100,000

145,843,210

The period of greatest activity in financing insurance companies wasduring the first 30 months of the Corporation's existence. However,such activity continued sporadically into 1949. (See table FI-10 inapp.C.)

Insurance Company Loans Under Section 5

There was no activity after 1938 in loans to insurance companiesmade under section 5 of the EFC Act, as amended. All outstandingamounts were liquidated in 1947. (See table FI-11 in app. C.) Outof $90,693,210 disbursed, $89,234,034 was repaid and $1,459,176 wascharged off as unrecoverable.

The distribution by State of loans to insurance companies under sec-tion 5 of the KFC Act was as follows:

Loans to Insurance Companies Under Sec. 5, RFC Act

AlabamaArkansasColoradoDistrict of ColumbiaFloridaIllinoisIndianaIowa „ .Kansas „ . . _Kentucky

Number ofauthoriza-

tions

64112

27102471

Number ofborrowers

34112

146

1371

Amountauthorized

$339,050435,00050,00075,00033,000

6,028,6004,498,0003,653,000

422,0001,000,000

Amountdisbursed

$297,750355,00050,00075,00033,000

5,932,4683,235,9793,550,709

334,017



Loans to Insurance Companies Under Sec. 5, RFC Aci—Continued

LouisianaMarylandMichiganMinneapolisMississippi

NebraskaNew JerseyNew YorkNorth Carolina-—North Dakota.—.Ohio •OklahomaPennsylvaniaSouth Carol ina-South DakotaTennesseeTexasVirginiaWest Virginia.—Wisconsin

Total-

Number ofauthoriza-

tions

Number ofborrowers

26

1623

14106

1772636314

12132

209

22

10216659524252139122

133

Amountauthorized

$1,270,00013,985,0004,816,914

28,500112,000

9,327,8922,399,150

902,00028,483,6001,932,500

74,50015,865,000

275,0001,816,225

504,00050,000

711,0004,170,732

385,196736,99160,000

104,439,750

Amountdisbursed

$1,248,05613,985,0004,207,519

22,500112,000

8,614,5751997,486

813,50027,397,2431,932,388

8,831,338273,050

1,071,900504,00050,000

676,8754,126,648

375,092460,62760,000

90,693,210

Insurance Company Financing Under the Act Approved June 10,1933

Although three types of financing were authorized under the In-surance Company Act—(1) loans on preferred stock, (2) subscriptionsfor preferred stock, and (3) loans on capital notes or debenturesalmost all activity was in the form of loans on preferred stock. In onlyone instance was preferred stock purchased, and there were no loansmade on capital notes or debentures. The periods in which the activityoccurred are shown in table FI-12 in appendix C.

The one instance wherein RFC subscribed for the preferred stock ofan insurance company occurred in August 1934. The amount involvedwas $100,000, and this was outstanding until the third quarter of 1941when it was repaid in full.

The distribution by State of the loans on and subscriptions for thepreferred stock of insurance companies was as follows:

KansasMarylandMichiganMinnesotaMissouri . . . . .New Jersey

Authorized

$100,00034,850,0004,125,000

100,000425,000

4,000,000

Disbursed

$100,00034,850,0004,125,000

100,000425,000

4,000,000

New YorkNorth CarolinaUnallocated

Total

Authorized

11,600,00050,000

100,000

55,250,000

Disbursed

55,150,000

The only loss sustained by RFC in connection with loans on orsubscriptions for the preferred stock of insurance companies was thatwhich arose out of the loans to the Preferred Protective Corp. TheRFC made three loans totaling $8 million to Preferred ProtectiveCorp. for the purpose of aiding the Preferred Accident InsuranceCo* of New York to prevent its failure.



Preferred Protective Corp. was formed to facilitate this transac-tion. The holding company pledged with EFC as collateral to theloan all of the preferred stock of Preferred Accident Insurance Co.and 100 shares of its own capital stock which had been issued toPreferred Accident Insurance Co.

In May 1951, Preferred Accident Insurance Co. was taken over bythe Superintendent of Insurance for the purpose of liquidation. InJuly 1951, a public sale was held of the preferred stock of the Pre-ferred Accident Insurance Co., pledged as collateral for the loans,and this was bought in by RFC for $51,000. The balance of the prin-cipal amount of the loans—$7,949,000—was charged off as a loss inJune 1952.

Credit Unions

The RFC was authorized to make loans to credit unions by section5 of the original RFC Act. The authority was but little used. Atotal of 10 loans were made to 7 credit unions. These loans were au-thorized for $642,968, and $600,096 was disbursed. All sums dis-bursed were repaid in full. (See table FI-13 in app. C.)

The distribution by State of loans to credit unions was as follows:

Massachusetts..Michigan - „ _.MinneapolisVT-— XT' 1*Wew YorkRhode Island- .Virginia '. I

Total

Number ofauthoriza-

tions

311

22

10

Number ofborrowers

211i

11

7

Amount author-ized

$74,65565,00010,00020 000

46^4466,967

642,068

Amount dis-bursed

$73f7U55,4960,739

465,1836,967

600,096



Loans to Business Enterprises

During the early years of HFC's existence, the function of makingloans to business enterprises was in effect a sideline activity. How-ever, the function was continually expanded, and in the years follow-ing World War I I became the dominant lending activity.

Legislative Authorities

RFC was first authorized to make direct loans to business enter-prises with the amendments to the original RFC Act approved June19, 1934. The purpose given for the new section 5d was to maintainand increase the employment of labor. Borrowers under this author-ity were limited to those whose businesses had been established priorto January 1, 1934, and who could not obtain bank credit at the ratesprevailing for loans of the character applied for. Maturities werelimited to 5 years, and the aggregate amount of loans to any one bor-rower could not exceed $500,000. It was also required that, in theopinion of RFC's Board of Directors, the borrower be solvent and theloan "adequately secured." Loans under this authority could bemade directly by RFC, or in cooperation with banks or other lendinginstitutions, or by the purchase of participations. This first author-ity to make loans to business enterprises expired on January 81,1935,and the aggregate amount of loans outstanding at any one time waslimited to $300 million.

By an act approved January 31,1935, the Corporation's authorityto make loans to business enterprises was extended and substantiallyrevised. Under the revised authority, loans could be made to bor-rowers whose businesses had been established since January 1, 1934,and the 5-year maturity restriction was changed to a deadline of Jan-uary 81,1945. Also, the limitation on the aggregate amount of loansto any one borrower was eliminated, and the security provisions werechanged from "adequately secured" to "so secured as reasonably toassure repayment." The requirement that loans be made only whenthere was "reasonable assurance of continued or increased employ-ment of labor" remained unchanged. The revised authority to makeloans to business enterprises was to expire January 31,1937, but theprovisions of an act approved January 26,1937, extended the expira-tion date to June 30,1939.

The authority to make loans to business enterprises was again re-vised in the act approved April 13, 1938. Under this revision, the



Corporation was empowered to purchase the securities and obligationsof business enterprises in addition to the making of loans. The limi-tation as to maturity was entirely removed, and the security standardwas changed from "so secured as reasonably to assure repayment" to"of such sound value, or so secured, as reasonably to assure retirementor repayment." Also, RFC was authorized to provide financial as-sistance to business concerns by means of "agreements to participate"in loans made by banks or other financial institutions. Except forsome later revisions relating to maturity limitations, the authority forbusiness loans provided by the act of April 13, 1938, remained sub-stantially unchanged to the expiration of the Corporation's lendingauthority on September 28,1953.

In the act approved June 25,1940, the maturities of loans author-ized by the Corporation were permitted to extend to January 31,1955. However, by the act approved May 25, 1948, maturities ofloans authorized to business enterprises were limited to 10 years, plussuch an additional period as might be estimated to complete the con-struction of industrial facilities in the case of loans made for suchpurposes.

In an act approved June 25, 1940, for purposes of aiding in thenational defense program, the Corporation was authorized to makeloans to or purchase the capital stock of, any corporation for thepurposes of acquiring critical materials and manufacturing equip-ment and supplies necessary to the national defense. This act ofJune 25, 1940, was in the nature of an addition to the then-existingauthority to make loans to business enterprises provided by section5d of the RFC Act, as amended, and the national defense loans weresubject to the same restrictions and limitations as other loans. How-ever, in an act approved June 11,1942, it was provided that nationaldefense loans or security purchases could be authorized to any busi-ness enterprise (rather than to corporations exclusively), and thatsuch loans and security purchases could be made under such termsand conditions and with such maturities as RFC might determine.

Table BE-1 in appendix C is a summary by quarter-year periods ofthe 63,517 loans authorized to business enterprises. The amount au-thorized in these loans was $5,153,294,815, and disbursementsamounted to $2,637,329,690 through September 28, 1953, when theCorporation's lending authority was terminated.

Types of Business Loans

The loans made by RFC to business enterprises were authorizedunder several different legislative authorities, and were of three prin-cipal types—direct loans, immediate participation loans, and de-ferred participation loans. Direct loans were authorized, disbursed,


LOANS TO BUSINESS ENTERPRISES

and serviced by RFC. Immediate participation loans were thosemade in cooperation with financial institutions, wherein part of aloan was disbursed by RFC and the balance by the participating insti-tution. In some instances, the RFC disbursed the entire amount ofthe loan and immediately sold part of the loan to the participatinginstitution; in the other immediate participation loans, the entireamount of the loan was disbursed by the participating institution withRFC purchasing an agreed-upon part of the loan at the time of dis-bursement. Immediate participation loans were serviced either byRFC or by the participating institutions as provided in the participa-tion agreements. In general, sales of participations were servicedby RFC and purchases of participations by the participating institu-tions. Deferred participation loans were disbursed and serviced bybanks and other financial institutions with an agreement with RFCunder which the Corporation agreed to purchase a stated portion ofthe outstanding loan upon the request of the institution making theloan.

In a limited number of cases, loans made to business enterprises byRFC took the form of purchases of capital stock and other obligationsissued by business concerns.

Prior to June 19,1934, when the act giving RFC authority to makedirect loans to business enterprises was approved, the Corporationhad made loans to banks and mortgage loan companies in whichthe loan proceeds were to be reloaned to specific business concerns.Loans of this type made to banks amounted to $167,500, and those tomortgage loan companies $16,422,275. In some statistical presenta-tions of RFC's activities, these have been considered as business loans.However, in this report, they are included with loans made to banksor mortgage loan companies.

The RFC Mortgage Company, a subsidiary of RFC organizedMarch 14, 1935, was engaged primarily in buying and selling mort-gages on residential properties which were either insured by FHAor guaranteed by the Veterans' Administration. However, there were4,182 authorizations, amounting to $173,016,510, for the purchase ofmortgages which were not so insured or guaranteed. Most of thesewere mortgages on commercial or industrial property. The RFCMortgage Company was merged with the RFC effective June 30,1947. Beginning at that time, the outstanding uninsured mortgages,amounting to $7,081,564, were classified as business loans in theCorporation's statistics. The statistics used in this report have beenadjusted so as to include these uninsured mortgages with businessloans.

Prior to June 30, 1947, the RFC's business loan statistics treatedparticipation loans (both immediate and deferred) in a manner differ-

67



ent from that followed in subsequent periods. During the earlierperiod, sales of participations were treated as direct loans, and pur-chases of participations grouped with deferred participations. Be-ginning July 1, 1947, both types of immediate participations weregrouped in a single class, with direct loans and deferred participa-tions each making up separate groups.

With the qualifications noted above, the loans made by EFC tobusiness enterprises are summarized by general type as follows:

Number Authorized Disbursed

Loans under authorities other than national defense...

Direct loans and sales of participations (throughJune 30,1947)

Deferred participations and purchases of participa-tions (through June 30,1947)

Mining loans (through June 30,1047)Loans to the fishing industry (through June 30,1947).Direct loans (July 1,1947-Sept. 28,1953)Immediate participation loans (July 1, 1947-Sept.

52,932 $3,300,846,049 $1,718,642,480

Deferred participation loans (July 1, 1947-Sept.28,1953)

Direct mortgage loans classified as business loans

Loans under national defense authorities (Jane 25*1940-June 30,1947

14,041

16 35535227

11,333

1,047

5,5954,182

797,072,135

684,167,37020,659,800

809,7001,142,836,250

216,512,534

265,771,750173,016,510

10,585 1,852,448,766

554,508,269

33,078,65110,118,109

71? 675819,545,185

152,891,523

48,386,29199,394,772

918,687,210

Direct loans and sales of participations .Deferred participations and purchases of participa-

tionsSecurity Purchases for Automobile FinancingLoans and Purchases of Rationed Articles and Com-

modities .— . . . . . . . . . . . .__,Contract Settlement Loans

Total.

4,391

153

3,6736

1,261,473,769

382,071,384132,143,106

75,652,1571,108,350

17,422,595

63,517 5,153,294,815 2,637,329,690

Loans Under the Authority of Section 5d of the RFC Act

^ The basic business loan authority for EFC was contained in sec-tion 5d which was added to the RFC Act by the amendments ap-proved June 19,1934. With some modifications, this authority con-tinued until June 30,1947, when the EFC Act was rewritten and thebusiness loan authority continued in the new section 4(a). To June30, 1947, there were 30,775 business loans approved under the 5dauthority. These amounted to $1,502,709,005. This activity is sum-marized by quarters in table BE-2 in Appendix C. The loans in-cluded are as follows:

Number Authorized Disbursed

Direct loans (including sales of participations)Deferred participation loans and purchases of partici-

pations - ,Loans to the mining industryLoans to the fishing Industry

Total

14,041

16,35535227

30,775

$797,072,135

684,167,37020,659,800

809,700

1,502,709,005

33,078,651

598,424,704



Direct Loans and Sales of Participations

Although somewhat fewer in number than participation loans, directloans accounted for the greater part of the dollar volume of authoriza-tions and disbursements to business enterprises from 1934 to 1947,when business loans were being made under the authority of section5(d) of the EFC Act, as amended. For this period, the data shownfor direct loans include 772 loans in which EFC authorized and dis-bursed the entire amount of the loans, with portions of the disbursedloans sold to banks, usually at the time of disbursement. The amountauthorized to be sold to banks in the case of the 772 loans totaled$22,177,601. The data do not include 22 instances in which loans madeby EFC were later sold to banks with EFC agreeing to repurchase apart of the loan upon request of the purchasing bank. The amountwhich EFC agreed to repurchase in these 22 cases was $3,546,800.For the most part, the loans sold with a repurchase agreement duringthis period had originally been made in participation with banks, andthe banks purchased EFC's participation. Some statistical data re-leased by EFC did include the loans sold with a repurchase agreementas additional authorizations. However, since the borrowers receivedno additional funds, and because the transactions were in the nature ofmodifications of the original loans, to include them as additional au-thorizations is to duplicate part of the original transactions.

During the defense and war periods beginning in 1940, certain loansauthorized tinder the authority of section 5(d) were administrativelydetermined to be "national defense" loans. The amount authorized insuch loans was $59,691,096. The basis on which certain loans madeunder section 5 (d) during the defense and war periods were classifiedas "national defense" loans cannot be specifically ascertained. How-ever, the decline in the volume of 5 (d) loans during this time is appar-ent, and it is likely that, because of the credit and economic controlsthen in effect, most 5(d) loans authorized could have been classed as"national defense" loans in a somewhat broader frame of reference.

Beginning with the Servicemen's Eeadjustment Act, the EFCauthorized loans to veterans with the guaranty of the Veterans'Administration. These loans were made under the basic authority ofsection 5(d). To June 30, 1947, the EFC authorized 3,525 directloans guaranteed by VA. The amount authorized in these was$14,590,075, and $8,692,829 was disbursed. The Corporation alsoauthorized 170 direct loans to veterans which were not guaranteed byVA. The amount authorized in these was $1,591,489, and disburse-ments amounted to $918,689.

The quarterly activity in direct business loans authorized under sec-tion 5(d) of the EFC Act is shown in table BE-3 in appendix C.

69



Participation Loans

A total of 16,355 participation loans to business enterprises wereauthorized under section 5(d) of the RFC Act The composition ofthese was as follows:

Purchases of participations (immediate)Deferred participations _

Total

Authorized

BFC's share

$27,787,448656,379,922

684,167,370

Bank's share

$12,258,507254,376,256

266,634,763

Disbursed byRFC

$17,277,24215,801,409

33,078,651

Although "agreements to purchase participations" (deferred par-ticipations) in loans to business enterprises were authorized by RFCover a long period of years, about three-fourths of the total authori-zations were made in the 2 years following the end of World WarII . (See table BE-4 in app. C.) The concentration of deferredparticipation loans in this period was brought about by the BlanketParticipation Agreement Program which was undertaken at that time.

As with direct loans, some of the participation loans authorizedduring the national defense and war periods were classified as "na-tional defense" loans, and a few were made to veterans without theguaranty of the Veterans* Administration. Purchases of participa-tions and deferred participations classed as for "national defense"were authorized in the amount of $10,133,119, with disbursements of$432,017. Participation loans authorized to veterans totaled $301,328,but no funds were disbursed by RFC on these.

Through June 30,1947, disbursements by RFC on deferred partici-pation loans amounted to about 2% percent of the total authorized.Cancellations in the case of deferred participation loans show a muchhigher ratio to authorizations than do direct loans because repay-ments to banks on loans disbursed by them canceled a proportionatepart of RFC's commitments to take up these loans.

Blanket Participation Agreements

In March 1945, in a move announced as designed to make creditreadily available during the reconversion period, the RFC organizedwhat was known as the "Blanket Participation Program." Under thisprogram, the Corporation executed agreements with interested bankswhich provided for RFC automatically to take a deferred partici-pation of up to 75 percent, when so requested by the banks, in anyloans made by the banks to business enterprises. Initially, a limit of$250,000 was placed on the aggregate amount which could be out-standing to any one borrower, but in June of 1946 this limitation70



was increased to $350,000. For the protection, or insurance, providedby KFC's agreement to take up its shares of the loans upon requestby the banks, the banks paid RFC a fee ranging from one-half tothree-fourths of 1 percent, depending upon the percentages coveredby the Corporation's commitments.

The first loans under the BPA program were made in April 1945,and the program remained in effect until January 22, 1947, when itexpired in accordance with original plans. Additional amounts wereauthorized after expiration of the plan, however, due to the revolvingnature of some of the loans. The table below shows quarterly activityunder the BPA program from the beginning through 1951. A totalof 11,073 loans were authorized under the program, and HFC's shareof the total amount committed was $388,664,044. Including amountstaken by banks, total authorizations were $535 million. Thus, EFC'sshare of the total amount made available to business enterprises underthe program was 72.6 percent.

Loans to Business Enterprises Under Blanket Participation Agreements

Year andquarter

19452d3d .. . . . .4th

19461st2d3d4th

19471st2d3d4th

19481st2d3d. .. fc -4th

19491st.2d3d4th

19501st. . . .2 d . : . . . : : : : :3d4th

19511st2d3d4th

Total . . .

Authorized

Number

166403635

1,2942,8551,7672,722

1,13382133

11,073

Amount

$6,276,91913,941,26622,379,033

43,195,60297,866,03563,766,58489,850,203

38,258,3985,821,0701,446,6791,309,040

700,000150,000400,000400,000

405,913581,091477,765797,981

189,735240,902187,353

3,750

9,3753,7505,550

388,664,044


$264,0101,270,3654,649,268

6,119,54226,677,84417,685,42027,651,372

30,697,95656,595,62119,167,96123,224,516

19,000,00018,000,00013,000,00011,000,000

9,309,7867,308,6867,489,7237,527,177

6,268,8425,716,9895,082,1924,721,364

4,651,4723,103,4812,640,997£ 79$, 183

341,627,770

Disbursed

$16,341

18,000199,450606,527

3,158,018

2,617,1102,441,2032,344,5472,187,157

2,000,0002,390,5022,863,1161,180,126

1,839,8621 195,543

977,217776,653

570,069699,718474,633424,482

159,477376,19894,09351,367

29,561,409


$11,2526,785

46,968624,347

395,313780,560612,473

1,117,635

1,250,0001,845,3901,144,1871,144,187

2,044,8621,868,576

945,4701,209,907

1,396,4351,826,4561,389,488

828,127

1,194,0021,183,372

575,226545,499

23,987,467

Outstanding

$16,341

23,089215,754775,313

3,308,984

5,530,7817,191,4248,923,4989,993,020

10,743,02011,288,13213,007,06113,043,000

12,838,00012,164,86712,196,71411,763,460

10,937,0449,710,3068,795,4518,391,806

7,356,3816,549,2076,068,0745,673,942

5,573,942

505287—59 6 71



Bank disbursements on BPA loans totaled almost $500 million,and EFC's agreed participation was $360 million. Requests by banksfor RFC to take up its share of disbursed loans aggregated about$30 million, of which about $4 million was charged off by RFC asuncollectible.

In & study made as of April 15,1946, it was shown that about 21percent of the Nation's banks entered into blanket participationagreements with RFC. About 2,400 banks actually made loans underthe program. The table below shows the number of banks in eachState and the number which had signed BPA agreements, as of April15,1946.

StateTotal

numberof banks

Bankswith BPA

agree-ments

StateTotal

numberof banks

Bankswith BPA

agree-ments

AlabamaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict ot ColumbiaFloridaGeorgiaIdahoIllinoisIndianaIowaKansas -KentuckyLouisiana. . . . . .Missouri IMarylandMassachusetts..MichiganMinnesotaMississippiMissouri-MontanaNebraska

21611

2121931391964221

17030646

85049264661338615195

180377424678202589111410

8610658142202

1056

13611

17610988516028133049

131137219023

157

NevadaNew Hampshire..New JerseyNew MexicoNew YorkNorth Carolina...North Dakota, . . .OhioOklahomaOregonPennsylvaniaRhode IslandSouth Carolina. _.South Dakota. . . .TennesseeTexasUtahVermontVirginia ,Washington... . . .West Virginia...,WisconsinWyoming

81073704182122815068038070

1,02931109166293842577931412317855756

610

11416

219473073

11614

1085

312795

184226

544417

10219

Total 14,445 3,049

The Blanket Participation Program was a wide departure from thepractices followed by EFC incident to the authorization of direct andregular deferred participation loans in that the RFC relied entirelyupon banks for an opinion of a borrower's creditworthiness, and madeno independent investigation of any sort. The agreements betweenEFC and the cooperating banks did contain provisions designed toprevent abuse of the program by banks, and in a small number ofinstances the Corporation did refuse to take up its participation whenso requested by banks because of imprudent actions by the banksresulting in violations of the agreements.

Small Loan Participation Program

After the BPA program was terminated, the Corporation continuedto make deferred participation loans to small business on a more-or-lessstreamlined basis. Under the Small Loan Participation Program,



which, succeeded the BPA program, banks continued to request RFC'sparticipation in loans of $100,000 or less, but RFC approved each re-quest individually, and participation was not automatic as was thecase under the BPA program.

There was no fixed expiration date for the SLP program, and in-sofar as can be determined, it was continued throughout the calendaryear 1951. The table below is a quarterly distribution of activityunder the SLP program:

Small Loan Participation (SLP) Program

Year andquarter

19471st..... ...2d3d4th

19481st.... „2d3d4th

19491st2d3d4th

19501st2d3d4th . I .

2d3d4th

Total

Authorized

Number

5491,090

764647

550378230164

250272242233

27725417299

78591713

6,328

Amount

$13,060,85527,279,53217,525,04515,858,891

13,700,0009,000,0006,642,4994,000,000

6,000,0005,718,1416,015,0266,044,131

6,910,5725,304,2363,779,1552,259,854

2,037,0251422,787

413,389352,146

151,323,284


$114,0853,220,6924,256,7978,565,093

9,503,05110,000,0007*500,0007,200,000

6,698,9755,858,9776,118,5336,518,907

6,348,8866,713,7125,878,1195,192,734

4,814,4894,483,2953,206,9253,319,907

115,513,177

Disbursed

$166,130552,169669,291

600,000700,000

1,849,383781,505

1,218,397828,713585,138484,414

467,455627,023772,218797,353

326,800780,822200,000210,996

12,617,807


$1,8668,689

93,335

156,615163,091719,327125,505

715,397786,548551,898442,676

698,216905,921642,640562,988

373,636698,770460,000486,125

8,493,193

Outstanding

$164,264707,744

1,283,650

1,727,0352,263,9443,394,0004,050,000

4,653,0004,595,1654,62*4054,670,243

4,449,4824*170,5844,400,1624,634,527

4,687,6914,669,7434,409,7434,134,614

4,134,614

The outstanding indebtedness of any borrower arising under theSLP program could not exceed $100,000, and the total indebtedness ofthe borrower under all EFC loans and participations could not exceed$350,000.

Mining Loans

The act approved June 19,1934, contained in addition to the basicbusiness loan authority a separate section which authorized the Cor-poration to make loans to recognized and established incorporatedagencies, individuals, and partnerships engaged in the mining, mill-ing, or smelting of ores. The loans were to be made upon adequatesecurity, based on mineral acreage. This authority remained unuseduntil the section was amended by the act approved January 81,1935.In this amendment, "adequate security" was changed to "sufficient

73



security" and the reference to mineral acreage eliminated. Further,the Corporation was authorized to make loans to individuals, partner-ships, and corporations engaged in the development of mineral bodiesand deposits containing gold, silver, or tin when there was sufficientreason to believe that ore was present in quantities which would per-mit profitable mining operations. The aggregate amount which couldbe loaned for development purposes was limited to $10 million, and notmore than $20,000 could be loaned to any one borrower.

In an act approved September 16,1940, the section relating to min-ing loans was amended to cover the development of any critical or stra-tegic mineral which, in the opinion of the Corporation, would be ofvalue to the country in time of war. In this amendment the limitationof amounts for any one borrower was increased to $40,000.

Authority to make mining loans continued without further changeuntil June 30,1947, at which time section 4(a) was added to the EFCAct and the separate authority for mining loans was removed.

The Corporation authorized a total of 352 mining loans to 279borrowers. The amount authorized was $20,659,800, and disburse-ments amounted to $10,118,109 through June 30, 1947.

The amounts authorized and disbursed according to type of loanwere as follows:

Development loansOther loans

Number ofauthori-zations

27676

Amountauthorized

$4,063,80016,596,000

Amountdisbursed

$2,828,80071289; 309

Quarterly activity for mining loans is shown in table BE-5 iaappendix C.

Loans to Fishing Industry

The act approved June 19,1934, which contained KFC's basic busi-ness loan authority, also contained, in a separate section, specific au-thority to make loans to the fishing industry under the same termsand conditions as other business loans. These "fishing industry" loanswere for the purpose of financing the production, storage, handling,packing, processing, carrying, and orderly marketing of fish andfish products from American fisheries.

The loans to the fishing industry were not specifically mentioned inthe extension of the business loan authority approved April 13,1938.However, loans to commercial fishing enterprises could continue tobe made under the basic authority.

Under the act approved June 19,1934, the Corporation authorizeda total of 27 fishing loans amounting to $809,700. Disbursements on


1OANS TO BUSINESS ENTERPRISES

these amounted to $719,675. Of the total amount disbursed, all wasrepaid except $10,730 charged off as uncollectable.

Table BE-6 in appendix C shows quarterly distribution of activityfor loans made to the fishing industry. Such loans were made ineight States as follows:

FloridaGeorgiaMaineMassachusetts..Oregon

Numberof author-izations

124232

Amountauthorized

$57,10076,600

60029,000

625,000

Amountdisbursed

$12,20031,375

60029,000

525,000

South Carolina-VirginiaWashington

Total

Numberof author-izations

112

27

Amountauthorized

$22,00042,60067,000

809,700

Amountdisbursed

$22,00042,50067,000

719,675

Business Loans for National Defense

By an act approved June 25,1940, a new paragraph was added tothe business loan authority of the EFC Act. The purpose of theadded powers given to the Corporation was "to aid the Governmentof the United States in its national-defense program," and EFC wasauthorized to make loans to or purchase the capital stock of any cor-poration for the purpose of (a) producing, acquiring, and carryingstrategic and critical materials, and (&) plant construction, expan-sion, and equipment, and working capital to be used in the manufac-ture of equipment and supplies necessary to the national defense.Purchases of capital stock for these purposes were to be made at therequest of the Federal Loan Administrator and with the approvalof the President, Loans, however, could be made upon such termsand conditions and with such maturities as the Corporation mightdetermine. Thus, for the purposes of national defense, loans couldbe made to business enterprises without the requirements relating tounavailability of private credit and sound value of security whichapplied to business loans made for purposes other than nationaldefense.

The authority to make business loans for national defense purposeswas modified by an uct approved June 11,1942, which extended eligi-bility to "any business enterprise" rather than "any corporation."This act also authorized the War and Navy Departments to guaran-tee any loans made by RFC for national defense purposes. Thenational defense business loan authority continued until June 30,1947,when the entire RFC Act was rewritten and the provisions relatingto national defense loans eliminated.

The RFC authorized a total of 10,585 business loans underthe national defense authority. The amount authorized was$1,852,448,766, and disbursements were $918,687,210. Activity wasgreatest during 1942 and 1943. (See table BE-7 in app. C)



The various types of loans and other authorizations made by RFCunder the authority provided by the act approved June 25,1940, aresummarized below:

Direct loans (including sales of participations and stockpurchases) -- . . . . . . . . . . . . . . . ....

Purchases of participations and deferred participationloans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Security purchases—auto financing _.Loans on and purchases of rationed articles and com*

modi tiesContract settlement loans

Total

Authorized

Number

4,301

2,362153

3,6736

10,585

Amount

$1,261,473,769

382,071,384132,143,106

75,652,1571,108,350

1,852,448,766

Disbursed

$839,059,796

17,422,595

*M918,687,210

Direct Loans

Approximately two-thirds of the dollar volume of authorizationsmade to business enterprises under the national defense authoritywere in the form of direct loans. There were 4,391 authorizationsmade for direct loans in amounts totaling $1,261,437,769; disburse-ments on these were $839,059,796, accounting for about 90 percent ofall national defense disbursements by RFC for loans to business enter-prises. Quarterly activity in direct national defense loans to busi-ness enterprises is shown in table BE-8 in appendix C.

Included in the direct national defense loans are 176 loans made to15 borrowers in connection with subsidies paid to meat and butter pro-ducers by Defense Supplies Corporation. These loans were temporaryin nature, and were made in cases where DSC, for one reason or an-other, held up payments to the producers. The loans made by RFCwere repaid from the subsidy payments ultimately disbursed by DSC.The amounts of the subsidy loans included are as follows:

Number ofauthoriza-

tions

Number ofborrowers

Amountauthorized

MeatButter. 143

33 ••SSTotal

176 15 % 052, 497

AU amounts authorized for subsidy loans were disbursed, and all wererepaid in full.



Participation Loans

Under the national defense authority of the act approved June 25,1940, the EFC authorized 2,362 loans in participation with banks andother financial institutions. Most of these were deferred participa-tion loans, as shown in the following table:

Amount authorized

RFC share Banks' share

Total

Immediate participations-Deferred participations

Total

$12,652,167369,419,217

$12,439,040107,002,037

$25,092,116476,421,254

382,071,384 110,441,986 501,513,370

Quarterly activity for participation loans authorized under the na-tional defense authority is shown in table BE-9 in appendix O.

Rationed Articles and Commodities

When stringent controls were placed on the sale of rationed goodsfollowing Pearl Harbor, the EFC undertook a program for the reliefof those whose funds were tied up in inventories of restricted items.The Corporation made loans secured by inventories of rationedarticles, or purchased such inventories outright and resold them toqualified buyers.

A total of 2,843 loans were authorized on rationed articles. Theamount authorized was $67,766,130, and disbursements were $57,024,-534. The types of commodities on which loans were made were asfollows:

Authorized

Number Amount

Disbursed

Automobiles...Oil burners...Tires.Typewriters..L.p.gase<.gas equipmentGas-burning equipmentCommercial refrigeration and air conditioningBakery equipment- -Tractors

2,620101403410251111

$66,523,402615,356264,752121,11751,933

151,175125,644

4,2468,605

$56,080,582421,318156,332100,48236,609

116,667108,370

4,173

Total. 2,843 67,766,130 67,024,533

Of the $57,024,533 disbursed, $56,918,209 was repaid and $106,324charged off as uncollectible.

77



The Corporation also made 830 authorizations for the purchase ofrationed articles, as follows:

Authorized

Number Amount

Disbursed

AutomobilesRangesOil burners and equipmentGas burners and equipmentTypewriters —Commercial air conditioning and refrigeration.Fluorescent lighting

Total

$6,161,79611,359

1,370,238245,089

6,14072,95319,452

$3,494,26910,798

1,311,445221,098

5,14071,98319,452

830 7,886,027 5,134,185

The articles purchased by RFC were sold for $4,972,629, leavinga loss of $161,556.

Quarterly activity for loans on and purchases of rationed articlesand commodities is shown in table BE-10 in appendix C.

Security Purchases—Automobile Financing

Related to the financing of inventories of rationed articles werethe authorizations made by RFC to banks and commercial creditcompanies who had provided financing for automobile dealers whoseinventories were frozen. The Corporation authorized the purchaseof notes and other obligations held by these financing agencies in theamount of $132,143,106. These authorizations were never disbursed,however, and served more or less as an umbrella during a criticalperiod. Quarterly activity in the authorization of security purchasesfor automobile financing is shown in table BE-11 in appendix C.

Contract Settlement Loans

The Contract Settlement Act of 1944, approved July 1,1944, desig-nated RFC as a contracting agency for the purposes of that actAs such, the Corporation was authorized to make, guarantee, orparticipate in loans made to war contractors whose contracts had beenterminated and were in process of settlement.

This lending authority was but little utilized by the RFC. A totalof six loans, amounting to $1,108,350, were authorized under the pro-visions of this act. Four of the authorizations, amounting to$1,046,100, were for direct loans on which only $46,100 was disbursed.The other two authorizations were deferred participation loans inwhich RFC's share was $62,250. The RFC disbursed no funds onthese deferred participation loans. Lending activity under the



authority of the Contract Settlement Act of 1944 is summarized intable BE-12 in appendix C.

Business Loans Made Subsequent to June 30,1947

Prior to June 30, 1947, the business loans made by EFC wereauthorized under the basic authority of section 5d of the KFC Act,or, for national defense loans, under the provisions of the act ap-proved June 25,1940.

The lending authorities of EFC were completely rewritten in theact approved June 30, 1947, and the authorities to make loans tobusiness enterprises were substantially modified. This new actauthorized EFC to "purchase the obligations of and to make loans toany business enterprise organized or operating under the laws of anyState or the United States." I t was further provided that no finan-cial assistance could be extended by EFC if such assistance wasotherwise available on reasonable terms, and all securities and obliga-tions purchased and 'all loans made were required to be "of suchsound value or so secured as reasonably to assure retirement or re-payment." The Corporation was authorized to make business loans"either directly or in cooperation with banks or other lending insti-tutions through agreements to participate or by the purchase of par-ticipations, or otherwise."

From July 1, 1947, to September 28, 1953, when the Corporation'sauthority to make loans was terminated by the provisions of the EFCLiquidation Act, the Corporation authorized 17,975 business loansamounting to $1,625,120,534, as follows:

Direct loans[mmediate £>artlcir>ation loans —deferred participation loans

Total

Number

11,3331,0476f595

17,975

AmountAuthorized

(RFC share)

$1,142,836,250216,512,534265,771,760

lr 625,120,534

Quarterly activity in business loans for periods subsequent to June30,1947, is shown in appendix C in table BE-13 for direct loans, tableBE-14 for immediate participation loans, and table BE-15 fordeferred participation loans.

Housing Loans

To aid housing production, the Housing Act of 1948 authorizedRFC to make loans to or purchase the obligations of any businessenterprise for the production of prefabricated houses, prefabricated



housing components, or for large-scale, modernized site construction.These loans could be made upon such terms and conditions as theCorporation might determine, and the aggregate amount of theseloans which could be outstanding at any one time was limited to$50 million.

Under the authority of section 102 of the Housing Act of 1948, theEFC authorized a total of 35 loans amounting to $42,864,451. Ofthese, three loans in which RFC's share was $2,885,000 were made inparticipation with banks on an immediate basis, and one was a deferredparticipation in which RFC's commitment was $170,000.

Included in the direct loans are five loans totaling $12 million madeto the Lustron Corp. In addition to the loans made to Lustron underthe authority of the Housing Act, there was a loan of $15,500,000 madeunder the national defense lending authority (sec. 5d(2)) of the actapproved June 25, 1940, and a loan of $10 million made under thebusiness loan authority (sec. 4(a) (1)) of the revised RFC Act. Fore-closure proceedings against Lustron were authorized on February 14,1950, at which time the unpaid principal balance due on all of theLustron loans totaled $36,466,273, of which $28,867,354 wassubsequently charged off.

Both before and after the effective date of the lending authoritycontained in the Housing Act of 1948, the RFC had made loans tomanufacturers of prefabricated housing and prefabricated housingcomponents, as well as loans to supply interim financing for housingconstruction. Under the authority of section 4(a) (1) of the RFCAct, as amended effective July 1, 1948, the Corporation authorizeda total of 84 housing loans amounting to $70,230,911. Other housingloans had previously been authorized under the national defenselending authority of the act approved June 25,1940. ReorganizationPlan No. 23 of 1950, effective-September 6, 1950, transferred to theHousing and Home Finance Administrator all functions of RFC re-lated to financing predominantly for the production, manufacture,distribution, sale,, purchase, or erection of prefabricated housing andprefabricated housing, components. The outstanding loans and com-mitments made by RFC for the purposes stated were also transferredto the Housing and Home Finance Administrator. Pursuant to theprovisions of Reorganization Plan No. 23 of 1950, 136 loans andcommitments were transferred as follows:



Undlsbursed commitments:Direct loansImm ediate participation - „Deferred participation

Outstanding loans:Direct . .Immediate participation

Total loans

Total loans and commitments

Lending authority

RFC Act

Sec.5(d)(2)

1,928,050

1,928,050

1,928,050

Sec.4(a)(l)

$5,775,400250,293

6,025,693

709,076322,127

1,031,203

7,056,896

NationalHousing Act

$8,303,8151,403,365

120,478

9,827,658

15,432,9361,260,395

16,683,331

26,510,989

Total

$14,079,2151,653,668

120,478

15,853,351

18,070,0621,572,522

19,642,584

35,495,935

Direct Mortgage Loans

During its existence, from March 14, 1935, to June 30, 1947, theRFC Mortgage Company authorized 4,182 direct loans on incomeproducing properties. These loans, amounting to $173,016,510, weresecured by mortgages on the properties financed. A total of $99,394,772was disbursed on these loans, of which $7,081,564 was unpaid onJune 30, 1947, when the RFC Mortgage Company was merged withits parent corporation.

Prior to the time of th& merger, the loans made by the RFC MortgageCompany were not regarded as "business loans" in any of the statisticalmaterial prepared by the Corporation. However, after the merger,such of the direct mortgages as were then outstanding were includedwith outstanding business loans. The statistical data on quarterlyactivity for business loans included in this report have been adjustedto include these outstanding direct mortgage loans.

Approximately one-half of all direct mortgage loans made by theRFC Mortgage Company were authorized during the first 2 years ofRFC-MC's existence. Only 55 of the loans, authorized in the amountof $12,100,413, were approved in periods subsequent to June 30,1944.

Industry Classification of Business Loans

Virtually every kind of business endeavor was represented amongthe loans made by RFC to business enterprises. Among the fewexceptions were newspapers, radio stations, and other communicationsmedia which were excluded as a matter of policy.



Throughout the Corporation's existence, there were many changesin the emphases placed upon the statistical data collected with respectto lending operations. I t is probably for this reason that there is notavailable a summary by industrial classification of the loans made byRFC to business enterprises.

In order to close part of this gap in the information related to theCorporation's lending, there are given below industrial classificationsof loans authorized during three representative periods. The first ofthese covers all business loans authorized through December 31,1941,as follows:

Number ofbusinessconcerns

Amount author-ized

Manufacturing—total. 4,347 $347,492,046

Food and kindred productsTobaccoTextiles and their productsLumber and timber productsPaper and allied productsPrinting and allied industriesChemicals and allied productsProducts of petroleum, coal, and natural gasRubber productsLeather and leather productsStone clay a d g l s d t

ather and leather pStone, clay, and glass productsIron and steel and their products (except machinery)-.Transportation equipment-Nonferrous metals and their products —MachineryMiscellaneous manufacturing.

8958

616780121273196243083

230363119104397

.108

40,839,135188,000

71,662,50663 465,82736,179,245

10,467,1282,602,5002 187,9506,805,235

14,100,215Z% 304; 35734,078,9934 285,719

25 5718033 416,476

Nonmanufacturing—total.—

Agriculture, forestry, and fishing..Mining and quarrying...... . . .

3,777 135,928,680

ing and qConstruction ,Wholesale tradeRetail tradeServices, including transportation and other utilities

Grand total.

183229124588

1,1371,516

8,124

2,384,67223 633,5583 319,64419,054,122

483,420,726

Most of the business loans authorized by RFC during defense andwar periods were to assist in financing the acquisition of plant fa-cilities. The table below shows the loans authorized by RFC formanufacturing plant and equipment from June 25, 1940, to June 30,1945:



Basic materials:Aluminum, including fabrica-

tion „ .Aviation gasolineChemicalsHemp ...Jewel bearings and diamond

diesMagnesium, including fabrica-

tions _Minerals^.Steel and pig ironSynthetic rubber

Total, basic materials

Military equipment and supplies:Aircraft, aircraft engines, and

Medical suppliesMotor vehicles and partsOrdnancePacking boxes

Amountauthorized

$63,065,92564,900,00039,980,384

168,750

60,200

29,292,26517,626,869

134,139,92823,090,000

377,324,321

308,562.402506,872

133,990,556239,229,241

8 730,133

Military Equipment and Sup-plies—Continued

Radio and communicationsequipment

Shipbuilding, and vessel com-ponents.

Total, military equipmentand supplies

Other products:Textiles and productsFood products.*.Lumber and wood productsMachine toolsMachinery *Miscellaneous metal productsStone, clay, and glass products-

Total, other productsGrand total-—

Amountauthorized

$42,740,616

135,940,445

869,700,265

22,744,65748,874,92926,470,83913,782,47528,245,57413,625,1122,193,412

155,936,998

1,402,961,584

The third table shows the number of business loans authorized, byindustry classification, during the period from January 1, 1950,through February 28,1953, as follows :

Number Amount

Nonmanufacturing industries:Poultry farms, greenhouses, crop specialities, forestry, fisheries, e t c . .Mining* „, . . . „ .ConstructionWholesale and retail tradeFinance, insurance, and real estateTransportation, communication, and other public utilitiesServices: personal, business, recreational, public, semlpublic,. professional,

and other

Manufacturing industries:Ordnance and accessories —Food and kindred products-Textile mill productsApparel and other products made from fabricsLumber and timber basic productsFurniture and finished lumber productsPaper and allied productsPrinting, publishing, and allied industries -Chemicals and allied products.......Products of petroleum, coal, and natural gasHubber productsLeather and leather products -Stone, clay, and glass products..Iron and steel and their products..Transportation equipment (except automobiles)...Nonferrous metals and their products «.Electrical machineryMachinery (except electrical)Automobiles and automobile equipment.Miscellaneous manufacturing industries

Total...

158144424

1,44563

377

931

3,542

3274312484

32518444

116162192524

22638013711516650152

147

3,606

7,148

17,110171,62126,65359,72037,718

26,324

361,955

13,658

35,3634,421

33,14212,87214,0164,673

20,5414,4301,9431,744

25,563195,38761.50610,06337,50963,36613,48014,115

630,175

992,130

83



Geographic Distribution of Business Loans

The RFC authorized loans of one kind or another to business con-cerns in each of the States, the Territories and possessions, and inCanada. The two loans made to Canadian concerns were authorizedunder the national defense lending authority which did not limitbusiness loans to domestic enterprises as did the other business loanauthorities.

The table below is a distribution of the number and amount ofbusiness loans authorized by EFC, by State and type of loan:

States

Direct loans and im-mediate participations

Number Amount

Deferred participations

Number Amount

Total

Number Amount

AlabamaArizona ,Arkansas ,._*_^_.CaliforniaColorado „_,Connecticut ,DelawareDistrict of Columbia...Florida tGeorgiaIdahoIllinoisIndiana „ .Iowa ,K'fvnsas ,. _ _Kentucky I.IIIII!Louisiana ,MaineMarylandMassachusettsMichigan ,MinnesotaMississippiMissouriMontanaNebraskaNevada ,New Hampshire.—New JerseyNew MexicoNew YorkNorth Carolina-. ..North DakotaOhio ""Oklahoma IOregon ,Pennsylvania..Rhode IslandSouth Carolina .South Dakota ITennesseeTexas "Utah IVermontVirginia M "Washington . mWest Virginia__I.I."IWisconsin ,Wyoming IAlaskaHawaiiPuerto RicoVirgin Islands I.ICanada

Total ,

362928

1,41094030042146

1,7751,904367

1,78840020238764724693442

1,0031,5294142618155012909757819274

2,121426110932

1,229951

1,1808619191

1,3693,67424342306

2,80814838381192

14062

$30,227,15716,667,13626,609,787410,607,68132,843,78243,417,2453,065,000

33,032,37092,045,23870,757,1938,799,637

149,379,400111,764,69716,482,62732,028,80268,703,43384,076,11216,884,19592,149,543121,131,200452,848,09019,517,02315,070,18051,692,51014,976,37833,832,3998,209,7726,596,35970,605,9015,825,794

274,526,08625,497,0732,628,215

243,101,75219,567,96648,011,835197,354,7316,685,12415,924,7411,213,257

63,982,429278,074,3048,077,1472,607,74891,190,63665,949,35111,575,31037,158,3013,154,60729,272,684

268,6008,304,2501,153,0005,055,000

972343605737408136863448

1,287155

1,06553542869243921666210283

1,231563324

1,0882629011

58639265

1,401303985174983405331223296909

1,776172913759871434601689941

$43,441,99210,202,61521,213,49163,967,67116,843,4606,021,510427,800

2,763,27143,976,34963,228,6655,766,871

43,913,71427,486,79217,513,52620,029,27018,076,1649,816,4632,914,66812,316,88918,200,41477,664,79726,818,04510,181,86957,082,2927,273,390

30,753,58730,000

3,117,185on R9R 3SAOU, OiX)t OoO

14,121,41670,654,63322,408,8711,745,26129,392,94513,152,24269,369,70644,039,146

330,79210,661,6861,429,500

48,822,825103,647,6384,674,9631,331,33619,919,223

106,868,1876,203,23918,210,0085,118,9744,266,204364,60037,600

1,670705

1,6332,1471,34843650

2092,2233,191

5222,853935630

1,0791,086462159652

1,2862,760967685

1,903763

1,19198115

1,458539

2081,4491,7271,2911,713

98423187

2,2785,450415133681

3,7952918432392918

14162

$73,669,14926,869,75147,823,278

474,575,26249,687,24249,438,7553 492 800

35,795,641136,021,687133,985,748

14! 566,608193,293,114139,261,48933,996,15352,058,07286;77959786;779,5993,892,57519 798,863104,466,432139,331,614530,512,88746 335,06825 252,049

'SStS9 713! 544

101,032,28719,947,209

345,180,719

3S117381; 541241,393,877

Z9!$2!S% 642,757H i 805,254381,721,942

12! 152; 100111109 859172^817,538

8,341,7501153 0005055,000

35,852 3,579,980,488 69,475


10ANS TO BUSINESS ENTERPRISES

The data in the foregoing table were drawn from a tabulation madeas of March 31, 1954. There are some unreconciled differences be-tween these data and those used in this report. In the main, thedifferences are that the State distribution above does not include loanson rationed articles and commodities nor security purchases for auto-mobile financing made under the national defense lending authorityin the act approved June 25,1940.

Size of Business Loan Authorizations

The table below is a size distribution of the same data making upthe State distribution above. The amounts shown are RFC's shareof the loans authorized.

Direct loans andimmediate participations

Number

11,0285,7807,4244,7433,6131,3961,127

370362

35,852

Amount

$29,630,48345,279,454

130,617,683181,802,146282,915,218210,834,136358,287,319270,189,762

2,070,424,287

3,579,980,488

Deferred participations

Number

2,1983,3266,4595,0103,9111,3331,056

171159

23,623

Amount

$5,363,66419,266,65182,799,687

136,839,622222,392,609145,407,043235,936,74691,505,773

348,828,028

1,288,339,823

$5,000 or less$5,001-$10,000$10,001-$25,000$25,001-$50,000$50,001-$100,000—.$100,001-$200,000-_.$20a001-$500,000-$500,001-$1,000,000,Over $1,000,000

Total



Agricultural Financing Institutions

The original RFC Act (sec. 5) provided specific authority for theCorporation to make loans, upon such terms and conditions as theCorporation might determine, to any Federal land bank, joint-stockland bank, Federal intermediate credit bank, agricultural credit cor-poration, or livestock credit corporation organized under the laws ofany State or of the United States. The act further provided that allsuch loans "shall be fully and adequately secured." To a great extent,the loans made by RFC under this authority were to Government orquasi-Government institutions. However, they differed from the loansand allocations made to other Government agencies by specific direc-tion of the Congress, as described beginning on page 151 of this report,in that the RFC could prescribe the terms and conditions of the loansand in that security for the loans was required, implying that repay-ment was expected. In some cases, the starting capital of these agri-cultural financing institutions was provided by RFC under specificdirection of the Congress, and later needs for funds supplied throughthe medium of loans under the authority of section 5 of the RFC Act.

In sections 201 (c) and (d) of the Emergency Relief and Construc-tion Act of 1932, the RFC was authorized to make such loans as itmight judge necessary to finance the sale of agricultural surpluses inforeign markets, and to make loans to finance the carrying and orderlymarketing of agricultural commodities and livestock produced in theUnited States. Also, under section 5, title I, of the AgriculturalAdjustment Act of 1933, the Corporation was authorized to makeloans to the Secretary of Agriculture for the purpose of acquiringcotton.

The loans authorized by RFC to agricultural financing institutionsunder the authorities cited above amounted to $2,454,133,430, asfollows:

Under sec. 5. RFO Act:Federal land banksJoint-stock land banksFederal intermediate credit banksBegional agricultural credit corporationsOther agricultural credit corporations

__ Livestock credit corporations ——Under Emergency Relief and Construction Act, 1932:

Commodity Credit CorporationTo finance agricultural commodities —To finance exports of agricultural surplus r~3—X

Under the Agricultural Adjustment Act, 1933: Secretary of Agriculture-

Total

Authorized

$399,636,00033,055,3599,250,000

178,840,4536,120,867

14,511,328

1,604,712,66586,061, £1308,445,24523,500,000

2,454,133,430

Disbursed

$387,236,00026,194,9709,250,000

173,243,6415,643,618

12,971,599

767,716,96219,644,49247,300,8253,300,000

1,452,502,107

87605257—58 7



The periods in which these loans were authorized and disbursed areshown in table Ag-1 in appendix 0.

Federal Land Banks

Beginning in July 1932, and continuing for a period of 2 years, theRFC made a series of 75 loans to the Federal land banks, one or moreloans being made to each of the 12 banks. By the end of March 1934,disbursements on these loans had amounted to $193,618,000, all ofwhich was outstanding on that date. These balances were refinancedin the second quarter of 1934 in 12 new loans and the banks thenbegan to repay the amounts borrowed. (See table Ag-2 in app. 0.)All sums advanced had been repaid before the close of the thirdquarter of 1938.

Joint-Stock Land Banks

Beginning in March 1932, the EFC made a total of 72 loans to 28joint-stock land banks. The amount authorized for these loans was$33,055,359, of which $26,194,970 was disbursed, and all advances wererepaid by the borrowers. (See table Ag-3 in app. C.)

The Corporation was also directed to make available to the FarmLoan Commissioner the sum of $100 million by section 301 (a) of th©Emergency Farm Mortgage Act of 1933, this being for the purposeof allowing the Commissioner to make loans to joint-stock landbanks. Only $2,600,000 of the amount was disbursed, and this wasrecovered by the RFC through cancellation of the notes payable tothe Treasury which had provided RFC with the funds to advance tothe Farm Loan Commissioner.

Federal Intermediate Credit Banks

During March 1933, the RFC authorized loans totaling $9,250,000to eight Federal Intermediate Credit Banks. These loans were dis-bursed and repaid in full during that same month. (See table Ag-4in app. C.)

Regional Agricultural Credit Corporations

Section 201 (e) of the Emergency Relief and Construction Act of1932 authorized the RFC to create regional agriculture credit cor-porations in any of the 12 Federal land bank districts. The actfurther provided that each such bank should have a "paid-up" capitalof not less than $3 million. The funds to provide this capital wereto come from the unexpended balance of the amounts allocated andmade available to the Secretary of Agriculture under section 2 of theoriginal RFC Act.


AGRICULTURAL FINANCING INSTITUTIONS

The act also provided that the regional agricultural credit corpora-tions were to be managed by officers and agents appointed by the RFC,and all expenses of such corporations were to be supervised and paidby the EFC.

The EFC established 12 regional agricultural credit corporationsand disbursed $44,500,000 for their capital stock. The amount paidfor the expenses of the corporations was $23,341,776. Both of thesesums were included in the EFC notes payable to the Secretary of theTreasury which were canceled at the direction of the Congress in theact approved February 24,1938.

Beginning in December 1932, the EFC made loans to the regionalagricultural credit corporations under the authority of section 5 ofthe EFC Act. The EFC disbursed $173,243,641 on such loans, allof which was repaid. (See table Ag-5 in app. C.)

Other Agricultural Credit Corporations

In addition to the loans made to regional agricultural credit cor-porations, which were wholly Government owned, the EFC also madeloans to 20 local agricultural credit organizations under the authorityof section 5 of tiie EFC Act. A total of 250 loans amounting to$6,120,867 were authorized to these enterprises. Against these au-thorizations, $5,643,618 was disbursed. All sums advanced wereliquidated before 1942. (See table Ag-6 in app. C.) Only $39,381of the total amount disbursed was charged off as a loss.

The heaviest concentration of these loans was found among creditorganizations serving fruitgrowers, particularly in the Pacific North-west The State distribution of loans to local agricultural creditcorporations was as follows:

Authorized Disbursed Authorized Disbursed

ArizonaArkansasColoradoFloridaIdahoIowaLouisianaNew York."."

$880,000214,13671,455435,000

$880,000214,136

480,000120,000397,251

435,00058,723

455,000120,000232,591

North Dakota..,

Boutb Carolina..Tennessee.—.-.Texas.Washington.....

Total

$1,000116,79058,500

124,25095,491

3,063,104

$1,000116,790

89,2512,981,172

6,120,867 5,643,618

Livestock Credit Corporations

Section 5 of the EFC Act provided the Corporation with authorityto make loans to livestock credit corporations. During 1932 and 1933a total of 154 such loans was authorized to 19 local livestock creditcorporations. The total amount authorized in these loans was $14,-511,328; disbursements on these amounted to $12,971,599, all of whichwas repaid prior to 1938, (See table Ag-7 in app. C.)

89



Loans authorized to local livestock credit corporations were con-centrated in the Western States, as follows:

Colorado — —IdahoMissouriMontanaNew MexicoOregon

Authorized

$382,8502,132,035

421,0002,142,250

874,442270,740

Disbursed

$138,4502,030,235

1,996,350768,192242,290

TexasUtahWyoming

Total

Authorized

$2,468,4253,477; 4432,342,143

14,511,328

Disbursed

$2,442,4453,172,6172,181,020

12,971,599

Included in the loans made to livestock credit corporations is oneloan authorization for $400,000 ($321,643 disbursed) for the specificpurpose of aiding in the liquidation of a closed national bank.

Financing Exports of Agricultural Surpluses

By section 201 (c) of the Emergency Belief and Construction Actof 1932, the RFC was authorized and directed to make such loans asmight be judged necessary for the purpose of financing sales of agri-cultural surpluses in the markets of foreign countries. The authoriz-ing language provided that no such loans could be made if, in theCorporation's judgment, the sales so financed would adversely affectthe world market for the products involved. The act also specificallyprohibited the making of such loans to finance export sales of cottonowned by the Federal Farm Board or the Cotton StabilizingCorporation.

The Corporation under the authority cited authorized a total of 10loans to 6 different borrowers. The loans authorized totaled $98,445,-245, and disbursements on these amounted to $47,300,825. All but$1,948 of the amounts advanced were repaid. (See table Ag-8 inApp. C.) The repayments included $13,537,388 paid in April 1936by the Export-Import Bank of Washington as the purchase priceat par of the balance due on loans made to the Republic of China.

The following loans were authorized to finance export sales ofagricultural surpluses:


Republic of ChinaKingdom of NorwayFederal Surplus Commodity CorporationCotton Export CorporationOthers -

Total...

$50,000,00010,000,00030,000,0005,074,2903,370,955

$17,105,386

3,119,201

98,445,245 47,300,825

The loan to the Cotton Export Corporation was a revolving creditof $5 million, later increased to $5,074,290 by reason of repayments. Ofthe total, $574,290 was taken by RFC and $4,500,000 was made by



banks with HFC's agreement to participate in the loan. HFC dis-bursements under this loan arrangement were the $74,290 redisbursedunder the revolving credit, and the $1,948 which was disbursed underthe participation agreement and which was not recovered. This loanwas eligible both under section 5 (d) of the RFC Act, as amended, andsection 201 (c) of the Emergency Relief and Construction Act of 1932.

Loans To Finance the Carrying and Orderly Marketing of AgriculturalCommodities and Livestock

The RFC was authorized and empowered by section 201 (d) of theEmergency Relief and Construction Act of 1932 to make loans for thepurpose of financing the carrying and orderly marketing of agricul-tural commodities and livestock produced in the United States. Loansamounting to $1,690,774,178 were authorized under this power. About95 percent of the dollar amount authorized was in loans to CommodityCredit Corporation.

Excluding the loans made to CCC, the RFC authorized 159 loans to105 different borrowers for the purpose of financing the carrying andorderly marketing of agricultural commodities and livestock. Theamount authorized in these loans was $86,061,513. However, the twolargest authorizations (American Cotton Cooperative Association,$15 million, and Cotton Stabilization Corporation, $35 million) werecanceled without disbursement Most of the $19,644,492 disbursed onthese loans was repaid before 1940. However, some small amountsremained outstanding until 1951. (See table Ag-9 in app. C.)

The distribution by States of the loans authorized to finance thecarrying and orderly marketing of agricultural commodities and live-stock is shown in the following table, exclusive of loans to CommodityCredit Corporation:

Authorized Disbursed Authorized Disbursed

AlabamaArkansas . . . : " :CaliforniaColorado.Delaware..Florida I ™Georgia....IllinoisIndianaKentuckyllllllLouisianaMaine . . . . : : : : : :MarylandMassachusettsMichigan.Missis-Misso

$150,000725,000

5,063,750500,000100,000393,37715,00010,500

757,1125,561,512

50,495,00035,000

575,000350,000570.00060,760

104,000

$121,7812,594,189

125,050900

393,37715,0008,500

296,9002,433,923

42,750

375,"566211,396127,597

66,000

MontanaNew JerseyNew YorkNorth Carolina...North DakotaOhioOregonPennsylvaniaTennessee-Texas •VirginiaWashingtonWest VirginiaWisconsinPuerto Rico

TotaL

$2,500285,000

1,700,270120,000

6,0001,035,000

350,000318,500

12,610,723219,551

333,030175,000

1,571,3131,000,000

$1,885273,568600,92699,9654,920

684,782154,179290,438

8,301,898199,651264,895187,305

1,475,563362,254

86,061,513 19,644,492

Commodity Credit CorporationBeginning in 1933, and continuing into 1938, the RFC authorized a

series of loans to the Commodity Credit Corporation for the purpose



of financing the carrying and orderly marketing of agricultural com-modities. The amount authorized for this purpose was $1,604,712,665.Disbursements against the authorizations amounted to $767,716,962,all of which were repaid. (See table Ag-10 in app. C.)

The commodity programs financed by CCC with the EFC loanswere as follows:

Cotton „ — —Com - „Seed corn - - - ..TurpentineTobacco -Figs _ _Prunes ^ __ .DatesRaisinsPeanuts . „Wool and mohair .Collateral trust notes A „Collateral trust notes BCare and preservation of collateral

Total

Authorized

$868,000,000318,250,00076,750,00020,000,00013,358,665

140,0002,700,000

64,0002,500,0007,450,000

50,000,000166,095,76270,000,0009,404,238

1,604,712,665

Disbursed

$542,698,836133,776,484

6,315,2607,380,1708 717,501

83,9152,264,305

60 3982,855

5,346,695

58,182,3002^51,844

36,399

767,716,962

Acquisition of Cotton by the Secretary of Agriculture

By provisions of section 5, title I, of the Agricultural AdjustmentAct, the KFC was authorized and directed to make available to theSecretary of Agriculture such sums as might be necessary to enablethe Secretary to carry out the responsibilities assigned to him by theact as related to the acquisition of cotton.

The EFC authorized loans totaling $23,500,000 to the Secretary forthis purpose. However, only $3,300,000 was disbursed, all of whichwas repaid. (See table Ag-11 in app. C.)


RFC Mortgage Subsidiaries

On January 31,1935, an act was approved which added a new sec-tion (5c) to the RFC Act. The purpose of the new section was "Toassist in the reestablishment of a normal mortgage market * * *."Under this section the RFC was authorized to "subscribe for or makeloans upon the nonassessable stock of any class of any national mort-gage association organized under title I I I of the National HousingAct and of any mortgage loan company, trust company, savings andloan association, or other similar financial institutions, now or here-after incorporated under the laws of the United States, or of anyState, or of the District of Columbia, the principal business of whichinstitution is that of making loans upon mortgages, deeds of trust,or other instruments conveying, or constituting a lien upon, real estateor any interest therein." The original RFC Act authorized the Cor-poration to make loans to mortgage loan companies, but did not pro-vide authority to subscribe for the capital stock of such companies.

Although the power to so do was implied rather than specific,the RFC used the authority conferred by section 5c to create two sub-sidiaries for the purpose of dealing in real estate mortgages. Throughsubscriptions for capital stock and loans, the RFC authorized a totalof $1,758,460,130 for these subsidiaries, and disbursed $1,705,001,899to them. The timing of the Corporation's investments in the RFCMortgage Company and the Federal National Mortgage Associationis shown in table MS-1 in appendix C.

RFC Mortgage CompanyThe RFC Mortgage Company was incorporated March 14, 1935,

under the laws of the State of Maryland. The incorporators werethree individuals who were officials of JRFC, and the capital stock ofthe Company was purchased by RFC under the authority of section5c of the RFC Act, as amended. The bylaws of the Company providedfor management of its affairs by a Board of Directors. In practice,however, the Board of Directors of the RFC Mortgage Company werealso officials of RFC, and the Company's affairs were administeredthrough the same organization and offices as those of RFC. Thus,in effect, the RFC Mortgage Company operated as a division of RFCwith a specialized lending function.

The charter of the RFC Mortgage Company did not provide forthe termination of its period of succession. However, the Government


FINAL REPORT O N THE RECONSTRUCTION FINANCE CORPORATION

Corporation Control Act, approved December 6, 1945, provided thatthe Company either must secure a Federal charter by June 30, 1948,or cease to function as a Federal instrumentality. By the provisionsof the act approved June 30, 1947,_all assets.and.liabilities of theEFC Mortgage Company were transferred to the RFC, and theCompany subsequently was dissolved.

From 1935 to 1947, the EFC provided the EFC Mortgage Companywith funds amounting to $334,910,020. Of this, $25 million was pro-vided through subscriptions for capital stock and the balance throughloans. Additional loans of $53,458,241 were authorized, but had notbeen disbursed and were canceled when the Company ceased its oper-ations. At the time of the Company's merger with RFC, the Corpora-tion's investment in the RFC Mortgage Company was $80,352,871,including the $25 million subscribed for capital stock. Table MS-2 inappendix C is a quarterly distribution of activity for RFC's invest-ments in the RFC Mortgage Company.

The RFC Mortgage Company authorized 103,525 loans and pur-chases for a total of $660,901,581. The composition of these was asfollows:

Large-scale housing projects—FHA insured-.Other FHA-insured mortgagesMortgages Insured by VADirect loans on income-producing propertiesPurchases of property

Total

Authorized

Number

4674,18025,1024,182

15

103,525

Amount

$38,098,000293,989,550148,537,930173,016,510

7,259,591

660,901,581

Disbursed to June 30,1947

Number

1963,40211,3672,820

15

77,623

Amount

$7,466,833244,764,820

67,681,26299,394,772

3; 228,815

422,536,502

On June 30, 1947, when the RFC Mortgage Company was mergedwith the parent Corporation, the loans, mortgages, and commitmentsoutstanding were as follows:

Undisbursedcommitments

Outstandingprincipalbalances

FHA-insured mortgagesVA-Insured mortgagesDirect loans on income-producing properties—.

$21,23180,056,4605 718,266

$1,845,07067 076,9417CH&564

Total,.. 85,795,957 76,003,584

All purchases of VA-insured mortgages occurred subsequent toAugust 7, 1946, when an act was approved which authorized FRCto purchase such mortgages directly or through a subsidiary. TheRFC Mortgage Company created a secondary market for GI ho«ieloans by purchasing such obligations at the request of originating


RFC MORTGAGE SUBSIDIARIES

institutions. The authority to purchase VA-insured mortgages ex-pired on June 30,1947, and was not restored until July 1,1948, whenthe Federal National Mortgage Association again provided a second-ary market for such mortgages.

Through June 30, 1947, the EFC Mortgage Company had realized$345,931,572 from the $419,307,686 which it had disbursed. Abouttwo-thirds of the total recovery was derived from sales of mortgagesto financial institutions, including 10,592 FHA-insured mortgagesamounting to $40,509,731 which were sold to the Federal NationalMortgage Association. A loss of $1,219,635 was incurred in sales ofmortgages. Other credits included $19,603,955 representing the un-paid principal balances of mortgages which were foreclosed.

On June 30, 1947, when the assets of the EFC Mortgage Companywere merged with those of EFC, the following mortgages and com-mitments were outstanding:

Commitments . . - —.Mortgages

Total

Insured byFHA

$21,2311,845,070

1,866,310

Partiallyguaranteed

by VA

$80,056,46067,076,941

147,133,401

The RFC continued to administer and liquidate this portfolio ofmortgages until June 30,1954, when those remaining were transferredto the Federal National Mortgage Association in accordance withthe provisions of Reorganization Plan No. 2 of 1954. At that time,the unpaid principal amounts of the remaining VA mortgages totaled$61,967,358, and the FHA mortgages amounted to $97,069.

Federal National Mortgage Association

On February 7,1938, the President requested the Chairman of theEFC to organize a national mortgage association with paid-in capitalstock of $10 million, to provide the association with management, andto reserve an additional $40 million for capital in other national mort-gage associations or as additional capital for the association to be or-ganized by EFC. In response to this request, and pursuant to title I I Iof the National Housing Act, as then amended, the Federal HousingAdministrator chartered the National Mortgage Association of Wash-ington on February 10, 1938. On April 5, 1938, the name waschanged to "Federal National Mortgage Association." The EFCinitially subscribed for and paid in $10 million for the capital stock ofFNMA and also paid in $1 million to surplus. In 1948, the capitalstock was increased by $10 million which was also subscribed for andpaid in by EFC.

95



The Federal National Mortgage Association was staffed by RFCpersonnel, operated through RFC's field offices, and otherwise oper-ated much as a division of RFC until September 7, 1950. At thattime, under the provisions of Reorganization Plan No. 22 of 1950,FNMA was transferred to the Housing ancLHome Finance Agency.

During the time that FNMA was an RFC subsidiary, RFC madeloans to FNMA which totaled $1,349,091,869. When FNMA wastransferred to HHFA, there was outstanding $1,007,226,308 in loansand $21 million in capital stock and paid-in surplus. Quarterlychanges in RFC's investment in FNMA are shown in table MS-3in appendix C.

During the time FNMA was a subsidiary of RFC, the Associationauthorized the purchase of 414,449 mortgages amounting to $3,084,-211,324, as follows:

Authorized -CanceledDisbursedRepayments and salesOther reductionsTransferred to HHFA:

CommitmentsMortgages

Total

$3,084,211,324345,497,165

1,851,042,483709,178,63612,172,121

887,671,6761,129,691,726

VA mortgages

$1,891,014,451101,549,900

1,096,881,372172,259,012

1,282,302

692,583,179923,340,058

FHA mortgages

$1,193,196,873243 947,265754,161,1115361919,634

195,088,497206,351,668

When FNMA was transferred from RFC to the Housing and HomeFinance Administrator, the RFC received payment for its investmentin the Association from the proceeds of borrowings by FNMA fromthe Secretary of the Treasury.


Railroad Loans and Investments

The RFC was authorized to make loans to railroads, upon theapproval of the Interstate Commerce Commission, by the provisions ofthe original RFC Act. Loans could be made to railroads for tem-porary financing, to railroads in process of construction, and to receiv-ers of railroads in cases where funds could not be obtained on reason-able terms from the public or through banking channels. The maturi-ties of these loans were limited to 3 years, and the act provided thatEFC should be "adequately secured."

By an act approved June 10,1933, trustees of railroads proceeding toreorganize under section 77 of the Bankruptcy Act of March 3,1933,were made eligible for loans under section 5 of the RFC Act. A fewdays later, on June 16,1933, an act was approved which prohibited theInterstate Commerce Commission from giving its approval for RFCloans to any carrier which, in the opinion of the Commission, was inneed of financial reorganization in the public interest. As defined inthis later act, the term "carrier" did not include a receiver or trustee.

On June 19, 1934, an act was approved which permitted 5-yearmaturities for loans made to railroads under section 5 of the RFC Act,and also provided that RFC might require railroads to make arrange-ments for amortization as a condition to granting loans for periodslonger than 3 years.

The original provisions of the RFC Act relating to railroad loanswere rewritten in an act approved January 31,1935. The new pro-visions authorized RFC to purchase the obligations of railroadsengaged in interstate commerce or to guarantee the payment of suchobligations "notwithstanding any provisions of law as to maturity."Loans to railroads were also authorized to be made upon "full andadequate" security, provided that funds were not available on reason-able terms through private channels. Both loans and purchases ofobligations required the approval of the Interstate Commerce Com-mission, and, except for loans made for purchase or maintenance ofequipment, the Commissioner's approval was required to be accom-panied by a certificate that railroads concerned, on the basis of presentand prospective earnings, could reasonably be expected to meet theirfixed charges without reduction thereof through judicial reorganiza-tion.

The total amount of loans, commitments, purchases, and guarantiesmade to railroads subsequent to January 31,1935, was limited to $350million at any one time. However, in the act approved June 25,1940,this limitation was increased to $500 million.



The authority for RFC to provide financial assistance to railroadswas extended by the acts approved June 30,1947, and May 25,1948.The specific restriction on the amount of loans, commitments, pur-chases, and guaranties was not included in these extensions, but onlylimited use was made of the extended authority.

Prior to February 1, 1935, when the assistance which RFC couldprovide to railroads was limited to temporary financing, the Corpora-tion authorized 139 loans to 70 borrowers. These authorizationsamounted to $457,856,080, against which $450,941,524 was disbursed.

The total amount authorized for financial assistance to railroadsunder section 5 of the RFC Act, as amended, was $1,059,867,787. Thisamount represented 248 loans to 98 railroad companies. Disburse-ments on these authorizations were $938,440,875. (See table R-l inapp.C.)

In addition to the loans and purchases made under the RFC Act, theCorporation also purchased some railroad obligations from the Fed-eral Emergency Administrator of Public Works (later Public WorksAdministrator). These purchases were authorized by the EmergencyAppropriation Act approved June 19, 1934. The securities so pur-chased were acquired by FERA and PWA under the authority of titleI I of the National Industrial Recovery Act, and the funds paid byRFC for such securities were available to FERA and PWA for themaking of additional loans. The authority for RFC to purchase secu-rities from FERA and PWA existed until June 30,1947. However, itwas not exercised after 1941.

RFC authorized the purchase of 54 issues of railroad securities fromFERA and PWA. The amount authorized to be purchased was$200,460,500, and disbursements were $199,290,500, as follows:

Year and quarter Authorized Disbursed Year and quarter Authorized Disbursed

3d.1935

1st..2d_.3 d -

19S6

$67,643,50034,019,000

79,070,00011,782,000

650,0003,651,000

$67,643,50034,019,000

78,486,00011,196,000

650,0003,651,000

1st2d3d4th.—.

19S7$295,000150,000

$295,00060,000

3,200,000 3,200,000

Total 200,460,500 199,290,500

0,tx>itwu | 3,651.000 11 | l_ •

By June 30, 1947, all of the railroad securities which RFCpurchased from FERA and PWA had been sold or retired, with asingle exception. In the marketing of these securities, a premiumof $6,889,202 was collected over the amounts which RFC had paidfor the^ securities. This amount was credited to FERA and suc-cessors in the accounts of the Treasury, and was not considered to beincome insofar as RFC was concerned. Further details on the securi-ties which RFC purchased from FERA and PWA will be foundbeginning on page 149 of this report.


Public Agencies

Beginning in September 1932, the RFC was authorized to purchasethe securities of or make loans to public bodies and instrumentalitiesof virtually any character. These included: States and Territoriesand their political subdivisions; municipalities; public corporations,boards, and commissions; drainage,levee, and irrigation districts; andpublic municipal instrumentalities formed in more than one State.The RFC grouped its transactions with bodies of these types underthe general heading "Public agency loans and securities."

The Corporation authorized a total of $1,518,058,180 in publicagency loans and security purchases. Disbursements on these au-thorizations amounted to $1,278,764,699, including $32,983,500 dis-bursed on outstanding commitments after the Corporation's lendingpowers expired. These are summarized below, according to the au-thority under which the authorizations were granted.


Self-liquidating projects, under the Emergency Relief and ConstructionAct of 1932 „

•Drainage, levee, and irrigation districts under the Emergency FarmMortgage Act of 1933

Public bodies under sec. 5(d) of the RFC Act.Securities of public agencies purchased from FERA and PWA

$398,873,884

160,127,449475,202,559493,854,288

$339,533,641

101,787,6831335,262,291

452,181,084

1,518,058,180 1,278,764,699

$32,983,500 disbursed on outstanding commitments subsequent to Sept. 28, 1953; does not

Table PA-1 in appendix C is a summary quarterly distributionof RFC's activity in public agency loans and securities; however,this summary does not include the public agency securities purchasedby RFC from Federal Emergency Relief Administrator (PublicWorks Administrator) which are discussed beginning on page149 of this report.

Self-Liquidating Projects

Authority for RFC to make loans or purchase securities to finance"self-liquidating" projects was contained in section 201 (a) of theEmergency Relief and Construction Act, approved July 21, 1932.By the provisions of this act, a "self-liquidating" project was deemedto be one which would be made "self-supporting and financially



solvent" and whose construction costs would be returned within areasonable time by means of tolls, fees, rents, or other charges ex-clusive of taxation.

The loans and security purchases authorized by this act cited werenot limited as to maturity, and could be made to finance publicprojects authorized by Federal, State, or municipal law. In addi-tion, loans could be made to private corporations formed wholly forthe purpose of providing housing for low-income families and forreconstruction of slum areas where such projects were regulated byState or municipal law with respect to rents, charges, capital struc-ture, rates of return, and areas and methods of operation. TheCorporation was also authorized to make loans to private corporationsfor the construction, replacement, or improvement of bridges, tunnels,docks, viaducts, waterworks, canals, and markets devoted to publicuse; and to private limited dividend corporations to aid in financingprojects for the protection and development of forests and other re-newable natural resources.

Under the authorities cited, a few loans were authorized to privatecorporations, but, for the most part, the projects financed were en-tirely public in nature.

By amendments to the Emergency Relief and Construction Actapproved June 16,1933, the authority of the RFC to make loans andsecurity purchases for "self-liquidating" projects was terminated,and such power granted to the Administrator of the Federal Emer-gency Relief Administration. However, a year later, on June 19,1934, an act was approved which gave RFC authority to make suchfurther loans and contracts as might be desirable for the comple-tion, improvement, or extension of any "self-liquidating" projectwhose financing had been authorized by RFC prior to June 26,1933,the effective date of the act first cited in this paragraph.

Still later, on January 31, 1935, an act was approved which gaveRFC authority to refinance "self-liquidating" projects authorizedunder the authorities cited, provided the bonds or other evidences ofindebtedness held by RFC were replaced by new ones judged byRFC to be more desirable.

The "self-liquidating" loans and security purchases authorized byRFC under the authority of the Emergency Relief and ConstructionAct of 1932 and the various amendments thereto totaled $398,873,884,


.PUBLIC AGENCIES

and disbursements on these authorizations amounted to $339,533,641.(See table PA-2 in app. C.) The distribution of amounts author-ized and disbursed by State was as follows:

Number ofborrowers

63

108517217413

14413I232214498922421

206821111

176

Authorized

$224,0001,703,5001,463,852

310,020,0972,002,234

100 0001,644,931

41,00060,000

7,830,723833,000

9,700820,000

1,519,62416,063,000

59,850718,841575 000327,'000996,140207,00075,000

250,0003,361,9045,694,600

27,218,0001,120,473

628,800299,983734,625315,000230,500105,000

4,278,623737,300

2,110,2263,026,318

3,00040,000

125 0001,300,'000

398,873,884

Disbursed

$74,5001,690,000

948,852276,107,097

1,429,803

714,93122,00060,000

3,074,47360,000

820,000998,000

14,273,22359,850

643,841

277,66642,000

180,00015,000

250,0003,276,0005,385,600

21,862,000528,000453,500299,983724,625100,000149,500

1,093,01352,000

1,978,850550,000

40,666i, 3o6,666

339,533,641

Alabama..ArizonaArkansas ,CaliforniaColoradoConnecticutFloridaGeorgiaIdahoIllinoisIndiana.Iowa '.,Kansas.. .Kentucky. JIII_ILouisianaMarylandMichiganMinnesotaMississippiMissouriMontanaNebraskaNew Hampshire.New JeiNew MNew YorkNorth Carolina-OhioOklahomaOregonPennsylvania—South Carolina-,South Dakota—,TexasUtahVirginiaWashingtonWest Virginia...WisconsinWyomlPuerto

Total.

As the foregoing table shows, more than three-fourths of theamount authorized for "self-liquidating" projects was in the Stateof California. This is because one of the largest investments madeby RFC was in the bonds of an agency of that State. This invest-ment was $208 million in bonds issued by the Metropolitan WaterDistrict of Southern California. The project financed was the 2M-mile aqueduct which carries water from the Colorado River to LosAngeles, San Diego, and 26 smaller communities in southern Cali-fornia. Also included in the data for California is the $70 millionadvanced by RFC for the San Francisco-Oakland Bay Bridge.

101



Drainage, Levee, and Irrigation Projects

Loans to drainage, levee, and irrigation districts were authorizedto be made by RFC under the provisions of the Emergency FarmMortgage Act, approved May 12, 1933. With some amendments,this authority continued to June 30, 1947; thereafter, authority tomake loans of this type was continued in the broad powers for "publicagency" loans granted by section 4(a) (3) of the amended RFC Act

The original authority to make loans of this type was limited tothe refinancing of completed projects devoted chiefly to the improve-ment of lands for agricultural purposes. However, by an amend-ment approved June 19,1934, this was broadened to allow loans to bemade for repairs or improvements to any district which had previ-ously been granted a refinancing loan. The authority was againbroadened by an amendment approved June 22, 1936, under whichloans for the acquisition or construction of such projects wereauthorized.

Loans to drainage, levee, and irrigation districts were required tobe "fully and adequately secured" and maturities up to 40 years werepermitted. It also was required that RFC make an appraisal ofeach project to determine that it was economically sound and thatthe Corporation be satisfied that an agreement had been concludedbetween the applicant and its creditors for refunding of outstandingbonds at a reasonable price.

It was originally provided that loans to drainage, levee, and irri-gation districts should not exceed an aggregate of $50 million out-standing at any one time. This limitation was increased to $125million by the amendments approved June 19,1934.

A total of 1,318 loans amounting to $150,127,449 was authorized todrainage, levee, and irrigation districts under the authorities exist-ing prior to June 30, 1947. The number of districts to which loanswere authorized was 671. The amount disbursed on the authoriza-tions was $101,787,683. Activity in this field was concentrated be-tween 1933 and 1937, but continued at a lower rate into 1947. (Seetable PA-3 in app. C.)

The loans made were concentrated in Southern and Western States.The table below is the distribution by State of drainage, levee, andirrigation loans to December 31, 1941. Data for subsequent activitycannot be distributed by State, but the data shown cover more than95 percent of the amounts authorized and disbursed.


PUBLIC AGENCIES

Number ofborrowers


ArizonaArkansasCaliforniaColoradoFloridaIdahoIllinoisIowaKentuckyLouisiana.Minneasota.MississippiMissouriMontanaNebraskaNevadaNew MexicoNorth Carolina,OregonSouth Carolina.South Dakota..TennesseeTexasUtahVirginiaWashingtonWisconsinWyoming

Total

$14,004,45415,187,74649,705,1475,194,841

11,675,5313,081,5153,919,596

383,50091,932

1,494,434302,500

5,465,2368,130,3502,102,7491,694,330

969,433963,808174,000

3,170,236305,160156,100110,300

17,131,325637,500136,200

1,425,49622,00068,900

$3,228,60112,716,74627,076,0802,877,766

10,094,9682,032,4062,909,276

195 61669 604

814,686

4,768,0206,677,6611,407,8651,664,667

634,676868,386173,000

2,899,643149,928160,10091,799

16,228,627315,600136,000

1,168,373

62,400

661 147,704,319 98,210,981

Loans to Public Bodies under Section 5d of the RFC Act

By amendments to the EFC Act approved April 13,1938, the Cor-poration was empowered to make loans, through the purchase of se-curities or otherwise, to all types of public agencies and bodies to aidin financing projects authorized under Federal, State, or municipallaw. This act provided authority similar to that originally given toEFC in the Emergency Eelief and Construction Act of 1932, buttransferred to the Federal Emergency Administrator of Public Worksin 1933. However, the authority of the 1938 act was less restrictivethan that of the 1932 act. The 1938 act required that loans made orsecurities purchased under this authority be "of such sound value, orso secured, as reasonably to assure retirement or repayment." Therewere no statutory limits placed on the maturity of such loans or se-curity purchases. The authority provided by the 1938 act was con-tinued without substantial change in later amendments and extensionsof the EFC Act, and the Corporation continued to authorize loans topublic agencies until its lending authority was terminated.

Under the powers granted by the 1938 act, and its subsequentamendments and extensions, the Corporation authorized loans andsecurity purchases totaling $475,202,559, and made disbursements of

505257—59 8 103



$385,262,291. The activity from 1938 through 1947 is shown sepa-rately in table PA-4 in appendix C; subsequent activity is combinedwith other types of public agency loans and shown in table PA-1.Data are not available to show the distribution by State of these pub-lic agency loans. However, it appears that they were widely spreadamong the States, with concentrations of dollar amounts being dueto large projects such as the $136 million authorized to the State ofArkansas Highway Department, the $37 million for the PennsylvaniaTurnpike Commission, the $20 million for the City of PhiladelphiaGas System, the $28,885,000 for the City of Cleveland TransitAuthority, and the $22,450,000 for the hydroelectric project of PublicUtility District No. 1 of Pend Oreille County, Wash.

Public Agency Securities Purchased From FERA and PWA

The authority which EFC had been given to make loans and se-curity purchases under the Emergency Relief and Construction Actof 1932 was transferred to the Federal Emergency Administrator ofPublic Works by amendments approved June 16, 1933. However,in the Emergency Appropriation Act approved June 19, 1934, theRFC was authorized to purchase marketable securities from FERAand the sums paid for such purchases were to be available for themaking of additional loans.

Most of the securities purchased by RFC from FERA and suc-cessors were paid for at par value. About one-fourth of those pur-chased were bought at a discount—usually one-third. The publicagency securities so purchased by RFC were as follows:

Purchased at parPurchased at a discount II.I.I

Total

Par value

$368,976,517124,877,771

493,851,288

Amount paidb y B F O

$368,976,51783,204,667

452,181,084


Financing Other Government Agencies

In addition to the allocations and loans made to other Governmentagencies at the specific direction of the Congress, there were a fewinstances in which EFO funds were used to finance other Governmentagencies within the discretion of the executive branch of the Govern-ment. (The loans made to agricultural financing institutions—eitherwholly or partially Government owned—are treated with separatelybeginning on p. 87 of this report.)

Export-Import Banks

The Export-Import Bank of Washington originally was authorizedin Executive Order 6581, dated February 2,1934, as a banking cor-poration organized under the laws of the District of Columbia. Theoriginal capitalization of the bank consisted of $1 million transferredby the President out of the appropriation authorized by section 220of the National Industrial Kecovery Act, plus $10 million of pre-ferred stock subscribed for by the RFC.

I t was intended that the Export-Import Bank organized under theExecutive order of February 2, 1934, limit its activities to the promo-tion of trade with the Soviet Union. However, soon after this Bankwas created, requests for loans were received from other foreignnations. To handle these, the Second Export-Import Bank of Wash-ington was authorized and created under Executive Order 6638, datedMarch 9,1934. The capital of the Second Export-Import Bank was$2,750,000, of which $2,500,000 was preferred stock subscribed for byRFC. The Second Export-Import Bank was abolished, effective June30,1936, by Executive Order 7365 of May 7,1936, and merged with theoriginal Bank.

The RFC subscriptions for the preferred stock of the Export-Import Banks were authorized by section 304 of the act approvedMarch 9,1933, which allowed the RFC to subscribe for the preferredstock of any national banking association or any State bank or trustcompany which, in the opinion of the Secretary of the Treasury, wasin need of capital funds for the purpose of organization or reorgani-zation.

Section 9 of the act approved January 31,1935, as amended, author-ized RFC to continue to supply capital to the Export-Import Bankthrough loans or subscriptions for preferred stock. This authoritywas continued in the act approved September 26,1940, which author-



ized RFC to supply funds to the Export-Import Bank for the devel-opment of resources of countries in the Western Hemisphere.

In total, RFC disbursed $201,500,000 to the Export-Import Banks,consisting of $176,500,000 in subscriptions for preferred stock and$25 million in loans. The periods during which this financing oc-curred are shown in table G-l in appendix C.

Defense Homes CorporationIn a letter to the Secretary of the Treasury on October 18, 1940,

the President provided an allocation of $10 million from his emer-gency fund to the Federal Loan Administrator to provide homes inareas of extensive defense activities. Pursuant to this, DefenseHomes Corporation was incorporated under the laws of the State ofMaryland on October 23, 1940. The allocation from the Presidentprovided the capital to begin operations; later financing was obtainedas needed by borrowing from RFC.

By Executive Order 9070 of February 24, 1942, DHC was trans-ferred to Federal Public Housing Authority in National HousingAgency and was thereafter administered by the Housing and HomeFinance Administrator. Throughout its existence DHC was operatedmuch as a division of RFC but technically was not an RFC subsidiary.

The RFC lent to DHC a total of $65,692,000, as shown in table G-2in appendix C. Of this, $40,870,411 was outstanding on June 30,1948,when the applicable provisions of the Government Corporation Ap-propriation Act, 1949, became effective. By these provisions, all assets,liabilities, capital stock, and records of DHC were transferred to RFCwithout reimbursement, for the purposes of liquidation. The capitalstock was canceled, and on February 4, 1949, a certificate of dissolu-tion was obtained.

The net assets of DHC acquired by RFC for liquidation amountedto $52,854,626, as follows:

Cash 721f 7 8 7

Mortgage notes 4 6 150> 414Accrued Interest _ 50,037Other assets IIHII_~I_III~III 17 139

Less liabilities assumed 5 2 ' ° ^ 751Net assets 52,854,626

The cash received in the transfer was applied to reduce DHC's loanindebtedness to RFC. Under the transfer agreement, subsequent col-lection on DHC assets made by RFC were applied to the payment of,in order:

1. Administrative expenses.

i T^TxVlDH0> Other t h a n i t s indebtedness to RFC.6. Jjoan indebtedness to HFC.


FINANCING OTHER GOVERNMENT AGENCIES

The mortgages notes received by RFC for liquidation consisted ofthose acquired in the sale of four properties by DHC. RFC continuedto administer and liquidate these mortgage notes until June 30,1954,when they were transferred to the Federal National Mortgage Associ-ation as provided by Reorganization Plan No. 2 of 1954.

The principal balances of the four mortgage notes as of June 30,1948, and June 30,1954, were as follows:

Fainnac CorpVeterans Cooperative Housing AssociationMeridian Hill Corp . „ .Bremco, Inc.—

Total

June 30,1948

$38,466,7464 490 2952,626,922

666,451

46,150,414

June 30,1964

$34,960,5882,191,0703,760,652

621,324

41,633,634

At the time these assets were transferred to FNMA, RFO's equityin the assets was $27,307,358 as compared to $40,870,411 when RFCacquired them on June 30, 1948. FNMA assumed RFC's notes pay-able to the Treasury in an amount equivalent to the net assetstransferred.

Federal Home Loan Banks

Section 2 of the original RFC Act directed the RFC to make avail-able to the Secretary of the Treasury, out of the Corporation's capital,up to $125 million for the purpose of enabling the Secretary to sub-scribe for the stock of the Federal home loan banks. RFC dis-bursed to the Secretary for this purpose $124,741,000. In 1938, theamount which RFC had disbursed to the Secretary was included withother allocations and loans made to other Government agencies atthe direction of Congress for which RFC notes payable to the Secre-tary of the Treasury were canceled. At this time, the stock of theFederal home loan banks continued to be held by the Secretary ofthe Treasury,

In 1941, when the public debt was approaching its limit, RFCceased borrowing from the Treasury, borrowed instead from the pub-lic, and with part of the funds so obtained purchased from the Secre-tary of the Treasury the stock of the Federal home loan banks, thusproviding the Treasury with additional funds. The amount paid byRFC for this stock was $124,741,000, the same as had originally beenadvanced*

RFC continued to hold this stock until July 1,1947. During theintervening period, some retirements had been made by the banks (seetable G-3 in app. C) and the amount of stock held by RFC on July 1,1947, was $122,670,000. At that time, under the provisions of an actapproved June 30,1947, RFC's notes payable to the Secretary of theTreasury were canceled in the amount of $122,670,000 and the capitalstock of the banks returned to the Secretary*



Loans to Foreign Governments

Under the provisions of an act approved June 10, 1941, the EFCwas authorized to make loans to any foreign government for the pur-pose of achieving the maximum dollar exchange value in the UnitedStates for the securities or property of any such government. Theact required that these loans could be made only on the request of theFederal Loan Administrator, with the approval of the PresidentOnly one loan was made under this authority, that being the $425million authorized to the Government of the United Kingdom ofGreat Britain and Northern Ireland.

By an act approved August 7, 1946, EFO was authorized to lendup to $75 million to the Philippine Republic after consultation withthe National Advisory Council on International Monetary and Fi-nancial Problems. A loan of $70 million subsequently was madeunder this authority.

Under section 201 (c) of the Emergency Eelief and ConstructionAct of 1932, the RFC authorized loans to the Republic of China andthe Kingdom of Norway. These loans were for the purpose of fi-nancing sales of agricultural surpluses in foreign markets. In thisreport, the statistical data on loans to foreign governments to financesales of agricultural surpluses are included with other loans made forthe same purpose.

The loan to the Republic of China was authorized in July 1933, inthe amount of $50 million, of which $17,105,386 was disbursed andrepaid. The loan authorized to the Kingdom of Norway was for $10million, and was canceled without any disbursements being made.

Great Britain

The Government of the United Kingdom of Great Britain andNorthern Ireland entered into an agreement with RFC on July 21,1941, for a loan of $425 million. On August 1, 1941, the borrowerexecuted its note for $425 million "or such lesser sum as shall be ad-vanced." The note bore interest at the rate of 3 percent per annumpayable semiannually, and carried a maturity date of July 1, 1956.Provision was made to extend the note for 5 years providing that two-thirds of the amounts disbursed were repaid prior to maturity.

A total of $390 million was advanced by RFC on the note, all ofwhich was repaid as shown in table F - l in appendix C*



Collateral for the loan consisted of British-owned shares in U.S.insurance companies, assignment of income of U.S. branches of Britishinsurance companies, securities of U.S. corporations in which Britishownership was controlling or substantial, and securities of other U.S.corporations. At the time of receipt, the RFC valued the collateralat $538,944,328. Income from the collateral was more than sufficientto make the stipulated principal and interest payments. The loanwas completely retired on September 28,1951, well in advance of itsmaturity.

Philippines

Pursuant to specific legislative authority, in 1946 the RFC author-ized a loan of $25 million to the Republic of the Philippines. This wasincreased to $70 million in 1947. The loan bore interest at the rate of2 percent per annum; $25 million of the loan matured on January 1,1952, and the balance on July 1,1953.

The loan was made without specific collateral, in accordance with therecommendation of the National Advisory Council on InternationalMonetary and Financial Problems.

On June 24,1947, a payment of $10 million reduced the principalbalance to $60 million. The loan agreement was revised upon theadvice of the Council on December 12,1951. Effective January 1,1952,the interest rate was increased to 2y2 percent per annum, and repay-ment was to be made in 20 semiannual installments of $3 million each,beginning January 1, 1952. Table F-2 in appendix C shows the re-ceipt of later payments which reduced the principal balance to $42million as of June 30,1954. At the close of that day, the loan was trans-ierred to the Export-Import Bank of Washington as provided for byReorganization Plan No. 2 of 1954. The Bank assumed KFC notes

E ^ 1 U S T r e a S U r y e ( l u i v a l e i l t to the net amout of the assets


Disaster Loans

Starting early in its existence the RFC (and its affiliate, DisasterLoan Corporation) was authorized to make loans for the rehabilitationand repair of damage, and alleviation of hardship, caused by earth-quakes, fires, floods, hurricanes, and similar disasters. These lendingfunctions continued until September 28,1953, when the provisions ofthe EFC Liquidation Act terminated the Corporation's authority tomake new loans of any nature. The Small Business Administrationwas authorized to continue the making of disaster loans by the sameact which terminated EFC's lending powers.

Disaster Loans in 1933

By an act approved March 23,1933, EFC was authorized to makeloans to nonprofit corporations organized to finance the repair or recon-struction of buildings damaged by earthquake in the year 1933. Allloans were limited to maturities of 10 years, and the act provided thatno loans could be made after December 31,1933. An amendment ofMay 29,1933, extended the purposes for which loans could be made tocover damage by fire, tornado, and cyclone. A second amendment,approved June 19,1933, provided for maturities of 20 years in the caseof loans to municipalities.

Loans amounting to $10,450,232 were authorized to six nonprofitcorporations in five States during 1933. I t was not until the end of1943 that all of these loans were liquidated. (See table D-l in appen-dix C.)

The States in which these loans were made were as follows:


— (earthquake)——3 (tornado)

-Umisiana (cyclone)Maine (fires)Tennessee (cyclone)

$7,500,0001,000,232

200,0001,650,000

100,000

$7,499,361113,705156,800659,37399,869

Disaster Loans, 1934-36

On April 13,1934, an act was approved which authorized RFC tomake loans to nonprofit corporations organized to finance "the acquisi-tion of home or building sites in replacement of sites formerly occupiedby buildings where such sites are declared by public authority to be

H IDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


unsafe by reason of flood, danger of flood, or earthquake, and for thepurpose of financing the repair or construction of buildings or struc-tures, or water, irrigation, gas, electric, sewer, drainage, flood-control,communication, or transportation systems damaged or destroyed byearthquake, conflagration, tornado, cyclone, or flood in the year 1933,and in the months of January and February 1934 * * *." Maturitieswere limited to 10 years in the case of private property, and 20 yearsfor utility systems and political subdivisions of States and Territories.

By an amendment approved July 26,1935, the act was extended tocover disasters occurring in the years 1933 through 1936. By an amend-ment approved April 17, 1936, the restriction limiting loans to non-profit corporations was removed, and RFC was authorized to makedisaster loans to corporations, partnerships, individuals, and munici-palities or other political subdivisions of States and Territories.

Under this act, as amended, loans totaling $5,734,289 were author-ized to 669 separate borrowers. Disbursements on these loans amountedto $3,473,947. Final liquidation of these loans was accomplished in1947. (See table D-2 in app. C.)

The States in which loans were made under this authority were asfollows:

CaliforniaConnecticutFloridaGeorgiaMaineMaryland ™IMassachusettsMississippiMontanaNew Hampshire..

Authorized

$2,160,000142,945£0,000

1,335,60024,25024,600

325,159216,250150,00042,050

Disbursed

$1,252,83091,17511,541

989,8058,450

11,60066,824

175,871116,63523,471

New JerseyNew York.North CarolinaOhioPennsylvaniaTexasWest Virginia

Total

Authorized

$50063,69710,5004,900

1,035,388140,00027,650

5,734,289

Disbursed

$36,072

4*900643,82320,00020,950

3,473,947

Disaster Loan Corporation, 1937-45

The Disaster Loan Corporation was created by an act approvedi ebruary 11,1937, to meet the emergency brought about by the floodsin the Ohio-Mississippi Valley. In the original act, the Corporation's

S? ^ ^ to thos* k connection with disasters in the yearL f r T ' t h r ° U g h subsequent amendments (acts approved May1937, March 3,1938, March 4,1939, and June 10,1941), the period

a ^ 2 2 ! ^

The Corporation was empowered "to make, upon such terms andconditions and in such manner as it may prescribe, such loans as it


DISASTER LOANS

may determine to be necessary or appropriate because of floods or othercatastrophes * * *."

The capital stock of the Corporation was originally limited to $20million, and was subscribed for by KFC out of the unexpended balanceof the $50 million which RFC was authorized to lend for disaster reliefunder the act approved April 17,1936. The limiting amount on DLC'scapital stock was increased to $40 million by an act approved March 4,1939. EFC subscribed and paid for a total of $24 million of thecapital stock of DLO.

Disaster Loan Corporation was not specifically authorized to borrowfunds under the provisions of the act which created it. However, aprovision of that act specified that the Corporation "shall have suchother powers as may be necessary and incident to carrying out itspowers and duties," and could have been construed to include thepower to borrow. The amounts obtained from sale of its capital stockwere sufficient to meet the Corporation's requirements for funds, andno borrowings were made.

The EFC had paid in $10 million for the capital stock of DLC priorto February 24,1938. On that date, an act was approved which can-celed RFC's obligations to the Treasury incurred to enable KFC tofinance certain activities of other Government agencies. At the sametime, the securities and other assets acquired by KFC as the result ofsuch financing were required to be transferred to the Treasury. Thecapital stock of DLC was one of these assets.

By this transfer, DLC ceased to be a subsidiary of RFC. By Reor-ganization Plan No. 1, effective July 1, 1939, the DLC was groupedwith other agencies to form the Federal Loan Agency. Later, DLCwas transferred to the Department of Commerce by Executive Order9071 of February 24, 1942. It was returned to the Federal LoanAgency pursuant to an act of February 24,1945. The Disaster LoanCorporation was dissolved by an act approved June 30,1945, and itsfunctions, powers, duties, authorities, documents, books of account,records, assets, and liabilities transferred to RFC "to be performed,exercised, and administered by that Corporation in the same mannerand to the same extent and effect as if originally vested in Reconstruc-tion Finance Corporation."

Although DLC was technically not a subsidiary of RFC afterFebruary 24,1938, it continued to obtain funds through RFC and itoperated with RFC personnel much as if it were a division of thatCorporation.

From the time it began operations through June 30, 1945, theDisaster Loan Corporation authorized a total of 24,088 loans amount-



ing to $37,361,659. The disasters in connection with which these loanswere authorized were as follows:

1937—Ohio Valley flood1937—Montana flood -- - -1938—New England hurricane and flood1938—California floods - * -1938—South Carolina—Charleston hurricane1939—Southeastern States floods.1940—Qeorgla tornado „ „ . .1940—Mississippi flood1940—California OTtMnfti™ -1940—California flood...1942—Alaska flre1942—Oklahoma tornado .1942—Pennsylvania flood1943—Mississippi Valley flood1943—East Texas sleet and windstorm1943— Oklahoma fire1944—New Jersey tornado

Others Involving loan authorizations of less than $50,000 ineach disaster

Total

Authorized

Number

7,53730

1,88034244

l i C S226

65239912

17

773

24,088

Amount

$8,613,336121,600

20,331,777919,989130,608

1,994,245110,731413,96250,37372,175

103,000228,645157,64195,165

3,000,00057,70067,850

893,062

37,361,659

Amountdisbursed

$7,027,390105,450

19,203,670681,248106,985

1,796,31898,675

345,03430,03548,08042,000

198,491105,59177; 205

770,00057,70014,000

646,678

31,354,550

The $31,354,550 which DLC disbursed involved 21,136 loans. ByJune 30,1945, when the Corporation was transferred to RFC, 14,801loans and $27,937,141 had been repaid. In addition, 4,280 loans in-volving disbursements of $2,002,089 had been charged off as losses.There were transferred to RFC 2,055 loans with outstanding prin-cipal balances aggregating $1,415,321.

The major portion of the losses arising from loans charged off byDLC was in connection with one loan made, as the result of the NewEngland hurricane of 1938, to the Federal Surplus CommoditiesCorporation, a Government corporation affiliated with CommodityCredit Corporation.

The hurricane which struck the six New England States in Sep-tember 1930 felled an estimated 4 billion feet of timber and affectedsome 12,500 landowners. The Forest Service of the Department ofAgriculture, after conferences with the President and representativesof DLC, developed a program for salvaging much of the down tim-ber. Under this program, the Federal Surplus Commodities Cor-poration salvaged the timber and each owner was paid 90 percent of


DISASTER LOANS

his timber's fair value. To finance the salvage operations, FSCOwas loaned $16,269,300, repayable only from the proceeds of thesalvage program.

The program was fully liquidated in the spring of 1945, at whichtime there was $1,279,533 of the loan outstanding. This amount wascharged off as a loss by the managing directors of DLC.

A similar program was undertaken in 1943 when a sleet and windstorm in east Texas damaged a large quantity of timber. To financesalvage operations in this area, DLC agreed to lend up to $3 millionto FSCC. Disbursements on this loan amounted to $770,000. Muchof the timber damaged by this storm was of pulpwood grade and lo-cated in areas which made it impossible to salvage it at costs belowcurrent OPA ceiling prices. As the result of discussions between of-ficials of the War Production Board and the Federal Loan Admin-istrator, the Defense Supplies Corporation (a wartime subsidiary ofRFC) established a subsidy fund of $300,000 out of which to pay theexcess salvage costs. The loan was fully repaid from the proceedsof the salvaged timber, plus $78,698 in subsidy allowances.

Disaster Loans Made by RFC, 1945-53

During the period from July 1, 1945, to September 28, 1953, theRFC authorized a total of 5579 disaster loans amounting to $35,952,-402. (See table D-3 in app. C.)

More than half of the loans authorized during this period (2,594loans authorized for $19,290,630) were in connection with the floodswhich occurred along the Kansas, Missouri, and Mississippi Kiversand their tributaries in July 1951. Some other disasters which oc-casioned significant numbers of disaster loans being made by RFCwere:

Tornado in Oklahoma-Texas Panhandle area 1947Explosions at Texas City, Tex l d 4 7

Gulf coast hurricane 1 9 4 8

Columbia River floods 1 9 4 8

Florida hurricane - i m

Ohio and Wabash Rivers floods 1 9 4 9

Michigan floods 1 9 5 2

The general characteristics of the disaster loans made by RFC sub-sequent to June 30,1945, are shown in the following tabulations. Thefirst of these shows the general purpose of outstanding disaster loans



and commitments as of December 81,1953, according to the States inwhich the borrowers were located.

[Dollars in Thousands]

State

Alabama - . . . . . . . . . .

California . . . . . . . -Connecticut *• - -Delaware.... .Florida . . . . . . . . . . . . . . . . . .Georgia...... - . •— . . . . .IllinoisIndianaIowaKansas . . . . . . . . . . . . . . . . . . . . . ..__.Kentucky . . . . . . .» .M a i n e . . . . . . . . . . . . . . . . . . . . . . . . . . . .......Massachusetts . . . . . .Michigan . . . . . . . . .Minnesota ._MississippiMissouriMontanaNebraskaNew HampshireNew JerseyNorth DakotaOhioOklahoma _.Oregon .PennsylvaniaRhode IslandSouth DakotaTennesseeTexas

VirginiaWashingtonWest VirginiaWisconsin

Alaska

Total

Home loans

Number

1110231

114395

361,281

2

95110513

1002734

2334

17120

2650713628

2,347

Amount

$54.3275.190.4

26.0199.619.427.064.5

2,714.40.6

525.2337.484.813.9

218.363.845.1

4.125.617.9

234.824.4

47.3200.2127.5

5.69.63.5

15.6

6,475.9

Businsss loans

Number

2333931

433119

540

101322

2415993926316

2332

149

691

1255

2

1,123

Amount

$14.5258.4

1,146.311.065.3

500.87.00.47.9

57.35,525.3

56.171.14.4

99.0119.3

2,512.119.0

141.70.9

25.629.619.540.4

279.6202.0

3.139.7

121.3

343.62.7

94.626.922.6.

39.7

11,908.6

Total

Number

13135703

5446106

451,821

21011271127518

199304328

365

1774332

405971727

14135

2

3,470

Amount

$68.8533.5

1,236.711.065.3

526.8206.619.834.9

121.88,239.7

0.656.1

596.3341.8183.8133.2

2,730.482.8

186.80.9

29.755.237.4

275.2304.0202.0

3.187.0

321.5127.5349.212.398.142.522.5

39.7

17,384.5

The next table shows the size of outstanding disaster loans and com-mitments as of December 31,1953, according to their general purpose.

[Dollars In thousands]

Size

Less than $500-...$500-$999$l,000-$2,499$2,500~$4,999$5,000-$9,999 "

$25,000 and over.

Total

Home loans

Number

28233492160918021

2,347

Amount

$80.8250.3

1,587.52,107.61,182.6

267.1

5,475.9

Business loans

Number

132103214234175161104

1,123

Amount

$35.676.2

376.7834.9

1,258.22,586.26,740.8

11,908.6

Total

Number

414437

1,135'843355182104

3,470

Amount

$116.4326.5

1,964.22 942.6% 440.82.853.3& 740.8

17,384.5

On September 28,1953, the authority of RFC to make new loansof any type was terminated as provided by the RFC LiquidationAct. At that time, the RFC had outstanding 3,373 disaster loans


DISASTER LOANS

with unpaid principal balances of $16,143,000, and 232 undisburseddisaster loan commitments which totaled $2,226,000. By June 30,1954, these amounts had been reduced to 3,230 loans amounting to$14,747,000, and 9 undisbursed commitments for $502,000. In ac-cordance with the provisions of Reorganization Plan No. 2 of 1954,the disaster loans and commitments outstanding on June 30, 1954,were transferred to the Small Business Administration.

Summary of Disaster Loans

From March 23, 1933, when the making of disaster loans was firstauthorized, to termination of the RFC's lending powers on Septem-ber 28, 1953, the KFC and its affiliate, Disaster Loan Corporation,authorized a total of 30,385 disaster loans amounting to $88,985,256.Disbursement on these loans aggregated $68,825,653.

The table below shows the disaster loan activities of RFC accordingto legislative authority.

Authority

Act of Mar. 23,1933, as amendedAct of Apr. 13f 1934, as amendedAct of Feb. 11,1937, as amended (DLO)Act of June 30,1945, as amended

Total

Authorized

Number

13705

24,0836,579

30,335

Amount

$10,450,232Si 734| 289

37,361,66035,439,075

83,985,256

Disbursed

$8,529,1033 473 947

31,354,55025,468,043

68,825,653

The losses incurred in the program approximated $4,860,000, orabout 7 percent of the amounts disbursed.

117



Civil Defense Loans

The Federal Civil Defense Act of 1950 (sec. 409) authorized theEFC to make loans for civil defense purposes upon certification bythe Federal Civil Defense Administrator. Loans outstanding at anyone time were limited to $250 million, and the loans were financedby borrowings from the Treasury,

In the EFC Liquidation Act (sec. 104) it was directed that allpowers, duties, and authority of KFC under the Federal Civil De-fense Act be transferred to the Secretary of the Treasury. Thistransfer became effective September 28, 1953. Following the trans-fer, the Secretary arranged for the EFC to serve as his agent inadministering the civil defense loan functions, and this arrangementcontinued until the abolition of EFC on June 30,1957.

A total of 10 civil defense loans amounting to $7,918,000 were au-thorized before the Congress effectively stopped the consideration ofapplications for new loans by failing to approve a request for a limit-ing amount on expenditures for administrative purposes during fiscalyear 1956. Although the Federal Civil Defense Act did not specifi-cally limit the use of the lending authority, all loans authorizedwere to assist in financing the construction of hospitals.

There were seven loans authorized by EFC under the authorityof the Federal Civil Defense Act in the amount of $5,568,000. (Seetable CD-I in app. C.) These were authorized as direct loans,but two of them, amounting to $2,600,000, subsequently were changedto deferred participations in which the Government's share was$1,290,000. Three loans were authorized after the program had beentransferred from EFC to the Secretary of the Treasury. These wereauthorized as deferred participation loans* The total amount ofthe loans was $2,350,000, and the Government's share of these was$2,115,000.

505257—59 9



Minor Lending Functions

Loans for Payment of Teachers' Salaries

Under the provisions of an act approved June 19, 1934, the RFCwas authorized to make loans to public-school districts, or similarauthorities, for the payment of teachers' salaries due prior to June 1,1934. No such loans could be authorized after January 31, 1935,and the aggregate amount of such loans outstanding at any one timewas limited to $75 million.

Only one loan was authorized under this authority. That was aloan of $22,500,000 to the Chicago Board of Education authorized inAugust 1934. There was disbursed on this loan $22,300,000, all ofwhich was repaid in December 1934. (See table TS-1 in app. C.)

Loans To Refinance Public School District Operations

On August 24,1935, an act was approved which authorized RFC tomake loans to tax-supported public-school districts for the purpose ofenabling any such district, or similar authority, to reduce and re-finance outstanding indebtedness incurred to finance the construction,operation, and maintenance of public-school facilities.

The total of such loans was limited to $10 million, and was requiredto be allocated equitably among the States on the basis of demon-strated need. Maturities of the loans were limited to 33 years.

Under this authority, the RFC authorized 35 loans to 31 schooldistricts or authorities. The amount authorized was $3,189,050, anddisbursements were $957,175. All amounts disbursed were repaid infull. (See table SD-1 in app. C.)

The distribution by State of loan activity under this authority is asfollows:

Arkansas _ „FloridaTexas . . .

Total

Numberof au-

thoriza-tions

231

11

35

Numberof bor-rowers

201

10

31

Amountauthorized

$1,138,800242,000

1,808,250

3,189,050

Amountdisbursed

$165,000

792,175

957,175

121



Loans fo Processors or Distributors Subject to Processing TaxesThe Agricultural Adjustment Act of 1933 provided for the payment

of taxes by processors or distributors of a variety of agriculturalproducts. This act also provided that "In order that the payment oftaxes under this title may not impose any immediate undue financialburden upon processors or distributors, (any processor or distributorsubject to such taxes shall be eligible for loans from the Reconstruc-tion Finance Corporation under section 5 of the ReconstructionFinance Corporation Act."

Only seven loans amounting to $26,089 were authorized to proc-essors and distributors under these provisions. The amount dis-bursed on these loans was $14,718, all of which was repaid. (Seetable PD-1 in app. C.) These loans were made in the followingStates:

ConnecticutKentuckyMontana-New JerseyOhio

Authorized

$6673,428

4883,3007,400

Disbursed

$5673,428

Pennsylvania.-.Tennessee

Total

Authorized

$3,9067,000

26,089

Disbursed

$3,9066^17

14,718

Loans to State Funds for Securing Repayment of Deposits of Public Money

In an act approved June 10,1933, the EFC was authorized to makeloans, if adequately secured, to any fund created by any State for thepurpose of insuring the repayment of deposits of public moneys ofsuch State or any of its political subdivisions. The act also requiredthat any State fund receiving such a loan should assign to EFC, tothe extent of the loan, all amounts which might be received by thefund from the liquidation of any bank or depository in which de-posits of public moneys were made.

The only authorizations made under this authority were to theBoard of Deposits of Wisconsin. Loans amounting to $13,087,716were authorized, and $13,064,631 was disbursed. All amounts ad-vanced were repaid. (SeetableSF-linapp.C.)


Financing RFC's Wartime Subsidiaries

The national defense and wartime activities of EFC began in 1940with legislation which amended the basic RFC Act for the purposeof enabling the Corporation "to aid the Government of the UnitedStates in its national-defense program." This act, approved June25, 1940, empowered EFC to create or purchase the capital stock ofcorporations for the purpose of—

1. Dealing in strategic or critical materials.% Acquiring real estate and plant facilities for the manufac-

ture of strategic and critical materials, arms, ammunition, imple-ments of war, and equipment necessary for their manufacture.

3. Leasing, selling, or otherwise disposing of plant facilities.4. Engaging in manufacturing operations.5. Acquiring and disposing of railroad equipment, commercial

aircraft, and parts and supplies necessary in connection withthem,

6. Acquiring and disposing of facilities for the training ofaviators.

7. Taking such other action as the President and the FederalLoan Administrator might deem necessary to expedite the na-tional defense program.

Under the powers outlined, the KFC created seven corporationsand acquired one other subsidiary (Eubber Development Corpora-tion) „ The dates of creation and dissolution of these were :

Aug. 22,1940Aug. 29,1940Dec. 13,1941Mar. 26,1912 )

June 90,1948June 30,1947June 30,1946

Petroleum Reserve Corporation (later

J Acquired In February 1942- inactive until Feb 16,1943.s The stock of WDC was outstanding until 1959: however, by the provisions of its charterWDC had exist-

ence except for purposes of liquidation only until Jan. 22,1947.

All of EFC wartime subsidiaries were financed through the pur-chase of capital stock and loans. The operations of the subsidiariesdid provide funds which were used to repay advances made by theparent. However, more than one-third of the amounts advanced

recovered by EFC through cancellation of the notes which EFC



had issued to the Secretary of the Treasury for the funds used tofinance the wartime activities. The funds supplied to the wartimesubsidiaries and the recoveries thereon while the subsidiaries remainedin existence are summarized below:

Metals Reserve Company...Rubber Reserve Company-.Defense Plant Corporation..Defense Supplies Corpora-

tionWar Damage Corporation...U.S. Commercial Company.Rubber Development Cor*

porationPetroleum Reserves Cor-

poration (later War AssetsCorporation)

Total

Stockpurchased

$5,000,0006,000,0005,000,000

5,000,0001,000,0005,000,000

1

1,000,00027,000,001

Loans

$2,418,237,5211,720,123,416

7,993,290,847

6,389,345,975

1,992,387,950

337,131,523

100,000

20,850,617,232

Total fundssupplied

$2,423,237,5211,725,123,4167,998,290,847

6,394,345,9751,000,000

1,997,387,950

337,131,524

1,100,00020,877,617,233

Recoveriesin cash

$1,757,576,0011,425,433,4602,909,939,547

4,797,350,4511,000,000

1,832,504,007

278,915,859

1,100,00013,003,819,325

Otherrecoveries

$665,661,520299,689,956

5,088; 351,300

1,596,995,524

164,883,943

58,215,665

7,873,797,908

Table W-l in appendix C is a summary by quarter-year periods ofRFC's financing of its wartime subsidiaries.

The operations of RFC's wartime subsidiaries were conducted inconjunction with the programs of other Government agencies ad-ministering national defense and wartime functions. In many in-stances, a specific program involved the War and Navy Departments,the War Production Board, the Office of Price Administration, theRFC itself, and one or more of EFC's wartime subsidiaries. TheRFC might make loans to industry to provide working capital orfacilities for production, Defense Plant Corporation would constructand equip Government-owned production facilities, and Defense Sup-plies Corporation or Metals Reserve Company would carry on pro-curement and stockpiling activities and handle subsidy payments^-allrelated to a specific material or program.

To detail the extent to which RFC and its subsidiaries participatedin the numerous defense and wartime programs is beyond the scopeof this report. The following descriptions of the activities of RFC'swartime subsidiaries are limited to outlining their principal opera-tions from the standpoint of what use was made of the funds advancedby the parent corporation.

Metals Reserve Company

Metals Reserve Company was organized as a Corporation onJune 28, 1940, under the authority of section 5(d) of the RFC Act,as amended. The company had capital stock of $5 million subscribedand paid for by RFC, and during its existence borrowed from RFCa total of $2,418,237,521. (See table W-fl in app. C.)

The management of Metals Reserve Company was vested in aBoard of Directors appointed by RFC. Most of the members of124


FINANCING RFC'S WARTIME SUBSIDIARIES

MEC's Board, and most of the officers appointed by MEC's Board,also served as directors or officers of EFC itself or of EFC's othersubsidiaries.

The principal functions of Metals Eeserve Company were (a) theprocurement, stockpiling, and disposal of metals and minerals definedas strategic and critical; and (b) the payment of subsidies to pro-ducers of strategic and critical materials.

All programs and activities of the Company were undertaken atthe request or under the sponsorship of other U.S. Governmentagencies. The Company did not exercise policymaking functionsin connection with its undertakings, but assumed responsibility foradministrative and procedural functions only. Policies for the pro-curement activities were determined by the War Production Board,the Office of Price Administration, the Board of Economic Warfare(and its successor the Foreign Economic Administration), the Warand Navy Departments, and other interested agencies of the Govern-ment. Policies for the subsidy program were determined by the WarProduction Board and the Office of Price Administration.

The trading activities of the Company involved the procurement,stockpiling, and disposal of strategic and critical metals and minerals,including mining, refining, and processing operations. The Companyalso entered into programs for the acquisition, recovery, and con-version of scrap materials, as well as a program for the distributionof aircraft parts and materials which had become surplus to theneeds of certain aircraft manufacturers operating under Army andNavy contracts. In these trading activities a total of $2,750 millionwas disbursed in acquiring about 50 different metals and minerals from51 foreign countries, 38 States of the Union, and Alaska and thePhilippines. The quantities of the various commodities purchasedthrough June 30,1945, are shown in the following table :

Material* Acquired by Metals Reserve Company to June 30,1945

Unit Quantity

Aluminum:Primary aluminum..Secondary aluminum

A™5auxit? a n d o t h e r ores"."-"AmblygoniteAntimony:

RefinedOres and oxides

Arsenic metal and cres-'IIIIIIIAsbestosgarytes (barium sulpha'toT""Beryllium ores !....._&^dbth

Short ton..do.-...

..do..

..do..

..do...do..

.....do...do..,.do..

sulphate)

do....-do

doPoundShort ton. .. . . . .do

do

647,35318,302

5,717,733490

18,01760,85549,19577,29364,03018,186

5872,1078,032

14,5252,441,246

72



Materals Acquired by Metals Reserve Company ro June 30 , 1945—Continued

Unit Quantity

Copper:feeflnedOres and concentrates

CorundumDiamondsFluorspar ores and concentrates.GoldGraphiteIron, pig and ore. . _Kyflmtfl (aluminum silicate)

Short ton.dodo

CaratShort ton. _.Troy ounce-Short ton

dodo

Ores and concentrates. -„ -Antimonial leadLead base alloys

MagnesiumManganese:

OresFerromanganese

Mercury.,Mica :Molybdenum concentratesNickel:

Refined and matteOres

Platinum and associated metalsQuartz crystalsRutile ore (titanium dioxide)SilverSpodumeneTalcTantalum oresTin:

RefinedOres and concentrates

Tungsten ores and concentratesVanadium ores and concentratesZinc:

RefinedOres and concentrates

Zircon.. . . . . . . .. . . . . ......... „ . ._ . . *.Scrap and salvage:

Aluminum.........Brass III"I™~""II™~*IIII"II "IIII-.-iCopper.Copper screeningIron and steelManila cordageNickelOil country pipeTin... . . „White metal I~~ZZ~~IIZ~~~IIIIII~~III~IZIII~~—3Sbf i X I

. .do .

. .do .

. . d o .

. .do .

. .do .

do_ . . dFlaskPoundShort ton.

. . . . .dodo

Troy ounce-PoundShort tonTroy ounce-Short ton__.. . . . .do

do

2,960,5721,091,686

18,7135,013,206

206,842374,17429,160

224,7966,912

1,184,695449,05326,1474 1968,757

2,778,900* 6 159

119,91541,684,472

4,200

49,60613,414

262,525

6,767

.do.

.do.d

2,43980534; 821

201,045.do..do .d

.do.

.do.

. .dododo

_.._dododo

Square foot..Short ton

274,450321710

970,3042,768,818* 201932

12,10620,048243 913

867,141..do.

. .—dodo

illZdododo

13,03039,07216 5961 167

138 427

The materials purchased by MEG were sold for $2,800 million.Another $1 billion was disbursed for freight, storage and handlingexpenses, operating expenses, and subsidy payments.

The largest single class of expenditure made by Metals ReserveCompany was the payment of over $350 million in direct cash sub-sidies to producers of strategic metals and minerals, principally cop-per, lead, and zinc. These payments, which were made under author-ity contained in the Emergency Price Control Act of 1942 andsubsequent legislation, were granted to stimulate the development ofnew sources for, and maximum production of, metals and ores whichwere in short supply.

Beginning in July 1940, Metals Reserve Company became activein the Government's program to assure supplies of tin metal. As



part of this program, MRC sponsored the construction of a tin smelterat Texas City, Tex., and supervised the smelter's operations. MRCalso undertook to procure the tin ores needed to supply the smelter.Following World War II , the program for the operation of thesmelter and procurement of the necessary tin ores was continued byMRC's successors until the smelter was sold to a private operator inFebruary 1957.

A full review of the Government's tin program from 1940 to 1957is contained in the report of the Federal Facilities Corporation notedon page 319 in appendix D.

The operations of Metals Eeserve Company provided funds suffi-cient to repay all but $665,661,520 of the sums advanced by BFCbefore the Company was dissolved and merged with RFC on July 1,1945, in accordance with the provisions of the act approved June 30,1945. After that date, the liquidation of MRC's assets and liabilitieswas continued by RFC, and such costs as were unrecovered on June 30,1947, were included in the RFC notes payable to the Secretary of theTreasury which were canceled by direction of the Congress.

Rubber Reserve Company

Rubber Reserve Company was organized as a corporation on June28, 1940, under the authority of section 5(d) of the RFC Act, asamended. The Company had capital stock of $5 million subscribedand paid for by RFC, and during its existence borrowed from RFCa total of $1,720,123,416. (See table W-3 in app. G)

The management of Rubber Reserve Company was vested in aBoard of Directors appointed by RFC. The members of RRC's Boardand the officers appointed by them also served as directors or officersof RFC itself or of its other subsidiaries.

The primary purpose of RRC was to aid the national defense pro-gram by providing supplies of rubber to meet both military andcivilian requirements. Its activities included the acquisition and dis-tribution of all types of natural and synthetic rubber and rubberscrap.

Rubber Reserve Company received policy guidance from other Gov-ernment agencies. These agencies, which had overlapping authoritiesover the natural and synthetic rubber programs, included the Depart-ments of State, Commerce, Treasury, and Agriculture, the Board ofEconomic Warfare (later Foreign Economic Administration), theWar Production Board, the Petroleum Administration for War, theOffice of Rubber Director, all branches of the military services, andthe Maritime Commission.

127



Rubber Eeserve Company conducted the Government's natural rub-ber procurement program until February 23, 1943. Thereafter, nat-ural rubber procurement became the function of Rubber DevelopmentCorporation. However, the natural rubber acquired by EDC was soldto Rubber Reserve Company and distributed by them to industrialusers as directed by allocations from the War Production Board.

Rubber Reserve Company became the sole importer of rubber inthe United States on June 20,1941. This function was continued inRRC (and, after June 30,1945, in RFC's Office of Rubber Reserve)until April 1, 1947, when commercial importations were resumed inaccordance with the policy expressed in the act approved March 29,1947. Total acquisitions of natural rubber to June 30, 1947, were1,786,904 long tons. The sources of this rubber were as follows:

Eastern Hemisphere: QuantityCrude rubber produced in— (lono m*)

Far East 1, 382, 730Africa . 171,070

Liquid latex produced i n -Far East 1,482Liberia 22,764

Western Hemisphere:Crude rubber produced in—

Brazil 64,521Bolivia 15,968Other Latin-American countries 34, 068

Guayule, chiefly from Mexico 38,181Balata and chilite gum 3, 805Cryptostegia (Haiti) 5

Inventories purchased from domestic manufacturers:Cruderubber _ 37,104Liquid latex.. 15,206

Total 1,786,904

In June 1942, Rubber Eeserve Company undertook to handle thescrap rubber collected in the drive announced by the President onJune 12,1942. To do this, EEC entered into agency agreements withfour of the larger scrap rubber dealers. Under these agreements, theagents were required to procure, store, and sell scrap rubber, and theywere to be reimbursed for their actual expenses. The procurementof scrap rubber was continued until December 31, 1943, at whichtime stocks on hand were sufficient to supply the operations of allavailable reclaiming equipment for at least 2 years. In these opera-tions, Eubber Eeserve Company purchased a total of 1,150,127 shorttons of scrap rubber at a direct cost of $29,857,645.

The synthetic rubber program conducted by Eubber Eeserve Com-pany was initiated in 1941 with plans for the construction of plants



having a combined annual capacity of 40,000 long tons of syntheticrubber. The program was greatly expanded after Pearl Harbor, andby the end of the war the demonstrated annual capacity of the Gov-ernment-owned facilities was approximately 1 million long tons.

There were 51 plants constructed for the synthetic rubber program.By purpose, these were as follows:

Rubber: Number of plantsGB^S (Buna-S) 15GR-M (Neoprene) 1GR-I (Butyl) 2GR-P (Thiokol) 1

Butadiene:From alcohol 3From petroleum 15

Styrene 5Chemicals 9

Also included in the program were specialized tank cars, pilotplants for research, and some miscellaneous projects. The total costof the facilities was approximately $700 million. Construction oracquisition of the facilities was financed and supervised by DefensePlant Corporation (an RFC subsidiary) at the request of RubberReserve Company, subject to an indemnity agreement under whichRRC was obligated to purchase the plants and equipment should DPCelect to sell.

The synthetic rubber plants and facilities were leased by DefensePlant Corporation to private operators for $1 per year. The plantswere operated under agreements between Rubber Reserve Companyand the private operators which provided for the operators to be re-imbursed for all costs of plant operation and maintenance, plus man-agement fees based on quantities of production. The synthetic rubberproduced in these facilities was for the account of Rubber ReserveCompany (RFC's Office of Rubber Reserve after June 30,1945) andwas sold to industrial users on allocations from the War ProductionBoard. The Office of Rubber Reserve was established as an operatingdivision of RFC after the dissolution of RRC to continue or concludethe activities of RRC. There were repeated extensions of RFC'sauthority to continue operation of the Government's synthetic-rubber-producing facilities, aoid the program continued until 1955 when theplants were sold to private industry under the Rubber ProducingFacilities Disposal Act.

Rubber Reserve Company also entered into separate agreementswith the agents operating the synthetic rubber plants relative to thedisposition of rights arising out of research and experimental workwhich the Company had financed, and the distribution and avail-ability of technical information accumulated in the course of such



research work. The operators were required to grant the Companyan extensible patent immunity under all inventions made in thecourse of research and development work which it financed. Researchcontracts with nonprofit institutions provided that all patent rightscovering inventions made in the course of RRC-financed researchwork would be assigned to the Company.

The EEC also entered into numerous agreements with private indus-trial enterprises relating to the interchange of technical informationand operating rights under patents. In general, the Company wasgranted royalty-free licenses under synthetic rubber patents.

The story of rubber—both natural and synthetic—from 1940 onwardis so complex and is of such a technical nature that no more than abare outline has been attempted in this description of the activitiesof Kubber Reserve Company. Full descriptions of the Government'swartime rubber programs and the ultimate disposal of the synthetic-rubber-producing facilities are available in the documents listed inappendix D.

Rubber Reserve Company was dissolved on July 1, 1945, and itsfunctions, assets, and liabilities merged with those of RFC as pro-vided by the act approved June 30,1945. Before dissolution, the oper-ation of RRC had provided funds sufficient to repay all but about $300million of the $1,725 million advanced by RFC. After July 1,1945,the RFC continued the liquidation of the assets and liabilities receivedfrom RRC, and such amounts as were unrecovered on June 30,1947,were included in the RFC notes payable to the Secretary of the Treas-ury which were canceled by direction of the Congress.

Defense Plant Corporation

Defense Plant Corporation was organized on August 22,1940, underthe authority of section 5 (d) of the RFC Act, as amended. The Cor-poration had capital stock of $5 million subscribed and paid for byS J ? ^ d u r f n g i t s e x i s t e n c e borrowed from RFC a total of $7,993,-290,847. (SeetableW-3inapp.C.)

The purpose for which Defense Plant Corporation was created wasto aid in the national defense program by financing and supervisingtheconstruction and equipping of industrial facilities.

The management of DPC was vested in a Board of Directors ap-pointed by RFC. Most of the members of DPC's Board, and most of^ T S S ? *g?0hx?d hythat B°ard, also served as directors or officersof RFCitselforofRFC'sother subsidiaries

Durmg its existence, DPC (and its successor, RFC's Office of De-* S « } a ? h 0 r i z e d a t o t a l <>f more than 2,550 projects for theconstruction and equipping of manufacturing pllnts and other facili-ties. The amounts au&orized for these projects totaled nearly $9130



billion. Disbursements amounting to $7.3 billion were made on 2,300of the projects. The plants and other projects which were partially orwholly financed by DPC embraced almost every type of manufacturingindustry in the Nation. Over 50 percent of DPC's outlays floweddirectly or indirectly into aviation. To build aircraft, their engines,and parts, the Corporation directly invested $2.6 billion in land, build-ings, machines, and other equipment in several hundred new plants.Including production facilities for aviation gasoline and aluminumand magnesium metals, which were constructed in order to increasethe supply of materials for aircraft, over $4 billion was provided tomeet wartime aviation needs.

Metals production and processing plants accounted for $2.2 billionof DPC's investments. Nearly $1 billion of the total was expended toenlarge steel and pig-iron capacity. Facilities for production of syn-thetic rubber, which was a new industry, were supplied almost in theirentirety by the $740 million investment of DPC* Other manufactur-ing facilities in which DPC played a major role in expansion wereordnance, shipbuilding, and chemicals. I t built and equipped ship-yards and erected plants for the manufacture of ship parts. I t helpedto finance the expansion of production facilities for chemicals such asalcohol, toluene, sulfuric acid, oxygen, and acetylene, all of whichwere vital in the manufacture of munitions and to general industry.DPC also made substantial investments in plants for expanding theradio and communications industry. Another way in which DPCassisted in the war effort was by stimulating the increased productionof machine tools and thereby facilitate the conversion of industry towar production as well as to equip the new plants constructed by DPC.

In addition to manufacturing plants, some of which were the larg-est in the Nation, a wide range of other facilities were provided, such&s tugboats and barges for river transportation, railroad tank carsfor transportation of products such as butadiene and chlorine, pipe-lines (notably the Big Inch and Little Big Inch) for the transporta-tion of petroleum and petroleum products, 1,200 sleeper cars and 400kitchen cars for troop trains, and streetcars and buses for transporta-tion of war workers.

I>PC assisted the War Department's pilot-training programthrough the purchase and expansion of 62 flying schools and by pro-viding training planes and housing for cadets.

The variety of projects undertaken by DPC was very extensive.Among the most unusual were the financing of facilities to processrice by a new method which permitted the United States to augmentthe rice supply for China without danger of weevil infestation, todevelop milkweed to relieve the shortage of kapok for stuffing lifepreservers, to produce desalting kits for installation in liferafte, and



to breed rodents for use in medical laboratories. Four floating gen-erator plants were constructed to relieve electric power shortages inareas that could be reached by water. A large underground stonequarry in Kansas was converted into refrigerated storage space. Fa-cilities were provided for dehydrating, curing, and concentratingfruits and vegetables for distribution to American troops and allies.Also, DPC financed the expansion of laboratory facilities to producepenicillin. The number of plants at which DPC projects were lo-cated and the amounts authorized for them are summarized by in-dustry classification in the table below.

Type of facility

Total

Manufacturing facilities

Aircraft, aircraft engines, and Darts - . . . . . . . .Aluminum a-nrt TnaimpsinTn - -

ChemicalsMachine t.nnisMineralsOrdnance .Radio and rnmmiinir^tinTi fiqnipTnPntShipbuildingSteel and ironSynthetic rubber. ,_....Other manufacturing

Nonmanufacturing facilities

Flying schools !Transportation facilitiesHousingMiscellaneous

Numberof plantlocations

2,492

2,265

62315245

19916679

120167100225159230

227

661162916

Amount au-thorized (inthousandsof dollars)

$8,977,506

8,470,822

3,207,3281,291,884

324,142214,03890,939

178,869495,778119,699200,827

1,147,7881,055,936

143,694506,684

47,414423,76129,4966,013

The data in the table above are cumulated through August 31,1946,and include amounts authorized by RFC's Office of Defense Plantafter the dissolution of DPC on June 80,1945.

Under the provisions of its charter, DPC could undertake to con-struct and equip facilities on its own authority. However, with veryfew exceptions, DPC undertook projects only upon the recommenda-tion and sponsorship of other Government agencies administeringdefense and war programs. The amounts of DPC authorizationssponsored by such agencies is shown in the following table:

Sponsoring Agency

Total

War DepartmentWar Production BoardRubber Reserve Company. _.

Amountauthorized

(in thousandsof dollars)

$8,977,506

4,156,1902,398,076

836,309

Sponsoring agency

Navy DepartmentPetroleum Administrator for W a r -Office of Defense TransportationMaritime CommissionOther agencies

Amountauthorized

(in thousandsof dollars)

$694,367fi25 926155742104,' 823106,073



The "Other agencies" shown in the foregoing table as sponsors ofDPC projects include Department of Agriculture, Commodity CreditCorporation, Metals Eeserve Company, Solid Fuels Administration,Civil Aeronautics Authority, Office of Strategic Services, Office ofWar Information, War Shipping Administration, Foreign EconomicAdministration, Treasury Department, War Kelocation Authority,and National Housing Administration.

For more than half of the amounts authorized by DPC for indus-trial projects, the Corporation had "takeout" agreements with thesponsoring agencies under which DPC was eventually to be reim-bursed for all or part of its investment. In most cases these "takeoutagreements" provided for DPC to recover from 40 to 50 percent ofthe cost of a project as construction progressed. The remainder wasto be received at some later date, if and when the sponsoring agencywould request and receive specific appropriations from Congress forthat purpose. Ownership of the facilities covered was to remain inDPC, but a sponsoring agency retained the right to take owner-ship upon fulfillment of its part of the "takeout" agreement. ToJune 30, 1945, DPC had received $1,360,974,000 in reimbursementsand $6,969,000 in interest under these arrangements. I t was originallyintended that final settlement with sponsoring agencies would bemade on or before June 30, 1945—later extended to June 30, 1946.However, since at the close of the war it appeared that no usefulpurpose would be accomplished by appropriating funds for agenciesto pay over to DPC, none of the sponsors requested appropriationsfor the purpose of making final settlements under the "takeout"agreements.

Defense Plant Corporation relied upon the sponsoring agencies todetermine the nature of the various projects built, their size and loca-tion, the processes to be employed, and the selection of the privateenterprise concerns to operate them under lease agreements. Theagreements between DPC and the plant operators were in two parts:one for the design, purchase, and construction of the facilities for theaccount of and under the supervision of DPC; and the other partfor the lease and operation of the properties. Generally, the leaseagreements with the operators were of the following types:

1. Leases specifying a rental of $1 per year were used whenthe entire output of a plant was intended for the use of a Gov-ernment procurement agency, or when the property was leasedto another Federal agency. These leases usually were associatedwith the "takeout" agreements noted above.

2. Leases calling for the payment of rentals based upon a per-centage of construction cost. These were used in cases whereconditions were favorable for the lessee to assume all financial



risks in operating the facilities.' The rental rates in these leasesusually were 5 percent per annum on land and buildings and 12percent on equipment, payable quarterly or annually.

3. Leases providing for rentals to be based upon either sales,net profit, or volume of production. These were used where un-stable market conditions, untried products, or new processesmade the lessees unwilling to assume full financial risks in op-erating DPC facilities.

4. Lease agreements providing for the payment of fixedamounts of rentals during each month, quarter, or other timeperiod.

Although the lessees of DPC facilities generally were private con-cerns, 92 projects were operated under agency agreements for the ac-count of other RFC subsidiaries, a few were leased to other agenciesof the Government, and 39 were operated for the account of DPCitself under agreements with private companies, which undertook toserve as agents, generally on a fee basis.

Except for those covering aluminum, magnesium, and syntheticrubber plants, the leases included options under which the lesseesmight acquire the facilities upon expiration or cancellation of theleases.

In certain cases, separate units of machinery, tools, and equipmentbecame excess to the needs of the projects of which originally theyhad been a part. At the request of either the War or Navy Depart-ments, DPC would install these units in privately owned plants underleasing arrangements underwritten by the department making the re-quest. Such arrangements were made in nearly 1,600 instances, andthe users of the equipment paid monthly rentals at the rate of 1 per-cent of the cost of the equipment

In addition to its activities in connection with the constructionand equipping of industrial facilities, Defense Plant Corporationundertook to stimulate the production of machine tools, gages, andcutting tools needed for the conversion of industry to war produc-tion and to equip the new plants being constructed. To do this,DPC entered into firm purchase agreements with manufacturers forspecific types and quantities of cutters, grinders, millers, shapers,planers, borers, drop hammers, and tools and related equipment. Ineffect, these purchase agreements were underwritings. For the mostpart, the manufacturers were to sell the machines directly to indus-trial enterprises even though their manufacture was covered by DPCpurchase orders. DPC agreed to take deliveries of unsold machineswithin 30 days after availability, at a discount of 17% percent. Also,DPC agreed to pay losses incurred by the manufacturers because ofcancellation of DPC purchase orders.



To assist in financing the manufacturing program, DPC agreed toadvance up to 30 percent of the amount of each purchase order. Thefunds so advanced were to be repaid proportionately as deliveriesprogressed under the purchase order.

Commitments made by DPC for the purchase of machine tools andrelated equipment aggregated approximately $2 billion. The Cor-poration advanced $418 million to aid in financing the production ofequipment ordered. Under its agreements to purchase unsold ma-chines, DPC was required to take delivery of equipment with a pur-chase price of only $27 million, before discount.

Defense Plant Corporation was dissolved July 1,1945, and its func-tions, assets, and liabilities merged with EFC in accordance with theprovisions of the act approved June 30,1945. At the time of its dis-solution, DPC held plants, facilities, and other assets which had costthe Corporation nearly $7 billion. ^Recoveries to June 30,1945, from"takeout" agreements, rentals, and other sources had aggregated about$2.5 billion, leaving DPC indebted to its parent to the extent of about$5.1 billion for capital stock and loans.

After June 30,1945, RFC continued to liquidate DPC's assets andsome further recoveries were made. However, with the bulk of DPC'sassets consisting of industrial facilities which subsequently were de-clared surplus, substantial recoveries by EFC were precluded, andsuch of DPC's expenditures as were unrecovered on June 30, 1947,made up a large part of the $9.3 billion of EFC notes payable to theSecretary of the Treasury which were canceled at that time as rep-resenting the unrecovered costs of the Corporation's national de-fense, war, and reconversion activities.

Defense Supplies Corporation

Defense Supplies Corporation was organized on August 22, 1940,tinder the authority of section 5(d) of the EFC Act, as amended.The Corporation was financed with $5 million of capital stock sub-scribed and paid for by EFC, and during its existence borrowed fromEFC a total of $6,389,345,975. (See table W-5 in app. C.)

The charter of the Corporation provided that the affairs of DSCshould be managed by a Board of Directors appointed by EFC. Mostof the members of DSC's Board of Directors, and most of the of-ficers appointed by them, also were directors of EFC or of its othersubsidiaries.

The Corporation had two principal functions. One, the procure-ment, stockpiling, and disposal of nonmetallic commodities defined asstrategic and critical by the President. The other, the payment ofsubsidies to producers and transporters of strategic and critical ma-terials and for purposes of price stabilization.

505257—$ft 10 135



All programs and activities of DSC were undertaken at the requestor under the sponsorship of other Government agencies. The Cor-poration did not assume responsibility for the policymaking functionsincident to its undertakings, but assumed responsibility for pro-cedural and administrative functions only. Policies for the com-modity trading operations were determined by the War ProductionBoard, the Office of Price Administration, the Board of EconomicWarfare (and its successor, the Foreign Economic Administration),the War and Navy Departments, and other interested agencies. Forthe subsidy operations, policies were laid down by the Office of Eco-nomic Stabilization, the Office of Price Administration, the Depart-ment of Agriculture, the Petroleum Administration for War, andothers.

The commodity trading activities of DSC included the development,procurement, manufacture, stockpiling, and disposal of strategic andcritical materials, chiefly those of a nonmetallic character. The tablebelow shows the types and quantities of materials and supplies ac-quired by Defense Supplies Corporation (and its successor, RFC'sOffice of Defense Supplies) through June 30,1948.

Material

AbacaAcetylene black—*AgarAgave fiber -AirplanesAlbarco logs and lumberAlcoholAlcohol byproductsAlkylate, aviationAlTniAluminum rivetsAluminum wireAntifriction bearingsArms, accessories, and ammunitionArms, frozen stocks *Automobiles1

Aviation gasoline:91 octane -100 octane —Benzol

Balsa logs and lumberBarbed wire«Belladonna leavesBenzol, pureBenzol byproducts -Binder twine and rope-BurlapButchers' frocks aCalcined petroleum cokeCalcium carbideCaledon khaki dyeCarbon blackCarbonyl, ironCashew nut oilCatalyst (petroleum cracking)ChemicalsCinchona bark—Coal:

AnthraciteBituminousUnclassifiedFor liberated European countries-.

Coir yam and products - . .

See footnotes a t end of table.

136

Unit

Pound.do.do.do

EachBoard foot,..Wine gallon..

doGallonPound

.do

EachDollar....

. d o - .Each.....

Barrel. . . .do—.doBoard foot-pound

..do..Gallon. _. . . . .do.. .Pound-.YardEach..Ton-Pound..

do...do...

..do... . . . -do.... — . d o -TonPound. .

Tondodo

Long ton...Dollar..—.

Quantity

37,798,308

9M1, 682,673,605421

4,464

27,475,1H3,538,78411,452,821

3321073,378

179,433,668

08,891

112,000250,540,121

2,241,318

28,171,770

272,563



Material Unit Quantity

CopraCorkCotton and flax -Cotton fabricsCotton ltntersCresylicacidCrude oil, west Texas —Diamond bort and cleavage pointsDiamond bort, foreignDiamond dies:

Domestic -Foreign -

Die stonesDock feathersElastic web and braidEmergency field rationsErgotEthyl celluloseFiber and fiber seed samplesFiber, roselle and malvaGas and coal furnaces *Goat and kid skinsGoose downHairHidesHydrogenated naphthaHydrogenated byproductsHyocine hydrobromideInsulated wireIodineIstle fiberJewel bearings:

DomesticForeign

Jute:FiberYarn

KapokLaundry and drycleaning machinery »..LeatherLeather, South AmericanLeather and woolen mittens *Linseed oil.Ix)ofa spong

Manila fibManila fiber, Philippine...Meta para cresol..Mexican, "

Motor vehicles»Nitrate of sodaOil burners!Oiticicaoi] IIIII.IIIOpium ,Pig bristlesPine lumber, Mexican-PolydichlorostyrenePolyvinyl chloridePyrethrumQuartz crystal platesQuinine productsRadio components *Raffia fiber.R d oil

ill dap il

Rayon twill and acetate taffetaRed squill _Refrigerators^Requisitioned materials»Revolvers * .

RotenoneRubber thread -Sanseveria fiber.Sapphire _Sapphire bouleSenna seedsSewing machines and equipment »„.Sharkskins and sharklivers -Shearlings and lambskins -ShellacShoe pacs * II..1.1

See footnotes at end of table.

PoundMetric ton.PoundYard-Pound...Gallon...Barrel....Carat.. . .. . . .do-. . .

Each....do,.

Carat...Pound..Yard..EachPound.. . - . d o . .. do..

Each...— . d o -Pound,

do..Each..Barrel-

do..

Ounce—F o o t -Pound..

do...Each...

do..

Pound.do..

..do..Dollar-. . . .do . .Bale . . .Pair-Pound.Piece-Board foot.,BalePound

do-Metric ton-PoundGallonBachTonEachPoundOuncePoundBoard foot.Pound

do.Dollar..EachOunceDollarpound

.doYard..PoundEachDollarEachPound. . . .do

dodo

OunceCaratPoundDollarKilogram..EachPound..--Pair.

7,081,95574,526

84,589,072145,550,52856,518,6976,136,0375,387,586

10,10130,000

6,04816,635

180107,915

15,431,57136

288,3771,249,9361,010,389

112,858732

50,565,3307,582

1,188,755780,404

2,579,339851,088

'3003,516,748

496,705101,205,164

13,361,58182,634,007

368,916,2994.090,442

15,092,68233,309

7,740,0012,439

34,7772,348,1625,257,5183,301,900

149,23925,984,800

258,0001,769

1,664,8551,251,633,474

971,347,958

5,4254,180,407

10,817,6864,218,8648,102,815

16,4161,050,0005,294,559

17313,756,842

40,868451,597

7,602,688587,608822,90636,824

2,212,663115,629

4,659,4382,452,5691,579,459

41,25011,293

126,000388

14,412200

764,92564,490,616

14,436

137



Material Unit Quantity

SilkSilk and nylon hosiery, usedSilk waste -Sisal machinery........ -Space heaters, oil and gas»Stirrup pumps*Storage tanks *Sugar:

CubanDomestic

Sugar bags. . . . . . . . . . . . .Sunflower seed oilSunn hempTetra ethyl fluidTires and tubes *Trailers 1Trucks (milk)»Tung oilTyphus fever vaccineUndershirts and underdrawers *Used clothingVinyl acetateWool:

Australian and New ZealandRequisitioned, South American-Uruguayan

Xylidines

Pounddodo

Dollar. -. -

doDollar

TondEach.—

Pound—d

.—.doDollarEach..

8,745,04015,954.858

54,9196,495

18,8321,282,198

10^80

1,980,71095 574

6,000,0002,634,7716280,409

253,56583,888,754

.do..Pound..Liter...Each...Pound..

do..

. dodo .

. . ._do IGallon

181,7513,348,084'704; 747

302,670,8235 399 193

- -19,290J7 837

»Included in program for relief of dealers in restricted commodities.* Included in program for distribution of restricted commodities.* Commodities requisitioned by War Production Board

The materials and supplies acquired by DSC in its trading programswere either placed in stockpile or sold to manufacturers and other con-sumers under allocations by the War Production Board and otherGovernment agencies. A substantial portion of the funds used for theprocurement of strategic materials and commodities was recoveredfrom sales.

The Corporation's subsidy payment programs, however, affordedno opportunities for recoveries. Disbursements for subsidy purposesmade up the largest single class of DSC's expenditures. The tablebelow shows the amounts paid by DSC (and its successor, RFC'sOffice of Defense Supplies) in each of its subsidy programs throughJune 30, 1948. The data in this table do not give effect to amountsrecovered in cases of overpayment or other adjustments.

Program Disburse-ments Program Disburse-

ments

Livestock slaughter..Petroleum transportationFlour milling....... . . . _ . « .Butter production.Stripper well oil productionCoal distributionCoffee importation.

gency

$1,549,623,1391 846 052 671

347,933,431183,314,39012177^58463,115,14146,344,333

42,787,522

Sugar transportationWoodpulp productionNitrate of sodaOthers W

Total..

Defense Supplies Corporation was dissolved July 1,1945, in accord-ance with the provisions of the act approved June 30,1945. Prior tothat tune, the Corporation's activities had produced funds sufficient to


FINANCING RFC5 WARTIME SUBSIDIARIES

repay $4.8 billion of the loans made to DSC by RFC. However, whenDSC was dissolved, it was still indebted to RFC for $1.6 billion ofloans and capital stock. The functions, assets, and liabilities of DSCwere merged with those of RFC, and RFC continued to liquidate andrealize upon DSC's assets. Such amounts as had not been recoveredon June 30,1947, were included in the RFC notes payable to the Secre-tary of the Treasury which were canceled as representing the un-recovered costs of national defense, war, and reconversion activities.

One program undertaken by Defense Supplies Corporation whichwas continued following World War I I was that for the production ofabaca fiber (manila hemp) on plantations in Central America. Au-thority to continue the program until 1960 was provided by the AbacaProduction Act of 1950. Under the provisions of Executive Order10539, effective June 30,1954, responsibility for administration of theGovernment's abaca program was transferred from RFC to GeneralServices Administration*

War Damage Corporation

War Damage Corporation was created on December 13,1941, underthe authority of section 5 (d) of the RFC Act, as amended. The Cor-poration was established as War Insurance Corporation, but by an actapproved March 27, 1942, the name was changed to War DamageCorporation.

The purpose of the Corporation was to provide reasonable insur-ance protection against loss of or damage to property as the result ofenemy attack, or from the action of the military, naval, or air force ofthe United States in resisting enemy attack.

The charter of WDC provided for a total authorized capital stockof $100 million. RFC subscribed for all of the stock and paid in $1million. The remaining $99 million was never disbursed and wassubsequently canceled. (See table W-6 in app. C.)

The management of War Damage Corporation was vested in aBoard of Directors appointed by RFC. Most of the members ofWDC's Board, and most of the officers appointed by them, also servedas directors or officers of RFC itself or of RFC's other subsidiaries.

To conduct its program, War Damage Corporation entered intoagreements with 546 established insurance carriers. These insurancecompanies agreed to act as fiduciary agents for WDC in receiving ap-plications, issuing policies, and otherwise handling the program.There were approximately 1,200 policy-issuing offices active in theprogram.

There were approximately 8,700,000 policies and renewal certificatesissued for war damage insurance involving a risk of $117 billion.There were 1,782 claims paid, amounting to $1,274,744. Of the total,



1,491 claims amounting to $1,198,705 were paid to residents of Hawaiiand other Pacific islands under the Corporation's "prepolicy" pro-gram. This program was in effect until July 1,1942, while the generalprogram was being formulated, and provided protection for propertyin the United States, its Territories, and its possessions without pay-ment of premium or insurance.

By the provisions of its charter, WDC had existence only untilJanuary 22,1947, except for purposes of liquidation. No policies wereissued after March 15,1946, and all policies expired April 1,1947. TheCorporation's operations produced a net income of $210,598,722, all ofwhich was paid to the Treasury of the United States.

All recorded assets of WDC were liquidated prior to June 30,1949,and the final payment of net earnings was made to the Treasury onDecember 30,1949. However, the capital stock of WDC was not can-celed until 1959. This came about because of lawsuits filed by formerpolicyholders seeking to recover the Corporation's net income whichhad been paid into the Treasury. The stock of WDC was transferred,from RFC to the Secretary of the Treasury under the provisions ofReorganization Plan No. 1 of 1957, and was not canceled until thetime for all appeals on the one remaining suit had expired.

For statistical purposes, it has been considered that the investmentin WDC's capital stock was recovered in the net earnings of the Cor-poration and was returned with the $209,827,810 paid to the Treasuryon August 29,1947.

U.S. Commercial Company

U.S. Commercial Company was created as a corporation on March26, 1942, under the authority of section 5(d) of the RFC Act, asamended. The Company had capital stock of $5 million subscribedand paid for by RFC, and during its existence borrowed $1,988,277,234from RFC to finance its activities. (See table W-7 in app. C.)

Under the provisions of its charter, the affairs of USCC were to bemanaged by a Board of Directors appointed by RFC. During thefirst 15 months of its existence, the affairs of USCC were managedby a Board of Directors appointed by RFC. Most of the membersof this Board also were directors or officers of RFC itself or of its^ s u b s i d i a r i e s . D u r i n S t h a t ^-month period, the activities ofUfeCC were closely allied to those of other RFC subsidiaries, all ofwhich were conducted under the general supervision of the Federalôan Administrator whose authority, by law, transcended that of theBoards of Directors of RFC and its subsidiaries. However, duringthe first 15-month period, the Board of Economic Warfare was influ-ential in the management of USCC and its activities.

By Executive Order 9361, dated July 15, 1943, USCC was trans-



ferred to the Office of Economic Warfare, established by the sameorder to succeed the Board of Economic Warfare. On September25,1943, by the provisions of Executive Order 9380, all functions ofthe Office of Economic Warfare, including USCC, were transferredto the Foreign Economic Administration established by that sameorder.

According to the terms of Executive Order 9361, the capital stockof USCC was transferred to the Office of Economic Warfare, despitethe stock being described as "nontransferrable" in USCC's charter.The order did not provide for surrender of the stock certificates byEFC, nor was any provision made for a consideration to be paid toRFC for its investment in USCC stock. Throughout, the position ofRFC's management was that the capital stock of USCC was ownedby RFC and that USCC was its subsidiary. The matter was finallyresolved by Executive Order 9630, dated September 27, 1945, whichdiscontinued the Foreign Economic Administration and assignedthe management of USCC to RFC effective October 20,1945.

The principal functions of USCC were (1) the conduct of preclusivebuying operations and other disruptive activities abroad designed toprevent the acquisition of strategic commodities by enemy powers,and (2) the procurement and stockpiling abroad of strategic materialsfor delivery to other agencies of the Government.

With a few exceptions, the preclusive buying operations of USCCwere carried on jointly with a British counterpart, United KingdomCommercial Corporation. The preclusive buying operations were con-ducted with great secrecy and with a minimum of administrative re-striction. It also was necessary that funds be available to USCC'sforeign representatives in ample and relatively unrestricted supply.Preclusive buying operations were conducted principally in Spain,Portugal, and Turkey.

The acquisition and importation of strategic commodities was afunction assigned to USCC upon its transfer to the Foreign EconomicAdministration, which was effective July 15,1943. For the most part,the commodities purchased were those which formerly had been pur-chased and imported by Metals Reserve Company, Defense SuppliesCorporation, and Commodity Credit Corporation. Stockpiling abroadwas a secondary objective of the procurement programs and becamenecessary in some areas because of the lack of shipping facilities. Inmany instances, the procurement programs were supplemented bydevelopment projects designed to increase supplies of strategiccommodities.

Beginning in 1943, the USCC (then under the direction of the Boardof Economic Warfare) undertook to procure and ship farm machinery,vegetable seeds, fertilizers, and other supplies for the establishment of



food-producing projects in certain South Pacific islands which hadbeen liberated from Japan. In addition, trade goods were shippedto the islands for sale to the natives* In return USCC purchased copraand native handicrafts. The program was undertaken at the requestof the Navy Department and its purposes were to (1) raise fresh food-stuffs for the Armed Forces and thus conserve shipping space bydecreasing the amount of foodstuffs transported to the islands, and(2) to supply the natives with trade goods until such time as orderlyprivate trade could be resumed. This program subsequently wasextended to newly liberated islands, and similar activities were carriedon in the Philippine Islands after their liberation in 1944.

Following World War II , USCC acted as agent for the War Depart-ment in the importation of raw materials and manufactured goodsfrom Japan, Germany, and Korea and the sale of such commoditiesboth domestically and abroad. The Company also acted as agent forCommodity Credit Corporation in the exportation of cotton to Japanand Germany for the manufacture of textiles. These programs wereinitiated to expedite the return of international trade to normal chan-nels, assist the War Department to defray occupation costs, and pro-vide dollar exchange for military authorities in occupied areas.

After the management of USCC had been transferred to the Boardof Economic Warfare, a memorandum of understanding was enteredinto between RFC and BEW which read, in part, "The Office of theRFC Treasurer will perform the necessary fiscal services and maintainthe necessary accounting records for USCC. The financial andstatistical records shall be maintained in accordance with instructions .issued by the USCC." The instructions referred to were never issued.Under BEW and its successors, USCC established foreign offices insome 30 locations. With administrative responsibility for USCC rest-ing in BEW and its successors, and with broad and uncontrolled dele-gations of authority to the many foreign offices, the financial andstatistical records which RFC was able to maintain on USCC's activi-ties were not sufficient to provide data on the operation of specificprograms, or for specific commodities.

By the terms of its charter, USCC expired on June 30, 1948.Through that date, the operations of USCC had provided fundssufficient to repay all but about $165 million of the $2 billion advancedby RFC.

Such investment as RFC had in USCC on June 30,1947, was in-cluded in with the cancellation of RFC notes payable to the Secretaryof the Treasury as unrecovered costs from national defense, war, andreconversion activities.



Rubber Development Corporation

Pacific Development Co., Incorporated, was privately organizedunder the laws of Delaware in November 1940. The ostensible pur-pose of the company was to exploit certain mining properties in theGalapagos Islands. The company operated on funds borrowed fromExport-Import Bank of Washington and from Defense Supplies Cor-poration. The advances made by DSC were not repaid, and whenthe project was abandoned in February 1942, the stock was turnedover to DSC. Defense Supplies Corporation sold the stock to RFCfor $1, and Pacific Development Co., Inc., remained inactive untilFebruary 16,1943, when the certificate of incorporation was amendedto change its name to Eubber Development Corporation, and to alterthe nature of its business so as to enable RDC to engage in rubbertrading activities. Also, the authorized capital was changed to 2,000shares of $100 par value, and new certificates for 1,000 shares wereissued to RFC in exchange for the stock which RFC had acquiredfrom Defense Supplies Corporation. No assets were received byRDC in this recapitalization and it thus began operations withoutfunds.

Rubber Development Corporation was managed by a Board ofDirectors. Most of the members of this Board came from privateindustry and were not otherwise associated with the management ofRFC itself or of its other subsidiaries. However, the officers andother personnel of RDC were employees of RFC and their salarieswere paid by that Corporation.

By agreement between RFC, the Board of Economic Warfare, theRubber Director, and the Secretary of Commerce, effective February23, 1943, Rubber Development Corporation was assigned full re-sponsibility for developing sources and acquiring natural rubber andrelated products in foreign countries. Prior to this agreement, suchactivities had been the functions of Rubber Reserve Company.

Executive Order 9361, dated July 15, 1943, transferred RDC tothe Office of Economic Warfare. However, RFC was not requiredto surrender the stock certificates evidencing ownership of RDC.Again, by Executive Order 9380, dated September 25, 1943, OEW(including RDC) was transferred to the Foreign Economic Adminis-tration. The latter agency was terminated by Executive Order9630, dated September 27, 1945, and the management of RDC wasreturned to RFC.

By the provisions of its charter, Rubber Development Corporationexpired on June 30,1947. However, its existence after June 30,1946,was only nominal since its assets, liabilities, and functions were trans-ferred by contract to RFC on that date.



Except for the $1 paid by RFC for the capital stock of the originalcompany, RDC was financed exclusively by loans from RFC whichaggregated $337,131,523. All but $58,215,665 of this amount had beenrepaid when the Corporation was merged with RFC on June 30,1946. (See table W-8 in appendix C.) Such RFC investment asremained in the assets of the Corporation on June 30, 1947, was in-cluded in the RFC notes payable to the Secretary of the Treasurywhich were canceled at that time as unrecovered costs of nationaldefense, war, and reconversion activities.

Petroleum Reserves CorporationPetroleum Reserves Corporation was created on June 30, 1943,

under the authority of section 5(d) of the RFC Act, as amended.The purpose for which it was organized was to acquire ownership orinterest in foreign oil reserves, and to construct or acquire facilitiesabroad for the handling of petroleum products.

At the time it was created, RFC authorized the purchase of$1 million of PRC's capital stock. However, on August 17, 1943,the authorization for the purchase of capital stock was rescinded, anda loan of $1 million authorized. Of the latter, $100,000 was dis-bursed to PRC and was expended in the preliminary phases of aproject to construct refinery facilities in Saudi Arabia. The projectwas dropped, however, and PRC became virtually inactive.

On November 15, 1945, the Corporation's charter was amendedand its name was changed to "War Assets Corporation" in order tofacilitate use of the Corporation as a disposal agent for surplusproperty. At this time, RFC again authorized the purchase of$1 million WAC capital stock, and this was paid in. (See table W-8in app. C). On March 25, 1946, War Assets Corporation's func-tions were transferred to War Assets Administration, and the Cor-poration ceased to function as a disposal agent. All sums advancedto PRC and WAC were recovered by RFC, and the Corporation wasdissolved on June 30,1946.

Cancellation of RFCs Notes Payable to Treasury

As RFCs wartime subsidiaries expired, or were otherwise termi-nated, their assets and liabilities were merged with those of the parentorganization. Except for War Damage Corporation and PetroleumReserves Corporation (War Assets Corporation), the ultimate re-covery made on the assets of the separate subsidiaries cannot bedetermined.

As of June 30,1947, the RFC determined that the unrecovered costsand net expenses of the national defense, war, and reconversion activ-ities carried on by its wartime subsidiaries amounted to $9,313,736,531,computed as follows:



Loans, advances, receivables, and securities:Loans in connection with the acquisition

of materials (including accrued inter-est) $16, 813, 804

Advances for the construction and equip-ping of plants 1, 995, 700

Advances in connection with the procure-ment of materials 22, 888, 325

Accounts receivable from Treasury De-partment for strategic materials trans-ferred under Public Law 520, 79thCong 187, 898, 259

Accounts receivable from other U.S. Gov-ernment agencies, arising principallyfrom sales of strategic materials; andreimbursable services performed in con-nection with the protection and mainte-nance of capital facilities 50, 273, 741

Receivables from others, arising princi-pally from sales of strategic materialsand rentals from leased facilities 102, 573, 985

Miscellaneous securities, principally thoseof enterprises operating in foreign coun-tries in connection with the productionor procurement of strategic materialsand supplies 4, 215, 218

Property, plants, equipment, and relatedfacilities and costs:

Property, plant and equipment, a sub-stantial part of which was declaredsurplus — - 6, 551, 503, 411

Excess of cost over proceeds from salesand other disposals of plants and equip-ment 360, 339, 945

Expenses, principally for servicing andadministering leases, standby, plantclearance, protection, and mainte-nance 154, 540, 038

Development and experimental costs forspecial design aircraft 15> 338, 247

Utility connection charges 4, 349, 653Writeoff of investment occasioned by

transfer of Hotel Empire, San Fran-cisco, Calif., to Public Buildings Ad-ministration without reimbursement- - 2, 137, 869

7, 088, 209,163

$386, 659, 032



Property, plants, equipment, and related facil-ities and costs—Continued

Less:Payments received from other U.S.

Government agencies under agree-ments providing for contingentreimbursement of costs of war-time capital facilities $1, 379, 877, 783

Rentals and other income- — 816, 702, 310Carrying value of properties acquired

without cost 2,132, 939

2, 198, 713, 032= = = = = $4, 889, 496,131

Production or procurement, and disposition ofstrategic materials and supplies:

Inventories of strategic materials andoperating supplies held for disposal,declaration as surplus, or transfer tonational stockpile:

Metals and minerals 171, 709, 834Rubber and related commodities 169, 443, 028Other strategic materials 38, 814, 066Operating and other supplies 36, 551, 155

416, 518, 083Net cost of handling, processing, and manu-

facturing strategic materials (includingsettlements and expense of $47,993,790on termination of contracts and less ex-pended appropriated funds of $16,302,-375 received from other U.S. Govern-ment agencies):

Metals and minerals-. 118, 132, 716Natural, synthetic, and scrap rubber.. 69,168, 917Other commodities, principally alcohol,

aviation gasoline, petroleum, food-stuffs, hides, fibers and their prod-ucts, and chemicals i 278, 263, 652

i 90, 962, 019Cost of strategic materials transferred to

national stockpile, less accounts receiv-able from Treasury Department of $187,-898,259 62, 763, 962

Cost of inventories declared surplus andaccepted by disposal agencies 35,250, 370

Reimbursement to producers of aluminumfor excess power costs 26, 039, 420

Development and experimental costs inconnection with procurement of strategicmaterials 3f 420, 597

* Excess of income over costs.



Production or procurement, and disposition ofstrategic materials and supplies—Continued

Cost of preclusive procurement and relatedoperations abroad, including activitiesconducted jointly with United KingdomCommercial Corporation $117, 540, 613

$570, 571, 026Direct subsidies to producers and others:

Livestock, to slaughterers 1, 547, 148, 094Petroleum transportation compensatory

adjustments, net-- ___ 353, 232, 488Flour, to producers 348, 431, 265Butter, to producers . 181, 617, 850Copper, lead and zinc, to producers who

exceeded quotas ___ 349, 969, 942Other, principally on production from

stripper oil wells, and on transportation ofcoal and sugar ___ 309, 034, 404

— 3,089,434,043Other costs and expenses:

Interest expense (including $352,820,230on funds borrowed from Treasury De-partment) __ 354,134, 288

Administrative expenses 108, 802, 885Miscellaneous costs and deferred charges.- 11, 476, 421

— 474, 413, 594

9, 410, 573, 826Less other income:

Net proceeds of renegotiation settlements— 83, 936, 935Discount and interest earned 7, 611, 753Service fees _ - „ 3, 051,253Miscellaneous income - 2,237,354

96, 837, 295

Unrecovered costs and net expenses 9i 313, 736, 531

In the Government Corporations Appropriation Act, 1949, ap-proved June 30, 1948, the Secretary of the Treasury was authorizedand directed to cancel notes of the RFC in the amount of$9,313,736,531, plus the interest accrued thereon subsequent to June30, 1947. The amount of notes canceled for this interest expensewas $46,005,553. The same act also directed that any amounts re-covered by EFC after June 30,1947, from the national defense, war,and reconversion activities be deposited in the Treasury as miscel-



Securities Purchased From Federal Emergency Administra-tion of Public Works (Public Works Administration)

Prior to 1934, the Federal Emergency Administrator of PublicWorks had been authorized to advance sums for the purchase ofmarketable securities issued to finance employment-producing proj-ects undertaken by railroads and by States and Territories or theirpolitical subdivisions. In the Emergency Appropriation Act ap-proved June 19, 1934, the RFC was authorized to purchase market-able securities acquired by FERA (later Public Works Admin-istrator) and the sums paid for such securities by RFC becameavailable to FERA for the making of additional loans under titleI I of the National Industrial Recovery Act. The amount whichRFC might have invested in such securities at any one time initiallywas limited to $250 million. However, this limitation was increasedto $400 million by the Public Works Administration Extension Actapproved June 29,1937.

Altogether RFC authorized the purchase of $694,844,788, parvalue, of the securities acquired by FERA (PWA). The amountdisbursed for the purchase of these securities was $651,471,584. Be-cause of redemptions and sales to investment houses, the amount ofRFC's outstanding investment in such securities never exceeded $200million. (See tableSP-1 in app. C.)

The securities purchased by RFC from FERA (PWA) consistedprimarily of those issued by the political subdivisions of States andTerritories. However, some railroad securities were included in thepurchases. Most purchases of securities from FERA (PWA) weremade at par value. Whenever such securities were purchased at adiscount from par, the amount of the discount was usually one-third.The table below summarizes RFC's purchases of securities fromFERA (PWA).

At par:Railroads

At a discount:Railroads

Total

Par value ofsecurities pur-

chased

$166,090,500368,976,517

4,800,000124,877,771

694,744,788

Amount dis-bursed

$196,090,600368,976,617

3,200,00083,204,567

651,471,584



By agreement with the Administrator of the Federal EmergencyAdministration of Public Works, any net principal profit derived fromthe sale or liquidation of the securities purchased would accrue tothe Public Works Administration, and the interest income from thesecurities would accrue to KFC. As of November 30,1950, the Cor-poration had realized a net principal profit of $53,052,448 from salesor retirements of the securities purchased from FEKA (PWA), Atthat date, $42,244,488 of this profit already had been paid to PWA, orto the Treasury for the account of PWA and its successors. A settle-ment was made with General Services Administration (successor toPWA) as of November 30,1950, under which the net principal profitof $10,807,960 still held by EFC was reduced by $2,339,133, represent-ing the difference between cost and appraised value of the unsoldsecurities still held by RFC, and $8,468,827 was paid into the Treas-ury as a final settlement.


Allocations and Loans to Government Agencies byDirection of Congress

From 1932 to 1950, the RFC was used by the Congress to providefunds for various Government programs by means other than directappropriations. The programs so financed were concentrated in thefields of agriculture, housing, foreign aid, and work relief. Alto-gether, a total of $6.6 billion was disbursed by KFC for these purposes.Most of the Corporation's advances were recovered through themedium of congressional authorizations to cancel the notes whichEFC had issued to the Secretary of the Treasury to obtain the neededfunds. In all of these activities, the management of RFC exercisedlittle or no discretion as to ultimate use of the funds provided.

The table on page 152 is a summary of the loans and advances madeby RFC to other Government agencies at the direction of the Con-gress. The distribution of these activities by quarter-year periodswill be found in table A-l in appendix C.

AGRICULTUREAt the start, RFC's operations were closely related to the financing

of the broad programs then being conducted to aid the farm sectorof the economy.

Crop Loans

Section 2 of the original RFC Act directed that there be made avail-able to the Secretary of Agriculture 10 percent of RFC's capital(including amounts borrowed from the Treasury) up to a maximumof $200 million. I t was intended that these funds be used for croploans during 1932 on terms and conditions to be prescribed by theSecretary. RFC paid $135 million to the Secretary for these croploans, but the Secretary subsequently returned $20 million, leaving$85 million of the crop loan fund unused. Under the provisions ofthe Emergency Relief and Construction Act of 1932, $44,500,000 ofthe unused amount was reallocated and disbursed as the capital ofthe Regional Agricultural Credit Corporations. The remaining$40,500,000 was paid to the Governor of the Farm Credit Administra-tion pursuant to the provisions of the Farm Credit Act of 1933.

Further details on the advances made under section 2 of the RFCAct, as amended, may be found in table A-2 in appendix C.

151505257—60 11



Summary of Allocations and Loans to Government Asencies by Direction of Congress

Agriculture:Secretary of Agriculture:

Allocation for crop loansLoans for farm rehabilitationLoans for farm tenants

Land Bank Commissioner:Allocation for loans to Joint-

Stock Land BanksAllocation for loans to farmers

Regional Agricultural Credit Cor-porations:

Allocation for capitalAllocation for expenses

Farm Credit Administration, allo-cation to Governor

Federal Farm Mortgage Corpora-tion, allocation for loans tofarmers

Commodity Credit Corporation,allocation for capital

Bural Electrification Administra-tion, loans

Total, agriculture

Housing:Federal Housing Administrator, al-

locationsSecretary of the Treasury:

Federal home loan banks, al-location for capital 1

Home Owners' Loan Corpora-tion, allocation for capital

Total, housing _

Relief:Loans to States, Emergency Relief

and Construction Act of 1932Administrative expenses, Emer-

5 S 5 ia?2ief "J^™*™***Allocations for direct relief to

States, upon certification of theFederal Emergency Relief Ad-ministrator

Allocation to Federal EmergencyRelief Administration, Emer-

AUocation to Secretary of theTreasury, for direct relief, Emer-im7 R e U e f APPr°Priatibn Act,

Total, relief

Miscellaneous:Disaster Loan Corporation, alloca-

ttonfor purchase of capital s tocksSecretary of State and Economic

Cooperation Administration • „Interest on notes issued for funds

for allocations and loans bydirection of Congress ^ ^

Total, miscellaneous..

Total, allocations and loans to

Allocated

$115,000,000630,000,000277,600,000

100,000,000145,000,000

44,500,00023,341,776

40,500,000

65,000,000

97,000,000

931,500,000

2,459,341,776

97,861,381

124,741,000

200,000,000

> 422,602,381

300,000,000

126,872

600,000,000

600,000,000

500,000,000

1,800,126,872

24,000,000

2,496,000,000

33,177,420

2,553,177,420

7,235,248,449

Disbursed

$115,000,000621,113,000214,460,000

2,600,000145,000,000

44,500,00023,341,776

40,600,000

55,000,000

97,000,000

602,200,000

1,960,714,776

97,861,381

124,741,000

200,000,000

422,602,381

299,984,999

126,872

499,999,066

500,000,000

500,000,000

1,800,110,937

24,000,000

2,351,000,000

33,177,420

2,408,177,420

6,591,605,614

Returned

$621,113,000174,092,184

91,351,096

886,656,280

17,169,232

17,159,232

2,351,000,000

2,361,000,000

3,254,715,512

RFC notescanceled

$115,000,000

40,367,816

2,600,000145,000,000

44,600,00023,341,776

40,500,000

55,000,000

97,000,000

510,848,904

1,074,158,496

97,861,381

124,741,000

200,000,000

422,602,381

282,825,767

126,872

499,999,066

600,000,000

600,000,000

^782,951,705

24,000,000

33,177,420

57,177^420

3,336,890,002

^^v—^v*»,«» omwt irom me secretary of«The advances made for foreign aid were repaidpurposes.

ô lIHWlUy In 1941. - *\,neafunds appropriated by the Congress for tnose


ALLOCATIONS AND LOANS TO GOVERNMENT AGENCIES

Farm Rehabilitation

The Emergency Relief Appropriations Act, fiscal year 1941, author-ized the RFC to make loans to the Secretary of Agriculture for thepurpose of enabling the Secretary to make rural rehabilitation loansto needy farmers. The RFC authorized a total of $630 million forthese loans, against which $621,113,000 was disbursed. The programwas active until 1947, and all sums advanced were repaid by the Sec-retary. Further details on these loans are contained in table A-3 inappendix C.

Farm Tenant Loans

Beginning with the Department of Agriculture Appropriation Actof 1941, and continuing to that same act for 1948, the RFC was au-thorized to make loans to the Secretary of Agriculture to enable theSecretary to make loans under title I of the Bankhead-Jones FarmTenant Act for the purchase of farms by tenant farmers. A total of$277,500,000 was authorized for this purpose, of which $214,460,000was disbursed. There was returned to RFC by the Secretary a totalof $174,092,184 from these advances. The Department of AgricultureAppropriations Act for 1948 provided for RFC to turn over to theSecretary of the Treasury $40,367,816 in notes for loans made by RFCto the Secretary of Agriculture, and RFC's notes payable to the Sec-retary of the Treasury were canceled in a like amount, effective as ofJuly 1,1947. The loans made by RFC to the Secretary of Agriculturefor farm tenant purchases are outlined in table A-4 in appendix C.

Land Banks

The provisions of section 301 (a) of the Emergency Farm MortgageAct of 1933 directed RFC to make available to the Farm Loan Com-missioner the sum of $100 million for the purpose of making loans tojoint stock land banks organized under the Federal Farm Loan ActOnly $2,600,000 of this authorization was disbursed.

Section 32 of this same act directed RFC to make available to theCommissioner $200 million, or so much of that amount as might havebeen needed, for loans to farmers to be secured by first or secondmortgages on farm property. Of this authorization, $145 millionwas disbursed. The remainder, $55 million, was transferred anddisbursed to the Federal Farm Mortgage Corporation, as provided forby section 3 of the Federal Farm Mortgage Act.

The transactions under these authorities are shown in tables A~5and A-6 in appendix C.



Regional Agricultural Credit Corporations

As stated above, the sum of $44,500,000 was disbursed by RFC topay for the capital stock of the Regional Agricultural Credit Cor-porations, (See table A-2 in app. C.) This amount was a realloca-tion of part of the $200 million made available to the Secretary ofAgriculture under section 2 of the original RFC Act. The realloca-tion was done under the provisions of section 201 (e) of the EmergencyRelief and Construction Act of 1932. This act authorized RFC tocreate Regional Agricultural Credit Corporations and to pay in theircapital stock. The act further directed RFC to pay all of the expensesof operating these corporations. The total amount of such expensesdisbursed by RFC was $23,341,776, and this amount was recoveredby RFC through the medium of note cancellations.

Farm Credit Administration

Under the provisions of the Farm Credit Act of 1933, the sum of$40,500,000, which was unused under the provisions of section 2 of theoriginal RFC Act, was reallocated and disbursed to the Governor ofthe Farm Credit Administration. (See table A-2 in app. C.) Thesefunds were used to establish Production Credit Corporations.

Federal Farm Mortgage Corporation

Section 3 of the Federal Farm Mortgage Corporation Act, approvedJanuary 31,1934, provided that for the purpose of capital subscrip-tions to the Federal Farm Mortgage Corporation, "the funds andproceeds thereof made available to the Land Bank Commissioner un-der section 32 of the Emergency Farm Mortgage Act of 1933 and themortgages taken by the Commissioner and the credit instrumentssecured thereby are hereby transferred to the corporation." (FFMC)

The amount of $55 million was undisbursed under the authority ofthe Emergency Farm Mortgage Act of 1933, and this sum was dis-bursed to the Federal Farm Mortgage Corporation, (See table A-*in app. C.)

Commodity Credit Corporation

An act approved April 10,1936, directed the RFC to purchase $97million in nonassessable stock of the Commodity Credit Corporation-(See table A-7 in app. C.)

Rural Electrification Administrationon AdministrationThe Rural Electrification Act of 1936 authorized the AdministratorR E A to makft Inn/no -fivn înnl «i J * n J Z j c J T J^wiichinfif



inal borrowers as security. The program and the underlying direc-tives were continued in the Rural Electrification Act of 1938 and theDepartment of Agriculture Appropriations Acts for 1941 through1948.

Loans to the Administrator of REA were authorized in the amountof $931,500,000. Of this, $602,200,000 was disbursed. To July 1,1947, a total of $91,351,096 had been repaid to RFC. The Depart-ment of Agriculture Appropriations Act for 1948 provided that theREA Administrator's notes payable to RFC be transferred to theSecretary of the Treasury, and for cancellation of RFC notes pay-able to Treasury in like amount. The notes so transferred and can-celed totaled $510,848,904, and the actions were effective July 1,1947.Details of RFC loans to the Administrator of REA will be foundin table A-8 in appendix C.

HOUSING

Federal Housing Administration

The National Housing Act, approved June 27, 1934, directed theCorporation to make available to the National Housing Administra-tor such funds as he deemed necessary to carry out the provisions oftitle I I (mutual mortgage insurance) and title I I I (national mort-gage associations) of that act.

The total allocation to be made under this directive was not specifi-cally limited. Disbursements continued to 1944, and totaled $97,-861,381, all of which was recovered by RFC through the mediumof note cancellations. The timing of the disbursements is shown intable A-9 in appendix C.

Federal Home Loan Banks

Section 2 of the original RFC Act provided that "in order to enablethe Secretary of the Treasury to make payments upon stock of theFederal home loan banks subscribed for by him in accordance withthe Federal Home Loan Bank Act, the sum of $125 million, or somuch thereof as may be necessary for such purpose, is hereby allo-cated and made available to the Secretary of the Treasury out of thecapital of the Corporation (RFC) and/or the proceeds of notes, de-bentures, bonds, and other obligations issued by the Corporation."

The RFC disbursed $124,741,000 under this directive through 1937.(See table A-10 in app. C.) In the first quarter of 1938, the amountof RFC's disbursement was recovered through cancellation of itsnotes, the stock remaining with the Secretary of the Treasury. In1941, when the public debt was approaching its limit, RFC ceasedborrowing from the Treasury, borrowed instead from the public, andpurchased the stock of the Federal home loan banks from the Secre-



tary of the Treasury in order to provide the Treasury with additionalfunds.

Home Owners' Loan Corporation

The Home Owners' Loan Act, approved June 13,1933, directed theRFC to allocate and make available to the Secretary of the Treasurythe sum of $200 million, or so much thereof as might be necessary toenable the Secretary to pay for the capital stock of the HomeOwners' Loan Corporation subscribed by him. All of this sum wasdisbursed as shown in table A- l l in appendix C.

RELIEFLoans to States

The Emergency Relief and Construction Act, approved July 21,1932, authorized the Corporation to make the sum of $300 millionavailable to the States to be used in furnishing relief and work reliefto the needy and distressed and in relieving the hardships resultingfrom unemployment. Not more than 15 percent of the total could bemade available to any one State. (This restriction was removed bythe provisions of an act approved March 31, 1933.) The amountsadvanced were to bear interest at 3 percent and were to be repaid byannual deductions from future grants by the Federal Governmentto the States for road construction. Some of these advances ($17,-159,232) were repaid to RFC, but most of them ($282,825,767) wererecovered through note cancellations. (See table A-12 in app. 0.)

By the provisions of an act approved February 24, 1938, in con-nection with cancellation of RFC notes issued to obtain funds foradvances to Government agencies, the corporation was authorizedto include the administrative expenses incurred in carrying out theprovisions of title I of the Emergency Relief and Construction Actof 1932. The amount of such expenses allocated was $126,872.

Allocations to States

The Federal Emergency Relief Act of 1933 directed RFC to makepayments, not to exceed $500 million in total amount, to the Statesupon the certification of the Federal Emergency Relief Administra-tor approving the request of a State for such funds. Of the total$499,650,000 was earmarked for grants to States, with the remaining$350,000 to be used for administrative expenses by the FERA. The$499,650,000 was disbursed as shown in table A-13 in appendix G.

Under the two directives cited immediately above, the RFC dis-bursed to the States the sum of $799,634,999. The distribution of thisby States is shown in the following table:



Disbursements to States Under the Emergency Relief and Construction Act of 1932 andthe Federal Emergency Relief Act of 1933

State Act of 1932 Actofl933 Total

Alabama.ArizonaArkansas _.California _ColoradoConnecticutDelawareDistrict of Columbia...FloridaGeorgia _IdahoIllinois _Indiana- *--_.Iowa—

$4,211,6881,448,2394,833,967

10,081,6313,832,990

Kentucky.LouisianaM i : :Maine . . . : . : . : : : : :MarylandMassachusetts....Michigan. ,Minnesota.MississippiMissouriMontanaNebraskaNevadaNew Hampshire-New JerseyNew MexicoNew York . . . . . . . .North Carolina...North Dakota,._.Ohio. ,OklahomaOregonPennsylvaniaRhode IslandSouth Carolina...South Dakota.

3,886,5121,745,6921,026,566

65,443,7215,179,9312,151,4302,592,9346,728,9878,200,127

252,895176,380

21,808,1992,581,7874,058,9194,616,7892,368,285

Texas....,Utah..VermontV i i i

1,366,6032,009,291387,903

26,600,0005,950,000592,768

19,257,2054,570,5972,798,29034,929,8751,123,5904,575,2701,803,9453,375,3527,952,2912,923,439

$3,994,3912,83? 1467,410,24915,823,5353,925,0504,694,1641,010,7081,056,174

13,347,2327,705,354809,957

52,240,03811,259,4255,248,7892,732,7265,045,11813,034,1671,251,4147,171,09811,355,14031,369,7828,831,9598,550,2866,685,4942,853,3572,125,699370,801966,436

15,423,438

63,131,8269,709,9903,612,620

VirWashing .West Virginia.;WisconsinWyoming

AlaskaHawaiiPuerto RicoVirgin Islands,

3,495,3045,977,4309,655,21812,395,362

6,309,0053,213,31544,108,5091,870,967

10,424,2007,035,6976,369,19613,249,8741,723,352481544

5,594,0745,627,175

11,090,5999?!22£

394,935360,000

1,110,5611,970,201281 753

Total.. 299,984,999 499,650,000

$13,206,0704,282,41512,244,21625,905,1667,758,0404,694,1541,010,7081,056,17417,233,7449,451,0461,836,523

107,683,75916,439,3567,400,219

12,674,10521,234,2841,504,3097,347,47811,355,14053,177,98111,413,74612,609,20511 302,2836,221,6422,125,699633,433

2,333,03917,432,7291,277,09189,731,82616,659,9904,205,28856,020,58710,879,6026,011,60579,036,3842,994,55714,999,4708,839,6429,744,648

21,202,1654,646,791481^644

9,089,37811 604,60520,745,81722,014,415

190,383

349,6291,605,4962,330,201281,763

799,634,000

Federal Emergency Relief Administration

The Emergency Appropriation Act, fiscal year 1935, provided that"not exceeding $500 million in the aggregate of any savings or unobli-gated balances in the funds of the Reconstruction Finance Corporationmay, in the discretion of the President, be transferred and applied tothe purposes of the Federal Emergency Relief Act of 1933 and/orTitle I I of the National Recovery Act * * *."

Under this provision, the Corporation transferred $500 million tothe Federal Emergency Relief Administration. (See table A-14 inapp.C)



An additional $500 million of RFC funds were transferred for reliefpurposes in accord with the provisions of the Emergency Relief Ap-propriation Act of 1935. (See table A-15 in app. C.)

OTHER ALLOCATIONS

Disaster Loan Corporation

This Corporation was created by an act approved February11,1937,to meet the emergency brought about by floods in the Ohio-MississippiValley. Its capital stock was originally limited to $20 million andwas subscribed by RFC out of the unexpended balance of the $50 mil-lion which RFC was authorized to lend for disaster relief under theact approved April 17,1936. By an act approved March 4,1939, thelimiting amount on the Corporation's capital stock was increased to$40 million. Altogether, the RFC disbursed $24 million for the capi-tal stock of Disaster Loan Corporation. (See table A-16 in app. C.)Of the total, $10 million had been disbursed prior to February 24,1938, at which time an act was approved which transferred the out-standing capital stock of DLC to the Secretary of the Treasury andcanceled RFC's notes payable to Treasury in a like amount.

Although DLC was closely affiliated with RFC throughout its exist-ence (February 11,1937, to June 30,1945), and in fact operated muchas a division of RFC, it could be considered as an RFC subsidiary onlyduring the first year of its operations.

Secretary ol State and Economic Cooperation Administration

Beginning in 1947, and continuing into 1950, the Congress directedthe RFC to make a series of advances for the purpose of providing tem-porary financing for foreign aid programs. A total of $2,351 millionwas advanced by RFC under these directives. The Corporation °^'tained funds for the advances through interest-free borrowings fromthe Treasury. As appropriations were approved for the various pro-grams, the advances made by RFC were returned and RFC's borrow-ings retired. The table below summarizes the advances made in con-nection with foreign aid:

Act approved

May 22,1947May 27,1947 1Dec. 17,1947Apr. 3,1948

DoDo

Aug. 11,1948Mar. 24,1949Apr. 19,1949Feb. 14,1960June 5,1950

Purpose

Aid to Greece and TurkeyAid to war-devastated areasAid to European countries -Aid to ChinaAid to Greece and Turkey / .European economic aidConstruction of U.N. buildingAid to Palestine refugees.:European economic aidFar East relief.Aid to Palestine refugees

Authorized

$100,000,00075 000,000

160 000,000

»s

IS158



All amounts shown above were disbursed, except that of the $150million in the act of December 17,1947, only $5 million was disbursed(for the Free Territory of Trieste). (See table A-17 in app. C.)

Interest

By the provisions of the act approved February 11,1938, the interestwhich EFC had paid to the Treasury on funds borrowed for the pur-pose of making loans and advances to other Government agencieswas included with the RFC notes canceled at that time. The amountof interest so included was computed as $33,177,420.



Results of Lending Activities

There is shown on page 162 a consolidated statement of the net in-come from RFC's lending activities during the period from February2,1932, to June 30,1957. The results shown are applicable only to whathave been called RFC's "normal" lending functions. No effect isgiven in this statement to the grants and allocations made by KFC toother Government agencies at the direction of the Congress, nor tothe World War I I activities conducted by RFC's wartime subsidiaries.That the activities so excluded were outside the "normal" scope ofHFC's functions was recognized by the Congress when the Secretaryof the Treasury was directed to cancel the notes which KFC had issuedfor the funds used in these activities. There are included in the state-ment the results of the operations of RFC's two mortgage subsid-iaries—RFC Mortgage Company and Federal National MortgageAssociation.

The net income from RFC's lending activities as shown on theCorporation's books was $690,017,232, and this figure gives effect tothe actual amount of interest paid by RFC on funds borrowed for andutilized in the lending programs. During the Corporation's lateryears, there were criticisms from many quarters to the effect thatRFC's net earnings were inflated because the Corporation did, onmany occasions, borrow funds from Treasury at rates of interestbelow those which Treasury was paying on its borrowings from thepublic. RFC was also criticized because it had utilized in its lendingprogram, without paying interest, certain funds held for other Gov-ernment agencies and programs, and because RFC had the "interest-free" use of retained earnings and the funds supplied by Treasury forRFC's capital stock.

If the RFC had paid interest on its capital stock, retained earn-ings, and all funds loaned to RFC by Treasury at a rate representingthe current average rate on outstanding public debt securities, theCorporation's interest expense would have been increased by$356,326,227. Deducting this from the accumulated net income shownon RFC's books would leave an adjusted net income of $333,691,005.

The foregoing statement of RFC's income gives effect to losses of$106,733,040 sustained by the Corporation in its lending activities.The types of loans and investments in which losses were incurred are



Consolidated Statement of Net Income from Lending Activities for the Cumulative Periodfrom Date of Incorporation to June 3 0 , 1 9 5 7

Income:Interest and dividends earned on loans

and securities SI, 442, 580, 070Premiums realized and discounts col-

lected on loans and securities, prin-cipally premiums on sales of publicagency bonds, FHA-insured mort-gages, and railroad securities 56, 812, 480

Commitment and other fees 12, 305,141Participation fees earned.... — 10, 439, 460Other income 696, 270

Total income - $1,522,833,421Interest and other expenses:

Interest paid on funds:Borrowed from U.S. Treasury $279, 415, 299Borrowed from the public 86, 481, 808Held for U.S. Treasury and others

derived principally from the WorldWar II programs, including WarDamage Corporation and tempo-rarily utilized in the lending pro-gram 61, 377, 562

Total interest paid 427, 274, 669Administrative expense 264, 238, 073Fees paid for servicing mortgages, etc__ 18, 419, 036Other expenses 819, 630

Total expenses 710,751,408

Net income before losses and reserve n

provisions 812,082, 013Losses and reserve provisions:

Loans, securities, and other receivablescharged off, less income and profitsfrom assets acquired in the liquidationof loans and securities 106, 733, 040

Provision for losses on loans, securitiesand other receivables not liquidatedas of June 30, 1957 15, 331, 741 122, 064,781

Net income as shown on RFC'sbooks _. 690, 017,232

Deduct:Increase in interest expense to reflect

the average rate paid by the Treasuryapplicable to RFC's borrowings, cap-ital stock, and accumulated earnings 356, 326,227

Adjusted net income 333, 691,005


RESULTS OF LENDING ACTIVITIES

shown in the following table. For comparative purposes, theamounts which RFC disbursed for the loans and investments in whichlosses were incurred are also shown.

Summary of Loan Disbursements and Book Losses Cumulative Through June 30, 1957

Type of loan

Mining Joans

Others - - .

Financial institutions -

Other loansMiscellaneous losses -

Total— . - -Deduct:

Income and profits from properties and securities ac-quired in liquidation of loan indebtedness..

Disbursements

$2,670,087,267

34,186,70837,500,000

2,598,400,559

1,138,448,3753,906,201,681

70,069,4101,325,190,393

285,613,958

9,395,611,084

Book losses

$71,565,519

8,899,06828,867,35433,799,097

22,934,31552,982,7784,862,269

12,485,678236,082

1 631,238

166,697,879

69,964,839

106,733,040

Loss ex-perience

2.68

26.0376.981.30

2.011.366.94.94.08

1.77

1.14

More than one-half of the losses on loans to business enterpriseswere sustained in connection with the loan made to the Lustron Corp.,and in connection with loans to mining interests. In the case of thelatter, most of the losses which occured were on loans made for thedevelopment of mining properties to produce strategic and criticalminerals for the national defense programs of World War II .

The "miscellaneous" losses shown in the foregoing schedule arethose relating to accrued interest and other receivables applicable toall types of loans and investments listed.

For many of HFC's lending programs, there were no losses of anysort registered on the Corporation's books, and these are not includedin the schedule above. The programs so excluded are as follows:

RFC's mortgage loan subsidiariesLoans to foreign governmentsLoans to other U.S. Government agenciesLoans to agricultural financing institutions (Government or

quasi-government)

Amount disbursed

$1» 778,093,357460,000,000211,933,000

67,502,962

3,617,529,319

Also excluded from the table on losses are the loans and stocksubscriptions for KFC's wartime subsidiaries and for the grants,allocations, and loans made to other Government agencies at directionof the Congress. In both of these instances, RFC's notes to the Secre-tary of the Treasury were canceled in amounts which represented theCorporation's unrecovered costs from such activities.



One further note as to the manner in which the Corporation'slosses on loans were computed and reflected in the table above: Indetermining whether a loss was sustained on any particular loan, theCorporation always followed the practice of taking into considera-tion the results of disposing of any collateral acquired in the fore-closure of the loans. Prior to 1948, it was the practice to determinethe loss on a particular loan only after final disposition of all collateralacquired in the liquidation of that loan had been effected. Subse-quent to that time, however, the value of the collateral was determinedby appraisal at the time of foreclosure, and any deficit between theappraised value and the unpaid balance of the loan immediatelyrecorded as a loss. The results of the subsequent liquidation of thecollateral, while identifiable with the original loan, were not so treatedin the accounts but were recorded in the financial statements as profitsor losses from the disposal of collateral rather than as increases ordecreases in the amount of losses on loans.


Defense Production Loans

Under title I I I of the Defense Production Act of 1950, the Presi-dent was empowered to make provision for loans to business enter-prises for expansion of capacity, development of technological proc-esses, and the production of essential materials. To carry out thepurposes of the act, the President was authorized to utilize such exist-ing agencies of the Government as he deemed appropriate, or tocreate new agencies.

By Executive Order 10161, dated September 9,1950, the Presidentdirected that the facilities of the RFC be utilized for the purposes ofdomestic loans under the Defense Production Act, and the Corpora-tion thereafter served as credit adviser and fiscal agent for the DefenseProduction Administration in processing loan applications and servic-ing loans made. The loans made under the authority of the DefenseProduction Act were financed by borrowings from the Treasury asprovided by section 304 of the act.

The RFC continued to perform services under the Defense Produc-tion Act until September 28,1953, when the provisions of section 107of the RFC Liquidation Act became effective. This section providedthat the Defense Production Act lending program be transferred fromRFC to an agency to be named by the President. In Executive Order10489, dated September 26, 1953, the President transferred the pro-gram to the Secretary of the Treasury. The Secretary arranged toutilize RFC as his agent for the administration of this program, andthis arrangement continued until June 30,1954. Thereafter, the pro-gram was administered by the Secretary of the Treasury through theDefense Lending Division and the Office of Defense Lending in theTreasury Department.

RFC served only as an agent in the Defense Production Act lend-ing program, but the policies and procedures followed were those usedin RFC's own lending programs. Through September 28,1953, therehad been authorized under this program 340 loans amounting to$352,487,022. When the program was transferred to the Secretary ofthe Treasury, there was $132,599,000 outstanding in the unpaid prin-cipal balances of loans, and $136,397,000 in undisbursed commitments.

165



Smaller War Plants Corporation

Smaller War Plants Corporation, an independent agency, was or-ganized in 1942 to assist in mobilizing the production facilities ofsmall business for war purposes. SWPC was empowered to makeloans, to purchase and lease production facilities to small concerns,and to contract with the Government to furnish war materials andequipment, such materials to be procured through subcontractingarrangements with small business. Later, under the Surplus Prop-erty Act of 1944, SWPC was authorized to purchase and resell surplusproperty to small business, and to make and guarantee loans to smallbusiness in connection with the acquisition of surplus property.

By the provisions of Executive Order 9665, effective January 28,1946, all personnel, functions, assets, and liabilities of SWPC weretransferred to RFC and to the Department of Commerce. The func-tions of SWPC which were transferred to RFC expired on December31, 1946. The corporate entity of SWPC was abolished by the pro-visions of a joint resolution approved June 30, 1947, and RFC wasdirected to cany out the liquidation of SWPC's affairs.

The SWPC assets transferred to RFC on January 26,1946, wereas follows:

Cash (less liabilities) $129,733,133Loans, including accrued interest 29,701,510Notes and accounts receivable 871,752Machinery and equipment 16,334,319Furniture and equipment 306,316

Total 176,947,030

Subsequent to the original transfer date, there was returned toRFC $2,315,962 representing the unexpended balances of administra-tive funds transferred from SWPC to the Department of Commerce.

RFC received from SWPC on January 28,1946,1,546 outstandingloans having principal balances and accrued interest aggregating$29,701,510. The authority of SWPC to make new loans was extantuntil December 81, 1946, but no major loans were authorized subse-quent to the transfer to RFC. The principal new loan activity under-taken by RFC under the SWPC authority was the authorization ofdeferred participations in 187 loans made by banks. The amount ofthese deferred participations was $5,040,131*

5052OT—58 12 167



The machinery and equipment received by RFC in the SWPCtransfer was valued at $16,334,319, including that involved in 450active leases. There were no new lease agreements executed afterJanuary 28,1946.

The program for accommodation purchases of surplus propertyconstituted the most substantial part of the SWPC functions ad-ministered by RFC. This function was continued until March 10,1947. During the period from January 28, 1946, to March 10, 1947,RFC completed 17,251 purchases of surplus property aggregating$57 million for resale to small business concerns and qualified veter-ans. The property acquired and sold consisted mainly of tractors,cranes, machinery, trucks, and other motor vehicles.

Under the provisions of Executive Order 9665, the RFC was account-able to the Treasury Department for the net proceeds realized from theadministration and liquidation of the transferred SWPC assets. RFCremitted to the Treasury a total of $162,675,000 from SWPC sources.In addition, property and equipment having a cost value of $6,704,603was transferred without reimbursement to other Governmentagencies—mainly to War Assets Administration.

On June 30, 1957, the remaining SWPC assets consisted of thefollowing:

Cash $ 2 6 1 j 2 5 4

Loans 8 4 5 j 0 5 0

Acquired coUateral 29,791Other receivables III!L~I " ' 879

1,137,874Less reserves. 5 5 8 | 332

579,542

The liabilities of the program on June 30,1957, were $1,716, leaving anequity of the Government amounting to $577,826.

Under the provisions of Reorganization Plan No. 1 of 1957, the assetsand liabilities remaining from the former Smaller War PlantsCorporation were transferred to General Services Administration.


Liquidation of RFC

The Reconstruction Finance Corporation was abolished on June 30,1957, as directed by sections 6 and 7 of Reorganization Plan No. 1 of1957.

The liquidation of the Corporation was conducted in accordance withthe provisions of the Reconstruction Finance Corporation LiquidationAct which became effective September 28,1953. At that time, the RFCheld or administered assets and commitments totaling in excess of$2 billion. Less than $100 million of this remained when the Corpora-tion was abolished. The remaining assets were transferred by theprovisions of Reorganization Plan No. 1 of 1957 to other Governmentagencies administering continuing programs of similar natures.

The RFC Liquidation Acf

The RFC Liquidation Act (Public Law 163, 83d Cong.) wasapproved July 30, 1953. This act provided for liquidation of theCorporation in accordance with sections 9 and 10 of the RFC Act, asamended (47 Stat. 5). Under these provisions, the RFC continued asan independent agency until June 30, 1954. Thereafter, for furtherliquidation, the Secretary of the Treasury succeeded to all powers,duties, and authorities previously exercised by the Administratorof RFC.

The RFC Liquidation Act also provided for termination of the Cor-poration's authority to make loans, effective September 28, 1953, andprogress in the liquidation of the lending portfolio is measured fromthat date.

Other provisions of the RFC Liquidation Act directed that thefollowing programs be transferred from the Corporation:

Lending under section 409, Federal Civil Defense Act of 1950, to the Secretaryof the Treasury, effective September 28,1953.

Lending under title III, Defense Production Act, as amended, as directed bythe President By Executive Order 10489, the President transf ered this programto the Secretary of the Treasury, effective September 29,1953.

The production programs conducted under the Rubber Act of 1948 (syntheticrubber), the Abaca Production Act of 1950, (abaca fiber), and Public Law 125,80th Congress (tin)—as directed by the President. By Executive Order 10539,effective June 30, 1954, the synthetic rubber and tin programs were transferredto the Federal Facilities Corporation, and the abaca fiber program was trans-



ferred to the General Services Administration. The Federal Facilities Corpora-tion was organized by the Secretary of the Treasury, as directed by the President,under the provisions of the Rubber Act of 1948.

Assets To Be Liquidated

At the time the RFC Liquidation Act became effective, the assets heldor administered by the Reconstruction Finance Corporation totaled$1,760,500,000. In addition, there were outstanding commitments tomake or participate in loans which amounted to $250,500,000. Aftergiving effect to liabilities of $39,400,000 and reserves of $461,100,000,the bulk of which consisted of reserves for depreciation of fixed assets,the net Government investment dn these programs on September 28,1953, was $1,260 million, with a potential additional investment of$250,500,000 represented by the undisbursed commitments. Thisinvestment in its main categories was as follows:

Production programs and other assets remaining from World War II.Smaller War Plants Corporation.

Total

In millions of dollars

Grossvalue ofassets

726.9136.6

1.9801.7

3.5

1,760.5

Net in-vestmentofU,S.Govern-

ment

672.4130.9

1.8452.2

2.7

1,260.0

TTndis-bursedcommit-ments

110.3136.4

3.8

250.5

Liquidation Policy

The RFC Liquidation Act directed that the liquidation of theCorporation "be carried out as expeditiously as possible." I t wasthe aim of the liquidation program to comply with that directive,but also to achieve maximum recovery of the Government's invest-ment of taxpayers' funds. At the same time, every possible considera-tion was given to the interests of those indebted to the Corporationand the communities in which their business were located.

Reorganization Plan No. 2 of 1954

When the liquidation of RFC was undertaken, it was apparent thatthe Corporation held certain assets in its lending program whichwould require a protracted period to work out to the best advantage.To retain such assets in RFC would have required continuation of theCorporation far beyond the time when it could serve economically asa liquidating agency. Therefore, Reorganization Plan No. 2 of 19&


LIQUIDATION OF RFC

was proposed and adopted, effective June 30,1954. Under this plan,the functions of liquidating certain lending program assets weretransferred to agencies conducting continuing programs of similarnatures. The transfers effected under the plan were as follows:

1. To the Export-Import Bank of Washington:(a) The loan made by RFC to the Republic of the Philippines

under section 3 of the joint resolution of August 7,1946;(S) The loans made by RFC to the Government of Ecuador

and the Newfoundland Railway of St. Johns, Newfoundland;(o) The capital stock of the Banco de Barracho (later known

as the Amazon Credit Bank), Belem, Brazil;(d) All foreign bonds and securities acquired by RFC in the

liquidation of its lending programs.2. To the Small Business Administration:

The loans made by RFC to victims of floods or othercatastrophes.

3. To the Federal National Mortgage Association:

The mortgages held by RFC which were made or acquiredunder the authorities of the RFC Mortgage Company or theDefense Homes Corporation.

RFC Lending Program Assets

The assets held on September 28, 1953, in connection with RFC'slending program were as follows:

Thousandsof dollars

Cash 22,886Loans and securities 686,471Accrued interest receivable 7,226Acquired collateral 7» 56*Other assets and receivables ~» ^

Total _ 726,974

Reserves for losses amounting to $48,267,000 were carried in con-nection with the loans and securities.

In addition to the assets actually carried on the books, the Cor-poration had outstanding on September 28, 1953, commitments tomake loans amounting to $110,300,000; of these, $26,424,000 weredeferred commitments to purchase participations in loans made bybanks.

Included in the portfolio of loans, securities, and commitmentsnoted above are those which later were to be transferred from RFCunder the provisions of Reorganization Plan No. 2 of 1954. The



amounts of these, and the reductions made in the portfolio up untilthe time of transfer, were as follows:

Transferred to Small Business Adminis-tration:

Disaster loansDisaster loan commitments

Transferred to Federal National MortgageAssociation:

Direct, Insured, and partially guaran-teed mortgages

Purchase money mortgagesTransferred to Export-Import Bank:

Loan to Republic of the Philippines...

Total

Dollar amounts In thousands

Outstanding Sept.28,1053

Number

3,373232

15,594

1

19,204

Amount

$16,1432,226

69,48442,30448,000

178,157

Net reduction Inportfolio

Number

143223

656

922

Amount

$1,3961,724

5,266785

6,000

15,171

Outstanding June30, 1954

Number

3,2309

15,038

1

18,282

Amount

$14,747502

64,21841,51942,000

162,986

The loans and securities of EFC's lending program amounted to$686,471,000 on September 28,1953, and there were in addition com-mitments of $110,320,000, of which $26,424,000 were deferred. Ex-cluding those assets later transferred under Reorganization Plan No.2 of 1954, there was $510,540,000 in loans and securities and $108,094,-000 in commitments considered to be of types whose liquidation couldbest be accomplished by the Corporation itself. The composition ofthis portfolio on September 28,1953, and the liquidation accomplishedto June 30,1957, are shown in the following tabulation:

Business enterprises:Loans and securitiesCommitments.

Railroads:Loans and securitiesCommitments

Securities of financial institutionsPublic agencies:

SecuritiesCommitments

TotalCommitments for deferred participation

in business loans made by banks

Grand total-

Dollars amounts in thousands

Outstanding Sept.28,1953

Number

4,54385

13

35

26829

4,974

1,676

6,650

Amount

$352,32743,205

83,915717

45,490

28,80837,748

592,210

26,424

618,634

Net reduction Inportfolio

Number

3,78885

51

33

19929

4,140

1,590

_ 5,730

Amount

$300,82842,444

75,348717

40,711

24,17236,248

520,468

19,857

540,325

Outstanding June30,1957

Number

765

8

2

69

834

86

920

Amount

*.£8,667

" 4,779

4,6361,600

71,742

6,567

78,305

Business Loans and Securities

Liquidation of the business loan portfolio was the most complextask confronting the Corporation. On September 28,1953, there were4,628 direct business loans and commitments outstanding whichamounted to $395,532,000. In addition, the Corporation was com-mitted, on a deferred basis, to purchase participating shares in 1,676


LIQUIDATION OF RFC

business loans made by banks, such commitments totaling $26,424,000.Not only did the business loans represent the heaviest investment in

the portfolio but the major portion of the Corporation's administra-tive costs were incurred in servicing this large number of loans scat-tered throughout the Nation. The loans varied in size from a fewwith outstanding balances of less than $100 to one loan of $48,400,000.Fewer than 100 of the loans had balances exceeding $500,000. Inapproximately 3,000 cases, the amount due RFC was less than $25,000.

Disposal of Smaller Business LoansTo dispose of the smaller business loans in its portfolio, the Corpora-

tion, with the cooperation of a committee of bankers appointed by theAmerican Bankers Association and the Association of Eeserve CityBankers, developed a plan for the creation of what was termed the"RFC Loan Pool." As of February 28,1954,2,848 loans were selectedfor the pool. All but two of these had outstanding balances under$500,000. The aggregate amounts of the unpaid balances and com-mitments was $73,381,000. Certificates of interest bearing interest atthe rate of 3y2 percent per annum, each representing an undividedshare of the pool loans, were sold to nearly 1,000 banks and privateinvestors. The certificates of interest totaled $47,165,000, and theirsale resulted in the immediate return of that amount to theGovernment.

With the assistance of regional advisory committees composed ofleading bankers, 1,194 banks were enlisted to take over the servicingof pool loans to borrowers in their own or nearby communities. Thisstep made it possible to close all of the RFC regional offices andthereby relieved the Corporation of the major share of its administra-tive costs. I t also served to establish or reestablish a close relation-ship between RFC borrowers and private banks.

In establishing the loan pool, it was anticipated that this closer rela-tionship would result in repayment or refinancing of the loans at datesmuch earlier than otherwise would have occurred. This expectationwas borne out in actual experience.

The results to June 30,1957, of the operations of the RFC loan poolare summarized in the table below:

Jeb.28,1954 . . „June 30,1954..June 30,1956June 30,1956 .June 30,1957

Dollars In thousands

Pool loans outstanding

Number

2,8482,403M89

931498

Amount

$73,38159,14432,33318,7237,669

Interest of participants

RFC

$26,21626,21619,03518,0567,669

Certificateholders

$47,16532,92813,298

667



In the 40 months to June 30, 1957, more than 80 percent of theloans placed in the pool had been retired and nearly 90 percent of theoriginal outstanding balances repaid. The certificates of interestwere completely retired on July 5,1956.

Disposal of Large Business Loans

The disposal of the larger business loans presented entirely differentproblems than those involved in the smaller loans placed in the loanpool. The size of the outstanding balances and the divergent pro-visions of the loan agreements made it necessary to undertake disposalof these loans through individual negotiations with borrowers andwith banks, investment houses, and other financing institutions.

The program to dispose of the larger business loans through nego-tiations was successful in achieving a rapid reduction in the dollarvolume of the RFC business loan portfolio. From September 28,1953, through June 30, 1957, 885 loans amounting to $125,154,000were removed from the portfolio as the result of these negotiations,and the proceeds returned to the Treasury much earlier than wouldhave been possible if the loans had been liquidated according to sched-uled repayment terms.

Throughout the liquidation program, the Corporation maintaineda firm policy in the collection or sale of business loans of requiringpayment at full face value without compromise or discount.

The table below summarizes the results of the program for nego-tiated disposal of business loans.

Bold outright or otherwise refinancedSold subject to deferred participation (repurchase agreement)Prepaid 6 months or more in advance of maturity

Total

Number

42199

365

885

Amount (inthousands)

li125,1^

On September 28,1953, there were two instances in which EFC heldthe securities of business enterprises. In both of these cases thesecurities were disposed of in the market

Liquidation of Railroad Securities

On September 28, 1953, RFC had, in the portfolio of its lendingprogram, securities and notes of eight railroad companies with a paror stated value of $88,537,052. In addition, there was one undisbursedcomnutment for equipment trust certificates in the amount of $717,000.Included in the total were securities with a par or stated value of$10,571,000 which had been accepted in reorganization of a company


LIQUIDATION OF RFC

indebted to RFC and which were carried on the Corporation's books atan appraised value of $5,948,960.

The program for disposal of RFC's railroad obligations includedpublic sale offerings, negotiations with the railroads and private in-vestment institutions, and direct sales in organized markets.

Disposal of Public Agency Securities

On September 28,1953, EFC held or was committed to purchase atotal of $66,556,000 in 297 issues of the obligations of political sub-divisions of States and Territories.

Efforts to dispose of these holdings were at first concentrated onadvertised sale. Sealed bids were invited for 171 lots amounting to$9,284,000. The offering was announced in financial publications withnationwide circulations and was circularized to more than 1,900 mu-nicipal bond dealers, insurance companies, and other potential pur-chasers. The bids were opened on November 17,1953, and were farbelow expectations. Bids were received on only 98 lots, and onlythose for 39 lots having a par value of $1,600,700 were acceptable.The amount accepted for these was $1,492,982, plus accrued interest.

Following the unsatisfactory sealed-bid offering, continuing effortswere made to dispose of the remaining securities through negotiatedsales. Revised lists of the public agency securities held by EFC werewidely circulated to investment dealers and other interested parties.Negotiated sales resulting from this program produced prices greatlyin excess of the bids submitted at the sealed-bid sale. This programwas continued throughout the liquidation period and, up to June 30,1957, resulted in the disposal of all but 69 issues, which had a carryingvalue of $4,636,000. Those which remained were the residue of themore than 6,200 issues purchased by RFC which had a value exceeding$1,300 million. The marketable quality of those remaining wasgenerally very low and many of them were in default.

Two issues accounted for about three-fourths of the amount out-standing or committed at the start of the liquidation period. Sale ofthe largest issue, amounting to $28,885,000 was made as the result ofintensive negotiations over an extended period of time and, finally,competitive bidding. Since the 4-percent interest rate on these bondswas below the rate carried by similar issues, it was obvious that thebonds would have to be marketed at a discount. The $28,426,795received when the sale was consummated exceeded expectations, repre-senting a price of 97.6359 and accrued interest of $224,662.

The other large public agency security issue was for $22,450,000.After completion of the hydroelectric project for which these bondswere issued, the securities were retired at par from the proceeds of arefunding issue,



Liquidation of Securities of Financial Institutions

The securities of the 35 financial institutions held by EFC on Sep-tember 28,1953, amounted to $45,490,000 and consisted mainly of thepreferred stock and debentures of banks. These remained from the$3.9 billion invested in approximately 9,000 banks and other financialinstitutions by EFC during the early years of its existence. The pro-gram for liquidation of these holdings was to assist the institutions inobtaining new capital or in the formulation of other plans which wouldenable them to retire their obligations to the Government. ThroughJune 30,1957, these efforts resulted in the retirement of all securitiesof financial institutions, except those of two banks, aggregating$4,779,000.

Liquidation of Assets and Liabilities Remaining From World War II

Through subsidiary corporations, the Reconstruction Finance Cor-poration had engaged in a wide variety of construction, procurement,and production activities during the national defense, war, and re-conversion periods beginning in 1940. Following World War II , itwas apparent that the Corporation would be unable to recover fromthese activities amounts sufficient to retire the borrowings from theTreasury used to finance them. In the Government Corporations Ap-propriation Act of 1949, the Congress directed the Secretary of theTreasury to cancel the notes of EFC in the amount of $9,313,736,531,plus interest accrued thereon subsequent to June 30, 1947. Thisamount represented the unrecovered costs to the Corporation as ofJune 30,1947, of its national defense, war, and reconversion activities.The Congress further directed that any amounts recovered from theassets of these activities subsequent to June 30, 1947, should be paidinto the Treasury as miscellaneous receipts after the deduction ofrelated expenses.

The assets remaining from these programs at the time of the notecancellation consisted primarily of industrial property, plants, equip-ment, and related facilities which either had been or were expected tobe declared surplus. In addition, there were significant amountsrepresented by inventories of strategic materials, and a variety ofloans, advances, receivables, and securities.

Some of the industrial properties held by the Corporation werecontinued in operation for the account of the Government after thereconversion period. Continued operation of the synthetic-rubber-producing facilities was provided for by the Eubber Act of 1948 andsubsequent amendments; the A W Production Act of 1950 providedfor continuation of Government production of abaca fiber on itsCentral American plantations; and the joint resolution approved June


LIQUIDATION OF RFC

28,1947, provided for continued production of tin by the Governmentat the Texas City, Tex., smelter.

Except for the facilities related to the three production programsnoted above, the RFC carried on continuously from 1947 a program todispose of and liquidate the assets and liabilities remaining from itsnational defense, war, and reconversion activities.

The effective date of the RFC Liquidation Act (September 28,1953) had no special significance insofar as the production and WorldWar I I liquidation programs were concerned. However, in this re-port, the progress made in the disposal and liquidation of these assetsand liabilities is measured from September 28,1953, since the programwas conducted by the management and personnel engaged in the liqui-dation of RFC's lending program assets. At that time, the RFC wasaccountable to the Treasury for $452,168,832 in the net assets of theseprograms, distributed as follows:

Funds held by RFC.

Cash working fundsLoans, advances, and receivablesInventoriesProperty, plant, and equipment (net)Other assets \

Total assetsLiabilities

Net Investment

Total accountability

In millions of dollars

Total

126.3

2 833.1

134 1180.3

6.0

356.330.4

325.9

452.2

Syntheticrubber

2.721.973.8

162.93.1

264.422.8

241.6

Tin

0.1.7

58.08.2.9

67.94.4

63.5

Abaca

0.12.37.1L9

11.42.6

8.8

Liquidationprogram

10.4

2.1.1

12.6.6

12.0

Synthetic Rubber

Disposal to private industry of the Government's synthetic-rubber-producing facilities was contemplated in the Eubber Act of 1948.This act required the RFC to develop such a program and report tothe President and the Congress before March 1, 1953. On April 14,1953, the President sent a message to the Congress in which he rec-ommended legislation to implement the disposal program presentedin the RFC report. This resulted in the Rubber Producing FacilitiesDisposal Act of 1953, approved August 7,1953.

The Disposal Act established the Rubber Producing Facilities Dis-posal Commission, which was formally organized on November 10,1953. Through the Commission's efforts, all of the synthetic-rubber-producing facilities were sold to private industry, except an alcoholbutadiene plant at Louisville, Ky., which was under lease to a privateoperator, and a small catalyst manufacturing facility in Baltimore,



Md. Full details of the Commission's disposal efforts and their resultsare contained in the reports made to the Congress by the Commission.

While the Disposal Act was under consideration, the EFC Liquida-tion Act was adopted, and section 107 of this act directed that allpowers, duties, and authority of the EFC under the Rubber Act of1948 be transferred from RFC not later than June 30, 1954. ByExecutive Order 10539, effective June 30, 1954, the synthetic rubberprogram was transferred from RFC to Federal Facilities Corpora-tion, organized by the Secretary of the Treasury.

The synthetic rubber program assets and liabilities transferred fromRFC to Federal Facilities Corporation on June 30, 1954, were asfollows:

Cash _ _ $11, 242, 893Accounts receivable. ___ 17, 371, 841Inventories of synthetic rubber, raw materials, and supplies 72, 936,097Production facilities _ __ $530, 596, 888

Less depreciation _ „ 386, 030,165144, 566, 723

Other assets 2, 347, 368

Total assets 1 248,464,922Liabilities 15,190, 484

Net investment- 233, 274, 438

Federal Facilities Corporation continued to operate the syntheticrubber plants for the Government's account until they were sold orleased under the program of the Rubber Producing Facilities DisposalCommission.

The proceeds from the program to dispose of the Government'ssynthetic-rubber-producing facilities were as follows to June 30,1957:Sales of fixed assets $264,286,843Sales of in-process inventories, spare parts, tools, etc I I I -"— 21,702,279

Total 285,989,122Less purchase-money mortgages outstanding June 30,1957 9,261,171

Cash proceeds realized 276,727,951

On June 30,1957, liquidation of the remnants of the synthetic rubberprogram became the responsibility of the Administrator of GeneralServices, who succeeded the Secretary of the Treasury as the executivehead of Federal Facilities Corporation under the provisions ofExecutive Order 10720.

The principal assets of the synthetic rubber program remaining onJune 30, 1957, were $9,261,171 in purchase-money mortgages and$3,982,838 in unsold property, plant, and equipment, the bulk of which


LIQUIDATION OF RFC

was the alcohol butadiene plant at Louisville, Ky., under lease to aprivate operator; the remainder consisted of catalyst manufacturingequipment located in Baltimore, Md.

Tin

Because of the strategic importance of tin metal, operation of theGovernment-owned tin smelter at Texas City, Tex., was continuedfollowing World War I I . This smelter was constructed in 1941-42as part of the Government tin program undertaken in 1940, and is theonly major tin smelter in the Western Hemisphere.

On September 28, 1953, when the RFC Liquidation Act becameeffective, the net value of the properties, inventories, and other assetsmaking up the tin program was $63,500,000; of this more than $58million was in inventories. Section 107 of the HFC Liquidation Act,approved July 30, 1953, directed that all functions, powers, duties,and authority of RFC relating to the tin program be transferredfrom RFC. In Executive Order 10539, the President transferred thetin program to the Federal Facilities Corporation. The compositionof the Government's investment so transferred was as follows:Cash $15,244,231Receivables 1, 648,228Inventories _ _ 15,119, 393Production facilities $13,183, 989Accumulated depreciation 5, 697, 841

7, 486,148Other assets _ ._ __ 32, 570

Total assets 39, 530,570Liabilities __._ 3, 890,268

Net investment 35, 640, 302

Authority to operate the smelter and carry on the tin programunder the joint resolution approved June 28, 1949, extended untilJune 30, 1956. In Senate Concurrent Resolution 26, 84th Congress,the President was requested to have conducted a study and investi-gation as to the most feasible methods of maintaining a permanentdomestic tin-smelting industry and report his recommendations tothe Congress before March 31, 1956, As the result of this study,Public Law 608, approved June 22, 1956, provided for operation ofthe tin smelter until January 31,1957, and also directed Federal Facil-ities Corporation to take steps to sell or lease the tin-producingfacilities.

After exhaustive negotiations, an agreement for the sale of thesmelter was signed on January 3,1957, with the Wah Chang Corp.The sale price was $1,350,000, with a 10-percent cash downpayment



and the balance in annual installments over a period of 10 years. Thepurchaser also agreed to make additional payments up to $2 millioncontingent upon the volume of tin metal, tin alloys, and tungstenproduced.

Effective June 30,1957, responsibility for liquidating the remnantsof the Government's tin program passed from the Secretary of theTreasury to the Administrator of General Services in accord with theprovisions of Executive Order 10720. At that time, the remainingassets of the tin program consisted primarily of the $1,215,000 dueon the purchase-money mortgage taken in the sale of the smelter.

AbacaBeginning in 1942, the RFC had engaged in the production of abaca

fiber on plantations in Central America. Abaca, or manila hemp,which has strategic uses in rope, twine, and marine cordage, cannotbe grown in the continental United States.

The Government plantations were established in Costa Rica, Guate-mala, Honduras, and Panama. The Abaca Production Act of 1950provided for continuation of the program until March 31,1960, unlessearlier termination should be directed by the President or the Congress.

In the EFC Liquidation Act, it was provided that the abaca pro-gram be transferred from RFC. General Services Administrationwas named by the President to receive the abaca program in ExecutiveOrder 10539, effective June 30,1954.

The composition of the Government's investment transferred fromRFC to General Services Administration by this order was as follows:Cash $8,100,005Receivables 348,740Inventories- _ _ $4, 388,776

Less valuation reserve 1,107, 9363, 280, 840

Production facilities 12, 907, 719Less accumulated depreciation .. 5, 804,147

7,103,572Other assets _ 62,458

Total assets _ 18, 895, 615Liabilities ~~~"~~~"~"~"-- 1,530,052

Net investment _ 17,365,563

Other Assets Remaining From World War II Activities

For funds expended under wartime programs other than syntheticrubber, tin, and abaca, the RFC was accountable for a net investmentof $12,026,878 on September 28, 1953. The composition of that in-vestment and the progress made in liquidation to June 30, 1957, aresummarized in the table below:


LIQUIDATION OF RFC

Sept. 28, 1953 June 30,1957

Funds held by R F CWorking funds $3,180

$7,558,005

Loans and securities-Less reserves for losses..,

3,660,2201,753,500

6,900

1,806,720 6,900

Accounts receivable:U.S. Government agenciesLand-grant freight claims.Other receivables

7,743,7902,066,456

15,264,333

6,300

"I6,"318,"l32

Less allowance for losses..25,074,57916,456,923

10,324,4325,537,464

8,617,656 4,786,968

Property, plant, and equipment:Underlease _Under use and occupancy permit..,Held for disposal „„

6,653,1864,273,3805,029,759

6,357,055

""297754

Less allowance for losses15,956,32513,808,975 5,059,525

Miscellaneous assets..

Total assets, n e t -Liabilities

2,147,35091,759

1,327,284

12,666,665639,787

13,679,158166,119

Net investment. 12,026,878 13,513,039

1 Funds held by RFC for this program were intermingled with those of other programs on Sept. 28,1953,and no breakdown is available.

Included in the foregoing table for September 28, 1953, in thecategory "Loans and securities" are $3 million face amount in thecapital stock of the Banco de Borracha (Amazon Credit Bank) and$498,201 in a loan to the Newfoundland Railway, Under the pro-visions of Reorganization Plan No. 2 of 1954, both of these weretransferred to the Export-Import Bank of Washington for finalliquidation.

The accounts receivable from Government agencies on September28, 1953, included $7,737,547 due RFC from the Navy Departmentunder a provisional arrangement for the transfer of an aircraft plant.The Navy Department's conditional obligation to RFC was canceledby Public Law 978, approved August 3,1956.

The amounts due under conditional sale contracts arose primarilyfrom the sale of steel-producing facilities following World War EL

The property shown as under a use and occupancy permit was amagnesium forging plant used by the U.S. Air Force without rental.This property was transferred to the Air Force without reimburse-ment in accordance with Public Law 388, approved August 12,1955.

Smaller War Plants CorporationUnder Executive Order 9665, dated December 27, 1945, the assets

of the Smaller War Plants Corporation were transferred to RFCfor collection or disposal. Public Law 132, 80th Congress, directedRFC to continue this liquidation program.

181



At the time of transfer, the unliquidated assets of the Smaller WarPlants Corporation totaled approximately $40 million, and consistedof loans, leases, industrial plants, and equipment. By September 28,1953, these had been reduced to $2,198,965 and consisted primarilyof 21 loans with unpaid balances of $1,540,071* Liquidation of theseremaining assets was continued under the policies and proceduresfollowed in the liquidation of RFC's program. The liquidation ac-complished from September 28,1953, to June 30,1957, is summarizedin the table below:

L o a n s r „_, , _ _ „ „ „ » -...„ ..^ , u . .Notes and accounts receivable. ~

Less allowances for losses „„. . ^ , ^ ,.,,_

Property acquired in liquidation ofloansOast

Liabilities

Total

OutstandingSept. 28,1963

$1,540,071218,139677,431

1,080,779440,765

1,252,423

2,773,95782,972

2,600,985

OutstandingJune 30,1957

$845,9501,204

558,657

288,49729,791

261,254

679,5421,716

577,826

Reduction

$694,121216,935118,774

792,282410,964991,169

2,194,41581,256

2,113,159

Payments to Treasury from RFC Liquidation Proceeds

There was returned to the U.S. Treasury from liquidation of theassets held by KFC on September 28,1953, a total of $1,033,099,617.In addition, from the proceeds of liquidation, $10,327,000 was trans-ferred to other Government agencies in connection with the abacafiber program and synthetic rubber research. The foregoing figuresdo not include transactions related to the Defense Production Act orcivil defense lending programs which were transferred from KFC tothe Secretary of the Treasury at the time the RFC liquidation pro-gram began.

The composition of the amount returned to the Treasury from theliquidation of RFC is as follows:

Payments in reduction of RFC borrowings from Treasury (net)- $9,867,697Retirement of RFC capital stock 65,000,000Payment of earnings and proceeds from liquidation of RFC lend-

ing program 285,267,276Payment of earnings and proceeds from World War II assets 208,346,199Payment of earnings and proceeds from liquidation of synthetic

rubber and tin programs-—FFO 460,000,000Payment of earnings and proceeds from liquidation of assets of

Smaller War Plants Corporation 2,075,000Increase in amount of cash on deposit with TreasuryllHIIIIII 2,543,445

Total 1,033,099,617


LIQUIDATION OF RFC

The funds becoming available and used in the liquidation of RFC'sassets were as follows:

Realization of loans and investments $507,470,637Realization of World War II assets, other than production

programs 12,457,605Income—lending programs 44,713,129Income—World War II assets, other than production programs— 5,430,358Gross profit on sale of commodities 245,525,977Recoveries under land grant freight claims 5,434,894Sale of production facilities 275, 538,123Recovery of working capital 83,641,566

1,180,212,289

Payments to Treasury (as above) 1,033,099,617Loans disbursed 76,754,668Capital expenditures—production programs 11,957,823Administrative expenses 10,844,269Other expenses 37,228,912Cash transferred with abaca program and synthetic rubber

research 10,327,000

1,180,212,289

The Abolition of RFC

Under the provisions of Reorganization Plan No. 1 of 1957, theassets held by EFO on June 30, 1957, were transferred for finalliquidation to other Government agencies administering similar con-tinuing functions and the Reconstruction Finance Corporation wasabolished effective at the close of June 30,1957.

In general, the transfers made under the plan were as follows:1. To Small Business Administration: Those assets and liabili-

ties relating to business loans with individual balances outstand-ing of less than $250,000.

2. To Housing and Home Finance Agency: Those assets andliabilities relating to securities issued by and loans made to polit-ical subdivisions of States and Territories.

3. To General Services Administration: (a) The assets andliabilities remaining from RFC's terminated World War I I activ-ities, and (&) the assets and liabilities remaining in the liquida-tion of the former Smaller War Plants Corporation.

4. To The Secretary of the Treasury: (a) Those assets andliabilities related to business loans and securities with individualbalances of $250,000 or more, (6) all securities of and loans madeto railroad companies, and (c) all securities of financial institu-tions.

B052&7— 69 13 183



The assets and liabilities remaining with RFC on June 30, 1957,and their disposition among other Government agencies are sum-marized in the following table:

I. Lending programCash . . . . . - . . .TCscrow fundsBusiness loans . . . - * ..Railroad loans and securitiesPublic agency securitiesFinancial institutions securitiesAcquired collateral __. —— . - -OtHer receivables.— .„ . .

Less reserves

TotalLiabilities

Equity of U.S. Government

U. World War II activitiesCashReceivables .Property (net)——

TotalLiabilities


m . Smaller War Plant* Corporation

CashReceivablesLoansAcquired collateral m

Less reservesTotal


Total

$9,321,5281,228,102

51,499,3708,567,0944,635,5914,779,0001,732,7442,581,350

15,200,000

69,144,779400,714

68,744,065

7,558,0054,793,8701 327 283

13,679,158166,119

13,513,039

261,254879

845,95029,791

558,332

579,5421,716

677,826

Transferred to—

H H F A

$1,505,0041,228,102

4,635,591

4921,399,3672,872,785

5,895,7715,004

5,890,767

" " • * " " * " • " " * • * *

GSA

$9,332

9,3329,332

7,558,0054,793,8701 327'283

13,679,158166,119

13,513,039

261,254879

845,95029,791

558,332

579,5421,716

577,826

SBA

$2,324,053

14,612,019

1,695,258594,144

1,984,971

17,240,503145,897

17,094,606

-

Secretary ofTreasury

$5,483,139

36,887,3518,567,094

4,779,00036,994

587,83910,342,244

45,999,173240,481

45,758,692


APPENDIX A

RFC Lesislation



APPENDIX A

RFC LEGISLATION

Date of approval

Jan. 22, 1932Jan. 27, 1932July 21, 1932

July 22, 1932Feb. 4, 1933, . - .Mar. 9, 1933Mar. 23, 1933Mar. 24, 1933May 12, 1933

Do -May 27, 1933May 29, 1933June 10, 1933June 13, 1933 -- -June 14, 1933 -

June 16, 1933 - - -Do!DoDo

Jan. 20, 1934 _-Jan. 31, 1934Apr. 13, 1934June 16, 1934 . . -June 19, 1934

DoJune 21, 1934 -June 27, 1934

DoJan. 31, 1935

Statute reference

47 Stat. 5-1247 Stat. 1447 Stat. 709-724

47 Stat. 728-72947 Stat. 79548 Stat. 6 —48 Stat. 2048 Stat. 2148 Stat. 31-54

48 Stat. 5548 Stat. 9548 Stat. 99-10048 Stat. 119-122 —48 Stat. 12948 Stat. 141 _

48 Stat. 21048 Stat. 21648 Stat. 258-27348 Stat. 308-30948 Stat. 318-31948 Stat. 345 -48 Stat. 589-59048 Stat. 97148 Stat. 1055-105648 Stat. 1108-111348 Stat. 119848 Stat. 124748 Stat. 126949 Stat. 1

Public law

Public Law 2—72d CongPublic Res. 7—72d CongPublic Law 302—72d Cong

Public Law 304—72d Cong.-Public Law 327—72d CongPublic Law 1—73d CongPublic Res. 2—73d Cong _ —Public Law 4—73d CongPublic Law 10—73d Cong

Public Law 15—73d CongPublic Law 22—73d Cong __Public Law 26—73d CongPublic Law 35—73d CongPublic Law 43—73d Cong _-Public Law 51—73d Cong--.

Public Law 67—73d CongPublic Law 68—73d Cong.--Public Law 75—73d CongPublic Law 78—73d CongPublic Law 84—73d Cong _Public Law 88—73d CongPublic Law 160—73d CongPublic Law 362—73d CongPublic Law 412—73d CongPublic Law 417—73d CongPublic Law 443—73d CongPublic Law 479—73d CongPublic Res. 53—73d CongPublic Law 1—74th Cong_-_

Title or purpose

Reconstruction Finance Corporation Act.Appropriation for capital stock of RFC.Emergency Relief and Construction Act,

1QQOFederal Home Loan Bank Act.Advances to Secretary of Agriculture.Emergency Bank Act.Disaster loans.Preferred stock of banks.Emergency Farm Mortgage Act (Agricul-

tural Adjustment Act).Federal Emergency Relief Act of 1933.Corporation of Foreign Security Holders.Disaster loans.Insurance Company Act.Home Owners' Loan Act.Loans to closed building and loan associa-

National Industrial Recovery Act.Railroad loans.Farm Credit Act of 1933.Independent Offices Appropriation Act, 1934.Extension of RFC functions.Federal Farm Mortgage Corporation Act.Disaster loans.Loans to closed banks.Emergency Appropriation Act.Revision of RFC Act.Loans to closed banks.National Housing Act.Drainage, levee, and irrigation loans.Revisions of RFC Act.


0000

APPENDIX A—Continued

RFC LEGISLATION-Continued

Date of approval

Apr. 18, 1935July 26, 1935—Aug. 24, 1935Mar. 20, 1936 _Apr. 10, 1936 ._Apr. 17, 1936May 20, 1936June 22, 1936 _

DoJan. 26, 1937Feb. 11, 1937.,—May 28, 1937June 29, 1937Aug. 19, 1937Feb. 3, 1938-Feb. 24, 1938Mar. 3, 1938Mar. 8, 1938Apr. 13, 1938.June 25, 1938

Mar. 4, 1939Do

Effective July 1, 1939..June 25, 1940

June 25, 1940June 26, 1940Sept. 5, 1940Sept. 16, 1940Sept. 26, 1940Mar. 28, 1941June 10, 1941

Statute reference

49 Stat. 11549 Stat. 50549 Stat. 796-798 —49 Stat. 118549 Stat. 119149 Stat. 1232-123349 Stat. 136449 Stat. 160949 Stat. 1818-181950 Stat. 550 Stat. 1950 Stat. 21150 Stat. 35750 Stat. 70352 Stat. 2352 Stat. 79-80 .—52 Stat. 84 _52 Stat. 10752 Stat. 212-213._.__52 Stat. 1194

53 Stat. 510-_.—53 Stat. 511 -53 Stat. 1429-143054 Stat. 564-567 _

54 Stat. 572-57454 Stat. 61454 Stat. 87154 Stat. 897 —54 Stat. 961-96255 Stat. 55-5655 Stat. 248-250

Public law

Public Res. 11—74th Cong _.Public Law 224—74th CongPublic Law 325—74th CongPublic Law 482—74th CongPublic Law 489.—74th CongPublic Law 525—74th CongPublic Law 605—74th CongPublic Law 739—74th CongPublic Law 752—74th CongPublic Law 2—75th CongPublic Law 5—75th CongPublic Res. 34—75th CongPublic Res. 47—75th CongPublic Law 323—75th CongPublic Law 424r-75th CongPublic Law 432—75th CongPublic Law 438—75th CongPublic Law 442—75th CongPublic Law 479—75th CongPublic Law 735—75th Cong

Public Law 2—76th Cong. . .Public Law 3—76th CongReorganization Plan 1 of 1939Public Law 658—76th Cong

Public Law 664—76th CongPublic Law 88—76th CongPublic Law 780—76th Cong_.._.__Public Law 784—76th Cong __Public Law 792—76th Cong _Public Law 24—77th CongPublic Law 108—77th Cong _

Title or purpose

Emergency Relief Appropriation Act of 1935.Disaster loans.Loans to public school districts.Securities of banks.Capital stock of CCC.Disaster loans.Rural Electrification Act of 1936.Emergency Relief Appropriation Act of 1936.Drainage, levee, and irrigation loans.Loans to business enterprises.Disaster Loan Corporation.

Do.Public Works Extension Act of 1937.Farm Credit Act of 1937.National Mortgage Associations.Cancellation of RFC notes.Disaster Loan Corporation.Commodity Credit Corporation.Revisions of RFC Act.Purchase of mortgages from U.S. Housing

corporation.Disaster Loan Corporation.Export-Import Bank.Federal Loan Agency.Department of Agriculture Appropriation

Ar»t nf 1Q4.1National defense activities.Emergency Relief Appropriations Act, 1941.Federal Highway Act of 1940.National defense loans.Export-Import Bank.National Housing Act Amendments, 1941.Defense activities.


July 1, 1941.

Oct. 23, 1941,.Jan. 30, 1942..Mar. 27, 1942.June 5, 1942-.June 11, 1942..July 22, 1942..

July 1, 1943.,July 12, 1943-

Dec. 23, 1943.June 28, 1944.

July 1, 1944—Oct. 3, 1944...Feb. 24, 1945_May 5, 1945..

June 23, 1945..June 30, 1945..Dec. 6, 1945...Mar. 21, 1946..May 22, 1946..June 22, 1946..

July 23, 1946..

July 25, 1946..Aug. 7, 1946...Mar. 29, 1947.May 22, 1947..May 31, 1947..June 28, 1947.June 30, 1947.July 30, 1947..

Do.

55 Stat. 439-442.

55 Stat. 74456 Stat. 23-37....56 Stat. 174-176-56 Stat. 32656 Stat. 352-356.56 Stat. 695-698.

57 Stat. 348.57 Stat. 423.

57 Stat. 61758 Stat. 457-458.

58 Stat. 65058 Stat. 77459 Stat. 5-659 Stat. 161-162.

59 Stat. 260-262.59 Stat. 31O.-__..59 Stat. 597-602.60 Stat. 5760 Stat. 21560 Stat. 293-295.

60 Stat. 599 ,

60 Stat.60 Stat.61 Stat.61 Stat.61 Stat.61 Stat.61 Stat.61 Stat.

671901-902.24-26....104-105.125190202-209.545-546.

61 Stat. 579-584 Public

Public Law 144r—77th Cong-Public Law 278—77th Cong.Public Law 421—77th Cong.Public Law 506—77th Cong.Public Law 592—77th Cong-Public Law 603—77th Cong.Public Law 674—77th Cong..

Public Law 108—78th Cong.Public Law 129—78th Cong.

Public Law 216—78th Cong.Public Law 367—78th Cong.

Public Law 395—78th Cong.Public Law 457—78th Cong.Public Law 4—79th Cong....Public Law 52—79th Cong..

Public Law 88—79th Cong..Public Law 109—79th Cong.Public Law 248—79th Cong_Public Law 328—79th Cong-Public Law 388—79th Cong.Public Law 422—79th Cong.

Public Law 520—79th Cong-Public Law 548—79th Cong.Public Law 656—79th Cong.Public Law 24^80th Cong..Public Law 75—80th Cong..Public Law 84—80th Cong..Public Law 125—80th Cong.Public Law 132—80th Cong.Public Law 266—80th Cong.

Law 268—80th Cong.

Department of Agriculture AppropriationAct, 1942.

Increase in borrowing authority.Emergency Price Control Act of 1942.National defense activities.Increase in borrowing authority.National defense loans.Department of Agriculture Appropriation

Act, 1943.Contract renegotiation.Department of Agriculture Appropriation

Act, 1944.Transfer of property to PBA.Department of Agriculture Appropriation

Act, 1945.Contract Settlement Act of 1944.Surplus Property Act of 1944.Disaster Loan Corporation.Department of Agriculture Appropriation

Act, 1946.Subsidy payments.Revisions of RFC Act.Government Corporation Control Act.Tin program; subsidy payments.Veterans Emergency Housing Act of 1946.Department of Agriculture Appropriation

Act, 1947.Strategic and Critical Materials Stock Piling

Act.Tin program.Revisions of RFC Act.Synthetic rubber program.Aid to Greece and Turkey.Relief of war-devastated areas.Tin program.Revision of RFC Act.Department of Agriculture Appropriation

Act, 1948.Government Corporations Appropriation

Act, 1948.


APPENDIX A—ContinuedRFC LEGISLATION—Continued

Date of Approval

Aug. 5, 1947Aug. 6, 1947Dec. 17, 1947Mar. 31, 1948Apr. 3, 1948May 25, 1948June 28, 1948 .

June 29, 1948Do _

June 30, 1948

July 1, 1948Aug. 10, 1948Aug. 11, 1948.Mar. 24, 1949Apr. 19, 1949Apr. 23, 1949June 30. 1949

D o . . . .July 9, 1949.July 13, 1949July 19, 1949Oct. 6, 1949Oct. 15, 1949Oct. 25, 1949Feb. 14, 1950Apr. 20, 1950June 5, 1950June 24, 1950.Aug. 10, 1950Aug. 21, 1950Sept. 8, 1950

Statute reference

61 Stat. 774-77561 Stat. 789 _61 Stat. 938-93962 Stat. 101-10962 Stat. 14962 Stat. 261-26662 Stat. 1064-1065

62 Stat 110162 Stat. 110162 Stat. 1187

62 Stat. 1207-121062 Stat. 127562 Stat. 128963 Stat. 1663 Stat. 5 3 . _63 Stat. 5863 Stat. 35063 Stat. 35463 Stat. 40863 Stat. 40963 Stat. 44663 Stat. 71963 Stat. 880 . - .63 Stat. 90664 Stat. 664 Stat. 8164 Stat. 20364 Stat. 25664 Stat. 435-43764 Stat. 46864 Stat. 798-822

Public law

Public Law 364—80th CongPublic Law 374r-80th CongPublic Law 389—80th CongPublio Law 469—80th CongPublic Law 472—80th CongPublic Law 548—80th CongPublic Law 796—80th Cong

Public Law 824—80th CongPublic Law 825—80th CongPublic Law 860—80th Cong

Public Law 864—80th Cong _Public Law 901—80th CongPublic Law 903—80th CongPublic Law 25—81st CongPublic Law 47—81st CongPublio Law 52—81st CongPublic Law 148—81st CongPublio Law 149—81st CongPublic Law 161—81st CongPublic Law 163—81st CongPublio Law 176—81st CongPublic Law 329—81st CongPublic Law 359—81st CongPublic Law 387—81st Cong _.Public Law 447—81st CongPublic Law 475—81st CongPublic Law 535—81st CongPublic Law 575—81st CongPublic Law 683—81st CongPublic Law 723—81st CongPublic Law 774—81st Cong

Title or purpose

Transfer of surplus property.Subsidy payments.Foreign Aid Act of 1947.Rubber Act of 1948.Foreign Assistance Act of 1948.Extension of EFC Functions.Transfer of Defense Homes Corporation

Tin program.Disaster loans.Government Corporations Appropriation

Act, 1949.VA guaranteed mortgages.Housing Act of 1948.Construction of U.N. Headquarters.Relief of Palestine refugees.Foreign economic aid.Alaska Housing Act.Tin program.Virgin Islands Corporation Act.Transfer of surplus property.

Do.Federal National Mortgage Association.Mutual Assistance Act of 1949.Increase in salaries of RFC Board.Federal National Mortgage Association.Advances for foreign aid.Housing Act of 1950.Relief of Palestine refugees.Synthetic rubber program.Abaca Production Act of 1950.Tin program.Defense Production Act.


Jan. 12, 1951Effective Sept. 7, 1950-

Do

Mar. 23, 1951_June 15, 1951July 31, 1951Effective May 1, 1951-

Oct. 24, 1951June 23, 1952June 30, 1952June 30, 1953July 30, 1953

Aug. 7, 1953June 29, 1954Effective June 30,1954.Effective June 30,1957-

64 Stat. 125764 Stat. 1277-1278.64 Stat. 1279-1280.

65 Stat. 865 Stat. 7065 Stat. 131-149-.65 Stat. 357

65 Stat. 61666 Stat. 15466 Stat. 296-308--67 Stat. 12&-131™67 Stat. 230-240—

67 Stat. 408-417. -68 Stat. 32068 Stat. 1280-128271 Stat. 647-649--

Public Law 920—81st CongReorganization Plan 22 of 1950—Reorganization Plan 23 of 1950

Public Law 9—82d CongPublic Law 48r—82d CongPublic Law 9&—82d Cong _Reorganisation Plan No. 1 of 1951

Public Law 202—82d Cong _Public Law 404—82d CongPublic Law 429—82d CongPublic Law 95—83d CongPublic Law 163—83d C o n g . —

Public Law 205—83d CongPublic Law 438—83d CongReorganization Plan 2 of 1954Reorganization Plan 1 of 1957

Federal Civil Defense Act of 1950.Transfer of FNMA to HHFA.Transfer of prefabricated housing loans to

HHFA.Renegotiation Act of 1951.India Emergency Food Aid Act of 1951.Defense production loans.Replacement of Board of Directors with an

Administrator.Flood Rehabilitation Act, 1952.Synthetic rubber program.Defense production loans.

Do.Reconstruction Finance Corporation Liq-

uidation Act.Rubber Producing Facilities Disposal Act.Liquidation of RFC.

Do.Abolition of RFC.



APPENDIX B

Directors and Administrators



APPENDIX B

Directors and Administrators

There are listed below the names and terms of office of those who served asmembers of RFC's Board of Directors and those who served as Administrator orDeputy Administrator.

Eight persons served as Chairman during the time that RFC's affairs weremanaged by a Board of Directors. One of these (Meyer) was an ex officio memberof the Board, while the others (Pomerene, Jones, Schram, Henderson, Goodloe,Hise, and Harber) were appointed members. Jesse H. Jones was Chairman forapproximately 6 years. Charles B. Henderson also served as Chairman fornearly 6 years, and had the longest uninterrupted term of office as a Director, aperiod of more than 13 years.

Ten persons served ex officio as members of the Board of Directors. Whilethere was no provision of law regarding the political affiliations of ex officio mem-bers of the Board, such membership was equally divided. There were five Re-publicans (Mellon, Meyer, Bestor, Mills, and Ballantine) and five Democrats(Woodin, Acheson, Cooh'dge, Morgenthau, and Magill). Six of the ex officiomembers were from New York State (Meyer, Mills, Ballantine, Woodin, Mor-genthau, and Magill), and the others were from Pennsylvania (Mellon), Missouri(Bestor), Maryland (Acheson), and Massachusetts (Coolidge).

Presidential appointments to RFC's Board of Directors included 15 Democratsand 12 Republicans. They represented 21 States and the District of Columbia.Michigan was represented on four different occasions; Illinois, New York, Massa-chusetts, and Utah, twice. All Federal Reserve districts, except the 3d (Phila-delphia) and the 6th (Atlanta), were included in such memberships; the 7th(Chicago) six times, the 12th (San Francisco) four times, the 8th (St. Louis) and5th (Richmond) three times, the 1st (Boston), the 2d (New York), the 4th (Cleve-land), the 9th (Minneapolis) and the 10th (Kansas City) twice; and the 11th(Dallas) once.

There were appointed to the Board of Directors eight persons who previouslyhad served as employees of RFC, Charles T. Fisher, Jr., was the former AssistantManager and Manager of the Corporation's Detroit, Mich., Loan Agency. SamH. Husbands was employed as examiner, Assistant Chief, and Chief of the Ex-amining Division of the Washington Office. John D. Goodloe served as executiveassistant to the Chairman, special assistant to the Board of Directors, and asGeneral Counsel. J. Howard Klossner was employed in the Washington Office asexaminer and Assistant Chief of the Examining Division. Henry A. Mulliganwas Assistant Treasurer and Treasurer. He assumed duties as a member of theBoard on July 31, 1941. From thence through February 3, 1947, he served bothas Director and Treasurer, thereafter as Director only. Emil Schram was Chiefof the Drainage, Levee, and Irrigation Division. William E. Willett was Assist-ant Chief of the Examining Division and Assistant Loan Manager, Office of Loans.Harvey J. Gunderson served as counsel in the Minneapolis Loan Agency and asAssistant General Counsel.

Four Administrators and three Deputy Administrators managed the affairs ofthe Corporation during the period May 1951-June 1954, when the liquidation of

195


the assets and winding up of the affairs of the Corporation were assumed by theSecretary of the Treasury. W. Stuart Symington served as Administrator fromMay 4, 1951, to the close of February 15, 1952. Peter I. Bukowski served asDeputy Administrator from June 20 to the close of December 31, 1951. Harry A.McDonald succeeded Mr. Symington as Administrator and assumed office Febru-ary 26, 1952. He continued in office until May 1, 1953, when he was succeededby Kenton R. Cravens. Mr. Cravens resigned May 1, 1954. Laurence B.Robbins served as Deputy Administrator under Mr. Cravens from December 10,1953, to the close of March 31, 1954; as Acting Administrator from March 31 toApril 26,1954; and as Administrator from that date to the end of June. ClarenceA. Beutel, Sr., was Deputy Administrator under Harry A. McDonald from Sep-tember 10, 1952, to May 1, 1953, and from that time to June 1, 1953, as Deputyunder Mr. Cravens.


DIRECTORS OF THE RECONSTRUCTION FINANCE CORPORATION

Assumed office Membershipterminated

Remarks

Bestor, Paul (Republican)Couch, Harvey C, (Arkansas—Democrat)Dawes, Charles G. (Illinois—Republican)

Jones, Jesse H. (Texas—Democrat)

Feb. 2, 1932dodo

.do

McCarthy, Wilson (Utah—Democrat).Mellon, Andrew W. (Republican)

Meyer, Eugene (Republican) —

Mills, Ogden L. (Republican)

Feb.Feb.

4, 19322, 1932

-do.

.do-

Ballantine, Arthur A. (Republican). .do.

Cowles, Gardner, Sr. (Iowa—Republican)

Miller, Charles A. (New York—Republican).

Pomerene, Atlee (Ohio—Democrat)

Woodin, William H. (Democrat)

Acheson, Dean H. (Democrat)

Merriam, Carroll B; (Kansas—Republican)-.<> Blaine, John J. (Wisconsin—Republican)

July 5, 1932Aug. 1, 1932

do _-

Mar. 4,1933

May 19,1933

June 15, 1933June 17, 1933

July 31, 1932Aug. 29, 1934June 15, 1932

July 16, 1939

Sept. 30, 1933Feb. 12,1932

July 31,1932

Mar. 4, 1933

May 15,1933

Apr. 8, 1933Mar. 4, 1933

do

Dec. 31,1933

Nov. 16, 1933

Dec. 9, 1941Apr. 16, 1934

Member ex officio as Farm Loan Commissioner.Resigned Aug. 29, 1934.President of the Board until resignation on June 15.

1932.Chairman of the Board from May 15, 1933, to July 15,

1939. Resigned July 16, 1939. Federal LoanAdministrator beginning July 17, 1939.

Resigned Sept. 30? 1933.Member ex officio as Secretary of the Treasury.

Resigned Feb. 12, 1932.Member ex officio as Governor of Federal Reserve

Board. Chairman of the Board from Feb. 2 toJuly 31, 1932.

Member ex officio as Under Secretary of the Treasuryin the absence of the Secretary of the TreasuryFeb. 2 to Feb. 12, 1932. Member ex officio asSecretary of the Treasury Feb. 13, 1932 to Mar. 4,1933.

Member ex officio as Under Secretary of the Treasuryin the absence of the Secretary of the Treasury.Resigned May 15, 1933.

Resigned Apr. 8, 1933.President of the Board Aug. 1, 1932 to Mar. 4, 1933.

Recess appointment expired Mar. 4, 1933.Chairman of the Board Aug. 1, 1932 to Mar. 4, 1933.

Recess appointment expired Mar. 4, 1933.Member ex officio as Secretary of the Treasury.

Resigned Dec. 31, 1933.Member ex officio as Under Secretary of the Treasury

in the absence of the Secretary of the Treasury.Resigned Nov. 16, 1933.

Deceased Dec. 9, 1941.Deceased Apr, 16, 1934.


DIRECTORS OF THE RECONSTRUCTION FINANCE CORPORATION—Continued

Assumed office Membershipterminated

Remarks

Taber, Frederio H, (Massachusetts—Repub-lican).

Morgenthau, Henry, Jr. (Democrat)

Henderson, Charlea B. (Nevada—Democrat).

Coolidge, Thomas J. (Democrat)

Stephens, Hubert T. (Mississippi—Demo-crat).

Fisher, Charles T., Jr. (Michigan—Repub-lican).

Schram, Emil (Illinois—Democrat)

Magill, Roswell (Democrat)-.

Elossner, Howard J. (Minnesota—Repub-lican).

Husbands, Sam. H. (South Carolina—Demo-crat).

Mulligan, Henry A. (New York—Democrat)-_Fisher, Charles T., Jr. (Michigan—Repub-

lican).Gundereon, Harvey J. (South Dakota—Re-

publican).Bodman, Henry T. (Michigan—Republican) ~

June 21, 1933

Nov. 11,1933

Feb. 20,1934

May 2,1934

Mar. 14,1935

Mar. 25,1935

June 22, 1936

Jan. 29,1937

Apr. 28,1937

Aug. 2,1939

July 30,1941Jan. 15,1942

Oct. 17,1945

Feb. 14,1946

Jan. 31, 1933

Feb. 23,1938

July 15,1947

Feb. 15,1936

Feb. 29,1936

Dec. 31,1936

July 29,1941

Feb. 23,1938

July 31,1945

Jan. 22,1946

Apr. 30,1950Jan. 21,1946

Oct. 12,1950

Dec. 22,1948

Retired Jan. 31, 1938.

Member ex officio as Under Secretary of the Treasuryand Acting Secretary of the Treasury Nov. 17, toDec. 31, 1933, and as Secretary of the TreasuryJan. 1, 1934 to Feb. 23, 1938. Office terminatedby act approved Feb. 24, 1938.

Chairman of the Board June 30, 1941 to April 9,1947. Resigned as Chairman April 9, 1947. Re-signed as Board member July 15, 1947.

Member ex officio as Under Secretary of the Treasuryin the absence of the Secretary of the Treasury.Resigned Feb. 15, 1936.

Resigned Feb. 29, 1936.

Resigned Dec. 31, 1936. Also served from Jan. 15,1942 to Jan. 21, 1946. See below.

Chairman of the Board July 16, 1939 to June 29, 1941.Resigned as Board member July 29, 1941.

Member ex officio as Under Secretary of the Treasuryin the absence of the Secretary of the Treasury.Office terminated by act approved Feb. 24, 1938.

Resigned July 31, 1945.

Resigned Jan. 22, 1946.

Resigned Apr. 30, 1950.Also served from Mar. 25, 1935 to Dec. 31, 1936.

See above. Resigned Jan. 21, 1946.Continued in office until his successor was appointed

and qualified.Resigned Dec. 22, 1948.


s

Allen, George E. (District of Columbia—Democrat).

Goodloe, John D, (Kentucky—Democrat)

Hise, Harley (California—Democrat)

g Willett, William E. (Maryland—-Democrat)--

I Dunham, Walter L. (Michigan—Republican)-£ Howe, C. Edward (Massachusetts—-Demo-

crat).Harber, W. Elmer (Oklahoma—Democrat)—-

Cosgriff, Walter E. (Utah—Republican).

Mar. 25,1946

Jan. 27,1947

July 16,1947

June 29,1948

Mar. 21,1949Oct. 3, I960

Oct. 9,1950

Oct. 12,1950

Jan. 16,1947

Apr. 30,1943

Oct. 9,1950

May 4,1951

. . . . d o

. . . . d o . . . . . . .

do

do

Resigned Jan. 16, 1947.

Chairman of the Board Apr. 9, 1947 to Apr. 30, 1948.Resigned Apr. 30, 1948.

Chairman by designation of the President, Aug. 5,1948 to Oct. 9, 1950. Continued in office until hissuccessor was appointed and qualified.

Board of Directors succeeded by Administrator May4, 1951.

Do.Do.

Elected Chairman of the Board Oct. 11, 1950, pendingdesignation by the President pursuant to PublicLaw 548—80th Cong. Action approved by thePresident Oct. 12, 1950. Board of Directors suc-ceeded by Administrator May 4, 1951.

Board of Directors succeeded by Administrator May4, 1951.


ADMINISTRATORS AND DEPUTY ADMINISTRATORS

Assumed office Terminated

ADMINISTRATORS

Symington, W. StuartMcDonald, Harry ACravens, Kenton KBobbins, Laurence B

DEPUTY ADMINISTRATORS

Bukowski, Peter IBeutel, Clarence A., SrRobbins, Laurence B

May 4,1951Feb. 26,1952May 1,1953Apr. 26,1954

June 20,1951Sept. 10,1952Dec. 10,1953

Feb. 15,1952Apr. 30,1953Mar. 31,1954June 30,1954

Dec. 31,1951June 1, 1953Apr. 25,1954


APPENDIX C

Statistical Tables



A Description of the Statistics

The statistics included in this appendix are a series of tables showing dollaramounts authorized, canceled, or withdrawn, disbursed, repaid (or otherwiseremoved from the portfolios), and outstanding balances for quarterly periodsfrom the inception of the Corporation to September 28,1953, when the liquidationprogram began. These tables were designed to provide detailed and summaryinformation on RFC's activities which may be correlated with other financialor economic statistics on either fiscal or calendar year bases.

Uniform terminology has been used throughout the tables for the varioustypes of transactions shown. As used herein, these terms are described asfollows:

Authorizations (or Amounts Authorized)A loan, security purchase, advance, or allocation, was considered to be "au-

thorized" when RFC's Board of Directors (later Administrator), acting directlyor through delegations of authority, agreed to disburse funds for specific purposesunder certain stated conditions and provided that the party designated to receivethe funds fulfilled stated requirements. The conditions and requirementscontained in the authorization documents themselves had to do with maturities,interest rates, repayment schedules, collateral and other security, etc. In caseswhere loans, advances, and allocations were made to other Government agenciesunder legislative directives, authorization by RFC was perfunctory.

Canceled or WithdrawnAuthorizations which were not disbursed by RFC ultimately either were

canceled or withdrawn. Withdrawals occurred when applicants found that theyeither did not need the funds requested or had been able to obtain the neededfinancing elsewhere. In such cases, the applicants stated that they did not intendto fulfill the requirements as set forth in the loan authorizations and asked thattheir applications be considered as withdrawn. Cancellations occurred whenapplicants for financial assistance either could not or did not fulfill the requirementsstated in the loan authorizations within a stated time period for disbursement.Partial cancellations of authorizations occurred when, after some disbursementshad been made, it was found that the balance of the authorized amount was notneeded for the intended purpose. Special circumstances surround amountscanceled in connection with loans made and disbursed by private financial in-stitutions in which RFC had agreed to participate on a deferred basis. Inloans of this type, the RFC agreed to purchase a stated percentage of a loanupon request of the disbursing institutions. As a borrower made repaymentsupon a loan of this type, RFC's commitment to purchase a share of the loanwas proportionately reduced. In the basic statistical tables in this report, suchreductions are shown as cancellations of authorized amounts.

DisbursementsAs used in the tables in this report, the term "disbursements" means the

amounts which RFC actually paid out on the principal amount of loans and


other investments authorized. Amounts disbursed for care or preservation ofcollateral and other expenses are not included. Loans made by private financialinstitutions under agreements for RFC to participate on a deferred basis are notshown as disbursed unless the banks making the loans requested RFC to purchaseits agreed-upon shares of the loans.

Repayments and Other ReductionsRepayments and "other reductions" have been grouped to show the amounts

by which outstanding principal balances were reduced during a given period.Interest payments are excluded. Also excluded are principal payments made byborrowers to banks on loans in which RFC had agreed to purchase a participationon a deferred basis. However, for those cases in which RFC had disbursedfunds to purchase its agreed-upon shares of deferred participation loans, principalpayments made subsequent to such purchases are included. The "other reduc-tions" grouped with repayments include cases where resort was had to foreclosureor other forced liquidation processes to recover principal balances, as well asprincipal balances charged off as losses. Instances in which the principal amountsof loans and advances made by RFC were recovered by congressional action can-celing the notes which RFC had issued to obtain the funds disbursed are showneither under separate headings or indicated by footnotes.

The following explanation is pertinent to amounts included as "other reduc-tions" : Prior to June 30,1947, it was RFC's practice to show as "other reductions"the entire outstanding principal balances of loans and investments which werebeing liquidated by foreclosure or other forced procedures. Any amountssubsequently recovered from acquired collateral or other security were creditedas repayments, and the amounts originally recorded as "other reductions"reduced accordingly. This process continued until all the collateral and securitytaken over in liquidating a particular loan or investment had been disposed ofand it was determined that the possibility of further collections was nonexistent.Subsequent to June 30, 1947, this practice was changed so that when it becamenecessary to resort to forced liquidation processes to recover on a loan or invest-ment, there was credited against the outstanding principal balance the currentappraised value of the collateral and other security. If the appraised value of thecollateral was less than the outstanding principal balance, the remainder wasimmediately charged off, and any subsequent recoveries were credited to acquiredasset accounts and not as repayments on principal balances as previously hadbeen done.

Amount Outstanding

Amounts shown as outstanding are the unpaid principal balances on disburse-ments made by RFC. Accrued interest is not included. Amounts due to privatefinancial institutions on loans made by them under deferred participation agree-ments with RFC are also excluded.

The scheme of the series of tables in this appendix starts from the completesummary of all activities shown on page 45 of the report, and this is successivelybroken down, first into subgroupings and then into detail. This scheme is shownbelow, with amounts authorized used to illustrate the components of summarygroupings:


Summary, Loans, Investments, Security Purchases, Allocations, andOther Authorizations _ $46, 468, 722, 698

S-l Summary of Loans, Investments, and Other Au-thorizations 38, 541,174, 998

SP-1 Purchases of Securities From Federal EmergencyAdministrator of Public Works__. 692, 299, 251

A-l Allocations and Loans to Other Government Agenciesby Direction of the Congress 7, 235, 248, 449

S-1 Summary of Loans, Investments, and Other Authoriza-tions 38, 541,174, 998

FI-1 Loans to and Investments in Financial Institutions, 4, 815, 324, 697BE-1 Loans to Business Enterprises, Summary 5,153, 294, 815Ag-1 Summary of Loans to Agricultural Financing Insti-

tutions 2, 454, 133, 430MS-1 RFC's Investment in Its Mortgage Loan Subsidi-

aries _. — 1, 831, 551, 598R- l Loans to Railroads 1, 059, 867, 787PA-1 Loans to and Investments in Political Subdivisions

of States and Territories (Exclusive of Purchasesfrom PWA) — - 1, 024, 203, 892

CM Loans to, and Subscriptions for Preferred Stock of,Export-Import Banks 201, 500, 000

G-2 Loans to Defense Homes Corporation,__ 65, 750, 000Gr-3 Purchase of Capital Stock of Federal Home Loan

Banks 124, 741, 000F- l Loan for the Purpose of Providing Dollar Exchange

(British Loan) - - - 425, 000, 000F-2 Loan to the Republic of the Philippines. 70, 000, 000D - l Loans for Financing Repair of Damage by Earth-

quake, Fire, Tornado, or Cyclone, 1933 10,450,232D-2 Loans To Finance Repair of Property Damaged by

Earthquake, etc., Under the Act Approved Apr.13, 1934 — - 5, 734, 289

D-3 Disaster Loans July 1, 1945-Sept. 28, 1953 36, 952, 402CD-I Loans Under Sec. 409, Federal Civil Defense Act— 5, 568,000TS-1 Loans for Payment of Teachers' Salaries 22, 500, 000SD-1 Loans to Refinance Public School District Opera-

tions - 3,189, 050PD-1 Loans to Processors or Distributors Subject to

Processing Taxes 26» 0 8 9

SF-1 Loans to State Funds for Securing Repayments ofDeposits of Public Moneys !3, 087, 716

W-l Financing of RFC's Wartime Subsidiaries 21, 218,300,001



FI-1 Loans to and Investments In Financial Institutions - $4, 815, 324, 697

FI-2 Loans to and Investments in Banks and Trust Com-panies 3, 981, 365, 688

FI-8 Loans to Mortgage Loan Companies 494, 636, 731FI-9 Loans to Building and Loan Associations - 178, 989, 560FI-10 Loans to and Investments in Insurance Companies. . 159, 689, 750FI-13 Loans to Credit Unions - - 642, 968

FI-2 Loans to and Investments in Banks and Trust Companies- . 3, 981, 365, 688

FI-3 Loans to Banks and Trust Companies Under Sec. 5,RFC Act.. 2f 516, 821,790

FI-4 Loans on the Assets of Closed Banks and TrustCompanies - 118, 332, 229

FI-5 Loans on Preferred Stock of Banks and Trust Com-panies - 52, 746, 026

FI-6 Subscriptions for the Preferred Stock of Banks andTrust Companies ™ — — 859, 592, 768

FI-7 Purchase of Capital Notes and Debentures of Banksand Trust Companies 433,872,875

FI-10 Loans to and Investments In Insurance Companies 159, 689, 750

FI-11 Loans to Insurance Companies 104, 439,750FI-12 Loans on and Subscription for Preferred Stock of

Insurance Companies 55, 250, 000

BUSINESS ENTERPRISES

BE-1 Loans to Business Enterprises—Summary 5,153, 294, 815

BE-2 Loans to Business Enterprises, Exclusive of NationalDefense—Summary (Through June 30, 1947) 1, 502, 709, 005

BE-7 National Defense Loans to Business Enterprises-Summary (Through June 30, 1947) 1, 852,448, 766

BE-13 Direct Loans to Business Enterprises (July 1, 1947-Sept. 28, 1953)-... 1,142, 836, 250

BE-14 Immediate Participation Loans to Business Enter-prises (July 1, 1947-Sept. 28, 1953) 216, 512, 534

BE-15 Deferred Participation Loans to Business Enterprises(July 1, 1947-Sept. 28, 1953) 265, 771, 750

Adjustment—Direct Mortgage Loans Made by RFC—MC— 173, 016, 510

BE-2 Loans to Business Enterprises, Exclusive of National De-fense—Summary (Throush June 30,1947) 1, 502,709, 005

BE-3 Direct Loans to Business Enterprises Under Sec. 5dof the RFC Act, Including Immediate Sales ofParticipations 797,072,135

BE-4 Purchases of Participations (Immediate) and Agree-ments to Purchase Participations (Deferred) inLoans to Business Enterprises Under Sec. 5d ofthe RFC Act 684,167,370


BUSINESS ENTERPRISES—Continued

BE-5 Loans to Borrowers Engaged in the Mining, Milling,or Smelting of Ores, Under the Act Approved June19, 1934. $20, 659, 800

BE-6 Loans to the Fishing Industry Under Sec. 15 of theAct Approved June 19, 1934. __ 809, 700

BE-7 Notional Defense Loans to Business Enterprises—Sum-mary (Through June 30,1947) 1, 852,448,766

BE-8 Direct Loans to Business Enterprises Under the ActApproved June 25, 1940 1, 261, 473, 769

BE-9 Purchases of Participations (Immediate) and Agree-ments to Purchase Participations (Deferred) inLoans to Business Enterprises Under the Act Ap-proved June 25, 1940 _ 382,071,384

BE-10 Loans on and Purchases of Rationed Articles andCommodities Under Sec. 5d of the RFC Act 75, 652,157

BE-11 Security Purchases for Automobile Financing—National Defense... _ _„ 132,143,106

BE-12 Loans in Connection With Contract SettlementUnder the Act Approved July 1, 1944 1,108, 350


Ag-1 Summary of Loans to Agricultural Financing Institutions. . 2, 454,133, 430

Ag-2 Loans to Federal Land Banks... __ 399, 636, 000Ag-3 Loans to Joint Stock Land Banks 33, 055, 359Ag-4 Loans to Federal Intermediate Credit Banks 9,250, 000Ag-5 Loans to Regional Agricultural Credit Corporations 178, 840, 453Ag-6 Loans to other Agricultural Credit Corporations 6,120, 867Ag-7 Loans to Livestock Credit Corporations 14,511, 328Ag-8 Authorizations for Financing Exports of Agricultural

Surpluses _ __ 98,445,245Ag-9 Loans for Financing Agricultural Commodites and

Livestock - 86,061, 513Ag-10 Loans to Commodity Credit Corporations 1, 604, 712, 665Ag-11 Loans to Secretary of Agriculture To Acquire Cotton 23,500, 000

RFC MORTGAGE SUBSIDIARIES

MS-1 RFC'i Investment in Its Mortgage Loan Subsidiaries 1,831, 551, 598

MS-2 Loans to and Purchases of Capital Stock in RFCMortgage Company 388,368,261

MS-3 Loans to and Purchases of Capital Stock in FederalNational Mortgage Association 1, 370,091, 869

Adjustment—Undisbursed Authorizations Transferred FromRFC-MC to RFC - 73,091, 468

RAILROADS

R-l Loans to Railroads (Including Receivers and Trustees). - . 1,059,867, 787

207


PUBLIC AGENCIES

PA-1 Loans to and Investments in Political Subdivisions of Statesand Territories (Exclusive of Purchases from PWA) $1, 024, 203, 892

PA-2 Loans on Self-Liquidating Projects Under Sec. 201 (a)of the Emergency Relief and Construction Act of1932 398, 873, 884

PA-3 Loans to Drainage, Levee, Irrigation, and SimilarDistricts Under the Emergency Farm MortgageAct of 1933_ ___ 150, 127, 449

PA-4 Loans to Public Bodies To Aid in Financing ProjectsAuthorized Under Federal, State, or MunicipalLaw Under Sec. 5d of the RFC Act (ThroughDec. 31, 1947 381,392,174

Loans to Public Bodies Authorized Subsequent to Dec. 31,1947, Included as the Latter Part of Table PA-1 93, 810, 385

GOVERNMENT AGENCIES

G-1 Loans to, and Subscriptions for Preferred Stock of, Export-Import Banks 201, 500, 000

G-2 Loans to Defense Homes Corporation 65, 750, 000G-3 Purchase of Capital Stock of Federal Home Loan Banks. 124, 741, 000

FOREIGN GOVERNMENTSF-1 Loans for the Purpose of Providing Dollar Exchange Under

the Act Approved June 10,1941 (British Loan) 425, 000, 000r -2 Loan to the Republic of the Philippines 70, 000, 000

DISASTER LOANSD-1 Loans for Financing Repair of Damage by Earthquake,

Fire, Tornado, or Cyclone in 1933 10, 450, 232D-2 Loans To Finance Repair of Property Damaged by Earth-

quake, etc., Under the Act Approved Apr. 13,1934- 5, 734, 289D-3 Disaster Loans July 1,1945-Sept. 28,1953 35,439, 075

MISCELLANEOUSCD-1 Loans Under Sec. 409, Federal Civil Defense Act 5, 568, 000TS-1 Loans for Payment of Teachers1 Salaries 22, 500, 000

U a n S T ° R e f ' n a n c e P u b l k S<h°° l District Operations-__ 3,189, 050Loans to Processors or Distributors Subject to Processing

cr < , TaXC$ 2 6 > 0 8 9

b W L o a n f *° St°te Funds for Insuring Repayments of Depositsof Public Moneys 13, 087, 716

WARTIME SUBSIDIARIESW-1 Summary—Financing of RFCs Wartime Subsidiaries 21, 218, 300,001

W-2 Metals Reserve C o m p a n y . . . . _ ___„ 2 , 505, 000, 000VV-6 Rubber Reserve Company.. __ 1 730, 000, 000W-4 Defense Plant Corporation _ 8 , 005, 000, 000w ' I defense Supplies Corporation 6, 518, 000, 000w~7 TTT a m a g e Coloration 100,000,000we U.S. Commercial Company.... 2, 008,300,000w-5 Kubber Development Corporation _ 350,000, 001W-9 Petroleum Reserves Corporation.^ 2,000,000208


PURCHASE OFlSECURITIES

SP-1 Purchases of Securities From Federal Emergency Adminis-trator of Public Works _„_._ $692, 299, 251

ALLOCATIONS

A-1 Allocations and Loans tofOrher Government Agenciesby Direction of the Congress 7, 235, 248, 449

A-2 Secretary of Agriculture—Sec. 2, RFC Act 200, 000, 000A-3 Secretary of Agriculture—Farm Rehabilitation- _ _ _ - 630, 000,000A-4 Secretary of Agriculture—Farm Tenants 277, 500, 000A-5 Land Bank Commissioner—Joint Stock Land Banks. 100, 000, 000A-6 Land Bank Commissioner—Loans to Farmers 200, 000, 000A-7 Stock of Commodity Credit Corporation 97, 000, 000A-8 Loans to Rural Electrification Administration 931, 500, 000A-9 Federal Housing Administrator -_ 97, 861, 381A-10 Secretary of the Treasury—Capital of the Federal

Home Loan Banks 124,741,000A-ll Secretary of the Treasury—Capital of Home Owners'

Loan Corporation 200, 000, 000A-12 Relief and Work Relief 300, 000,000A-13 Direct Relief—Federal Emergency Relief Act, 1933— 499, 650, 000A-14 Allocation for Direct Relief—Emergency Appropria-

tion Act, 1934 500, 000, 000A-15 Allocation for Direct Relief—Emergency Relief

Appropriation Act, 1935 500, 000, 000A-16 Stock of Disaster Loan Corporation 24, 000, 000A-17 Secretary of State—Foreign Economic Aid 2, 496, 000, 000

Administrative Expenses and Interest Costs (Ap-pended to Table A-1). 56, 996, 068

For the period from the inception of the Corporation to March 31, 1939, thebasic source materials used were contained in a series of reports made to theCongress by RFC, generally headed "A Report Covering the Operations of theReconstruction Finance Corporation for the Quarter of ,and for the Period From the Organization of the Corporation on February 2,1932,to 1 Inclusive." These reports were printed by direction of theBanking and Currency Committee of the House of Representatives. The datain these reports were based upon statistical rather than accounting records.However, the data had been reconciled to the cumulative totals shown by theaccounting records. Beginning with the report for the second quarter of 1939,many of the data previously included were eliminated from these quarterlyreports and, due to wartime pressures, the report was not published after thethird quarter of 1942.

For periods between March 31, 1939, and June 30, 1947, the basic source mate-rials used were contained in monthly statements prepared by RFC's Office of theTreasurer. These statements were processed for limited distribution, and theonly complete set now known to exist is in the Archives of the United States.The data in these reports were drawn from accounting records and were presentedonly on a cumulative basis. Data for quarterly periods were derived by subtract-ing cumulative totals. Due to a type of transaction labeled "rescission," thedata so derived for amounts authorized may not be completely accurate for anyone quarterly period.


When RFC "rescinded" a loan or other authorization, the original authorizationwas removed from the records as if it had never been granted. The usual reasonfor a "rescission" was some technical defect in the original authorization, andperfected authorizations usually were granted in lieu of those "rescinded."Frequently many months elapsed between an authorization and the action"rescinding** it, and the perfected authorization might not appear until somemonths after the "rescission." For this reason, the subtraction of cumulativetotals sometimes produced negative results for a period in which a large authoriza-tion was "rescinded." To avoid showing negative amounts authorized, analyseswere made to determine what large authorizations were "rescinded," and thesewere removed from the periods in which they had originally appeared. This wasnot done for the smaller "rescissions" which did not affect the trend of authoriza-tions, and the data for any one period may be distorted to a small extent by thesesmaller "rescissions." Since the data reconcile to the cumulative totals of theaccounting records, these small distortions are offset by similar distortions inother quarterly periods.

The data used for periods prior to March 31, 1939, had been entirely adjustedfor "rescissions," and, since the numbers of "rescissions" which occurred in sub-sequent periods were relatively few, it is felt that the extent to which the data aredistorted is extremely limited.

In August 1946, RFC created the Office of Controller and assigned to this Officethe accounting functions previously performed under the direction of the Treasurerand the statistical and reporting functions previously performed by the Statisticaland Economic Division. The Controller undertook to reorganize completely theCorporation's accounting and statistical functions. After intensive study, theaccounting and statistical functions for most of the lending programs were de-centralized to the Corporation's field offices in January 1948.

While reorganization of the Corporation's accounting and statistical functionswas under study, the previously existing procedures were continued. However,after the reorganized procedures were instituted in January 1948, some monthselapsed before the new system began to operate as intended. In this interveningperiod, accounting and statistical data prepared for release by RFC often wereconflicting. Therefore, for the periods between December 31, 1947, and June 30,1948, the quarterly data appearing in this report are estimates, for the most part.However, the data for fiscal year 1948 do agree, in total, with data included in theGeneral Accounting Office audits of RFC for that year. The bases for theestimates include internal RFC accounting and statistical data, data submittedto committees of the Congress in connection with hearings then being held, andreports made by RFC under Budget-Treasury Regulation 3.

Beginning with July 1, 1948, and continuing to September 28, 1953, the datain this report are based upon a series of "Consolidated Financial and StatisticalReports" prepared by the Reports Division, Office of the Controller.

In all of the basic quarterly data presented in this report, the ReconstructionFinance Corporation has been considered as a single financing institution withoutregard to the activities of its subsidiaries. That is, RFC's loans to and investmentsin its subsidiaries are treated in the same manner as other loans and investments.The activities of the subsidiaries with the funds furnished by the parent areoutlined and discussed in the text, with illustrative data regarding their financialtransactions, but these are not duplicated in the basic data*

None of the series included in this appendix extend beyond the third quarterof 1953. Effective September 28,1953, the Corporation's authority to make newloans was terminated, and liquidation of loans, investments, and commitmentsthen outstanding is considered to have begun at that time. Statistics on theliquidation of RFC holdings will be found in the report beginning on page 169.210


INDEX TO TABLES

Designation PageAllocations

A-l 293A-2 295A-3 296A-4 297A 5 298A-6 299A-7 299A-8 300A-9 301A-10 302A-ll 303A-12 304A-13 305A-14 306A-15 306A-16 307A-17 307

Agriculture

Ag-1 248Ag-2 250Ag-3- 250Ag-4 252Ag-5 252Ag-6 253Ag-7 254Ag-8 255Ag-9 . — 256Ag-10 258Ag-11 258

Business

BE-1 234BE-2 236BE-3 237BE-4 238BE-5 239BE-6 240BE-7 241BE-8 242BE-9 243BE-10 244BE-11 244BE-12 _._ 245BE-13 245BE-14 246BE-15 - 247

Designation PageCivil Defense

CD-I . - 280

Disaster

D-l . - 277D-2 278D-3 279

Foreign

F-l 275F-2_ 276

Financial Instructions

FI-l-_ 215FI-2_ 217FI-3 _ 218FI-4 220FI-5-_ 221FI-6-. 222FI-7-. 224FI-8 225FI-9 227FI-10 228FI - l l— - — 230FI-12 - 231FI-13 233

Government Agencies

G-l— 272G-2 - — - 273G-3 274

Mortgage Subsidiaries

MS-1— — 259MS-2 261MS-3 263

Public Agencies

PA-1 - - - - 266PA-2..._ 268PA-3 — 269PA-4 271

Processors and Distributors

PD-1 282

Railroads

R-l 264

School Districts

SD-1 281

211


INDEX TO TABLES-Confinued

Designation Page Designation Page

Security Purchases Wartime Subsidiaries

SP-1 . - 291 W-l 283

= sS F " 1 - 2 8 2 W-4 286

Summary W - 5 -_ 287

S-l 213 W " 6 2 8 8

W-7_ 289Teachers Salaries W - 8 290

TS-1 280 W-9 — 290


TABLE S-l

Summary of Loans, Investments, and Other Authorizations Feb. 2,1932—Sept 28, 1953

[Exclusive of securities purchased from Public Works Administration, and allocations and loans to otherGovernment agencies made by direction of the Congress]



Outstanding

1st -2d .3d .4th.

1st2d3d4th

1st2d3d,4th

1st2d3d4th . . . .

1st2d3d4th

1st2d3d.4th.

1st2d . .3d . . . : : :4th

1st2d

4th

1st

3d.4th

1st2d3d . . . : . .4th .

1st.2d3d . . : : : :4th

1s t . , .2d3d4th

1932

1933

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

$233,934,132816,475,940463,028,447309,047,179

516,474,462

303,608,6101,340,357.666

734,961,565468,544,297649,862,569363,255,063

88,599,907229,071,388184,076,318192,149,313

157,382.707150.638,996220,763,84447,380,704

34,531,115147,997,428293,116,05896,024,217

102,272,533180,539,524198,864,311178,441,002

115,631,66772,147,35164,945,03394.502,109

120,736,900157,718,049327,372,923617,680,008

712,078,420325,483,472

1,312,009,2471,098,343,744

1,181,630,212681,530,871

1,245,705,9491,167,164,678

2,142,495,2691,288,770,7581,613,344,0851,823,038,681

$174,40010,047,60434,387,78625,117,894

97,234,95479,549,05842,795,95534,170,978

95,690,63767,791,093

217,977,13279,207,046

34,825,08853,834,34521,807,695

110,634.728

65,533,26615,936,625

116,349,41222,457,610

125,891,57623,560,072

336,300,5488,929,597

8,935,29323,879,856

310,768.59415,988,869

23,466,87010,420,26027,010,84915,659,549

19,781,41115,930,29925,422,6089,440,097

12,246,73414,062,94040,634,063114.078,680

17,056,46829,913,05562,321,418168,652,995

63,286,60959,906,896126,634,72231,841,084

$192,446,308612,803,699375,291,975264,338,114

375,620,618339,817,624236,294,278604,657,071

656,707,495442.741,415447.458,613280,461.329

143,637,730255,742,375217,965,75690,257,225

08,682,98377,493,16687,947,66664,207,081

79,760,15862.512,07771,948,160111,776,183

84,189,83980,026,36797,331,407176,446,383

68,644,28578,596,82879,970,44666,836,764

105,512,488109,044,84495,874,886145,184,611

359,575,788365,523,987420,714,078651,768,127

721,848,858987,902,985

1,173,861,1961,426,732,262

1,571,471,6041,708,227,5361722,806,7841656,616,061

$8,892,72872,134,708114,751,307104,169,706

124,237,998181,204,089247,700,071188,460,882

260,192,330225,046,247650,532,452266,968,535

188.698.656148,908.067134,720,106187,625,115

177,265.333309.501,870302,776,673131,786,379

154,749,60286,038,054117,755,14656,177,751

63,996,068179,306,398107,639,27675,278,484

92,253,036200,606,73349,475,36293,380,245

90,694,38098,980,093

108,538,38355,157,286

60,399,098163,098,82768,829,759

279,695,863

298,283,865264,574,090630,629,216773,322,040

771,322,999949,643,145781,859,277868,919,743

$183,553,580724,222,571984,763,239

1,144,931,647

1.396,314,2671,554,927,8021,543,522,0091,959,718,198

2,356,233,3632,573,928,6312,370,854,6922,384,347,486

2,339,286,6602,446,120,9682,529,366,6182,432,098,728

2,353,416,3782,121,407,6741,906,578,6671,838,999,369

1.764,010,0251,740,484,0481,694,677,0621,75a 275,494

1,770,469,2651,671,189,2341,660.881,3651,762,049,264

1,728,440,5131,606,430,6081,636,925,6921,610,382,211

1,625,200,3191,635,265,0701,622,601,5731,712,628,898

2,011,805,5882,214,320,7482,566,116,0672,938,187,331

3,361,762,3244,085,081,2194,628,313,1996,281,723,421

6,081,872,0266,840,456,4177,781,403,9248,469,101,142

213


TABLE S-1-Continued

Summary of Loans, Investments/ and Other Authorizations Feb. 2, 1932—Sept. 28,1953—Continued


Kepaymentsand otherreductions

Outstanding

i - B W _ . . . . . . . . . . . .

3 d . " " " " " "4th

19451st2d3d4th

M...JZ.

IEEE1947

1st2d3d4th

19481st2d3d4th

19491st2d I3d4th

» ™2d3d I4th

i* ™2d "3d ::4th

1st . ™ .

&::::::::::::4th

» «..

Total....

$881,500,1871,609,809,0601,379,166,4611,398,982,240

1,648,540,2631,499,231,071

696,010,27387,626,866

116,935,768190,216,415119,921,425270,741,182

124,754,505723,933,34768,536,65656,108,139

43,331,20078,965,09193,818,831

178,287,010

219,139.510290,709,535345,242,533319,146,886

273,749,143180,386,123153,943,14572,900,682

134,622,81252,493,67341,600,70423,142,010

36,405,81571,591,31329,226,55724,552,786

26,503,08012,268,3134,335,739

$39,266,20752,407,09152.618,42455,509,416

46,703,88838,865,301141,914,62646,404,901

79,857,68565,415,08243,108,45049,792,653

150,692,300211,284,84047,457,03464,617,039

59,212,68497,202,49839,461,00038,244,441

39,321,79959,361,67239,251,88950,677,102

53,546,00468,681,47658,464,01644,646,458

60,308,91479,586,15850,839,67322,042,160

16,802,60013,815,80921,034,814

13,279,83018,890,73811,630,972

$1,450,195,0641,555,667,3451,523,237,9261,553,242,435

1,378,167,4252,051,973,662281,744,261323,507,694

122,942,347109,961,03648,941,43970,975,956

82,112,739

72,542,19873,306.196

40,882,49969,387,69187,866,060129,323,927

160,910,456221,733.836242.944,455260,679,726

223,551,600149,801,965151,853,70646,487,396

49,949.35062.019,43533,486,49425,676,470

16,581,35215,600,46333,938,30854,406,846

29,829,76930,141,77818,030,641

$868,200,0031,168,756,5251,251,486,0211,398,060,389

1,530,035,0092.051,457,1038,158,612,621299,472,584

236,344,632372,025,489230,969,058108,572,703

69,318,161396,063,937159,672,19646,680,699

43,870,762211,384,10944,255,44245,794,628

35,803,437112,946,93437,194,93665,284,923

56,798,004110,887,162

1,200,429,045161,560,221

58,765,92472,612,84972,969,24260,758,906

65,692,54177,499,87135,148,73342,819,167

42,787,94242,233,53635,328,390

$9,051,096,2039,438,007,0239,709,758,9289,864,940,974

9,713,073,3909,713,589,9491,836,721,6891,860,756,799

1,747,354,5141,485,290,0611,303,262,4421,265,665,695

1,278,460,2731,306,433,0321,219,303,0341,245,928,531

1,242,940,2681,100,943,8501,144,554,4681,228,083,757

1,353,190,7761461,977,6781,667,727,1971,863,122,000

2, 875,596£ 068,790,3991,020,215,060905,142,235

896,325,661885,732,247846,249.499811,167,063

762,055,874700 156,471698,946,046710,533,725

697,575,542685,483,784668,186,035

38,641,174,998 5,118,038,745 33,312,817,040 32,644,631,005 668,186,035


TABLE FI-1

Summary of Loons to and Investments in Financial Institutions



Outstanding

1st2d3d . .4th

1st2d3d „ .4th

1st

3d4th . . .

1st2d3d4th.

1st2d3d4th

1st.. .2d.,»3d4th

1st2d3d4th

1st2d3d4th

1st.. .2d.__3d4th

1st2d . . .3d4th . . .

1st2d3d4th. . . .

1st..2d3d! . . . . ;4th

1st2d.3d4th

1932

1933

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

$171,853,186656,487,137271,045,907126,985,097

361,922,710256,830,150201,970,434803,675,210

606,543,459245,812,661225,529,629155,778,211

60,006,14860,166,93447,772,42247,905,167

28,798,454

25,096; 19818,258,438

10,032,86047,803,51330,912,3805,751,936

28,994,82918,931,27016,331,87132,443,013

12,813,97416,654,1935,858,3636,212,454

12,508,967

6,442; 06444,217,770

3,319,2251,853,0952,423,0063,184,300

1,659,9755,476,009

1,488,000

225,0001,723,000

485,00042,480

630,870

8,00019,130

$174,4009,615,181

34,019,26818,112,448

96,313,74921,034,18534,949,30121,258,488

51,514,42361,982,75461,774,22654,333,489

27,006,67242,792,14214,374,64018,316,170

37,009,0867,601,1799,061,07512,125,936

5,364,2399,241,823

133,868,0404,703,015

£,831,99021,427,62133,134,7701,198,307

2,546,7351,665,9929,941,1702,200,433

1,227,6432,708,027895,718

1,534,692

762,1402,658,653361,883465,746

1,745,413949,186286,749

8,272,323

3,746,4561,245,5046,913,045357,000

5,9872,932,513

163,000615,000

$135,860,561516,691,687274,743,184174,429,478

257,466,235213,062,536168,456,632373,442,626

430,617,968352,395,707168,785,460195,021,320

92,102,87256,923,53450,683,23141,507,667

31,026,94618,565,57625,599,63518,351,416

8,764,2699,609,48115,294,20824,428,854

4,733,51916,899,9247,853,860

27,400,758

6,937,96016,820,9702,837,809

11,694,413

3,662,90336,472,8554,155,917

42,340,071

3,172,7012,619,036

951,4801,478,229

5,359,7661,843,280

16,169,70219,854,893

1,217,0002,136,2002,023,0002,015,480

260,00015,870

$7,744,77666,927,642110,015,50498,097,740

99,645,643164,333,234152,637,701129,161,051

211,548,139182,265,181200,033,496125,645,799

163,156,151123,640,707111,397,941123,068,595

150,403,133117,500,556173,909,358100,693,648

72,313,63844,947,14541,629,53245,474,887

40,734,80728,226,01428,996,99526,996,865

27,370,64622,847,64324,571,30543,111,028

35,665,34521,251,48422,079,85824,152,776

36,145,27422,943,37636,155,62021,449,710

33,929,66616,840,67216,192,5069,054,737

20,204,83615,270,10621,338,49114,697,695

30,972,53234,701,98019,544,17317,469,120

$123,115,735577,879,830742,607,510813,939,248

976,759,8401,025,434,1921,041,353,1231,235,634,698

1,504,704,5271,674,835,0531,643,587,0171,712,962,638

1,641,909,2691,576,192,0861,514,477,3761,432,916,443

1,313,640,2561,214,605,2761,066,295,563984,063,321

920,604,052885,166,333858,831,064837,785,031

801,783,743790,457,653769,314,618769,718,411

749,285,725743,259,052721,525,656690,103,941

658,105,999673,327,370665,403,429673,590,724

640,618,161620,193,811684,989,771665,018,290

536,448,390621,451,098521,423,294632,228,460

513,240,614600,106,708480,791,217468,209,002

437,496,470402,810,360383,266,187365,797,067

505257—59 15 215


TABLE FI-1—Continued

Summary of Loans to and Investments in Financial Institutions—Continued

Year and quarter

19451st2d *3d4th

19461st2d3d4th .

19471st2d3d4th

19481st .2d -3d4th

19491st. „2d~3d-4th

19501st. ... .2d3d4th

19511st2d3d I4th

19521st2d

4th I.

19531st2d3d

Total . „

Authorized

$265,0003,273,908

5,000,000

3,000,000100,000

4,815,324,697


$100,0006,378,305

86

15,000

100,000

909,123,016

Disbursed

$250,000

3,273,822

19,1303,000,000

2,000,000

3,000,000

3,906,201,681


$21,784,33510,035,03417,925,6839,955,669

44,487,7678,980,736

38,814,3335,307,712

18,901,03132,740,3826,964,0425,640,825

12,239,1633,114,0864,620,4133,955,137

3,709,8262,347,2763,872,2357,552,830

2,612,3371,809,9114,555,9602,828,959

4,388,3224,140,3582,166,9147,519,393

10,880,66818,722,0401,961,2646,004,991

597,738996,883612,262

3,861,608,182

Outstanding

$344,262,732334,227,698319,575,837309,620,168

265,132,401256,151,665217,337,327212,029,615

193,147,714163,407,332156,443,290152,802,465

140,563,302137,449,216132,828,803128,873,666

125,163,840122,816,564121,944,329114,391,499

111,779,162109,969,251105,413,291102,584,332

98,196,01094,055,65291,888,73884,369,345

73,488,67764,766,63752,805,37346,800,382

46,202,64445,205,76144,593,499

44,693,499


TABLE FI-2

Summary of Loans to and Investments in Banks and Trust Companies



Outstanding

1st..2d...3d...4th..

1st-.2d._3d.-4th.

1st..,2d__.3d....4th-.

1st.d

3d.4th...

1st..2d.-,3d..4th.

1st..2d...3d.,.4th..

1st..,.2d3d4th_.._

1st-.d

3d..4th.

1st..2d...3d.,,4th.,

1st

fcz4th....,1st..2d._3d-.4th-

lst..2d..3d..4th.

1st....2d3d4th

1932

1933

1934

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

$153,376,435483,983,463214,993,39295,733,710

297,881,999190,280,139178,330,771675,572,616

564,213,716211,675,962207,451,521116,290,475

52,400,52655,701,49439,834,37544,362,609

28,404,22512,354,6949,928,744

8,301,10744,780,35329,171,7403,867,348

28,002,02815,682,8184,292,87126,645,513

8,119,13315,918,0214,098,1376,173,398

7,391,60034,662,3515,176,695

42,088,316

1,923,499934,595

1,173,295826,500

477,9753,590,80924,741,683

341,000

225,000406,000155,00042,480

615,870

$174,4008,087,68129,693,55214,950,632

93,279,70919,663,25230,397,04817.056,466

37,831,60966,304,56054,478,37548,186,796

24,287,61219,087,7029,624,85314,292,507

34,103,7816,784,6046,507,90611,531,910

4,645,3387,207,98061,368,3974,507,482

8,00019,130

20,712,13032,868,4451,151,816

1,631,0211,204,0284,714,5431,050,007

522,1712,725,546691,917

1,485,272

755,3902,595,396173,383437,005

70,413331,666286,749

8,272,323

3,391,747830,50332,000357,000

6,9872,875,513

8,000500,000

$125,417,141

209,093,645143,981,878

194,555,858153,024,030153,687,158337,741,902

420,387,626296,610,612148,025,415178,849,161

82,659,94552,964,90946,533,21839,147,121

29,501,88613,117,39912,513,22611,643,557

8,479,97315,044,05122,332,803

2,917,49013,378,5325,900,619

24,305,403

4,635,70914,527,4001,999,90611,571,777

2,831,66135,368,3163,397,38439,931,634

2,245,6051,500,709900,480

1,005,766505,500

3,091,70218,265,102

300,00056,00055,00042,480

15,870

$7,670,37664,822,03599,915,40183,832,224

87,418,839141.178,461130,584,485102,327,268

163,903,867135,700,933141,234,472

134,306,917108,351,56289,039,041100,775,258

141,131,134105,560,099166,177,91884,797,602

61,576,79233,496,66532,642,098

32,292,59921,365,358

22,485,047

20,842,23918,972,69019,935,02638,949,379

29,088,31116,306,57517,634,00216,170,751

31,235,37919,144,74031,831,86816,492,920

28,523,46413,408,56211,081,6226,327,561

16,007,1789,634,27315,976,615

28,995,66933,138,32218,322,41114,899,528

$117,746,765423,980,723533,158,967

700,445,640712,291,209735.393,882970,808,516

1,227,292,2751,388,201,9541,394,992,8971,474,179,397

1,422,532,4251,367,145,7721,324,639,9491,263,011,812

1,151,382,5641,058,939,864905,275,172832,121,127

776,506,961751,490,269733,692,222718,332,434

688,957,325680,970,499662,885,058664,705,414

648,498,884644,053,594626,118,474598,740,872

572,484,222591,545,963577,309,345601,070,223

572,030,454554,436,423523,505,035507,838,711

480,321,013467,417,951459,428,031471,365,572

455,658,394446,080,121430,158,506417,677,000

388,681,331355,558,879337,236,468322,336,040


TABLE FI-2-Continued

Summary of Loans to and Investments in Banks and Trust Companies—Continued

Year and quarter

19451st2dSail— IIII III-4th

19461st2d3d4th - .

19471st -2d3d4th

Total

Authorized

$265,0003,273,908

3,981,365,688


$100,0006,378,305

86

15,000

715,014,957

Disbursed

$250,000

3,273,822

19,130

3,265,450,731


$20,087,3569,826,291

17,870,3429,431,942

44,440,4368,055,5958,538,3405,190,240

18,719,61022,863,8406,962,9195,564,201

3,118,021,951

Outstanding

$301,599,584291,773,293277,176,773267,744,831

223,304,395214,348,800205.810,460200,620,220

181,919,740159,055,900152,092,981146,528,780

146,523,780

Details are not available to extend this series beyond 1947. There were no additional authorizationsOther transactions subsequent to 1947 are Included in the summary of loans to and investments in financialinstitutions shown in table FI-1.

TABLE FI-3

Loans to Banks and Trust Companies, Under See. 5 of the RFC Act , as Amended

[Includes loans through banks to business enterprises]

Year andquarter

19321st2d3d4th

19331st2d3d4 t h . . . _

19341st,2d3d4th

19351st2d...__3d4th

19361st..2d , „ . .3d4th

19371st2d3d4th

Authorised

Number

8933.616

285613

1,081527302306

204189133151

1952929470

77451510

Amount

$153,376,435483,983,463214,993,39295,733,710

282,949,499157,894,639155,676,771248,983,616

141,723,34596,732,442

133,584,87154,288,728

31,357,37331,440,72221,862,60823,236,460

21,060,80824,963,52012,250,5217,659,205

7,022,54330,352,3054,441,5202,083,965


$174,4008,087,681

29,693,55214,950,682

93,279,70919,663,25228,349,04814,981,466

20,408,40629,183,73032,002,07634,043,769

15,852,6308,585,4266,896,071

11,882,641

33,355,3316,452,1196,077,813

11,383,619

4,588,5147,032,0412,629,6964,132,363

Disbursed

$125,417,141371,055,993209,093,645143,981,878

181,805,858122,306,030134,048,658136,502,185

103,656,13673,341,77157,337,274

124,697,053

30,763,44635,538,70316,763,21623,496,136

13,663,30710,500,7659,923,6530,917,775

3,887,0521,093,292

14,221472111593,135


$7,670,37664,822,03599,915,40183,832,224

87,418,839141,173,776130,584,435102,186,028

163,524,383134,058,67079,817,69985,277,645

113,755,53583,873,62266,476,50871,600,275

104,612,97538,876,32641,638,00435,616,750

26,000,44315,998,32016,164,89917,955,406

Outstanding

$117,746,765423,980,723633,158,967593,308,621

687,695,640668,827,894672,292,117706,608,274

646,740,027686023,128536,642,703602,862,211

519,870,122471,635,203421,821,911373,817,772

282,868,104254,493,643222i 778,092197,080,117

174,066,726160i961,698159,018,271162,656,000


'TABLE ffI-3-0ontinued

Loans to Banks and Trust Companies, Under Sec. 5 of the RFC Act, as Amended—Con.

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

1st..2d. .3d. .4th.

1938

1st..,2d..,3d.. .4th..

1939

1st..2d. .3d. .4th.

1940

1st..d

1941

3d, .4th.

1st..

3d. .4th.

1942

1st.d2 . _ .

3 d . . .4th. .

1943

1st..2d._3d. .4th.

1944

1st..2d...3d.. .4th..

1945

19461st2d3d4th

1st..d

3d. .4th.

1947

$2,989,16310,164,9272,418,9783,874,488

447,1684,267,446

972,0121,069,424

11,600515,000

3,677,80040,204,056

18,000480,365

1,045,002

$5,518,82920,375,117

440,749962,267

1,443,825584,764

4,044,649597,100

476,59873,335

400,0001,068,901

489,5002,034,760

31,662167,729

$1,492,4202,928,8861,903,5253,431,276

461,2251,340,264

798,5304,938,595

3,315,3093,683

341,000

75,000

29,40018,820

473,845

75,000

35,739,841

427,434719,739793,977237,001

136,791

2,966,70250,000

3,273,908 6,378,3053,273,822

86

$10,474,13812,989,9008,053,525

10,121,735

7,366,43810,340,8024,483,7116,118,359

6,879,2786,763,8413,862,9804,610,126

9,647,4279,825,0019,408,3028,438,511

11,758,4242,461,4551,977,6321,760,715

2,506,4182,009,3122,186,4253,803,785

13,393,65518,999,4993,047,1151,571,295

2,334,651881,112

1,783,4371,071,776

1,431,903633,913255,370

255,55210,483,678

159,082198,772

Total 15,409 2,516,821,790 489,374,385 2,027,447,405 2,026,618,863

$143,674,282133,613,268127,468,263120,777,809

113,872,596104,872,058101,186,877100,007,113

93,127,83587,760,89783,897,917

115,027,632

105,807,63996,702,37788,088,05279,686,542

68,264,90965,803,45466,792,52465,081,809

62,675,39160,566,07958,379,65454,575,869

41,182,21422,182,71519,135,60017,564,305

15,229,65414,348,54215,838,92714,767,151

14,246,81212,314,90912il80,99611,925,626

11,670,0741,186,3961,027,314

828,542

828,542

ft Details are not available to extend this series beyond 1947. There were no additional authorizations.Other transactions subsequent to 1947 are included In the summary of loans to and investments In financialinstitutions shown in table FI-i

2T9Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE FI-4Loans on the Assets of Closed Banks and Trust Companies/ Under Sec. 5(e) of the RFC

Act/ as Amended


Eepaymentsand otherreductions

Outstanding

3d...4th.(

1934

1st-.2d...3d...4th..

1935

1st..2d_.3d. .4th.(

1936

1st.2d. .3d. .

h

1937

1st.2d2 .3d. .4th.

1938

1st.d2d_.

3d. .4th.

1939

$17,216,47512,131,117

375,10311,424,122

350,56740,785

844,09155,75513,173

354,539

181,0641,718,248

22,860,570259,883

20,278,515665,991138,56855,725

245,465571,675806,125749,374

1st....2d___.3d. . . .4th. . .

1940

1st2d

1941

443,12273,895

706,260

1,181,49949,230

1st..2d...3d.-.4th..

1942

24,448,000

1st.2d3d. . . . .4 th. . . .

1943

1st2d3d4th

1944

$14,51268,56166,685258,721

26,3504.9S52,6933,291

46,82425,939

171,301352,353

106,564233,513

32,427,69689,549

112,229

103,407

45,57329,491

216,742316,371

265,890147,261141,721

47,204220,266267,929

7,798,478

3,306,747615,50332,0007,000

5,9872,852,013

$17,216,3957,022,579

144,554287,168

10,594,977747,705

43,865368,68429,57334,782

40,57453,68190,229

2,560,340

341,8204,694,746

334,369602,627

100,184115,071701,376857,682

2,081277,384

2,559793,793

978,17169,84556,50374,595

18,200,102

1st2d3d4th

1945

1st.....2d3d4th . . . .

1946

$640,0483,765,999

7,649,4729,170,9965,250,9337,357,722

1,034,50294,154119,86090,237

100,833106,371122,016324,922

400,3771,896,7662,332,905928,576

412,919329,624597,989458,331

534,320325,760323,460348,357

1,294,294560,323412, 741

1,041,683

443,531120,429122,135

1,121,406

2,892,0242,931,6064,106,0952,304,015

2,072,0672,955,009

154,20224,972

23,67133,70812,76121,036

6,3438,5261,3323,374

$16,576,34719,832,927

12,328,0093,444,1818,788,2252,178,208

1,187,5711,462,1011,371,8141,316,359

1,256,1001,203,4101,171,6233,407,041

3,348,4846,146,4644 147,9283,821,979

3,509,2443,294,6913,398,0783,797,429

3,265,1903,216,8142 895,9133,341,349

3,025,2262,534,7482 178,5101,211,422

767,891647,462525,327

17,604,023

14,711,99911,780,3937,674,2985,370,283

3,298,216343,207189,005164,033

140,362106,654

72,857

66,51457)988



Loans on the Assets of Closed Banks and Trust Companies, Under Sec. 5(e) of the RFCActs, as Amended—Continued

Year and quarter

19471st2d3d4th

Total

Authorized

$118,332,229


$50,894,215

Disbursed

$67,438,014


$17,590

16,465

67,418,787

Outstanding

$35,69235,69235,69219,227

19,227

Details are not available to extend this series beyond 1947. There were no additional authorizations.Other transactions subsequent to 1947 are included in the summary of loans to and investments in financialinstitutions shown in table FI-1.

TABLE FI-5

Loans on Preferred Stock of Banks and Trust Companies Under the Act Approved Mar.9,1933,0$ Amended

Year andquarter

19331st _.2d3d4th

1st..1.™..2d : :3d4th

19351st2d3d4th

19361st2d3d4th : :

19371st2d

4th :

3d- . .

19591st2d_._3d "4 t h _

19401st2d I . "3d "

Authorized

Number

19

2098

5172796734

2424387

1

1

1

Amount

$250,0005,960,0002,256,5002,123,000

6,432,6712,648,4001,121,175

781,380

526,550179,150214,70055,000

85,000

100,000

30,000,000


$1,548,000

365,0001,810,395

839,194280,456

105,600126,70022,5001,280

26,900

2,523,200

Disbursed

$250,0005,960,000

633,500904,600

1,626,8003,376,5461,387,350

891,600

1,496,555483,000185,350113,000

120,20079,000

100,000

27,476,800


53,940

234,484181,263267,614338,923

323,454493,703477,757418,655

573,578381,489359,546224,743

778,360466,385

1,047,554444,693

317,301222,621283,878

2,485,409

353,565156,774240,562112,898

2,517,135338,783310,449252,542

Outstanding

$250,0006,205,3156,838,7657,689,425

9,081.74112,277,02413,396,76013,949,437

15,122,53815,111,83514,819,42814,513,773

14,060,39513,757,90613,398,36013,173,617

12,395,2571,928,872

10,981,31810,536,625

10,219,3249,996,7039,712,8257,227,416

6,873,8516,717,0776,476,5156,363,617

3,846,48230,984,49930,674,05030,421,508

221



Loans on Preferred Stock of Banks and Trust Companies Under the Act Approved Mar.9,1933, as Amended—Continued

Year andquarter

19411st2d3d4th

1942lst2d3d4th

1943lst

3d4th

19441st2d3d .

19451st2d3d..4th

19461st2d3d4th

19471st2d

4th

Total—.

Authorized

Number

1

1,122

Amount

$12,500

52,746,026


$7,649,225

Disbursed

$12,500

45,096,801


$3,829,426351,076200,367168,957

2,745,552105,652199,23719,469

2,945,372316,70054,07051,599

64,6342,746,926

40,91019,303

393,86133,960

2,624,53157,847

13,141,18143,63354,9386,056

28,84311,9037,742

25,000

44,951,538

Outstanding

$26,592,08226,253,50626,053,13925,884,182

23,138,63023,032,97822,833,74122,814,272

19,868,90019,552,20019,498,13019,446,531

19,381,89716,634,97116,594,06116,674,758

16,180,89716,146,93713,522,406

323,378279,745224,807217.751

189,908178005170,263145,263

145,263

The 1,122 authorizations were made to 274 individual banks and trust companies. Details are not avail-able to extend this series beyond 1947. There were no additional authorizations. Other transactions sub-sequent to 1947 are included in the summary of loans to and investments in financial institutions shown in

TABLE PIHJ

Subscriptions for the Preferred Stock of Banks and Trust Companlet Under the ActApproved Mar. 9,1933

[Does not include subscriptions for preferred stock of Export-Import Banks]

Year andquarter

!!!! M

ilIN

S! liiii

Authorized

Number

43573

923

1,495667392307

Amount

$14,682,50026,225,50019.897,500

202,175,900

263,569,80095,550,12035,095.00044,232,250


$500,0002,040,000

11,413,20317,835,93514,302,6058,923*071

Disbursed

$12,500,00024,558,00018,505,00084,890,917

210,061,890145,433,29549,982,39639,584,929


$87,300

75,000250,000

2,860,6113,844,733

Outstanding

$12,500,00037 058,00055563,000

140,366.617

350,353,507495.536,802542,658,587578,398,783



Subscriptions for the Preferred Stock of Banks and Trust Companies Under the ActApproved Mar. 9,1933—Continued

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

O utstandlng

1935

2d3d4th

19361st2d

4th1937

1st2d3d4th

1st..,2d._3d. .4th.

1938

1st2d3d ,4th ,

19401st2d3d4th

1941

1S=1942

1std :

3d4th

19431st2d3d4th

3d. .4th.

1st -d . .

3d...4th..

1945

1946

3d4th

1st..!!17..2 d . . .4th. . . . : : : : :

. Total

177747326

191266

708

11

9111111

13151010

10627

341

$16,763,60011,931,0009,241,500

20,642,864

3,221,2503,302,450

60,0001,850,000

977,50012,488,0001,436,0001,498,500

4,710,3502,552,0001,659,700

22,715,300

7,376,50011,009,6002,320,0004,304,600

7,380,0003,704,2291,380,0001,138,000

650,000405,00015,000

826,500

477,975275,500290,000

$7,182,8705,749,0152,514,5971,669,865

576,700155,000409,900115,000

10,000150,000117,500

766

50,000100,000

1667666"

2,000607,035600,000349,600

99,52075,175100,000

413,375

20,00082,000

150,000406,000155,00042,480

515,870

10,000215,000

350,000

8,00019,130

265,000

23,5008,000

500,000

100,000

15,000

$45,975,39015,073,53810,738,67514,051,280

15,420,6142,059,9502,497,6001,625,000

2,000,0006,378,000200,000

8,010,233

1,078,2505,120,0001,855,600

20,262,500

4,024,30013,052,665

450,0005,725,500

2,829,6807,217,2293,364,8253,398,000

810,000698,6255,000

615,000

868,975605,600125,00015,000

300,00056,00055,00042,480

15,870

250,000

19,130

$2,982,2173,062,9506,301,95916,615,701

27,586,28457,640,88091,912,08333,770,049

24,148,3226,272,153

11,381,0578,775,218

17,463,2753,395,9408,415,8016,493,742

7,883,7316,654,786

10,794,09729,198,467

11,969,0416,371,6009,486,2968,123,641

11,279,8375,813,954

17,006,3914,803,622

9,605,2498,982,8675,744,2682,688,964

5,396,0622,354,4685,639,4875,140,818

10,633,5217,120,546

12,916,83610,812,277

15,339,8697,119,861

11,288,5116,642,308

27,984,6046,183,6175,211,5623,467,219

14,482,7319387,0854,775,3184,649,949

4,480 | 859,692,768 77,386,132 782,206,636

$621,491,956633,402,544637,839,260636,374,839

624,209,069568,628,139479,213,666447,068,607

424,920,285425,026,132413,845,075413,080,090

396,695,066398,419,125391,858,924405,627,682

401,768,251409,166,130308,822,033375,349,066

366,209,606367,056,234360,933,763366,208,122

345,738,286340,622,956323,621,665319,332,943

302,119,312296,600,044293,926,080

288,830,018286,531,560281,047,073275,948,736

266,415,214258,310,538245,393,702234,581,425

219,491,556212,371,695201,083,184194,440,876

166,466,272160,272,655155,061,103151,593,884

137,130,283127,743,198122,967,880118,317,931

118,317,931

AKFA6 4 ' S ° authorizations were made to 4,202 individual banks and trust companies. Details are not avail-able to extend this series beyond 1947. There were no additional authorizations. Other transactions sub-sequent to 1947 are included in the summary of loans to and investments in financial institutions shown in


TABLE FI-7

Purchase of Capital Notes and Debentures of Banks and Trust Companies, Under the ActApproved Mar. 9,1933

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

1933

2d..3d-4th_

1st..2d . .3 d -4th.

1934

1st..2d_.3d. .4th.

1935

19361st.. .2d3d4th

19371st2d3d4th

19381st..

3d. .4th_

11

1275

1278157117

76

$200,000600,000

222,285,100

152,487,90016,745,00020,434,0004,857,000

3,378,000726,500

8,165,000387,500

92,50082,50031,00065,000

20,000221,800433,65025,000

24,0002,299,900

75,625

$35,000

5,645,0007,474,5007,334,5004,939,500

1,132,0004,558,000125,000480,000

118,500172,50017,50030,000

58,450,00022,000

12,0003,500

19391st2d3d4th

50,00069,400

61,500

1st..2d..,3d..,4th..

1940

45,00040,000

1st-.2d..,3d..4th.,

194161,500

"2O7666

1st..,1942

3d_.4th.

1st..-.2d3d...,4th...

1943

1st..,2d..3d_.4th.

1944

$200,000500,000

115,444,200

105,042,80074,459,00022,102,0006,753,000

4,280,0001,582,5008,251,000739,000

254,000109,00062,50066,000

35,00055,000

432,350169,100

5,000634,900

1,802,1259,000

50,00019,40050,00050,000

30,000

30,000

•~45,*666"

$70,0001,211,000

57,648,5006,435,461

11,750,29110,531,8845,982,905

7,323,7958,567,25032,148,42515,096,823

10,548,83410,653,4363,926,57210,392,357

3,637,5082,860,1314,899,9512,455,585

4,825,5862,490,7043,818,6673,061,324

7,188,5373,506,5913,650,8172,836,085

5,184,3952,594,3864,804,0672,040,147

3,970,7081,738,1693,038,350837,007

2,267,3022,022,1974,090,6331,223,769

2,931,7921,316,3422,163,3482,471,681

$200,000700,000

116,144,200

221,117,000294,365,000258,818,500259,136,039

253,819,800243,652,009241,371,125236,127,220

229,057,425220,599,175188,513,250173,482,427

152,370,1571481875,935138,652,678

135,020,170132,794,939-1677,113

122,474,942120,003,638116,234,971113,223,647

106,035,110102 628,51998,907,70296,071,617

90,917,22288 322836

5 6 ,! 523,622

77,552,91476 814,74572,776,39571939,388

67 649,88963,559,35162,335,582

59,403,79058 087,44855 924', 10063; 452,410



Purchase of Captial Notes and Debentures of Banks and Trust Companies/ Under the ActApproved Mar. 9,1933—Continued

Year andquarter

19451st2d3d4th

19461st2d3d4th

19471st2d3d4th

Total

Authorized

Number

3,144

Amount

$433,872,875


$90,611,000

Disbursed

$343,261,875


' $2,895,3041,757,6502,161,1021,638,975

2,787,9691,287,9162,636,6051,458,221

3,934,8942,981,1742,020,777

673,115

316,043,158

Outstanding

$50,557,11548,799,46546,638,36344,999,383

42,211,41940,923,50338,286.89836,828,677

32,893,78329,912,60927,891,83227,218,717

27,218,717

The 3,144 authorizations were made to 2,910 individual banks and trust companies. Details are notavailable to extend this series beyond 1947. There were no additional authorizations. Other transactionssubsequent to 1047 are included in the summary of loans to and investments in financial institutions shownin table FI-1.

TABLE FI-3

Loans to Mortgage Loan Companies Under Sec. 5 of the RFC Act, as Amended

Year andquarter

19321st2d3d : / : :4th

19331st2d :3d4th

19341st2d "3d I"4th I

19351st2d '3d I ' l l4th

$3d I"4th

1st „_„ .2d3 d . . .4 th . . . I

Authorized

Number

8462412

42413268

140994331

20111514

10108

15

5372

Amount

$6,517,00068,178,0009,171.000

11,200,903

43,878,43466.113,22720.663,842

117,858.518

33.026.13625.815,7327,669,604

17.699,480

7,014,7973.510.4907,568,0473,542,548

3,179.8058.364,9948,704,6048.173,604

1,410,7351,500,8091,740,6401,484,588


$477,500826,786

1,141,908

632,48621,110

3.854.4994,055,182

6 407,5843,701,1027,261,5186,182,962

2,443,8942,867,6464,560,2634,003,144

2,859,684611,575

2,399.169694,026

718,8232.000,993

72,498,143190,533

Disbursed

$1,277,00066,275,41414,028,5848,154,424

42.799,65349,035,7639,862,160

28,375,912

7,667,02943,925,74210,259.64511,685,890

9,364,0213 665.3742,992,8942,349,791

1,460,1315,431,1779,086,4096,671,859

2,645,720686,363246,586

1,662,720


$601,7814.447,0636,281,867

4,169,6985,575,1888,051,0158.019,753

24,573,72313,752,40041.968,84012,213,792

18,026,0539,763,690

18,455,5409,694,488

6,934,0349,700,5466,273,309

10,106,182

8,751,01510,373,6188,226,0786,717,935

Outstanding

$1,277,00066,950,63376,531,25478,403,811

117,043,766160,504,341162,315,486182,671,645

165,664,951195.838,293164,129,098163,601,196

164,939,164148.740,848133,278,202125,933.505

120,459,602116,190.233119,003,333115,569,010

109,463,71599.776,4609t 796,96886,641,763


TABLE FI-a-Oontlnued

Loans to Mortgage Loan Companies Under Sec. 5 of the RFC Act, as Amended—Con.

Year andquarter

19381st2d3d4th . . .

19391st2d3d4th

19401st2d .3d4th

19411st2d3d4th

19421stM3d4th

19431st2d3d " " "4th

19441st.. —2d_ .3d4th

19451st2d3d4th

19461st2d3d4th

19471st2d3d.4th

Total

Authorized

Number

2173

53

2

2

11

737

Amount

$793,0341,614,060

11,544,000552,500

2,964,403198,272416,12639,056

1,928,367312,748182,369112,058

13,50075.0003,711

£94,636,731


$5,800685,491266,30046,491

228,003425,472356,629410,426

705,47217,114

110,000

21,682

75,000175,000

6.647,745

140,487,155

Disbursed

$1,420,4982,328,6931,928,4052,995,355

2,077,298702,287432,803122,636

290,24219,339

250,0002,241,759

6,000

24,000

354,149,576


$7,573,6046,568,0834,754,1373,643,644

5,739,2613 532,4954,196,8353,857,520

6,452,4174,603.1314,031,3663,870,481

3,264,2462,656,3603,050,2473,417,956

2,603,2601,892,7713,376,4801,163,892

1,625,5612,092,0312,756,248

664.788

885,690921,210413,012

1,733,633

295,717186,45335,672

510,875

47,33125,141

315,548117,472

168,7219,390,336

1,1231,624

354,110,880

Outstanding

$80,488,64776,249,257731423,52572,775,236

69,113,27366,283,06562,519,03358,784,149

53,621,97449,038,18245,256,816JAana (voi

40,363,84837,713,48834 663,24131,269,285

28.666,02526^773,25423,396,774

20,607,32118 515,29015 759,04215,094,254

14,208,56413 287,35412^874,34211,140,709

10,844,99210,658,53910,622,8671O,U1,W2

10,039,520

ftSS»•«

40,32038,696

38,696

h ^ 1 ! H F V S S t M ? ^ b e y ° n d 1947- ^ e r e were no additional authorizations.loans to and Investments In finan^

226


TABLE FI-9Loans to Building and Loan Associations Under Sec. 5 of the RFC Act, as Amended

[Including loans to receivers and liquidating agents]

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

1st...2d...3d...4th..

1932

1st-.2d._

4th

1933

1st.*2d3d4th

19351st2d3d..4th

11st

1936

3 d . . . . "4th

19371st2d I3d4th

2d3d4th..

11st2d3d4th.

1939

1st.™.: :

4th

1st2d3d4th

1941

2d.._3d I4th :

1943

1st...,2d._3d. .4th.

1944

1st..2d

1945

3d. .4th.

30394363198

116691615

$4,879,75047,535,17435,153,81512,127,306

10,363,5925,337,0791,440,7214,674,076

161,607801,000

20,852,069

588,525870,000220,000

315,00043,85037,000

$50,0001,963,6081,399,949

804,499741,209341,451120,702

272,5451,825,000

34,33313,731

16620,836,794

29,16419,761

45,621165,000154,000

321,0181,522,351

400,000

199,767601,500495,000

4,745,000

1,730,438537,900

1,344,100

32,8501,5005,000

138,79730,000

25

687,71136,492

4,854,900340,000

3,189,0001,113,5001,083,0002,017,396

1,382,226843,500

1,246,0002,357,800

1,182,0001,885,2002,658,3001,147,000

55,36793,80199,420

6,75041,575188,50028,741

1,600,000442,520

1,317,000155,000

354,709415,001233,300

115,00057,000155,000115,000

$2,430,50039,617,83438,192,65013,622,130

9,203,1766,006,0492,159,7951,818,420

1,038,683331,586500,000

77,275374,009

1,007,11910,755

64,92917,000

36,000

443,1453,571

395,531174,90624,836

224,9531,591,283405,100

541,0001,085,200508,533166,678

927,0961,012,327

51,000627,633

4,354,0001,337,780578,000

1,589,791

917,0002,080,2001,793,0001,973,000

260,000

$1,004,3614,020,0684,592,010

6,975,75210,589,8968,807,33410,823,655

12,051,20715,728,65912,668,3007,792,821

7,886,1832,748,9591,832,7411,644,829

1,782,2571,586,449643,160918,350

372,640478,901252,040235,804

175,819209,340186,845217,644

171,559225,395245,758144,794

403,123218,158258,457495,794

826,8871,025,2081,036,524837,059

1,722,6361499,3231,634,4901,492,400

1,753,2232,672,8272,432,0461,376,562

939,714503,072701,453853,950

425,26222,29019,66912,852

Total— 1,468 178,989,560 38,831,492 140,158,068 140,158,068

$2,430,50041,043,97375,216,55584,246,675

86,474,09981,890,25275,242,71366,237,478

55,224,95439,827,88127,659,58119,918,029

12,109,1219,934,1718,908,5497,274,475

5,557,1473,987,6983,344,5332,462,188

2,089,5482,053,7921,805,3232,102,845

2,322,5572,288,1232,126,1141,908,470

1,961,8643,327,7523,487,0943,342,300

3,480,1774,347,2194,697,2954,263,179

4,355,5073,369,9833,160,557

5,791,9215,630,3784,573,8884,671,279

3,835,0563,242,4292,603,3833,199,821

2,620,1072,017,0351,315,582480,073

54,81132,52112,852

Tlie 1,468 authorizations were made to 1,183 Individual associations.


TABLE FI-10

Loans to and Investments in Insurance Companies

Year andquarter

lst-d2d . . .

3d . . .4th__

1932

1st—2d._3d._4th.

1933

Authorized

Number Amount

19341st2d3d4th

19351st2d3d4th

1st...2d.. .3d . .4th_.

1936

1st. . .2d2 . _3d . .4th.

1937

1st...2d..3d..4th.

1938

1st...2d2 .3d . .4th.

1939

1st..,2d . .3 d . .4th.

1940

1st..2 d . .3 d . .4th.

1941

1st..2 d . .3 d . .4 th .

1942

1st..2d.

1943

3d4th

18


$7,080,000•66,335,50011,727,7007,855,732

9,779,1304,984,7061,525,1005,566,000

9,142,0007,518,000

10,408,5041,036,187

2,30065,000

150,000

$1,000,0001,503,674

619,209

1,697,055599,110356,04126,133

7,002,685152,092

Disbursed

4,000,000156,000

275,000

40,000

78

1,032,892

500,000

15,098400,000

12,500,000

175,000

$6,735,92039 374,71913,422,6808,604,300

10,897,9934,881,2482,737,7815,502,392

1,624,63011,525,80010,000,4004,435,000

1,631


4,000,000

155,923

1,017,793

1667665

12,500,000

175,000

$74,400496,072

1,629,9123,388,354

1,087,0347,041,899

Outstanding

i942,932

10,999,85817,016,8344,121,4585,973,783

2,888,1342,756,6652,064,939

10,951,765

539,078642,677

4,765,659

1,549,390552,841480,091626,427

685,06661,298

567,02683,297193,615158,901

721,574123,159155,654

3,612,642

807,687117,068236,881701,775

1,080,30639,91699,91470,884

818,874870,975173,58232,359

$6,661,52045,540,16767,332,93562; 548,881

72,359,84070 199,18967,845,10165,404,561

56 417,241Ml 878,458

51,991,85549 235,29047320,351

35 186,83138,377,00233,611,343

32,217,876

31184 94430,558,617

29,873,451

30! 767,34330; 228,916

29,661,890

* Eft 8829,226; 077

2^749)737

21,669,43121629,51534^029,60133,958,717

§,268,8632,237,927


TABLE FI-10-Contlnued

Loans to and Investments in Insurance Companies—Continued

Year andquarter

19441st2d3d.4th

19451st2d3d4th_ :

19461st2d3d4th._

19471st. . . .2d "3d4th

19481st2d3d4th " '

19491st2d3d__4th

2d3d ."4th

19511st2d3d....__4th :;~:

19521st.. . .2d *

4th

19531st2d9 A

Total

Authorized

Number

2

11

•

228

Amount

$5,000,000

3,000,000100,000

159,689,750


$100,000

13,846,540

Disbursed

$3,000,000

2,000,000

3,000,000

145,843,210


$151,459139,376107,297

450

76,000

29,960,450

12,700480,206

75,000

925,000

54,989

22,000

51,000

23.0007,949,000

46,002

145,679,212

Outstanding

$32,086,46831,947.09231,839,79531,839,345

31,763,34531,763,34531.763,34531,763,345

31,763,34531,763,3451,802,8951,802,895

1,790,1954,309,9894,309,9896.234,989

5 309 9895,309! 9895,309,9895,309.989

5.309.9895.309.9898,309,9898,309,989

8,309,9898,255,0008,255,0008,255,000

8,255,0008,233,0008,233,0008,182.000

8,159,000210,000210,000210,000

210,000163,998163,998

163,998


TABLE FI-11

Loans to Insurance Companies Under See. 5 of the RFC Act, os Amended

Year andquarter

1st,..,2d..3 d -4th.

1932

1st—

4th.

1933

Authorized

Number Amount

1st...2d..3 d -4th.

1934

1st...2 d -3d..4th.

1935

1st...2d..3d..4th.

1936

1st..2d...3d...4th..

1937

1st..2d..3d..4th.

1938

1st..2d_.3d..4th.

1939

$7,080,00056,385,60011,727,7007,855,732

9,779,1304,984,7051,525,1001,191,000

1,642,00018,000308,504286,187

2,30065,000


$1,000,0001,503,674

619,209

1,597,055599,110356,04126,138

7,002,685152,092

Disbursed

275,000

156,000

40,000

1,032,892

400,000

78

$6,635,92039,374,71913,422,6808,604,300

10,897,9934,881,2482,737,7811,127,392

1,624,63025,800

400185,000

1,631


Outstanding

155,923

1st..2d_.3d. .4th.

1940

1st.. .2d. .3d . .4th.

1941

1942

3 d . . .4 th . .

1st..2d._3d . .4th.

1943

15,098400,000

1,017,793

19441st2d3d4th

$74,400496,072

1,629,9123,388,354

1,087,0347,041,8995,091,8697,942,932

10,999,85817,016,8344,031,4585,971,783

2,788,1342,756,6652,064,939

10,951,765

438,578640,792684,829414,666

300,140160,013323,848587,821

230,58447,87749,229488,427

91,652

179,893145,728

72,907101,659155,554177,744

256,30672,949136,881701,775

104,62639,91685,91470,884

9,979

23,58232,359

1,45965,376107,297

450

$6,561,62045,440,16757,232,93562,448,881

72,259,84070,099,18967,745,10160,929,561

51,554,33334,563,29930,532,24124,745,458

21,958,95519,202,29017,137,3516,185,586

6,747,0085,106,2164,421,3874,006,721

3,862,5043,702,4913,378,6432,790,822

2,560,2383 530,1543,480,9252l 992,498

2,900,8462 831,514

2,432,986

E;K1,998,029

1,741,7231668,7741 631,893'830,118

725,492685,576

528,778

518,799485,429461,847

428,029

230



Loan to Insurance Companies Under Sec. 5 of the RFC Act, as Amended—Continued

Year andquarter

19451st2d3d . ....4th

19461st2d3dIth" „::

19471st2d

Total

Authorized

Number

209

Amount

$104,439,750


$13,746,540

Disbursed

$90,693,210


$254,906

90,693,210

Outstanding

$254,906254,906254,906254,906

254,906254,906254,906254,906

254,906

The 209 authorizations were made to 133 individual insurance companies.

TABLE FI-12

Loans on and Subscription for Preferred Stock of Insurance Companies Under Sec. 1 ofthe Act Approved June 10,1933, as Amended

Year andquarter

19334th

19341st2d3d '4th

1st.1'35

2d

4th

19361st

3d " '4th. . ._ ' "

19371st

*}4th-.._ ""

m. 1 M 8

2d. . .3d " "4th I "

1st2d

4th ""

19401st2d " "

4th. .™ii:

Authorized

Number

3

1221

2

1

i

Amount

$4,375,000

7,500,0007,500,000

10,100,000750,000

150,000

4,000,000

100,000


i ! i i

Disbursed

$4,375,000

11,500,00010,100,0004,250,000

150,000

4,000,000

100,000


$90,0002,000

100,000—"w

100,5001,885

125,0004,350,993

1,249,250392,828156,24338,606

454,48213,42113,374

150,000

475,37413,96513,72213,173

648,66721,500

3,434,898

Outstanding

$4,375,000

4,375,00015,875,00025,885,00033,133,000

30,033,00030,033,00030,183,00030,183,000

30,082,50030,080,61533,955,61529,604,622

28,355,37227,962,54427,806,30127,767,695

27,313,21327,299,79227,286,41827,236,418

26,761,04426,747,07926,733,35726,720,184

26,071,51726,050,01726,050,01722,615,119

505257- 231


TABLE FI-12-Conttnued

Loans on and Subscription for Preferred Stock of Insurance Companies Under Sec. 1 ofthe Act Approved June 10, 1933, as Amended—Continued

Year andquarter

1941

» • "3d4th

19421st2d3d.4th

19431st2d3d4th

19441st2d3d4th

19451st2d3d4th

19461st2 d , . . : .3d . . :

19471st3d3d4th

19481st2d3d4th

19491st2d3d4th.

19501st2d

4th1951

1st-2d3d ,4th

19521st2d-.

4th1953

1st2d

Totals

Authorized

umber

1

1

2

1

Amount

$12,500,000

175,000

5,000,000

3,000,000100,000

65,250,000


II 1 1

; j j

|1

! i

$100,000

100,000

Disbursed

$12,500,000

175,000

3,000,000

2,000,000

3,000,000

65,150,000


$551,38144,119

100 000

975,680

14,000

808,895837,605150,000

150,00074,000

76,000

29,960,450

12,700225,300

75,000

925,000

54,989

PJ ij

51,000

23,0007,949,000

46,00

54,986,002

Outstanding

$22,063,73822,019,61921,919,61921,919,619

20,943,93920,943,93933,429,93933,429,939

32,621,04431,783,43931,808,43931,808,439

31,658,43931684,43931,584,4393i; 584,439

31,608,43931,808,43931,508,43931,608,439

31,508,43931,608,439

1 547,989I! 647,989

1,535,289<309,989X 309,9891234,989

5,309,9895,309,9895,309,989i 309,989

5,309,989

8,309,989§J 309,989

8,309,9898,255,000£255,000?255,000

$,255,000

gmooo8,233,000|l82,000

8,159,000210,000210,000210,000

210,000

163, Wo

The 19 authorizations were made to 12 individual insurance companies.


TABLE PI-13

Loans to Credit Unions Under See. 5, RFC Act, as Amended

Year andquarter

19321st2d3d4th

19331st2d3d4th

19341st -2d3d-- —4th

19351st2d3d4th .

19361st2d.3d4th. „

19371st „2d .3d":::: : : : :4th. . . .

19381st .2d— -3d

19391st2d

4th- .

19401st2d-3d4th

19411st

Total

Authorized

Number

3

1

1111

1

1

10

Amount

$405,000

67,446

19,555115,00010,0004,000

1,967

20,000

642,968


$31,648700

9,504262

758

42,872

Disbursed

$367,7275.625

66,746

0,555115,496

9,7384,000

1,967

19,242

600,096


$3,3932,1603,285

4.3202,7902,993

47,443

19,48466,35540.4262,742

48,86419,8316,6802,255

16,63510,7856,1425,855

63,70145.12029,2252,125

7,71021.9357,350

12.103

50,56133,766

71434

420461479

3,108

11,075

600.096

Outstanding

$364,334367,799431,260

436,495549,201655,941612,498

493,014428,626388.200335,458

336,594336 005330,325328,070

311,435300,650295.508289,653

225,952180,832151,607149,482

141,763119,828112,478100,375

49,81416,04815.97715.543

15,123U>214,18311.075

The 10 authorizations were made to 7 Individual credit unions.


TABLE BE-1

Summary of Loans to Business Enterprises

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

19342d3d4th

1st.2d3d4th ,

19361st2d3d .4th

19371st2d3d4th

193S

2d._3 d . .4th..

19391st-..2d3d4th

19401st2d ,

19411st2d3d4th ;

19421 s t -2d3d4 t h . . . . . .

i d 3 : : : : : : :4th

1944

fcr3d4th

19451st2d3d4th

4182412

274309214

106170121100

071037634

721,6331,887

816

524488371215

257

179

150167188155

4871,5532,8871,760

1,194050740462

406444369314

288461683

1,005

$924,50011,425,17517,134,860

14,900,42226,329,25925,301,44713,492,987

12,693,88410,842,78112,693,4098,683,776

7,893,3434,877,7644,833,0503,177,350

4,590,30835,683,06863,712,42731,420,333

30,643,69432,843,75729,419,75414,369,675

10,901,78013,548,45027,381,85929,609,749

26,797.52370,913,37752,629,73049,011,644

316,419,237150,217.362193,191,436129,104,978

115,695,768166,878,75876,109,08572,969,951

105,799,66784,805,06077,262,96172,846,110

$776,5001,752,525

4,260,2164.741,4986,769,7214,248,465

3,895,1325,857,2935,541,1016,596,439

3,081,7189,734,9911,856,4202,988,469

1,436,9321,400,332

6,545,649

8.332.6167,194,73914,709,9359,938,795

7,316,03512,470,4855.783,8415,513,209

10.717,4125,401,35412,367,79713,148,944

10,789,09922,772.03461,579,122150,175,421

59,533,925

92,748,836170,877,55361,692,266

109,363,26431,244,239

39,052,18048,187,07862,317,38954,643,107

44,948,20027,607,41229,751,58946,392,770

$1,916,1784,851.602

6,301,8629,822,490

11,737,9349,338,819

10,123,6336,252,6347,646,0159,237,101

4,094,9249,992.9835,456,8206,092,195

1,751,7027,065,773

20,390,13024,332,587

10,452,62513,054,59019,233,5489,372,847

12,956,4377,914,926

10,690,2638.786,167

13.646,12960,796,06226.125,69161,379,905

62,343,12355,459,52893,666,92193,967,457

06,218,18665,335,69164,032,52954,816,915

45,410,34959,040,68361,331,88434,643,561

$116,679

162,121

665,4471,070,045

1,694,7262,227,8562,064,4303,370,002

4,001,7882,421,0732.611,2343,661,061

3,359,55S3,345,4294,427,6509,083,144

6,793,6008,157,44610,488,839

35,194,28339,177,620112,396,019

12,038,5177,532,47710,222,97811,281,912

10,612,70816.621,01614,445,38323,269,827

30,270,89633,903,87846,814,00348,173,182

75,357,65950.960,31366.666,64145,479,713

50,290,60437,617,12343,727,71451,318,708

49,788,72494,353,19163,131,203

136,002,253

$1,016,1786,651,101

12,790,84222,010,51233,091,99941,359,873

49,788,78053.813,55859,395,14365,262,242

65,355,37872,927,28875,772,87477,204,008

75.606.15279,316,40695 270.076110,523,510

115,182,544120,079,688128 820,397132,980,008

133,897,028134,280,377134,747,662132,251,017

170.660.204101,240,602219,350,680

232,422,007253 888,557300 741,475346:535,750

367,396,277372,771,655

337,535,741313,582,158280,075,024


TABLE BE-1-Contlnued

Summary of Loans to Business Enterprises—Continued

Year andquarter

1946s-&1947

1st2d

Adjustment,

19473d4th

19481st2d3d4th

19491st2d3d4th

19501st2d3d :4th

19511st2d3d4th

19521st2d3d4th

19531st..2d3d

Total i

Total *_„_

Authorised

Number

2,1594,2502,7173,484

2,3512,037

4,182

1,4561,209

1,0501,010

748678

9041,1791,2731,263

1,4781,492

949630

626505143114

123223222232

25819020

59,335

63,517

Amount

$91,382,618139,852,41594,569,425

117,112,432

110,954,505152,998,050

173,016,510

68,159,66865,096,661

42,900,00054,213,01956,879,00074,169,000

88,360.592129,517,096177,597,502133,695,440

110,158,578112,76a 50357,852,21771,749,242

131,886,27451,944,54323,135,60415,799,930

17,296,64667,823,78027,399,53922,759,696

21,684,77011,384,564

996,770

4,980,278,305

5,153,294,815


$79,747,04265,259,91130,229,17349,281,611

51,601,05489,699,240

67,903,472

47,357,68957,320,769

61,948,06179,339,81439,000,00037,700,000

38,697,39741,424,64638,608,08950,492,229

50,827,35558,212,20758,313,19036,882,205

59,103,81978,529,87015,404,89121,372,595

27,561,55315,045,33112,943,72520,032,270

12,533,76718,459,3867,772,285

2,378,433,345

2,446,336,617

Disbursed

$6,107,97613,050,37414,932,52121,072,109

18,885,20640,673,027

99,394,772

26,546,95943,716,237

20,360,00021,869,45935,838,53729,138,917

45,428,68464,415,99772,585,83678,163,364

67,771,30683,402,60154,986,07545,606,833

49,553,19261,270,60130,736,49417,320,208

12,151,38513,701,05232,247,46346,681,403

27,969,47126,446,35512,914,575

2,537,934,918

2,637,329,690


$11,724,29650,548,04528,911,47823,093,069

15,774,97512,952,607

92,313,208

15,387,00117,908,474

20,732,32823,339,46321,697,95920,617,882

26,307,91225,752,44823,336,44730,892,481

33,012,80780,676,05855,332,640

128,047,491

38,072,45744,927,49452,226,63639,883,303

41,176,99438,357,81130,322,68631,397,438

30,417,46637,945,15327,132,622

2,190,320,703

2,282,633,911

Outstanding

$284,359,604246,861,933232,882,976230,662,016

233,972,247261,692,667

7,081,564

279,934,189305,741,952

305,369,624303,899,615318,040,193326,561,228

345,682,000384,345,549433,594,933460,865,821

515,624,320618,350,863518,004,298435,563,640

447,044,375463,387,482441,897,340419,334,245

390,308,636365,651,877367,576,654382,860,619

380,412,624368,913,826354,695,779

347,614,215

354,695,779

*Excluding mortgage loans.' Including mortgage loans.

loans the direct mortgage loans on income-producing properties made by the BFO Mortgage Company.When the RFC Mortgage Company was merged with RFC on July 1,1947, the outetanding direct mort-gage loans were redasslfled lntothe business loan portfolio and subsequently treated pother business

and $10,642,684 of outstanding loans so transferred are Included with repayments and other reductions.


TABLE BE-2Summary of Loans to Business Enterprises—Exclusive of National Defense

Year andquarter

Authorized

Number Amount

Canceled orwithdrawn Disbursed


Outstanding

19342d

4th1935

1st2d3d4th

19361st2d3d ,4th ,

1st...2d_,3d..4th..

1937

19381st „2 d ; : :

4th I1939

1st.2d3d4th

19401st

it4th . . : . . . ,1941

1st

4th1942

1st2d ,3d4th ,

19431st2 d . . _ _ .3d4th

19441st2d3d4th

19451st2d3d4th ,

19461st2d3d ,4th

19471st24

Total__.

4182412

274309214

196170121100

971037634

721,6331,887

816

524488371215

257288272132

11712813391

175847155127

61446628

32688502

107304

2,1444,2382,7113,482

2,3342,025

$924,50011,425,17517,134,860

14,900,42226,329,25925,301,44713,492,987

12,693,88410,842,78112,693,4098,683,776

7,893,3434,877,7644,833,0503,177,350

4,590,30835,683,06863,712,42731,420,333

30,643,59432,843,75729,419,75414,369,675

10,901,78013,548,45010,046,4096,346,290

5,949,35649,467,08411,036,86515,908,796

6,712,88723,187,9074,663,5033,145,931

2,298,9964,871,2012,580,990719,020

855,8192,458,0266,536,46013,560,757

21,499,02618,887,608144,388,94355,870,966

87,814,580137,74171594,4011658

117.085,604

78,887,605143,448,050

$776,5001,752,525

4,260,2164,741,4986,769,7214,248,465

3,895,1325,857,2935,541,101

3,081,7189,734,9911,856,420

1,436,9321,400,3326,300,8986,545,649

8,332,6167,194,739

14,709,9359,938,795

7,316,03512,470,4855,629,3415,238,591

4,459,7214,554,0288,264,8815,078,353

5,938,6638,081,0155,909,6218,984,942

6,665,5473,291,0282,393,5143,218,793

1,318,6091,653,4231,360,7471,751,419

1,857,5323,545,7594,242,128

12,130,479

12,635,39243,161,11128,852,06847,732,683

44,599,65585,889,249

30,775

$1,916,1784,851,602

6,301,8629,822,490

11,737,9349,338,819

10,123,6336,252,6347,646,0159,237,101

4,094,9249,992,9835,456,8205,092,195

1,751,7027,065,773

20,390,13024,332,587

10,452,62513,054,69019,238,5489,372,847

12,956,4377,914,9268,185,6024,086,822

3,479,64547,901,4575,620,6*58

19,510,467

2,943,13610,333,9756,724,2554,705,046

2,046,6201,690,4524,060,8551,364,310

409,810530,689

1,697,130850,196

9,028,968992,555

16,192,476107,799,876

5,502,02612,623,36414,771,24220,942,668

18,194,42737,840,612

$116,679

162,121

1,502,709,005

665,4471,070,945

1,694,7262,227,8562,064,4303,370,002

4,001,7882,421,0732,611,2343,661,061

3,359,5583,345,4294,427,5509,088,144

5,793,6008,167,446

10,488,8395,222,236

12,038,5177,532,477

10,167,64811,016,445

9,429,21511,779,02810,024,12214,553,410

12,462,66717,005,21110,905,97711,007,599

14,922,8658,905,3026,890,428

10,667,716

18,038,6766,796,9792,812,6793,416,345

6,685,6416,101,0226,056,2542,96t»,278

3,620,61545,230,99224,133,67810,794,675

6,086,9418,929,652

$1,916,1786,651,101

12,790,84222,019,61233,091,99941,359,873

49,788,78063,813,55859,395,14365,262,242

66,355,37872,927,28875,772,87477,204,008

75,596,15279,316,49695,279,076

110,523,519

115,182,544120,079,688128,829,397132,980,008

133,897,928134,280,377132,298,331125,368,708

119,419,138155 641,567151,138,133156,095,170

146,575,639139,904,403135,722,681129,420,128

116,543,883109 329,033106,499,460

79,667,18873,400,89872,285,34969,720,200

72,063,52766,955,06077 091,282

181,924,880

183,806,291151,198,663141,836,227161,984,220

164,091,706193,002,666

506,085,096 598,424,704 405,422,038 193,002,666

Data on business loan activity subsequent to June 30,1947, are shown accordingBE-13, BE-14, and BE-15. A summary of business loan activity subsequent to Jito t

"one;ype of loan to tables30,1947, is shown in


TABLE BE-3Direct Loans to Business Enterprises Under Sec. 5d of the RFC Act , as Amended,

Includins Immediate Sales of Participations, and Including Loans to Veterans

Year andquarter

Authorized

Number Amount

Canceled orwithdrawn Disbursed


Outstanding

19342d3d4th

19351st2d3d4th

1st...2d—3d—4th..

1936

1st—2d—3d—4th._.

1937

1st-2d._.3d...4th_.

19391st-,2d3d4th

19401st2d3d4th

1st...2d. .3d—4th..

1941

1st..2d._3d-.4th.

1942

1st...2d..3d. .4th.

1943

3d4th

19451st2d t3d4th

«=:3d4 t h . . . . ; :i t W 4 71st..2 d : :

174351

290213238174

1401279085

746330

571,4111,444

571

371330247129

18418419878

81

62

1154676330

26323318

16293637

48101153275

7721,273

867

563754

$924,50010,997,25013,530,600

12,080,17219,832,32621,673,28010,581,654

10,234,1417,960,31210,670.7997,139,776

6,546,8603,490,1643,836,5002,622,650

2,617,70824,842,85033 421 94320,070,239

21,723,86621,712,79924,618,8785,993,623

8,875,02310,679,2177,050,7953,959,741

4,669,52148,206,8547,495,65913,688,979

4,605,07714,516,2212,327,9201,313,514

809,8114,414,0641,642,069

270,648910,558

3,433,6596,562,332

18,083,5618,905,542

124,462,8527,905,561

26,582,89828 874,10318,483,71316,902,264

13,206,45690,729,853

$776,5001,633,700

4,311,0986,522,9293,075,730

3,417,5714,897,2693,094,1504,106,840

2,616,1815,529.5411,377,1212,377,032

610,014953,981

3,765,4234,108,856

5,921,8403,597,28210,398,0173,136,172

3,041,4472,571,1602,672,1241,620,996

1,382,1311,476,8956,019,8791,649,604

1,351,3002,674,6821,646,7072,222,798

895,821365,665499,515560,748

184,703317,845141,237256,009

82,987307,216838,445678,020

1,620.0655,793,8424,750,5315,752,920

$1,916,1784,399,102

5,301,9798,631,623

9,099,4615,633,2546.749,6488,145,754

3,456,0498,981,6584,815,3174,681,901

1,364,402Si 658,63918,632,09421,

8,902r00210,849,23918,102,7608,267,416

12,279,6846,308,7397,305,3643,303.981

3,165,51647,422.6335,534,36519,374,013

2,849,1479,846,4036,129,917

12,154,840

1,411,8911,699,7024,027,3591,356,483

283,277498,616

1,471,880846,235

8,999,444986,827

16,192,476107,766,535

5,241,57612 222,91413,905,71517,481,314

15,354,20933,819,772

$116,679

155,211547,227638,171971,987

1,320,3331,637,8221,823,8412,636,696

3,645,7322,092,9832,358,3573,062,056

2,945,5542,781,8183,834,9457,898,944

5,216,9606,504.8509,718,3104,273,044

11,204,3246,779,5499,009,7269,571,711

8,697,47311,083,4479,352,82313,597,152

11,155,37016,196,54610,201,85010,721,067

12,872,6338,465,0526,263,98710,089,316

17,634,8046,109,8462,650,5363,297,726

6,366,9445,976,4675,919,9882,678,244

3,409,79944,964,84823,885,3769,938,965

5,511,9247,414,191

Total 14,041 797,072,135 144,669,625 654,508,269

Tbe 14,041 authorizations were made to 11,684 individual business firms,subsequent to Jane 30.1947, are shown according to type of loan In tablessummary of business loan activity subsequent to June 30,1947, is shown

375,103,704

$1,916,1786,198,601

11,345,36919,429,66529,181,01736,102,016

43,881,14447,876.57652,802,38368,311,441

58,221,76365,110,43367,566,89369,186,738

67,605,68670,482,30785,279,45699,263,911

102,948,953107,293,342115,677,792119,672,164

120,747,624120,276,714118,572,352112,304,622

106,772,665143,111,851139,293.393145,070,254

136,764,031130,413,883126,341,955119,388,981

107,923,239101,062,88998,826,26190,093,433

72,741,90667,130,67665,952,02063,600,529

66,133,02961,143,38971,415,877176,504,168

178,335,945145,694,011135,614,350143,166,699

162,998,984179,404,565

179,404,565

Date on business loan activity47, are shown according to type of loan In tables BE-13. BE-14, d BE15 A

activity subsequent to June 30,1947, is shown in table BE-1.


TABLE BE-4Purchases of Participations (Immediate) and Agreements to Purchase

(Deferred) in Loans to Business Enterprises Under Sec. 5d of theAmended .

ct, as

Year andquarter

3d. .4th.

1934

1st.. .2d . .3d . .4th.

1935

1st—2 d . . .3 d . . .4th..

1936

1937

2d__3d . .4th.

1st.. .2 d . . .3 d . . .4th. .

1938

1st—2d_.3d. .4th.

1939

19401st2d3d4th

19411st2d

4th1942

1st2d3d4th

1943

2d3d4th

19441st2d3d4th

19451st2d3d4th

19461st..

3 d . .4th.

1st...1947

Total..

Authorized

umber Amount

17

2021132

13216439243

14915412083

721017261

34374024

60350

2812231

ie394955

20343570

1,370

i1,S422,784

1,7671,265

16,355

$427,9253,484,760

2,187,7502,012,9331,948,7672,810,833

1,688.7431,859,9691,697,9101,232,500

870.600311,250284,500

1,952,3009,968,218

20,105,48411,070,094

8,851,7289,879,9584,627,2767,671,052

2,016,7572,619,2332,675,6141,316,549

1,252,3351,220,2303,541,2062,136,817

1,785,8108,138.6861,653,583l,173,9r

1,379,185457,137938 921338,44C

585,1711,547,4683,102,8016,998,425

3,415,4659,982,066

19,926,09146,767,405

61,182,682108,852,61275m3475,mt34l

100,153,14c

65,449,04162,718,18

684,167,370


$118,825

694 760430,400

1,246,792756,935

457.661934,024

2,183,351821,599

366,537529,450126,299154,437

907,918351,351

2,475,4752,349,668

2,282,7763.696,4574,280,9186,782,623

4,274,5888,989,3252,957,2173,619,795

3,077,6903,021,1332,245,0023,321,858

4,587,3636.386,3334,224,9146,712,144

1,133,9061,314,5781,219,5101,495,411

1,774,5453,238,5433,403 683

11,552,459

10,916,32737,367,26924,091,53741,979.663

41,010,36573,726,409

351,277.765

Disbursed

$427,500

972.383884,967837,411808,463

861.922514,600355,167891,847

423,000440,325

201,294

46,3001,123,934

1,377,6232,038,351

821,831

289,1141,110,217

606,238637,841

244,129145,82477,803

112,454

41,989185,572133,338234,453

178,2298,250

126,53332,073

225,2503,961

29,5244 728

33,341

2,831.0183,397,840

33,078,651

Repaymentsand other

reductions

$6,91046,59324,776

287.560214,204212,328608,867

334,862237.696169,300234,873

394,712527,951

900,659

456,1901,351,015529,505632,172

697,047611,432957,367

1,394,071

562,247581,506570,015925,413

1,176,011

669! 012232,410

223,393689,419106,81069,978

296,994110,113105,228286,044

161,167196,253166,780783,247

544,304860,564

24,430,883

Outstanding

$427,500

1,392,973

3,768,487

4,342,8494,643,1454,785,9845,068,964

5,157,1025,359,7315,456,634i 373,055

5,024,6435620,6266,715,6538,177,182

9,093,6159 785,951

10,455,245

8,929.7688 494,086& 001,8747, 188,915

iUfltS\ 921,363

3,194,7582^832,866% 407,706% 9611513

1,864,6531307; 3071425 747i; 359,730

1 092,260

'987,875

SSS674,227749,424

l t 208,1713^778

; 768

8.647,7681 ™} ^ t l v i i y TOl)B«Wwn* |? J u J * 30,1947, are shown according to type of loan to taWej

summary of business IO BL activity subsequentto Junelo , 1947, Is shown

238


TABLE BE-fi

Loans to Borrowers Engaged In the Mining, Milling/ or Smelting of Ores, Under the ActApproved June 19/1934

Year andquarter

Authorized

Number AmountCanceled or

withdrawnDisbursed Repayments

and otherreductions

Outstanding

19351st2d3d4th ,

1936lst_.2d._3 d . .4 t h .

1st. .2 d _3 d . .4th_

1937

1938

3 d . .4 th .

1st. .2 d . . .3 d . . ,4 th . .

1939

1st . .2d3d4 t h .

1940

d3d4th

1st3 d . .4 th .

1942

1st.2d_3d.4th.

1943

1st.3d.3d.4th

1944

3d .4th

1945

a?3 d . .4 t h . . . :

s d : :

Total

$600,0003,081,0001,643,000

83,000

871,000995,600423,500311,600

895,000602,000683,000270,000

20,000872,000185,000280,000

68,0001,251,000173,600805,000

10,000250,000320,000

1,070,000

27,60040,000

$400,000

20,00025,000

250,0001,666,000

196,0003,676,000353,000455,000

19,00095,00060,00087,000

123,0001,000

31,00020,000

910,000

97,800

83,000

322,000533,000682,000658,600

110,0001

56,0001,000,000106,891

20,000}38,00050,000

50,00040,00065,000103,000

21,000

1,208,00049,00015,000

106,500

30,200232,000

10,000 JI

8,000

$280,000495,000157,000

138,00091,000520,000191,500

204,000521,000360,000209,000

341,000283,000269,20087,000

173,000167,000317,600

387,639495,970274,000245,000

70,000333,0008,600

24,000

52,000*302,0001461, OOOl702,500

456,50082,500

7,000

55,000129,000250,00062,600

9,200623,000

$15,000

80,000376,00025,00040,000

102,69480,00075,000

211,382

13,17635,000

160,000204,000

120,000291,136240,700317,000

86,00017,609

175,00050,000

169,000113,082101,00030,000

130,00021,00033,00051,973

143,23444,013

167,64231,242

179,89797,71455,33347,641

21,70314,44231,038

1,990

49,649

91,52272,463

30,713654,897

352 20,659,800 10,047,691 10,118,109 5,167,776

$280,000775,000917,000

975,000691,000

1,186,0001,337,500

1,438,8061,879,8062,164,8062,162,424

2,490,2482,738,2482,847,4482,730,448

2,783,4482,659,3122,736,1122,702,712

3,004,3613,482,7123,581,7123,776,712

3,677,7123,897,6303,805,1303,799,130

3,721,1304,002,1304,430,1306,080,657

5,393,9235,432,4105,264,7685,240,526

5,060,6294,962,9154,907,5824,869,941

4,823,7964,792,7584,790,768

4,796,1194,866,2285,013,7066,003,743

4,982,2304,950,333

4,960,333

tnTSfv ? authorizations were made to 279 individual mining concerns. Beginning on July 1.1947, authorityP T S T A r 0 3 ^ 3 *° mining concerns was Included with the general business loan authority in the rewrittenOH*? A c*- Subsequent to June 30,1947, data on loans to mining concerns are Included with other businessloans in tables BE-13 , BE-14, and BE-15, and the summary table, B E - 1 .


TABLE BE-6

Loans to the Fishing Industry Under Sec. 15 of the Act Approved June 1 9 , 1 9 3 4

Year andquarter

19344th

19351st2d3d4th

19361st2d3d4th

1937

3d4th

19381st..2d3d4th

19391st2d3d4th —

19401st2d3d4th

19411st2d3d4th

19421st2d3d4th.

19431st2d3d

19441st

Total—

Authorized

Number

4

6252

21

112

1

27

Amount

$119,500

32,500503,00036,40017,500

27,0001,200

55,00015,0002,300

300

809,700


$42,500

15,800

1,00013,6002,000

3,000

2,000

10,000125

90,025

Disbursed

$25,000

27,50026,00016,000

480,370

24,25013,88021,2008,000

11,87550,00015,300

300

719,675


$2,500

6,833830

3,26184,439

18,50010.3948,077

102,750

6,116660

38,79684,541

45010,445

32420

151,146123,887

495993234845

1,2862,1942,1152,149

2,16426,095

143143

582

719,675

Outstanding

$25,000

52,50078,50092,000

572,370.

589,787602,837620,776544,337

537,712577,318584,541481,791

475,675475,315436,519351,978

351,528341,083340,759340,739

189,59365,70640 15139,488

38,99338,00037171636,871

35,58533,39131,27629,127

26,963868725582

The 27 authorizations were made to 22 individual fishing concerns.


TABLE BE-7

Summary of National Defense Loans to Business Enterprises

Year andquarter

19403d4th

19411st2d3d4th

19421st2d3d4th

19431st2d3d4th

19441st2d3d4th

19451st2d3d4th

19461st2d3d4th

19471st2d

Total

Authorized

Number

3147

38395564

312706

2,7321,633

1,133906684434

374376284222

1811579023

151262

1712

10,585

Amount

$17,335,45023,263,459

20,848,16721,446,29341,592,8653% 102,848

309,706,350127,029,455188,527.933125,959,047

113,396.772162,007,55773,528,09572,250,931

104,943,84882,347,03470,726.50159,285,353

51,589.23773,861,22826,488,6105,721,300

3,568,0382,110,700

167,86726,828

32.067,0009,550,000

1.852,448,766


$154,500274,618

6,257,691847,326

4,102,9168,070,591

4,850,43614,691,01955,669,501

141,190,479

52,868,37855,354,864

106,969,75028,025,446

37,733,57146,533,65550,956,64252,891,683

43,090.66824,061,65325,509,46134,262,291

67,211,65022,098,8001,377,1051.549,028

7,001,3903,809,991

897,415,117

Disbursed

$2,504,6614,699,345

10,166,48412,894,60520,505,02331,869,438

49,399,98745,125,55386,942,66689,262,411

94,171,56663.645,23959,971,67453,452,605

45.000,53958,509,89459,634,75433,793,365

30,507.51234,201,72822,985,1444,696,143

605,950427,010161,279129,441

690,7792,832,415

918,687,210


$55,330265,467

1,083,5834,841,9884,421,2618,716,417

26,808,22916,988,66735,908,02637,165,583

60,434,79451,055,01149,776,21334,911,997

32,251,91830,820,14440,915,03547,903,453

43,103,08388,252,16957,074,949

133,035,975

8,103,6816,317,0534,777,800

12,298,394

9,638,0344,022,955

849,997,209

Outstanding

$2,449,3316,833,209

15,966,11024,018,72740,102,48963,255,510

85,847,268113,984,154165,018,794217,115,622

250,852,394263,442,622273,633,033292,178,691

304,927,312332,617,062351,336,781337,226,693

324,631,122270,580,681236,490,876108,051,044

100,553,31395,663,27091,046,74978,877,796

69,830,54168,690,001

68,690,001

The authority under which BFO made national defense loans expired June 30,1947. Transactions onnational defense loans subsequent to June 30,1947, are Included in tables BE-13, BE-14, and BE-15, accord-ing to type of loan, and are included In the summary of business loans shown In table BE-1.

241


TABLE BE-8

Direct Loans to Business Enterprises for National Defense Under the Ac t ApprovedJune £ 5 , 1 9 4 0 , Including Immediate Sales of Participations and Subsidy Loans

Year andquarter

19403d4th

19411st2d3d4th

19421st2d

9;1943

1st2d3d4th

19441st2d3d4th

19451st2d3d4tb

194G1st2d3d4th

19471st2d

Total

Authorized

Number

2432

32354264

1504136S4457

479441343238

199174141111

961095717

141262

1712

4,391

Amount

$16,836,20021,015,616

19,703,00019,946,29340,700,86531,584,098

174,170,607102,053,463104,411,55380,431,437

66,279,307116,262,02335,424,38956,385,454

86,944,70246,326,67963,942,73037,631,745

30,041,36963,800,61414,164,3461,304,883

229,430132,066124,00010,000

32,067,0009,550,000

1,261,473,769


$139,500134,500

6,098,904406,705937,445

7,745,138

3,770,7726,907,329

41,816,63212,638,041

19,181,82323,150,15282,613,8283,005,970

9,651,81716,175,19530,618,79312,662,476

12,580,0852,343,9823,170,012

20,265,488

57,220,2026,219,657

408,447681,828

3,254,6613,414,173

387,103,655

Disbursed

$2,504,6614,463,659

9,999,17012,894,60520,505,02331,869,438

49,272,63744,479,90963,467,22966,712,093

81,727,40768,635,65766,659,07749,862,172

42,317,21567,373,35956,591,05333,042,039

30,367,24934,180,31322,958,1504,536,401

605,950366,616161,27984,441

690,7792,832,415

839,059,796


$56,330241,744

979,3404,762,6484,302,4778,641,354

26,801,30816,888,22134,251,23633,460,919

63,938,48733,805,46236,545,71024,121,716

24,847,16425,630,88835,694,36744,291,619

39,928,55587,855,46166,788,528

132,885,682

8,011,6495,132,6904,738,060

12,284,314

9,681,6253,927,076

770,493,429

Outstanding

$2,449,3316,671,246

16,691,07623,823,03340,025,57963,253,663

85,724,892113,316,680142,532,573175,783,747

203,672,667228,302,762248,416,129274,156,685

291,626,636323,369,107344,265,793333,016,313

323,455,007269,779,859235,949,481107,600,200

100,194,60195,428,52790,851,74678,651,873

69,661,02768,566,367

68,566,367

All of the subsidy loans were disbursed and in full prior to June 30,1947.


TABLE BE-9

Purchases of Participations (Immediate) and Agreements to Purchase Participations(Deferred) in Loans to Business Enterprises for National Defense Under the Act A p -proved June 2 5 , 1 9 4 0

Year andQuarter

19403d4th

19411st2d3d4th

19421st2d3d4th

19431st2d3d4th

19441st2d3d4th

19451st2d3d4th

19461st2d3d4th

19471st . .2d

Total

Authorized

Number

715

64

1310

47212376271

237261172122

1111489792

8345303

2,362

Amount

$499,2502,247,943

1,145,1671,500,000

892,0001,518,750

7,470,49719,801,48544,807,76327,020,073

40,596,46144,099,70735,273,58314,210,039

16,875,13434,798,56315,948,88420,935,846

21,494,41910,024,92212,263,9953,372,098

3,316,6121,897,498

43,86716,828

382,071,384


$15,000140,118

158,787440,621

3,165,471325,453

1,075,5335,759,3338,242,337

15,198,798

22,512,45323,502,29223,479,46923,907,710

27,459,55929,833,69520,092,22939,579,256

30,048,22421,683,55122,215,33413,931,671

8,988,94415,778,516

968,658967,200

3,746,738395,818

365,612,768

Disbursed

$235,686

167,314

127,450477,294463,668680,243

4,203,5752,201,4081,890,1381,988,714

1,946,417187,530

2,357,896323,730

17,09014,5439,801

24,704

60,394

45,000

17,422,595


$23,723

104,24379,340

118,78475,063

6,921100,446239,915151,309

460,1715,646,5342,080,6182,092,868

1,794,039846,206

1,841,854876,642

270,54042,12868,72057,025

53,716112,04739,74014,080

6,40995,880

17,298,961

Outstanding

$211,963

275,034195,69476,9101,847

122,376499,224722,977

1,251,911

4,995,3151,550,1191,359,7091,255,555

1,407,933749,257

1,265,299712,387

458,937431,352372,433340,112

286,396234,743195,003225,923

219,514123,634

123,634

The authority under which RFC made national defense loans expired June 30,1947. Transactions onnational defense loans subsequent to June 30,1947, are included in tables BE-13, BE-14, and BE-15, accord-Ing to type of loan, and are included In the summary of business loans shown In table BE-1.


TABLE BE-10

Loans on and Purchases of Rationed Articles and Commodities for National Defense,Under Sec. 5(d) of the RFC Act, as Amended

Year andquarter

19422d3d4th

19431st2d3d4th —

19441st2d3d4th

19451st2d3d4th

19461st2d

Total.

Authorized

Number

451,670

905

41720416974

64544619

22

1

1

3,673

Amount

$1,096,75139,308,51318,507,537

6,521,0041,645,8272,830,1231,655,438

1,124,0121,221,792

834,887717,762

53,4499,4428,169

14,319

21,99681,136

76,652,157


$1,821,4814,287,131

2,186,716677,476770,684

1,085,442

524,395524,765245,620649,956

445,52434,120

124,11512,882

2,504100,627

13,493,438

Disbursed

$168,35023,011,76921,870,075

8,240,5842,908,2741,422,4591,601,719

736,907949,005685,805427,596

123,1736,8721,0935,038

62,158,719


$1,416,8753,553,355

6,036,13611,603,01511,149,8858,697,413

5,610,7154,343,0503,378,8142,735,292

2,903,988354,580217,70179,230

38,31640,354

62,158,719

Outstanding

$168,35021,763,24440,079,964

42,284,41233,589,67123,862,24516,766,551

11,892,7438,498,6985,805,6893,497,993

717,178369,470152,86278,670

40,354

TABLE BE-11

Security Purchases for Automobile Financing, National Defense

Year andquarter

19421st2d3d4th

19431st2d

4th

19441st2d „ - .

4th

19451st

Total ,—

Authorized

Number

115362

153

Amount

$128,065,2464,077,756

104

132,143,106


$4,1312,024,3573,789,051

109,066,509

8,937,3868,024,944

105,76926,324

97,800

16,835

132,143,106

DisbursedRepayments

and otherreductions

Outstanding

The 153 authorizations were made to 121 individual concerns.


TABLE BE-12

Loans in Connection With Contract Settlements, Under the Contract Settlement Act of1944, Approved July 1 ,1944

Year andquarter

19452d3d4th

19461st2d . .

Total

Authorized

Number

132

6

Amount

$26,25062,100

1,030,000

1,108,350


$62,250

1,000,000

1,062,250

Disbursed

$16,10030,000

46,100


$14,038

32,062

46,100

Outstanding

$16,10032,062

32,062

The 6 authorizations were made to 4 enterprises. Included are 4 direct loans authorized for $1,046,100,and 2 deferred participation loans authorized for $62,250. No disbursements were made by RFC on thedeferred participation loans.

TABLE BE-13

Direct Loans to Business Enterprises

Year andquarter

19473d4th

19481st2d3d4th

19491st2d3d4th

19501st2d3d4th

19511st2d._. ..3d. "'4th

19521st2d I"3d "4th "

19531st2d3d

Total

Authorized

Number

603609

450572452449

572775869890

1,0321,089

661448

48639010282

92163162169

174133

9

11,333

Amount

$33,987,94428,118,338

16,300,00024,794,10340,797,95348,531,000

62,874,440106,533,339120,613,878106,184,893

84,647,80691,046,62940,041,48666,469,005

122,669,44441,522,88218,696,74612,464,498

12,789,62317,384,61417,959,88516,009,166

14,708,2017,393,196

497,276

1,142,836,250


$10,602,89312,970,245

12,000,00041,779,4066,000,0007,000,000

9,323,55414,214,71914,453,85521,937,930

21,957,29728,116,86833,721,45218,525,752

43,661,07663,903,9455,597,7599,417,098

15,814,6105,484,3117,512,417

12,341,220

3,877,6783,734,4674,112,507

428,061,059

Disbursed

$22,700,24339,899,041

16,600,00015,433,33326,451,87623,689,940

36,933,52055,081,45261,170,20671,022,826

59,045,38760,616,68443,846,62339,200,550

42,370,83455,254,80426,492,97414,836,292

9,283,7929,984,006

13,409,24427,232,198

20,274,73419,495,4049,219,222

819,545,185


$13,763,65815,663,658

18,275,14620,263,65918,716,34318,216,343

18,949,10620,457,83418,594,17326,170,635

25,026,48967,867,44445,806,629

122,559,411

30,548,87238,629,78644,608,68434,007,810

34,916,32933,248,56122,984,42325,065,508

23,032,00131,491,09522,947,696

791,811,293

Outstanding

$259,837,959284,073,342

282,398,196277,567,870285,303,403290,777,000

308,761,414343,385,032385,961,065430,813,256

464,832,154457,581,394455,621,388372,262,527

384,084,489400,709,507382,593,797363,422,279

337,789,742314,525,187304,950,008307,116,698

304,359,431292,363,740278,635,266

278,635,266


TABLE BE-14

Immediate Participation Loans to Business Enterprises

Year andquarter

19473d4th . . : :

19481st2d3d4th

19491st2d3d4th

19501st2d3d4th

19511st2d3d4th

19521st2d3d4th.. . . .

19531st2d3d

Total

Authorized

Number

66

10253040

30769586

106987957

43421513

14323143

45233

1,047

^LlIlOtXQv

$600,000510,392

1,000,0005,081,1945,026,042

18,000,000

12,000,0002,586,600

30,607,89313,736,642

11,552,3027,931,406

10,026,487,8,424,248

4,694,3507,929,9202,546,8681,767,847

2)688,00049,257,2908,303,6446,082,130

4,755,0991,289,400

114,880

216,512,534


$250,000250,000

245,000244,796

3,500,0003,600,000

4,097,4794,320,465

202,9282,614,646

5,209,3953,708,7836,841,8831,877,764

1,940,233649,167376,000874,829

1,936,685711,421

1,472,1881,067,372

2,495,8426,092,459

850,517

55,327,842

Disbursed

$500,000500,000

700,0002,889,5453,858,4332,826,475

4,406,5825,844,1516,824,1435,267,696

7,479,33920,690,7869,498,1426,079,131

6,341,8954,604,0863,668,2972,063,417

2,337,7663,483,125

18,661,37619,040,687

7,074,4296,833,7753,618,352

152,891,628


$812,181812,181

812,182812,183790,346790,347

4,257,0471,890,0002,875,7512,719,849

4,298,2539,694,8577,241,6823; 665,514

5,244,6314,159,1666,211,6964,594,175

4,610,7833,856,7486,767,2704,726,668

6,023,1056,204,3183,649,046

95,519,579

Outstanding

$9,224,8378,912,666

8,800,47410,877,83613,945,92315,982,051

16,131,58620,086,73724,034,12926,581,976

29,763,06240,658,99142,915,55144,329,168

45,426,53245,871,45243,328,15340,797,395

38,524,37831W, 75560,944,86166l 258,880

66,310,20466 939,66166)908,967

66,908,967

quarter or 1950 as canceled or withdrawn, and repayments and other reductions, respectively.


TABLE BE-15

Deferred Participation Loans to Business Enterprises (Including Those Made Under BPAor SLP Programs)

Year andquarter

19473d4th

19481st2d3d4th

19491st2d3d4th._

19501st2d3d4th

1951

1st2d3d4th

19521st2d3d4th

ut1 9 5 3

2d3d : :

Total

Authorized

Number

847695

590413266189

302328309287

340305209125

97732619

17282920

3934S

5,595

Amount

$33,571,72426,467,931

25,600,00024,337,72211,055,0007,638,000

13,486,15220,397,15726,475,73113,673,905

14,058,47013,782,4687,784,2446,855,989

4,622,4802,491,7411,891,9901,567,585

1,819,1231,181,8761,136,110

668,300

2,221,4702,701,968

384,614

265,771,750


$36,504,79644,100,524

39,703,05137,315,61229,500,00027,200,000

25,276,36422,889,46123,951,30625,939,653

23,660,66326,386,55617,749,85516,478,699

13,502,51013,976,7589,432,132

11,080,668

9,811,2588,849,5993,959,1206,673,678

6,160,2478,632,4602,809,261

491,544,231

Disbursed

$3,346,7163,317,196

3,060,0003,546,5815,528,2282,622,502

4,088,5823,490,3944,591,4871,872,842

1,246,5802,195,1311,641,3101,327,152

840,4631,411,711

575,223420,499

529,827233,921276,843408,618

620,3081,117,176

77,001

48,386,291


$811,1621,432,635

1,645,0002,263,6262,191,2701,611,192

3,101,7593,404,6141,866,5232,001,997

3,688,0653,113,7572,284,4291,822,566

2,279,0542,138,5421,406,3561,281,318

1,649,8821,252,5021,570,9931,605,362

1,362,3601,249,740

535,880

47,570,584

Outstanding

$10,871,39312,755,954

14,170,95415,453,90918,790,86719,802,177

20,789,00020,874,78023,599,74423,470,589

21,029,10420,110,47819,467,35918,971,945

17,533,35416,806,52315,975,39015,114,571

13,994,51612,975,93511,681,78510,485,041

9,742,9899,610,4259,151,546

9,151,646

As of June 30,1947, RFC ' s share of deferred participation loans which had previously been authorized tobusiness enterprises under aU authorities and which had not been purchased by RFC amounted to$300,582,582. On the same date, the outstanding balances of all deferred participation loans to businessenterprises in which R F C had purchased its share amounted to $8,335,839. Effective Sept. 6,1950, deferred

'•"•Jig uXLU XIOIJJ.0 J? ITltVnCO -AgiGIlCya XU t.06 t«D

3d quarter of I960 as canceled or withdrawn.

505257—59 17 247


TABLE Ag-1

Summary of Loans to Agricultural Financing Institutions

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

19321st2d3d4th

19331st2d

4th.-

lst—2d.

1934

4th

19351st2d3d4th

19361st...2d. . .3d_.4th_.

19371st .2d3d4th ,

1st...2dd._3d.. .4th..

1st..2d . .3d . .4th.

1939

lst_-2d

1940

d . .4th..

1st....

3d . .4th .

1941

19421st2d3d4th

1st..2d.3d

1943

6516285

264475340221

20578

33

$1,293,190

88,393,33117,643,991

76,289,10565,913,18997,776,176

622,986,336

98,835,497197,548,518262,031,929133,421,301

1,980,17568,035,051

100,253,866102,269,117

9,640,671151,880.76211,955,000

806,7272,133,696

235,205,00084,994,000

26,179,23850.575.00030,210,412

413,374

800,0005,424,180

10,408,110800,000

$432,423278,518

6,640,706

248,42150,590,0782,379,4538,934,990

39,940,3294,468,165

151,257,80021,959,129

1.412,2003,956,620

387,44585,772,393

22,702,732657,412412,371

4,080

108,715,78386,459

199,090,899435,705

1,403,36553.063

270,317,357

30,707679,703

3,000,000

10,115,59214,11371,360

50,000

$471,9906,572,22818,160,75917,911,938

66.320,76668,732,39046,794,047196,156,225

184,699.77362,951,259

228,263,90329,373,742

21,090,287119,792,410122,873,9639,620,793

15,860,3675,702,7403,710,072

37,422,4261,206.86017,786,97460,666,162

37,159.122

10,366,35610,67a 260

5,060,0002,048,000750,000121,986

619,182826,497

1,948

4,998,052

210,000

1,452,000

4th. 13,865120,045

196,136

*i,~33i,"954

$188,3381,260,9193,873,968

16,153,74311,382,87970,274,62252,743,671

43,121,15537,926,709

435,534,001114,072,409

22,719,74122,358,88116,567,83412,996,071

13,436,694173,034,18476.304.6087,347,472

66,640,58233,557,18863,055.4983,025,838

7,449,545105,351,4565,161,774649,160

2,362,2143,641,1383,937,20819,940,110

071,805700,372206,141325,278

695,713292,787898,876201,909

265,153190,45918,346

195,662291,187123,514

$471,9906,855,880

23,745,72037,783,690

87,950,713145,300,224121,819.649

406.810,821431,835,371224,565,273139,866,606

138,237,152235,670,681341,976,810338,601,532

357,403,837200,220.020130,618,252126,980.852

97,762,69665 412.36820,143,84477; 784,168

107,493,74511 131,88216,336,464261357,564

29,055,35027,562,21224.375,0044,556,880

4,204,257

4! 124,241Si 798; 963

3,103,2502 812,4111913,535I! 711,626

1,446,4731256,0141,237,66811394,791

768,2531,904,5451 613,3581 489,844


TABLE Ag-1-Continued

Summary of Loans to Agricultural Financing Institutions—Continued

Year andquarter

19441st2d3d4th

19451st2d3d4th

19461st2d3d4th

19471st2d3d4th

19481st2d3d4th.

19491st2d3d

19501st2d3d4th

19511st

4th

Total

Authorized

Number

2,083

Amount

$2,464,133,430


$1,001,631,323

Disbursed

$1,452,502,107


$1,079,07511,36017,60011,500

33,88058,5505,3507,055

59,47526,310

124,614

7,950

3,525

43,600

1,452,502,107

Outstanding

$410,769399,409381,809370,309

336,429277,879272,629265,474

205,999179,68955,07565,075

55,07565,07555,07555,075

47,12547,12547,12547,125

47,12547,12547,12543,600

43,60043,60043,60043,600

43,60043,60043,600

249


TABLE Ag-2

Loans to Federal Land Banks Under Sec. 5 of the RFC Act, as Amended

Year andquarter

19321st.2d3d4th

19331st....2d3d4th

19341st2d3d4th. . .

19351st _2d3d4th

19361st2d3d4th

19371st2d3d4th

19331st2d3d

TotaL.. .

Authorized

Number

9

1

330

212

57

Amount

$29,000,000

1,600,000

5,000,000139,018,000

31,500,000193,618,000

399,636,000


$5,500,000

2,200,000

4,700,000

12,400,000

Disbursed

$11,450,0007,050,000

300,0003,000,0007,000,000

113,318,000

51,500,000

193,618,000

387,236,000


$271,281,29937,499,302

6,192,42012,389,7703,597,615

11,444,677

10,179,9151,202,2532,693,1946,087,156

10,200,965759,559555,564

1,584,346

4,058,0462,600,8095,009,110

387,236,000

Outstanding

$11,450,00018,500,000

18,800,00021,800,00028,800,000

142,118,000

193,618,000193,618,000115,954,70178,456,399

72,262,97959 873,20956,275,59444,830,917

34,651,00233 448,74930,755,5552< 668,399

14,467,43413,707,87513 152:31111,667,965

7,509,9195,009,110

The 57 authorizations were made to the 12 Federal land banks. The $193 618,000 shown as authorizedin the 2d quarter of 1932, and like amounts included as disbursed and repaid in the 3d quarter of 1932, repre-sent refinancing of loans previously made and disbursed for different individual amounts but in the sameaggregate amount.

TABLE Ag-3

Loans to Joint Stock Land Banks Under Sec. 5 of the RFC Act, as Amended

Year andquarter

19321st2d3d4th

19331st2d3d4th

19341st2d3d4th

Authorized

Number

236

11

131041

Amount

$775,000495,000781,000

4,246,000

4,995,8236,300,8503,034,600

475,000


$319,955

30,053234,085

1,473,756293.451

511,2421,674,994

1?, 784one too

Disbursed

$864,217431,593

1,232,037

2,795,1282,621,6242,855,6524,147.869

248,428

197,219265,605


$24,0217,940

30,583

17,184115,830188,057423,466

3,269,6081,979,9561.829,0461,287,175

Outstanding

$840,1961,263,8492,465;303

5,243,247i 749; 041

10,416,636!4,'l4i;039

11,119,8599 139,9037,608,076A 4Rfl fiO6



Loans to Joint Stock Land Banks Under Sec. 5 of the RFC Act , as Amended—Continued

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

1st..2d . .3d . .4th.

1935

1st..2d . .3d , .4th.

1936

1st..2d . .3d . .4th.

1937

1st..2d__3d . .4th.

1938

1st..dd_,

3d . .4th.

1939

1st..2d. . .3d. . .4th. .

1940

1941

3d. .4th.

1st..2d_3d. .4th.

1942

1st..2d...3d...4th..

1943

1st..2d_.3d...4th.

1944

1s t -2d. .3d

1945

19461st.

3dii"i:::"

Total 72

$52,400

"160*000"

300,0001,760,000

376,000

480,000

3,675.000575,000210,412353,374

800,000408,000

360,000800.000

210,000

1,462,000

33,055,359

£2,400

"sso'ooo"

111.50086,45948,64419,148

63,063

30,707679,703

115,59214,11371,350

13,865120,045

$150,000

300,000688,500

343,088864,89713,76460,000

2,051,2301,388,038366,356617,260

21,000750,000121,986

544,892826,497

196,136

1,331,954

$2,457,242

664,796285,048

335,392480,579331,265257,910

105,313251,606249,707379,290

170,625194,710149,446

343,5861.971,020315,625168,390

833,954447,606200,737248,680

695,713286.389852,212153,013

235,003139,05916,24629,183

404,638135,492291,187123,514

1,078,075

17,60011,600

58,5505,3507,055

59,47526,310

124,614

26,194,970 26,194,970

$4,029,2643,038,6642,373,8682,238,820

1,903.4281,422 8491,391,5841,722,174

1,959,9492,573,2402,337,2972,018,007

3,898,6125,091,9405,308,8505,530,451

5,186,8653,236,8453,671,3203,624,916

3,335,8643,714,7453,514,0083,265,328

2,669,6152,283,2261.431,0141,278,001

1,042,998903,939

1,055,646

651,0081,847,4701,556,2831,432,769

354,694344,334326,734315,234

281,354222,804217,454210,399

150,924124,614

The 72 authorizations were made to 28 Individual joint-stock land banks.


TABLE Ag-4

Loans to Federal Intermediate Credit Banks Under Sec. 5, RFC Act , as Amended

Year andquarter

19331st.

Total

Authorized

Number

8

8

Amount

$9,250,000

9,250,000


Disbursed

$9,250,000

9,250,000

Kepaymentsand otherreductions

$9,250,000

9,250,000

Outstanding

The 8 authorizations were made to 8 Individual Federal Intermediate credit banks. All transactions tootplace during March 1933.

TABLE Ag-5

Loans to Regional Agricultural Credit Corporations Under Sec. 5, RFC Act , as Amended

Year andquarter

19321st2d3d4th

19331st2d3d4th

19341st2d3d4th

Total

Authorized

Number

8

222415261126

181545521

1,343

Amount

$7,285,973

57,811,62458,296,70430,015,8637,262,062

14,154,6032,335,5181,327,114

350,992

178,840,453


$7,80064,868

256,3142,660,485

287,2041,737,770

189,816392,555

5,596,812

Disbursed

$5,372,063

53,242,56660,291,51828,540,7317,707,336

14,439,8881,380,4181,691,647

577,474

173,243,641


$655

3,233,5959,135,649

67,376,70745,522,549

22,244,48216,830,0984,575,5204,324,476

173,243,641

Outstanding

$5,371,408

55,380,379106,536,24867,700,27229,885,149

22,080,5556 630,8753,747,002

The 1,343 authorizations were made to the 12 regional agricultural credit corporations.


TABLE Ag-6

Loans to Agricultura I Credit Corporations (Other) Under Sec. 5, RFC Act , as Amended

Year andquarter

19321st243d4th

19331st2d3d..__4th

19341st2d3d4th

1st l m

2d3d4th . .

19361st2d3d4th

19371st . . . .2 d . _3d4th

19381st2d3d . . .4 t h . _ . "

19391st.. .2d3d4th I "

19401st2d.__

4th

19411st2d3d "

Total

Authorized

Number

2197031

7375026

212

1

I

1

250

Amount

$21,200301,240

1,740,9351,556,476

784,156384,925470,520320,033

83,89450,000

300,000

26,761

50,000

30,727

6,120,867


$13,84029,036

4,50089,425

166,72013,100

135,623

25,000

447,249

Disbursed

$1,000285,366

1,473,8481,696,413

403,323464,346608,258253,084

25,49250,000

275,000

26,761

80,727

5,643,618

Repaymentsand othersreductions

$2,78784,712

994,811

550,330570,004523,106768,588

582,641383,80211,294

200,683

2,63314,0009,975

103,588

78,637202,000331,511

103,516

12,36915,791

11,528325131296

3,399500

4,332

2,00030,415

43,664

5,643,618

Outstanding

$1,000283,579

1,672,715% 374,317

2,227,3102,121,6522,206,8041,691,300

1,134,151800,349789,055863,372

860,739873,500863,525759,937

759,937681,300479,300147,789

44,273125, COO112,63196,840

85,31284,98784,85684,560

84,56081,16180,66176,329

74,32943,91443,66443,664

43,66443,664

The 250 authorizations were made to 20 individual agricultural credit corporations.


TABLE Ag-7

Loans to Livestock Credit Corporations Under Sec. 5# RFC Act , as Amended

Year andquarter

19321st2d3d4th

19331st2d3d4th

19311st.2d3d4th

19351st2d3d . „ .4th

193$1st2d3d

19371st2d3d4th

Tota l . . . .

Number

2437425

5311

154

Amount

$496,9906,097,5965,371,3961,179,621

167,700228,600400,00075,000

100,00060,00025,55925,000

120,000163,866

14,511,328


$432,423264,678481,603

206,0651,600

126,41626,941

1,539,729

Disbursed

$470,9905,422,6454,795,3181,121,451

118,127227,000

313,202

100,00068,441

50,559

120,000

163,866

12,971,599


$161,5301,168,2672,732,462

2,771,0271,069,9591,210,3141,030,245

711,494174,395105,767349,153

64,51970,092

265,670202,028

26,00139,88595,263

434,200

69,49319,17145 697

154,967

12,971,599

Outstanding

$470,9905,732,1059,359,1567,748,145

5,095,2454,252,2863,041,9722,324,929

1,713,4351,607,4811,501,7141,203,120

1,138,6011,188,509

922,839884,677

858,676818,791723,628289,328

219,835200,664154,967

ftwf t 1 ^ wthonzztioTzsweje made to 19 Individual livestock credit corpoiations. Included In the data1 2 3 ? k l a£th<*rlzatlon for $400,000 made for the purpose of assisting in the liquidation of a closed nationalDank. Disbursements on this authorization amounted to $321,643, all of which was repaid.


TABLE Ag-8

Authorizations for Financing Exports of Agricultural Surpluses Under Sec. 201 (c), Title I I ,Emergency Relief and Construction Act, 1932

Year andquarter

19333d4th

19341st2d3d4th

19351st2d3d,. .4th

19361st „2d3d4th

19371st2d3d. . . .4th

19381st.2d3d4th. .

19391st2d3d. . .4th

19401st2d :

4th

19411st2d "3d "4th

19421st2d

Total

Authorized

Number

5

1

1

1

2

10

Amount

$52,880,543

490,412

30,000,000

5,016,180

10,058,110

98,445,245


$30,000,00077,098

3,069,270

3,000,000

10,000,000

A. OQS CiÔ

51,144,420

Disbursed

$3,742,6643,400,064

4,376,3253,076,9354,429,3951,173,860

16,2009,H4

10,000,00010,000,000

5,000,0002,000,000

74,290

1,948

47,300,825


$55,857191,677

220,138181,608

3,422,533951,631

238,643430,906231,529273,104

442,67713,637,388

2,000,0001,566,4443,609,568

19,765,888

132,400

1,948

46,896

47,300,825

Outstanding

$3,686,8076,895,194

11,051,38113,946,70814,963,57015,175,799

14,953,35614,531,59414,300,06514,026,961

13,584,28446 89646,89646,896

46,89646,89646,89646,696

46,89646,896

10,046,89620,046,896

23,046,89623,480,45219,870,894

losiooe46,89646,89646,89646,896

46,89646,89646,896

The authorizations were made to 6 individual borrowers. The following loans are included:Authorized Canceled Disbursed$60,000,000 $32,894,614 $#105,386

StSSSS SSS8S ™ ™4,500,000 4,498,052

4?9 * & K ?251,754 3,119,201Others . . . . . . . . . . . . _ 3,370,955was a revolving credit of $5 million which was increasedto $5,074,290

banks under an RFC guaranty.

255


TABLE Ag-9

Loans for Financing of Agricultural Commodities and Livestock, Under Sec. 201Title I I , Emergency Relief and Construction Act of 1932 (Excludes Loans to CCC)

201(d)

Repaymentsand otherreductionsCanceled or

withdrawnNumber Amount

$51,500,0003,275,921

1,204,5322,840,9972 667,1583,600,433

331,607491,437920,581411,465

211,6222,127,902

746,7421,344,740

779,802702,110

2,474,7505,172,051

50,200,100482,663

3,567,954

4,280,5723,533,3763 680,7644,320,173

19341st.2d3d4th

721,5531,630,3701,438,368

912,450

1.401,692883,174

1,585,7561,551,859

4,997,0001,485,0004,379,2563,219,087

339,741319,695275,974318,804

1,460,2012,863,255

793,339136,410

1,372,902834,950387,445210,467

1,901,014915,05190,000

2,119,117

8,367,7131521,7871 412,4661385,325

930,4377,853,838

421,588236,210

978,9771,007,912

312,267

396,808657,412412,371

4,080

1,065,702485,000145,000

1,336,6401374,793

978,718412,401

23,177400,621

43,838

363,71661,3304,546

50,8525,0793,087

253,205

18,628275

11,6251,500

747,178524,827519,673443,075

3,451222,351

5,15476,598

403,475352,075348,975

30,15051,4003,1009,830

117,24557! 07557,07567,075

55,075



Loans for Financing of Agricultural Commodities and Livestock, Under Sec. 201 (d)Title I I , Emergency Relief and Construction Act of 1932 (Excludes Loans to CCC)—Con.

Year andquarter

19451st2d3d4th

19461st2d3d4th _.

19471st2d3d4th

19431st2d3d4th

19491st2d3d "4th

19501st2d_3d4th_

19511st2d : :3d.______4th

Total

Authorized

Number

159

Amount

$86,061,513


$66,417,021

Disbursed

$19,644,492


$7,950

3,525

43,600

19,644,492

Outstanding

$55,07555,07555,07555,075

55,07555,07555,07555,075

55,07555,07555,07555,075

47,12547,12547,12547,125

47,12547,12547,12543,600

43,60043,60043,60043,600

43,60043,60043,600

The 159 authorizations were made to 105 Individual concerns.


TABLE Ag-10

Loans to Commodity Credit Corporation for Financing of Agricultural Commodities andLivestock, Under Sec. 201 (d), Title I I , Emergency Relief and Construction Act of 1932

Year andquarter

19334th

19341st2d3d4th

19351st2d3d4th

19361st „ _.2d3d4th

19371st2d3d4th

19381st2d3d. . .

Total.. . .

Authorized

Number

2

1

22

211

111

36

31

28

Amount

$370,664,190

48,000,000

256,000,000109,335,810

57,000,000100,000,000100,000,000

8,474,169151,095,76210,000,000

2,133,696235,140,00084,514,000

22,354,23850,000,000

1,604,712,665


$151,004,259

85,011,926

22,305,924

107,013,463

199,039,409

1,403,365

270,317,357

836,995,703

Disbursed

$65,671,930

112,607,94857,492,29126,741,88625,479,385

19,613,886116,773,250122,080,624

9,170,508

31,260,02214,842,4555,090,4732,912,503

36,715,622199,906

17,768,66460,606,162

35,087,8927,601,555

767,716,962


$1,095,771

15,371,23916,746,480

152,870,17468,547,539

13,424.5438,143,818

11,522,275368,822

1,522,272149,841,60471,561,198

485

55,748,89432,503,67561,791,540

847,606

3,158,494102,650,533

767,716,962

Outstanding

$64,576,159

161,812,868202,558,67976,430,39133,362,237

39,551,580148,181,012258,739,361267,541,047

297,278,797162,279,64895 808,92398,720,941

79,687,66947,383,9003,361,024

63,119,580

95,048,978

TABLE Ag-11

Loans to Secretary of Agriculture to Acquire Cotton Under Sec. 5, Title I, AgriculturalAdjustment Act of 1933, as Amended

Year andquarter

3 d " 3 3

4th

19341st2d...3d. . .4th

Total

Authorized

Number

1

1

2

Amount

$3,500,000

20,000,000

23,500,000


$200,000

20,000,000

20,200,000

Disbursed

$3,300,000

3,300,000


$3,300,000

Outstanding

$3,300,000


TABLE MS-I

Summary of RFC's Investment in Its Mortgage Loan Subsidiaries

Year and quarter

19351st2d3d4th

19361st2d_ ._ _3d4th

19371st. . .2d .3d4th.™

19381st -2d3d4th. „

19391st..2d3d.4th

19401st.2d3d4th

1st. 1 M I

2d3d4th

19421st2d. .3d4th. ._

19431st2d3d. . .4th

1st.. l m

2d3d4th

19451st2d — - -3d4th

19461st2d.3d4th : : : : : : : . : : : :

Authorized

$10,000,0007,000,000

229,9831,910,902

7,303,33815,000,0005,000,000

6,907,17820,367,12115,002,266

26 000,0006,300,488

35,000,00035,000,000

60,000,0007,780 501

566,48410,000,000

33,962 79310 000 000

10,000,000

4,871,44510,000,000

35,000,000

30 000,000

6,975,000

95,000,00025,000,000

25,000,000

56,606,666

Disbursed

$10,000,0001,844,5002,954,029

2,383,3722,868,582

14,172,6497,747,030

12,200,7027,833,895

13,642,78911.909,267

19,143,7198,470,623

18,237,00340,088,753

22,612,47620,779,16814,097,49618,132,297

14,866,4568,855,576

11,251,63616,247,686

11,942,6028,691,237

10,273,78010,280,008

12,469,1778,432,1389,60S, 031

10,101,868

42,444,0443,526,558

54,644,4097,697,537

18,898,5087,103,4985,793,1154,777,768

7,420,7611,305,534

507,828420,129

173,970295,300176,506

2,014,878


$81276,734

379,717427,884

1,136,3602,542,392

5,838,4083,316,2144,442,4482,987,498

3,200,45932,811,63110,467,3272,000,534

49,007,3673,163,1628,039,0363,450,034

2,882,4743,757,2221,964,757

957,139

1,344,3041,914,0781,015,9713,189,847

2,355,3771,607,1415,420,0866,986,078

38,346,416106,987,362

8,182,6108,574,614

4,672,4267,414,273

19,207,2015,503,192

30,023,75559,410,95411,043,5309,104,921

14,755,9986,431,6823,051,7351,381,395

Outstanding

$10,000,00011,843,68814,720,983

16,724,63819,165,33632,201,62537,406,263

43.768,55748,286,23857,486,57966,408,348

82,351,60858,010,60065,780,276

103,868,495

77,473,60495,089,610

101,148,070116,830,333

127,814,315132,912,669142,199,548157,490,095

168,088,393174,865,552184,123,361191,213,522

201,327,322208,152,319212,340,264215,456,054

219,553,682116,092,878162,554,677161,677,600

175,903,682175,592,907162,178,821161,453,397

138,850,40380,744,98370,209,28161,524,489

46,942,46140,806,07937,930,85038,564,333


TABLE MS-l—Continued

Summary of RFC's Investment in Its Mortsage Loan Subsidiaries—Continued

Year and quarter

19471st2d3d4th —

19481st2d .3d „ . . .4th -—

19491st2d3d4th

19501st2d . . .3d ,4th

19511st2d3d :4th „

19521st2d3d

19531st2d3d...—... „_... __.

Total

Authorized

$163,778,018

34,868,55609,050,010

107,795,652156,248,086166,340,820181,968,161

155,332,18865,662,98595,329,773

1,831,551,598

Disbursed

$18,786,12034,280,80040,013,26320,000,000

10,000,00038,702,24849,197,51399,097,010

107,795,552156,248,086166,340,820181,968,161

155,332,13865,662,98595,329,773

1,778,093,357


$278,38211,430,8511,520,8811,640,000

1,830,0001,993,3661,821,0001,660,000

1,908,0002,269,0322,343,7892,407,141

6,833,38414,924,817

1,127,925,2124,623,750

3,195,4057,148,2181,559,2621,559,264

1,870,1041,683,3161,435,0221,538,724

1,670,5741,720,3311,413,692

1,710,978,072

Outstanding

$57,072,07179,922,020

118,414,402136,774,402

144,944,402181,653,284229,029,797326,466,807

432,354,359586,333,413750,330,444929,891,464

1,078,390,2181,129,128,386

96,532,94791,909,197

88,713,79281,565,57480,006,31278,447,048

76,576,94474,893,62873,458,60671,919,882

70,249,30868,528,97767,115,285

67,115,285


TABLE MS-2

Loans to and Purchases of Capital Slock in RFC Mortgage Company

Year and quarter Authorized Disbursed Repayments Outstanding

1 s t - .2d3d

h

1st . . . .2d3d4th..._

1st..2d2d«.3d...4th_.

1st.2d_3d..4th.

1st2d3d4th..._.

1st..2d3d..4th,

1st,.2d...3d...4th..

1st2d..3d..

1st..2d._.3d...4th..

1st.2dd._3d..4th

1st..2d...3d_4th.

1st-.2d._.3d__4th..

1st..2d..

1935

1936

1937

1938

1939

1940

1941

1942

1943

1944

1945

1946

1947

Subtotal, RFC-MO

i $10,000,0007,000,000

229,9831,910,902

115,00010005,000,000

»6,907,17820,367,12115,002,266

15,000,0006,300,488

10,000,00010,000,000

10,000,0007,780,501

566,48410,000,000

10,000,000

'I6,"ooo,"66o"

10,000,000

~i6,"66o,~6oo

30,000,000

10,000,00025,000,000

25,000,000

50,000,000

50,ooo;6oo

1 $10,000,0001,844,5002,954,029

2,383,3722,868,582

»14,172r6497,747,030

»12,200,7027,833,89513,642,78911,909,267

8,143,7198,470,6236,051,74513,563,947

9,273,1296,998,4115,574,1505,902,733

3,608,9954,075,0696,907,305

3,645,9135,237,6305,751,5324,701,227

5,850,4377,264,1189,058,4178,431,433

5,303,6173,526,5586,592,1687,595,967

8,867,9247,078,2775,787,0934,710,213

6,420,7611,305,534507,828420,129

173,970295,300176,506.

2,014,878

18,786,12034,280,800

$81276,734

379,717427,884

1,136,3602,542,392

5,838,4083,316,2144,442,4482,987,498

3,200,45932,811,63110,467,3272,000,534

10,173,1293,163,162

2,882,4743,757,2221,964,757957,139

1,344,3041,914,0781,015,9713,189,847

2,355,377832,141

1,970,0862,036,078

2,480,9893,649,4324,682,6105,849,614

1,547,4264,464,27312,832,2014,703,192

27,148,75522,577,76111,043,5309,104,921

14,755,9986,431,6823,051,7351,381,395

278,382

334,910,020 254,557.149

$10,000,00011,843,68814,720,983

16,724,63819,165,33632,201,62537,406,263

43,768,55748,286,23857,486,57966,408,348

71,351,60847,010,60042,595,01854,158,431

53,258,43157,093,68054,628,79457,081,493

59,198,04859,049,82161,160,13367,110,299

69,411,908'72,735,46077,471,02178,982,401

82,477,46188,909,43895,997,769102,393,124

105,215,752105,092,878107,102,436108,848,789

116,169,287118,783,291111, 738,183111,745,204

91,017,21069,744,98359,209,28150,524,489

35,942,46129,806,07926,930,85027,564,333

46,072,07180,352,871

80,352,871

See footnotes at end of table.

261


TABLE MS-2-Continued

V A and FHA Mortgages Received by RFC From RFC-MC in Merger June 30, 1947

Year and quarter

19472d3d4th

19431st . -2d3d4th .

19491st2d3d4th

19501st2d3d. .._4th _

19511st2d3d4th

19521st2d3d4th

19531st2d "3d : : : :

Total

Authorized

$73,091,468

461,459,729

Disbursed

$40,013,26320,000,000

10,000,0002,627,691

403,51447,000

408,001,488

Repayments

$11,430,8511,520,8811,640,000

1,830,0001,993,3661,821,0001,660,000

1,908,0002,269,032.2,343,7892,407,141

6,833,38414,924,8174,329,1314,623,750

3,195.4057,148,2181,559,2621,559,264

1,870,1041,683,3161,435,0221,538,724

1,670,5741,720,3311,413,692

340,886,203

Outstanding

$68,922,020107,414* 402125,774,402

133,944,402134,578,727133,161,241131.548,241

129,640,241127,371.209125,027,420122,620,279

115,786,895100,862,07896,532,94791,909,197

88,713,79281,565,57480,006,31278,447,048

76,576,94474,893,62873,458,60671,919,882

70,249,30868,528,97767,115,285

67,115,285

1 Includes $10 million of c* Includes $5 million of ca

)ital stock.Ltal stock.

after t4m

7, the RFC Mortgage Company was merged with the parent organization. At that time,ed of $25 million In capital stock and $65,352,871 in loans. Inthemer-

^gages, plus undisbursed commitments totaling $85,795,957.Ttgage loans and $7,081,564 of outstanding.dlrect mortgages

(See table BE-l.) The $68,922,020 of outstanding VA and FHA mort-a r are shown as representing RFC's Investment In RFC-MC for periods[ed undisbursed commitments for VA and FHA mortgages amounting to

canceled prior to disbursement. The remaining $73,091,468 were- ' ^FC'sundls-


TABLE MS-3Loans to and Purchases of Capital Stock in Federal National Mortgage Association

Year and quarter

19331st2d3d4th . _ _ . . : : : "

1st W 3 9

2d3d4th

19401st2d3d. . . . ' "4th .

19411st2d3d4th

1 9 4 2

2d ._ .3d4th

19431st2d3d4th. . .

1st liU

2d3d4th

19451st2 d _ _ "3d4th

1st 1 M 6

2d

4th___.

19471st2d : : : : :3d4th : : "

1st . . 1 9 4 8

2d_«.3d4th

1st 194*2d. . .3d ; : : : : : : " :4th

19501st- . .2d : : :3d

Total

Authorized

» $11,000,000

25,000,00025.000,000

50,000,000

33,962,793

4,871,445

25,000,000

6,975,000

85,000,000

40.686,550

34,863,556* 99,050,010

107,795,552156 248.086166,340,820181,968,161

155,332,13865,662,98595,329.773

1,370,091,869

Disbursed

i $11,000,000

12,185,25826,524,806

13,339,34713,780,7573,523,346

12,229,564

9.867,4275,246,5817,176,5679,340,381

8,296,6893 453,6074,522,2485.578,781

6,618,7401,168,020

549,6141,670.435

37.140,427

48,052,241101,570

10,030,58425,2216,022

67,555

1,000,000

36,074,55748,793,999

* 99,050,010

107,795,552156,243,086166,340,820131.968,161

155.332,13865,662,98595,329,773

1,370,091,869

Repayments

$33,834,238

775.0003,450,0004,950,000

35,865,427103,337,930

3 600 000% 725,000

3,125,0002,950,0006,375,000

800,000

2,875.00036,833,193

M,123,596,081

1,370.091,869

Outstanding

$11,000,00011,000.00023,185,25849,710,064

24,215,17337,995,93046,519.27658,748,840

68,616,26773,862.84881,039,41590,379,796

98,676,485102.130,092106,652,340112,231,121

118,349,861119,242,881116,342,495113,062,930

114,337,93011,000,00055,452,24152,828,811

59,734.39556,809,61650,440,63849,708,193

47,833,19311,000.00011,000.00011.000,000

11 000,00011,000,00011,000,00011,000,000

11,000,00011,000,00011,000,00011,000,000

11,000,00047,074,55795,868,556

194,918,566

302,714 118458,962,204625,303,024807,271.185

962,603,3231,028,266,308

I Capital stock and paid-in surplus.a Includes $10 million of capital stock. .1 Capital stock and outstanding loans transferred to Housing and Home Finance Agency.

505257—59 18 263


TABLE R-l

Loans to Railroads (Including Receivers and Trustees) Under Sec. 5, RFC Act, as Amended

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

1st—2d . .3d . .4 th .

1932

1st..2d . .3d . .4th.

1933

19341st2d . . .

4th.

1st...2d__.3d... .4th. .

1935

1st..

3d . .4th.

1936

1st..2d . .3d . .4th_.

1937

1st.-2d . .3d . .4th-

1938

1939t..

2d_.3d . .4th.

1st..2d_.3d . .4th.

1940

19411st2d3d4th

19421st2d3d4th

19431st2d3d4th ;

19 $60,787,757153,094,96750,484,20973,068,160

27,747,75042,056,5833,862,000

744,252

600,0008,254,2521,000,00036,156,150

$90,000174,740

2,783,09135,701

1,000,000

744,252

36,519,648

219,000161,772

1,700,0006,000

53,600

104,422,40016,255,6678,326,000140,000

5,000,00010,000,0005,000,000

99,425,400

13,533,00034,371,50031,473,00022,974,922

10,042,0007,820,000607,000

37,680,000

15,039,00035,964,00044,364,50019,036,000

$11,136,8701,768,5005,692,000

17,610,000

368,000

500,000

72,20065,000

4,500,000158,000

$64,0005,030,156

35,000

166,000

2,280,0004,000,000

430,000108,000

$56,113,75789,539,784

56,259,698

46,886,61748,530,5132,597,70011,768,157

8,296,2639,255,3232,250,687

33,386,741

3,511,00036,036,900

291,40094,252

1,600,0009,063,7489,202,667

10,043,000

15,000,0005,000,000

13,533,00027,521,50026,497,00020,422,922

8,701,00015,149,8001,255,000

14,904,000

24,870,00041,580,60348,311,9586,731,783

$20,111,8703,608,500

17,842,000

4,630,0002,340,0001,200,000

3,900,000100,000

8,700,000972,000

$1,147,9525,018,7283,474,8842,197.998

8,438,6125,390.876

24,844,0236,415,060

139,311941,172

12,292,97587,813

206,1121,891,1931,733,080

16,747,174

8,610,3659,871,190

48,375,98913,325,749

5,610,6061,047,3703,043,700

382,607

993,3282,254,161

831,3343,693,312

5,234,70215,510,6301,619,8084,846,308

5,875,25033,611,48654,129,1242,889,681

$7,116,48420,851,0278,721,16116.258,595

2,284,2775,100,006818,305

11.970,897

19,750,51918,487,11411,796,11126,099,314

$54,965,805139,486,861218,410,009272,471,709

310,919,714354,059,351331,813,028337,166,125

345,323,077353,637,228343,594,940376,893,868

380,198,756414,344,463412,902,783396,249,861

389,239,496388,432,054349,258,732345,975,983

340,365,377354,318,007356,274,307355>i;700

368,431,372393,698,711419,364,377436,093,987

439,560,285439,199,455438,834,647448,892,339

467,887,089475,856,206470 039,040473,881,142

$486,876,528

460,912,840462:496.245

464,841,968462,087,962462,469,657450,498,760

434,648,241416,261,127413,165.016388,037,702


TABLE R-l—Continued

Loans to Railroads (Including Receivers and Trustees) Under Sec. 5, RFC Act, as Amend-ed—Continued

Year andquarter

19441st2d3d4th

19451st..2d3d

19461st

3d4th

19471st2d3d4th

19481st2d

4th : :

19491st2d

4th

19501st2d3d4th

2d : :3d4th.. . : :

19521st2d._.

4th

2d3d

Total.

Authorized

Number

1

11

11

1

1

2

12

1

248

Amount

$1,075,000

36.0001,695,000

250,0003,073,000

80,000,000

250,000

968,000

2,500.0001,323,700

717,000

1,059,867,787


$408,000

36,000

159,000

50,000

2,500,000

120,709,912

Disbursed

$1,075,000

1.695,000

250,000

80,000,000

250,000

1,075,0001,625,000

1,232,000

373,700950,000

938,440,875


$5,442,63410,844,31019,051,00741,513,144

60,971,19639,285,26412,333,1683,762,412

26.038,091681,164

23,940.046573,357

2,514,58180,255,2211,819,017

712,280

754,000650,000

1,271,0384,000,000

158,000540,000138,000

5,264,000

1,579,000212,000387,000

3,113,000

2,086,0003,115,260

574,00010,487,300

7,734,55612,394,675

151,0002,237,000

5,773,285221,84986,000

854,641,228

Outstanding

$382,595,168371,750,858352,699,851312,261,707

251,290,511213,700,247201,367.079197,604,667

171,666,576170,885,412147,195,366146,622,009

144,107,428143,852,207142,033,190141,570,910

140,816,910141,241,910141,495,872137,495,872

138,569,872138.029,872137,891,872132,627,872

131.210,572131,048,872131,773,572128,660,572

126,574,672123,459,312122,885,312112,398,012

104,663,45692,268,78192,117,78189,880,781

84,107,49683,885,64783,799 647

83,799,647

t The 248 authorizations were made to 98 individual railroads. The data above Include $5,350,000 author-ized to guaranty advances made by financial Institutions and $670,000 authorized to guaranty railroadsecurities sold by RFC. No disbursements were made by RFC on these guaranties, and the authoriza-tions subsequently were canceled. The data above do not include transactions on railroad securitiespurchased by RFC from PWA.


TABLE PA-1

Loans to and Investments In Political Subdivisions of States and Territories (Exclusive ofPurchases From P W A )

Year andquarter

3d_4th .

1932

1st-2d._3 d . .4 th .

1933

19341st ,2d3d4th

19351st.,2d2 d . .3d . .4 th .

19361st2d3d4th

19371st ,2d3d4th

1st..

3d . .4th.

1938

19391st2d3d4th

19401st2d3d4th

1st...2d. . .3d. . .4th. .

1941

1st...2d _3 d . .4 th .

1942

1st...2d . . .3d . . ,4th_.

1943

1st.2d._.3 d . . .4th. .

1944

Authorized

Number Amount

55

130849164

$63,105,00091,449,931

51,614,89723,020,006

7,042,418

16,478,82112,903,79925,825,83620,764,641

1,713,16238,620,4461,418,600

26,421,150

7,973,51766,990,3266,571,0102,906,415

3,678,78262,675,7652,141,9822,088,331

2,961,1689,677,135

32,136,60156,189,360

2,052,0996,999,400

27,693,43220,815,800

8,365,50059,207,0002,184.500

781,289

131,820,55712,948,500

514,511337,800

83,000837,500

10,334,630386,700

122,500164,000

2,050,00026,260

69,6604,000

145,60042,000


$190,000

672,7846,141,7045,431,6002,977,500

3,484,2331,292,7263,349,244

950,000

446,0002,365,000

275.7892,244,100

1,707,8261,158,2522,946,245

8,366,8154,376,870

492,362703,064

263,006974,340727,569

8,009,413

12,403,812

1,857,744155,321

1,049,941682,674

13,937,1992,184,196

703,182812,777

27,904,383186,990

4,355,9561,193,783

420,547205,251

6,22814,500

9,914,54811,800

208,0401,287,600

138,036251,309

Disbursed

$15,737,000

4,947,0008,813,240

17,208,42116,660,400

15,178,83515,507,47923,721,18417,729,108

20,533,43820,745,37629,631,12826,718,817

18,871,05817,347,06322,003,87614,697,957

17,078,34518,647,72614,563,9699,582,925

7,866,17711,078,95413,975,05828,627,603

4,880,22410,744,30041,791,59312,481,721

19,537,51013,108,71210,070,05712,970,667

3,689,43796,913,26648,075,4512,007,220

4,105,1382,963,5903,175,1832,031,351

668,300790,741609,173

1,905,394

240,850470,350210,000959,640


$40,0007,000

13,500

3,624,167692,604880,293

3,385,282

1,918,904106,416

1,080,06332,724,054

2,048,5515,798,598

332,450

200,841594,185503,136516,924

8,025,7716,867,776

54,574,30132,771,070

1,851,096147,334,806

756,60716,753,073

33,012,38332,068,78519,876,73715,477,472

4,509,93199,689,373

5,608,21835,715,419

1,389.8111,899,6012,711,1292,667,696

18,113,3296,809,362

14,786,6673,063,214

3,172,1967,534,4473,484,7956,059,478

Outstanding

$15,737,000

20,684,00029,457,24046,658,66163,195,561

74,750,22989,565,204112,406,095126,749,921

145,364,455166,003,415194,454 480188,449,243

205,271,750216,820,215238 491,641250,600,929

267,478,433285,631,974

308,499,214312,710,392272,111,149267,867,682

270,896,811134 306,305175 341,291171,069,939

157,695,066138,634,993128,829,313126; 322,408

125,501,914122,725,807165,293,040131,684,841

134,300,16?135,364,157135,828,211135,201,866

117,656,837112,638,216

97;213,002

94,281,65687,217,56983,942,76478,842,926


TABLE PA-1—Continued

Loans to and Investments in Political Subdivisions of States 'and Territories (Exclusive ofPurchases from PWA)—Continued

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

lst_.2d_-3d__4th.

1945

1st..2d_.3d . .4th.

1946

1st-2 d _3d-_4tb-

1947

19481st2d3d4th ,

1st-2d.-3d_.4th-

1949

1st...2d. . .3d_..4th. .

1950

1st-.2 d -3d. ,4th_

1951

1st.d

3d . .4th-

1952

19531st2d

$151,000

60,000

647,500358,00099,500515,000

13,800,000501,000126,500

81,20024,300,0001,171,2753.000.000

22,600,000510,000542,000

3.261,000

5,610,000601,000431,500897,000

l t 185,000289,510

7,300,000269,000

16,999,500709,000768,000771,000

265,00040,000

2,209,400

$324,6133,000

3,081

49,800137,16310,000506,706

62,996195,00070,027

7,237,000

7,000,0006,845,000303,000404,000

424,40217,769,500

459,600

2,662,605442,500126,000

5,044,135

970,375295.000

751,000

"4O3,"6I6"

215,40070,000

Total...,. 1,878 1,024,203,892 192,855,376

$488,964205,00045,000

382,000

2,516.5005,020,0002,259,5813,000,000

6,032,5004,027,0004,112,5004,250,100

6,000,0007,329,200605,000288,000

6,143,900168,500217,000115,000

250,000215.000441,365718,000

123,000194,000750,000842,000

1,160,000163.00091,000

6,753,000

509,0002,962,6003,860.500

$7,922,4825,552,1142,206,9781,300,393

7,185,6954,861,4647,358,132469,101

379,547

2,300,9721,382,566

1,

876,197700,000

283,002

757,69364,059,301

220,060678,385

2,384,4681,754,207897,782

1,730,749

709,601739,671674,310628,120

97,5001,908,572

87,217412,054

161,41198,33154,000

793,600,115 768,139,704

$71,409,40866,062,29463,900,31662,981,923

58,312,72858,471,26453,372,71355,903,612

61,556,56562,347,17764,158,70567,026,239

72,150,04278,779,24277,831,98077,836,978

83,223,18519,332,38419,329.32418,765,939

16,631.47115,092,26414,635,84713,623,098

13,036,49712,490,82612,566,51612,780,396

13,842,89612,097,32412,101,10718,442,053

18,789,64221,653,91125,460,411

25,460,411

267


TABLE PA-2

Loans on Self-LfquidatinS Projects Under Sec. 201 (a) of the Emergency Relief andConstruction Act of 1932, as Amended

Year andquarter

3d._1932

Authorized

Number Amount

1st..2 d -3d~4th.

1933

19341st2d3d4th

47

77

$53,105,00091,449,931

51,514,89723,020,006

193511st.2d3d-4th

1st..2 d -3 d -4th_

1936

1st..2d._3d.-4th.

1937

19381st2d3d4th

1st..2d. .3d . .4th-

1939

2d. .3d . .4th.

1940

1941

2 d -3d . .4 th .

1st...2d.__3 d . . .4th_.

1942

1std

1943

3 .4th-..,

1 s t . -2d3d..,. .4th-...

1944

3,304

125485

15,315,00010,017,704


30,053,0007,000

$190,000

672,7845,141,7045,431,5002,977,500

3,419,744607,900

2,559,694950,000

•DisbursedEepayments

and otherreductions

5,43257,500,000

5,00060,000,000

750,000

~125,*66o

2,000

1,540,00066,500

1,200,000

508,0003,000

77,5001,580,777

969,1402,792,500

225,000351,000

238,000

15,000

7,000

27,816,000

$15,737,000

4,947,0008,813,240

17,208,42114,136,445

15,067,89213,395,98518,878,73814,909,722

11,538,84914,413,38922,927,45610,843,658

15,422,16114,591,57516,232,44711,910,883

13,546,89713,556,7049,482,1449,000,000

7,200,000

8,812,1265,860,126

1,576,0002,297,0002,268,0001,887,000

2,268,0001,512,000

10,334,000

Outstanding

$40,0007,000

13,500

3,624,167'692; 504880,249

3,385,282

1,917,90478,416

1,056,13532,698,178

1,995,0015,733,093

207,5942,328,970

91,550193,531195,298188,990

7,440,7606,639,909

54,182,60713,724,203

823,748143,856,867

143,5006,210,800

384,12020,219,500

157; 38812,081,631

864,437148,468401,306506,905

123,055138,750153,143191,787

131,147116,927126,737

"$15,~737,000

20,684,00029,457,24046,658,66160,781,606

72,225,33184,928,812102,927,301114;451741

703,20067,831196,086372,226

124,072,686138,407,659160,278,980138,424,360

151,851,520160,710,002176,734,855186,316,768

199,772,115213,135,288222,422,13423i;233144

230,992,384233,309,358187,938,877180,074,800

180,827,05239 267,18541,391,68538,067,885

37,683,76519,732,26521,086,877

18,474,80918,326,34117,925,03517,418,130

17,295,07517 156,32517,003,18216,811,395

16 563,32116 436,58416; 237,701

15,534,501-\ 466,670

268


TABLE PA-2— Continued

Loans on Self-Liquidating Projects Under Sec. 201 (a) of the Emergency Relief andConstruction Act of 1932, as Amended—Continued

Year andquarter

19451st2d. ..3d4th

19461st2d.3d4th. „ .

19471st.2d3d4th

Total

Authorized

Number

192

Amount

$398,873,884


$59,340,243

Disbursed

$2,000

339,533,641


$5,622,30012,000

36,921

2,0005,193,000

678,0795,000

37,921

336,220,504

Outstanding

$9,276,0589,264,0589,264,0589,227,137

9,227,1379,225,1374,032,1374,032,137

4,032,1373,356,0683,351,0583,313,137

3,313,137

The 192 authorizations were made to 176 individual borrowers. Data are not available to extend thisseries beyond 1947. Transactions for periods subsequent to 1947 are included in the summary of loans toand investments in political subdivisions of States and Territories, table PA-L

TABLE PA-3

Loans to Drainage, Levee, Irrigation, and Similar Districts Under Sec. 36, Title I I ,Emergency Farm Mortgage Act of 1933, as Amended

Year andquarter

19334th

19341st2d3d4th

19351st2d3d4th

19361st2d3d4th

2d3d4th

19381st2d3d4th

Authorized

Number

55

130848961

48624027

96421715

36792121

28353525

Amount

$7,039,114

16,478,69612,903,31410,510,83610,746,837

1,713,1622,567,4461,411,600

26,421,160

7,968,0859,490,3266,571,0102,906,415

3,673,7822,675,7652,141,9822,038,331

2,211,1583,349,6432,390,6011,451,724


$64,489684,826789,550

446,000825,000209,289

1,044,100

427,6891,704,8261,080,7521,365,468

7,397,6751,584,370

267,362352,054

263,006974,340152,669786,413

Disbursed

$2,413,955

110,9432,111,4944,842,4462,819,386

8,994,5896,331,9876,603,672

15,875,259

3,448,8972,755,488i 771,4292,787,074

3,631,4485,091,0225,081,825'682,925

666,1772,122,071

574,9401,594,415


$44

1,00028,00023,92825,876

53,55065,505

124,856259,699

109,291400,654307,838327,934

585,011227, P67391,694187,305

Outstanding

$2,413,955

2,624,8984,636,3929,478,794

12,298,180

21,291,76927,595,75634,175,60050,024,883

53,420,23066,110,21361,756,78664,284,161

67,706,31872,396,68677,170,67377,425,664

77,506,83079,401,03479,584,28080,991,390

269


TABLE PA-3—Continued

Loans to Drainage, Levee, Irrigation, and Similar Districts Under Sec. 36, Title II,Emergency Farm Mortgage Act of 1933, as Amended—Continued

Year andquarter

Authorized

Number Amount


DisbursedRepayments

and otherreductions

Outstanding

lst._2d. . .3d. . .4th_.

1939

1st..2d_.3d . .4th.

1940

1st..2d_.3d . .4th.

1941

19421st2d3d4th

1st.2d._3d . .4th.

1943

1st..2d . .3d . .4th.

1944

1st..2d_.3d . .4th.

1945

1st..2d._,3d . .4th..

1946

1st..2d__3d . .4th.

1947

19

10

$1,479,799423,500645,932644,800

342,500309,00096,500208,800

185,6006,090,000337,711272,800

33,000498,000334,53048,700

122,600139,00050,00026,250

61,6504,000

145,50037,500

146,000

50,000

275,00062,500220,000

65,00070,500

$11,033,712230,726108,949108,321

149,950

13,449,455175,407

309,782124,17751,883175,490

74,956163,78310,14725,251

6,22814,500

134,040387,600138,035251,309

324,6133,000

3,081

46,00057,163

6,706

62,99620,0001,527

$2,117,724925,600728,614845,621

602,701281,093524,301713,267

1,046,8376,034,7091,184,851

94,220

273,638242,590910,18331,351

121,148190,741184,173

27,850170,35060,000159,640

170,964

45,00077,600

16,50020,000259,681

Total

32,50025,000112,500260,100

$352,347572,947335,607350,094

634,813650,875760,475613,341

1,345,7449,573,9482,844,4124,242,714

1,228,4561,742,3512,193,1862,442,109

3,420,0822,954,4112,285,8962,745,231

1,454,2507,317,1983,286,7395,666,922

2,103,2323,448,7381,190, 7921,252,660

5,965,7584,735,7642,139,564402,060

358,922648,127332,273

1,338,915

1,318 150,127,449 48,161,758 101,787,683 85,950,905

$82,756,76783,109,42083,502,42783,997,954

83,966,84283,596,06083,359,88683,459,812

83,160,90578,621,66676,962,10572,813,611

71,858,793

69,076,02966,665,271

63,366,33760,602,66758,500,94455,961,107

64,534,70747 387,85944,151,120

36,711,570

32,117,0403a 941,980

24,992,72220,276,95818,396,97517; 994; 915

17,668,49317,145,36616,925,59315 836,778

15,836,778

m ? d e t 0 ?7i m d i v i d ™ l borrowers. Data are not available to extend thisl Z F ^ A ^ ^ ^ ^ 1?47 are included In the summary of loans to

aDie Jc A—1.


TABLE FA-4

Loans to Public Bodies to Aid in Financing Projects Authorized Under Federal, State, orMunicipal Law Under Sec. 5(6), of the RFC Act, as Amended

Year andquarter

19382d3d4th

19391st2d3d4th._

19401st..2d3d4th

19411st2d3d4th

19421st2d__.3d4th

19431st2d3d4th

19441st2n_.3d4th "

19451st2d._.3d. .4th_.

19461st2d._. " " "3d : " " '4 t h . . .

19471st2d.3d I " "4th : : "

Total

Authorized

Number

11685

1512

13

14231216

9832

1312

11

1

1

1

32

3

251

237

Amount

$6,327,49229,621,00054,737,636

572,3006,575,900

27,047,50020,171,000

8,023,00058,898,0002,088,000

572,489

131,633,0576,858,500

176,80065,000

50,000339,500

10,000,000338,000

15,0002,000,000

18,000

4.500

5,000

647,50083,00037,000

295,000

13,800,000436,00056,000

381,392,174


$337,0007,223,000

1,370,100572,100

1,733,79547,000

899,991489,331487,744

2,001,789

393,400688,60036,50011,500

4,281,0001,030,000

410,400180,000

9,914,54811,800

74,000900,000

3,80080,00010,000

500,000

175,00068,500

7,237,000

41,167,948

Disbursed

$4,587,99221,073,062

1,186,6007,521,700

38,794,9799,749,100

18,934,80910,559,6198,033,7561,923,300

2,642,60091,878,55746,890,6001,913,000

3,831,5002,721,0002,265,0002,000,000

447,152600,000325,000

1,700,000

213,000300,000160,000800,000

318,000205,000

304,600

2,600,0005,000,0002,000,0003,000,000

6,000,0004,000,0004,000,0004,000,000

312,379,720

Hepaymentsand otherreductions

$13,859,562

675,0002,904,992

277,50011,192,179

31,993,45011,198,41018,957,8742,782,600

2,299,75089,966,9572,262,500

30,965,800

38,30018,500

364,80023,800

14,562,1002,738,024

12,373,934109,100

1,014,746149,418

1,97020,330

196,9502,091,3761,016,186

10,912

1,219,937123,70025,56867,041

20,6252,010,1821,950,200

6,730

264,489,903

Outstanding

$4,537,9926,801,492

7,312,99211,929,70060,447,17949,004,100

35,945,45935,306,66824,332,55023,523,350

23,866,20025,777,80070,405,90041,353,100

45,146,30047,843,80049,749,00051,725,200

37,610,25235,472,22323,423,29425,014,194

24,212,44324,363,03024,521,03025,300,730

25,421,78023,535,40422,519,21822,812,806

24,092,86928,969,16930,943,60133,876,560

39,855,93541,845,76343,895,55347,889,823

47,889,823

The 237 authorizations were made to 119 individual borrowers. The 2 authorizations ^ $ 1 3 . 8 0 ^ £in the 1st quarter of 1947 are conditional authorizations for which the actual dates of authorization cannotbe determined. Both of these conditional authorizations were later canceled In full. Data are not a r a b l e

- nsactlons for periods subsequent to 1947 are included in the summary1 subdivisions of States and Territories, table PA-1.


TABLE G-l

Loans to and Subscriptions for Preferred Stock of Export-Import Banks

Year andquarter

19341st2d

4th

19351st2d3d4th

19361st2d3d4th.

19371st2d3d4th

19381st -2d3d4th ' : : : : : : : : :

19391st2d3d4th

19401st2d3d4th

19411st2d3d4th

19421st2d

4th

19431st2d

4th

19441st2d

4th

19451st2d

Total—

Authorized

umber

2

1

1

1

1

Amount

$12,500,000

10,000,000

25,000,000

29,000,000

25,000,000

100,000,000

201,500,000


Disbursed

$12,500,000

7,000,0003,000,000

25,000,000

29,000,000

25,000,000

100,000,000

201,500.000


$2,500,000

25,000,000

174,000,000

201,500,000

Outstanding

$12,500,00012,500,00012,500,00012,500,000

12,500,00012,500,00010,000,00010,000,000

10,000,00017,000,00020,000,00020,000,000

20,000,00020,000,00020,000,00020,000,000

20,000,00020,000,00020,000,00045,000,000

45,000,00045,000,00045,000,00045,000,000

74,000,00074,000,00074,000,00099,000,000

199,000,000199,000,000199,000,000174,000,000

174,000,000174,000,000174,000,000174,000,000

174,000,000174,000,000174,000,000174,000,000

174,000,000174,000,000174,000,000174,000,000

174,000,000174,000,000


TABLE G-2

Loans to Defense Homes Corporation Under the Act Approved June 2 5 , 1 9 4 0

Year andquarter

19413d4th

19421st2d3d4th

19431st2d3d._4th

19441st

3d.4th

19451st2d3d : : ; :4th, 1946Iss.. .2d "3d . . .4th

m."47

g4th " "1948

1st2d3d.,.4th... ."""

1st."4 9

2d4th " "

2d I " "

4th " "

2d

4th " "

2d

4th._ " "

l s t . . I 9 S S

2d.__

Total

Authorized

Number

11

1

1

4

Amount

$5,000,00045,000,000

14,000,000

1,760,000

65,760,000


$58,000

58,000

Disbursed

$3,448,585

2,060,4425,385,1209,997,4019,000,000

6.600,0008,000,0008,500,0005,108,452

3,050,0002,047,0001,175,000

600,000

325,000295,00075.000

125,000

50,000

on nno10,000

20,000

65,692,000


$54,831

78,80797,947

293,693492,010

377,326800,046

3,881,485710,991

455,3731.215,7871.543.8931,560,241

2,398,5342,265,0251,882,9192,427,947

1,008,9321,315,792

AAl iYTK

1,512,9307,160,125

239,329

191,167206,147190,003285.523

200,783264,146210,830261,855

214,386289,501215,165216,165

214,100273,227343,731395,523

317,426423,610070 707

37,313,128

Outstanding

$3,448,585

5,609,02710,894,14720,891,54829,836,717

36,257,91044,159, 963

66,982,707

59,655,38160,902,33558,195,a5057,984,859

57,854,48666,933,69955,464,80654,029,665

51,681,03149,416,00647,653,08745,135,140

44,146,20842,830.41642.383,34142,383,341

42,383,34140,870,41133,710,28633,470,967

33,279,79033,073,643QO CO3 AAfl

32,598,117

32,397,33432,133,18831.922,35831.660,503

31,446,11731,156,61630,941,45130,726,286

30,612,18630,328,95929,895,22329,499.705

29,182,27928,758,66928.378 872

28,378,872

Effective in July 1948, all assets and liabilities of DHO were transferred to KFO without reimbursement.At that time, the ouândmgbalanoe 0? theloans made by RFC to DHO was $40,870,411. SubsequentreaUgtions on the S T S v e d ^ EFO in theteansfer we>e applied to reduce RFCl's equity in the assets


TABLE G-3

Purchase of Capital Stock of Federal Home Loan Banks

Year andquarter

19411st2d3d..4th

19421st2d-3d4th

19431st2d3d : :4th

19441st2d3d4th

19451st2d3d4th

19461st2d

4th

19471st2d

Total . . . .

Authorized

dumber

1

1

Amount

$124,741,000

124,741,000


-

Disbursed

$124,741,000

124,741,000


$231,100

858,700

979,000

122,672,200

124,741,000

Outstanding

$124,741,000124,741,000124,741,000124,741,000

124,741,000124,741,000124,741,000124,741,000

124,741,000124,741,000124,741,000124,741,000

124,741,000124,741,000124,741,000124,741,000

124,609,900124,609,900124.609,900124,509,900

123,651,200123,661,200123,651,200123,651,200

122,672,200122,672,200

" S t t t S n r e p r e s e n t s t h e rePurchase by RFC of the stock of the FHL banks reported as anvanSd K?nVn ™ ™Vei5DJiDt êncies" beginning in the 4th quarter of 1932. The original amount ad-W ™ t vLrff S X, J?pal? t b r o u £ h a n<>te cancellation in the 1st quarter of 1938. The transaction aboveTmoSSt Z t , t t c t i 0 nJl£* powess* and has been treated as a security purchase. Of the totalS S S ? t t £ S ^ ^ * W a «>*• canceUation, effective July 1, 1947,


TABLE F-l

Loan for the Purpose of Providing Dollar Exchange Under Sec. 4, Public Law 108Approved June 10 ,1941 (British Loan)

Year andquarter

19413d4th

19421st2d

4th

19431st2d3d4th

19441st „2d3d4th

19451st2d3d..4th

19461st2d3d4th

19471st2d3d4th

19481st2d3d4th

2d3d . . .4th

19501st2d " "3d4 t h . . . . " '

2d3d " "

Total

Authorized

Number

1

1

Amount

$425,000,000

425,000,000


$35 000 000

35,000,000

Disbursed

$125,000,000225,000,000

40,000,000

390,000,000


$4,844,381

262,7599,158,339

995,97915,001,147

354,7548,480,3102,227,194

20,009,878

1,362,76020,190,2601,444,656

18,435,620

5,771,0589,573,4352,126,316

18,547,968

6,839,05210,970,1105,209,337

14,180,183

8,687,81110,844,1394,290,701

12,568,664

7,356,12415,105,0655,975,994

14,891,560

2,701,80417,591,5686,859,019

17,949,821

9,881,15110,965,75610,672,16020,665,668

9,847,17311,988,34715,171,989

390,000,000

Outstanding

$125,000,000345,155,619

384,892,860375,734,521374,738,542359,737,395

359,382,641350,902,331348,675,137328,665,259

327,302,499307,112,239305,667,583287,231,963

281,460,905271,887,470269,761,154251,213,186

244,374,134233,404,024228,194,687214,014,504

205,326,693194,482,554190,191,853177,623,189

170,267,065155,162,000149,186,006134,294,446

131,692,642114,001,074107,142,05589,192,234

79,311,08368,345,32757,673,17737,007,509

27,160,33615,171,989

275


TABLE F-2

Loan to the Republic of the Philippines, Under Sec. 3 of the Joint Resolution ApprovedAug. 7,1946

Year andquarter

19464th

19471st2d3d4th

19481st

3d4th

19491st2d3d4th

19501st2d

4th

is.. .1*1

2d

4th „ .

mm2d.3d4th

19531st2d

Total....

Authorized

Number

1

1

2

Amount

$25,000,000

45,000,000II

IIli i

l

il ii

70,000,000


II !

1! 1!

Disbursed

$25,000,00045,000.000

70,000,000


$10,000,000

3,000,0003,000,000

3,000,000

3,000,000

22,000,000

Outstanding

$25,000,00060,000,00060,000,00060,000,000

60,000.00060,000,00060.000,00060.000,000

60,000,00060! 000,00060,000,00060,000,000

60,000,00060.000,00060,000,00060,000,000

60,000,00060,000,00060,000.00060,000,000

57,000,00054000,00054,000.00064,000,000

51,000,00051000,000in /vYi rtfYt48,000,WW

48,000,000


TABLE D-l

Loans for Financing Repair of Damage by Earthquake, Fire, Tornado, or Cyclone in 1933,Under Sec. 201(0X6), Title II, of the Emergency Relief and Construction Act of 1932,as Amended

Year andquarter

19331st.2d3d4th

19341st2d ._3d4th

19351st2d3d. . .4th

19361st2d3d. . .4th

19371st2d3d. . .4th

M i m

2d ""3d. . .4th *"

2d.3d ' "4th...,.

1940J *3 d ; . ; ; •

1M1»

4th ""

19421st2d

4th : "

ft—&1s t 1 9 "2d._

Total

Authorized

Number

13

13

Amount

$10,450,000

232

10,450,232


$43,660179131

990,627

886,527

1,921,124

Disbursed

$678,8951,237,478

844,613

5,407,839131,647104,59464,426

33,37129,7503,6001,463

900

300

232

8T629~10S


$2,10036,72552,850

107,86226,71145,323

104,943

65,87551,07164,897

101,257

62,35852,18384,563

760,093

95,02471,678

2,375,34350,239

168,870399,605

2,960,50222|l69

686,4054,0582,5624,134

3,4503,4797,9772,649

3,2325,2803,606

396

2,4333,3193,821ll644

4,4505,168

13,52930,299

38,74966,237

8,529,108

Outstanding

$676,7961,877,6482,669,311

7,969,2888,074,2248,133,4958,082,978

8,060,4748,039,1637,977,8567,878,062

7,816,6047,764,4217,679,8686,930,065

6,835,0416,763,5954,388,2624,338,013

4,169,1433,769,638

809,036786,867

200,462196,404193,842189,708

186,258182,779174,802172,163

168,921163,641160,035159,639

157,206153,887160,066148,422

143,972138,814125,28694,086

56,237

The 13 authorizations were made to 6 individual borrowers.


TABLE D-2

Loans To Finance the Repair of Property Damaged by Earthquake, etc., Under PublicLaw 160 Approved Apr. 13,1934, as Amended

Year andquarter

19342d3d

19351st2d3d4th

193<i1st2 d . . -3d4th

19371st2d3d4th

19381st2d3d4th

19391st

3d4th

19401st2d3d4th . .

19411st2d3d4th

19421st . . .2d3d4th

19431st2d3d4th

19441st2d3d — .4th

19451st2d3d4th

19461st2d3d4th

19471st2d3d

Tota l . . .

Authorized

jumber

13

1

147116929

12961

2

705

Amount

$600,000 _1,650,000

150,000

50,000 .2,623,644

375,045226,075

43,72568,40020,80012,600

14,000

5,734,288


$400,000

112,915603,713749,610

68,52199,42963,80099,354

21,000

40,0002,000

2,260,342

Disbursed

$116,040 -4M90 .

64,90015,000

1,000,00021,385

38,075545,196620,084420,205

146,072198,400130,90095,200

2,600

12,0003,500

3,473,947


$1755,820

2506,120

8,14747,009

988,06239,978

48,71583,20194,25578,697

63,73050,326

218,99357,230

45,50747,85058,49753,322

240,65664,28851,81169,379

63,66354,49547,39128,900

26,15515,03822,82915,390

172,53919,63320,69914,671

11,05618,6189,582

12,636

139,23062,99233,96683,185

127,3234,0661,4881,612

3,51230,85720,402

3,473,947

Outstanding

$116,040160,430

225,155234,335

1,234,0851,249,350

1,279,2781,777,4651,409,4871,789,714

1,887,0712,002,2702,038,9152,055,418

1,994,2881,943,9621,736,9691,683,239

1,637,7321,589,8821,531,3851,478,063

1,237,4071,183,1191,131,3081,061,929

998,266943,771896,380867,480

841,325826,287803,458788,068

615,529595,896575,197560,526

649,470630,852521,270608,634

369,404306,412272,446189,261

61,93857,87256,38454,771

51,25920,402



TABLE D-3

Disaster LoansJuly 1,1945—Sept. 28,1953

Year andquarter

Authorized

Number Amount


DisbursedEepayments

and otherreductions

Outstanding

TransferredfromD L O .

3d.4th.

1945

1st..2d__3d . .4th-.

1946

1st..2d._,3d-..4th..

1947

1st..2d._3d . .4th.

1948

1st-.

3d . .4th-

1949

1st..2d._3d__4th.

1950

1st...2d_.3d.-4th.

1951

1st.2d._3d..4th..

1st..2d.3d.

1953

18

7968

179

4356

130153

54

13144

31

95140

28738

1,3661,012

23244521471

18134254

Total 5,579

$1,613,327

82,72034,600

5,6506,0002,50040,750

250,488761,478

350,000452,072900,000

1,100,000

1,434,353662,211322,285

148,42737,935329,655254,440

1,551,538259,620

11,165,1007,073,080

1,2,058,5331,059,018647,190

393,310843,749

1,129,569

$1,3809,050

60,84318,008

8004,150

13,25028,88729,31859,270

105,633105,634100,000140,441

200,000167,627184,300134,873

56,04426,76924,826120,118

234,720761,288334,782669,565

765,4301,006,269872,084549,534

746,063215,95296,721

$1,415,321

16,6507,8412,93033,079

18,072246,368253,650

411,783411,784700,000800,000

310,320901,253800,799433,201

198,156147,679146,493162,663

273,158554,834

2,000,0007,614,262

3,269,9671,736,4161,599,845972,443

656,351360,114647,178

$107,277114,232

110,338160,41796,228

62,15457,22641,72964,592

75,00085,251156,651147,718

69,035181,162235,383251,217

294,074280,267447,471288,749

252,580264,000

422,761

718,6191,160,230847,813833,437

848,717824,415778,272

36,952,402 7,843,529 10,740,827

$1,415,321

1,370,3131,274,671

1,180,9831,028,407935,109885,342

823,188784,034988,673

1,177,731

1,514,5141,841,047

3,036,678

3,277,9633,998,0544,563,4704,745,454

4,649,5364,516,9484,215,9704,089,784

4,110,3624,401,1966,020,23013,111,731

15,663,07916,239,26516,991,29717,130,303

16,837,93716,373,63616,142,542

16,142,542

When Disaster Loan Corporation was merged with RFO there were transferred to RFO$1,415,321 in out-standing loans and $98,006 of undisbursed commitments. These were reauthorized by RFO as 1/ they hadbeen new authorizations. Of the undlsbursed commitments so transferred, $47,238 subsequently wasaisbursed by RFO and $23,768 was canceled.

505257—59 19 279


TABLE OD-1

Loans Under Sec. 409, Federal Civil Defense Act

Year andquarter

19521st2d3d4th

19531st2d3d

Total

Authorized

Number

11

1

4

7

Amount

$750,0001,000,000

375,000

3,443,000

5.568,000


$3,691,966

3,691,966

Disbursed

$794,937372,709708,388

1,876,034


$1,3252,964

1,871,745

1,876,034

Outstanding

$793,6121,163,357

The $3,691,966 shown as canceled in the 3d quarter of 1953 represents undisbursed loan commitmentstransferred to the Settetaryof the Treasury. Also transferred was $1,868,909 in outstanding loan balancesm „ ~ . , auctions.

TABLE TS-1

Loan to a Public School Authority for Payment of Teachers' Salaries Due Prior to June1,1934, Under Sec. 16 of the Act Approved June 19,1934

Year andquarter

19343d4th

Total

Authorized

Number

1

1

Amount

$22,500,000

22,600,000


$200,000

200,000

Disbursed

$22,300,000

22,300,000


$22,300,000

22,300,000

Outstanding

$22,300,000

280


TABLE SD-1

Loans to or for the Benefit of Tax-Supported Public School Districts or Other SimilarPublic School Authorities in Charge or Public Schools, Under the Act Approved Aug.2 4 , 1 9 3 5 (Loans To Refinance Public School District Operations)

Year andquarter

19361st2d3d4th

19371st2d3d4th

19381st2d3 d . . . .4th

19391st. . . . .2d3d4th

19401st2d3d4th

19411st2d3d4th :

19421st2d3d4th : :

19431st2d3d4th I "

3d.

tst.™2d "3d4th

Total

Authorized

Number

568

221

1

11

21

1

1

i 35

Amount

$463,800269,500821,420211,000

168,50070,937

680

1,063

80,00049,500

550,760110,000

377,000

15,000

3,189,050


$147,50035,300

294,60020,50042,500

3,500288,000235,600

163,00037,000

365,000

234,500

110,000

242,000

23,075

2,231,875

Disbursed

$63,42022,50072,6001,580

129,500

285,675

377,000

15,000

957,175


$500

1,600

1,600

4,000600

1,000

1,50080,0001,4002,000

4,5001,000

2,0005,0001,600

377,000

52,0002,000

94,500

287,17619,100

17,600

957,175

Outstanding

$53,42076,920

148,420160,000

150,000150,000149,600149,500

148,000148,000146,500276,000

272,000557,175557,175556,175

931,675851,675850,275848,275

843,775842,775842,775842,775

840,776835,775834,275457,275

405,275418,275323,775323,775

36,60017,50017,500

The 35 authorliattons were made to 31 Individual borrowers.


TABLE PD-1

Loans to Processors or Distributors Subject to Processing Taxes, Under Sec. 5, RFC Act , asAmended

Year andquarter

19333d4th

19341st2d3d. -4th

19351st2d3d4th

Total

Authorized

Number

5

11

7

Amount

$21,734

3,788667

26,089


$7,4003,788

183

11,371

Disbursed

$7,334

6,817

667

14,718


$1,0004,4286,8171,006

900

667

14,718

Outstanding

$7,334

13,1618,7232,4731,467

667667667


TABLE SF-1

Loans to State Funds Created for the Purpose of Insuring Repayment of Deposits of PublicMoneys, Under Sec. 5, RFC Act , as Amended

Year andquarter

19334th

19341st2d

4th

19351st2d3d

19361st

3d

Total

Authorized

Number

1

1

1

3

Amount

$5,887,716

2,600,000

2,400,000

2,300,000

13,087,716


$23,085

23,085

Disbursed

$5,887,716

2,500,000

2,376,915

2,300,000

13,064,631


$74,760

1,660,6963,189,5421,739,5471,254,604

478,577260,159709,782733,698

621,637542,410580,953

1,228,376

13,064,631

Outstanding

$5,812,966

4,162,2703,472,7281733,181

478,577

2,Il6,7561,406,974

2,351,7391 809,3291228,376

The 3 authorizations were made to 1 borrower (Wisconsin).


TABLE W-l

Summary of Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Underthe Act Approved June 2 5 , 1 9 4 0

Year andquarter

19402d3d4th

19411st2d3d4th

19421st _2d3d4th

19431st2d3d4th __..

19441st2d3d4th__ ..

19451st2d3d4th

19461st2d3d4th

2d_ : :3d . .4th

19431st2d. " "

Total

Authorized

$2,000,000247,000,000389,035,200

309,014,800228.000,000820,750,000948,200,000

819,000,000525,000,000

1,000,000,0001,025,000,000

2,025,000,0011,025,000,0001,501,000,0001,750,000,000

775,000,0001,425,000,0001,275,000,0001,325,000,000

1,575,000,0001,400,000,000

525,000,00026,000,000

25,000,00050,000,00025,000,00075,000,000

103,300,000

21,218,300,001


$100,000,000

900,0004,876,584

112,125,657

""l2,"8687477~

99,000,000

in Qi9 n*m

340,682,768

Disbursed

$11,395,05533,108,337

81,895,049192,993,938210,287,676340,332,180

600,881,212911,473,329

1,040,043,9581,291,580,557

1,420,624,0741,627,006,3921,584,397,6731,484,101,183

1,382,335,3571,486,975,0441,454,727,9271,511,286,466

1,330,146,2202,011,863,524

238,602,722210,165,956

114,077,25191,587,52131,299,90144,845,890

13,369,783117,643,025

1,623,1082,836,209

4,110,716

20,877,617,233

Recovered incash

$6,199647,395

2,032,233149,734,879

218,492,838195,764,737557,632,212679,367,425

598,311,152734,325,178666,241,050750,067,821

770,728,7551,049,565,8711,141,023,3081,257,025,910

1,352,626,7011,831,890,682

223,456,857119,016,755

121,759,363287,096,47063,363,07861,055,480

20,728,236140,887,266

4,208,1766,763,298

13,003,819,325

Recoveredthrough notecancellation

$7,650,698,300

58,215,665

164,883,943

7,873,797,908

Outstanding

$11,395,05544,603,392

126,392,242318,738,785526,994,228717,591,529

1,099,979,9031,815,688,4952,298,100,2412,910,313,373

3,732,626,2954,625,307,5095,543,464,1326,277,497,494

6,889,104,0967,320,513,2697,640,217,8887,894,478,444

7,871,997,9638,051,970,805

416,418,370507,567,571

499,885,459304,376,510214,097,668197,888,078

190,629,625167,285,384164,700,316160,773,227

164,883,943

The notes representing RFC ' s unrecovered investment in its wartime subsidiaries were.actuallyceled on June 30,1948. However, at the time the wartime subsidiaries were merged with RFC, the C<ration, in effect, wrote off its unrecovered investments.

orpo-

283


TABLE W-2

Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 2 5 , 1 9 4 0

METALS RESERVE COMPANY

Year andquarter

* m o

3d4th

19411st2d3d4th

19421st2d3d4th

19431st2d3d4th

19441st2d3d4th..

19451st2d3d

Total . . . .

Authorized

Number

11

2

Amount

i $1,000,000«104,000,000

135,035,200

160,014,800223,000,000381,950,00050,000,000

960,000,000

150,000,000350,000,000

2,505,000,000


$81,762,479

81,762,479

Disbursed

i $5,000,00010,643,202

29,584,13071,301,91741,903,26560,468,818

75,936,591150,444,927124,185,087134,989,471

160,109,229179,495,317179,771,347190,110,967

175,055,199139,919,39496,834,86276,315,626

96,686,020424,482,152

2,423,237,521


$120,499,290

56,834,07546,150,62776,226,06694,666,620

109,509,188122,067,010115,971,331119,423,507

89,376,392142,730,715163,369,607126,970,333

200,051,692173,729,648665,661,520

2,423,237,621

Outstanding

$5,000,00015,643,202

45,227,332116,529,249158,432,61498l 402,042

117,504,858221,798,858269,757,879310,080,730

360,680,771418,109,078481909,094552,596,554

638,275,361635,464,040568,929,395518; 274,688

414,909,016665,661,520

> Capital stock.* Includes $4 million of capital stock.

n f ^ f J i f e ^ i ^ " ^ ! $1,757,576,001 was repaid from operations; $660,661,520 of loans and $5 millof capital stock were treated as "other reductions" at the time of the merger with RFC (July 1,1945).

$5 million


TABLE W-3

Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 2 5 / 1 9 4 0

RUBBER RESERVE COMPANY

Year andquarter

19402d3d4th

19411st2d3d4th

19421st2d3d . . . .4th

2d3d4th . . : : : : . . : :

2d3 d . . .4th "

aTotal

Authorized

Number

11

2

Amount

i $1,000,000* 141,000,000

45,000,000

13,000,000640,000,000

150,000,000300,000,000160,000,000

160,000,000150,000,000

1,730,000,000


$4,876,684

4,876,684

Disbursed

'$4,395,05518,089,906

15,828,52612,739,911

«45,012,71977,647,080

106,309,72631,792,33631,183,05049,443,468

46,391,49167,501,13093,081,47866,669,718

67,913,319229,819,620173,143,342248,033,278

116,767,296223,361,067

1,725,123,416


$23,197,660

53,658,97642,432,22943,841,21237,980,528

68,739,74584,466,62759,831,196

133,885,270

154,966,434137,727,330137,345,788136,661,596

160,972,420159,736,549299,689,956

1,725,123,416

Outstanding

$4,395,05522,484,961

38,313,48751,053,39896,066,117

150 515,637

203.166,387192,526,494179,868,332191,331,272

178,983,018162,027,521195,277,803128,062,251

41,009,136133.101,326168,898,880280,270,562

236.065,438299,689,956

'Capital stock.• Includes $1 million of capital stock.* Includes $2 million of capital stock.• Includes $3 million of capital stock.Of the total disbursed, $1,425,433,460 was repaid from operations; $294,689t956 ofloans, and $5million of

capital stock were treated as "other reductions" at the time of the merger with RFC (July 1,1945)*


TABLE W-4

Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 25,1940

DEFENSE PLANT CORPORATION

Yearand

quarter

19403d4th

19411st2d3d4th

19421st2d3d4th

19431st2d3d4th

19441st2d .3d4th

19451st2d .3d

Total

Authorized

Number

11

1

2122

2211

1122

21

26

Amount

* $1,000,0003 254,000,000

250,000,000

500,000,000500,000,000

1,000,000,0001,000,000,000

1,000,000,0001,000,000,000

500,000,000500,000,000

500,000,000250,000,000250,000,000200,000,000

200,000,000100,000,000

8,005,000,000

Canceledor

withdrawn

$6,709,153

6,709,153

Disbursed

i $1,000,000a 4,375,229

32,482,393108,952,110109,222,797151,039,172

346,629,685609,984,071763,987,669891,950,356

972,616,220982,743,248829,702,435584,294,754

434,590,934307,939,507276,200,931209,525,830

194,080,310186,973,196

7,998,290,847


$6,199647,395

1,955,8334,493,014

86,850,79455,320,762

404,841,610501,372,671

217,963,764332,275,681166,336,460191,114,504

155,149,984150,628,674190,764,572156,220,572

140,539,396153,457,672

5,088,351,300

7,998,290,847

Outstanding

$1,000,0005,375,229

37,851,423146,156,138253,423,102399,969,260

659,748,1511,214,411,4601,573,557,5191,964,135,204

2,718,787,6703,369,255,2374,032,621,2124; 425; 801,462

4,705,242,4124 862,553,2454,947,989,6045,001,294,862

5,054,835,7765,088,351,300

1 Capital stock* Includ $

ckes $4 million of capital stock.

Of the total disbursed, ..,,,.capital stock were treated as

$2,909,939,547 was repaid from operations; $5,083,351,300 of loans and $5,000,000 ofd as ''other reductions" at the time of the merger with RFC (July 1,1946).


TABLE W-5

Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 25 ,1940

Yearand

quarter

19403d4th

19411st.2d „ .3d4th

19421st2d3d4th

19431st2d3d4th

19441st2d ;3d4 t h . . . . . . . '

19451st2d3d

Total

DEFENSE SUPPLIES

Authorized

Number

1

1144

3

1

1

1323

33

31

Amount

1 $1,000,000

U04,000,0005,000,000

185,800,000168,200,000

314,000,000

1,000,000,000

1,000,000,000

260,000,000750,000,000500,000,000750,000,000

750,000,000750,000,000

6,518,000,000

Canceledor

withdrawn

$100,000,000

23,654,025

123,654,025

CORPORATION

Disbursed

i $1,000,000

* 4,000,000

14,148,89551,177,110

72,005,210114,251,995109,732,560188,216,955

222,883,323367,879,600448,304,458547,720,322

583,874,873641,970,610680,596,933741,253,038

706,221,395899,108,698

6,394,345,975


$76,4001,545,015

21,148,99351,861,11932,704,78144,906,867

204,791,847185,677,967313,377,781297,994,495

325,125,941545,893,242518,979,279721,933,772

704,473,054826,859,898

1,596,995,524

6,394,345,975

Outstanding

$1,000,0001,000,000

5,000,0006,000,000

19,072,49568,704,590

119,560,807181,951,683258,979,462402,289,550

420,381,026602,582,659737,509,336987,235,163

1,245,984,0951,342,061,4631,503,679,1171,522,998,383

1,524,746,7241,596,995,524

1 Capital stock.3 Includes $4 million of capital stock.Of the total disbursed, $4,797,350,451 was repaid from opera

capital stock were treated as "other reductions" at the time»tions- $1,591,995,524 of loans and $5 million ofle of the merger with RFC (July 1,1945).


TABLE W-6

Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 25,1940

Yearand

quarter

19414th

19421st

3d4th. 19431st2d3d4th

19441st2d3d4th

19451st2d3d4th

19461st2d3d4th

19471stad3d4th

Total—.

WAR

Authorized

Number

1

1

Amount

$100,000,000

100,000,000

DAMAGE CORPORATION

Canceledor

withdrawn

$09,000,000

99,000,000

Disbursed

$1,000,000

II l!

1,000,000


£1 000 000

1,000,000

Outstanding

$1,000,0001,000,000

1,000,0001,000,0001,000,0001,000,000

1,000,0001,000,0001,000,0001,000,000

1,000,0001,000,0001,000,0001,000,000

1,000,0001,000,0001,000,0001,000,000

1,000,0001,000,000


TABLE W-7


U.S. COMMERCIAL CO.

Year andquarter

19421st2d3d4th"__._ ' „ .

19431st2d3d4th

19441st2d3d4th

ut1 9 4 8

2d3d4th

19461st2d3d4th____ „

19471st2d :3d4th

M ^2d.._.

Total

Authorized

Number

11

2112

2

1

1

1

iI

i

17

Amount

*$5,000,00025,000,000

25,000,000

25,000,00025,000,00060,000,000

175,000,000

275,000,000200,000,000200,000,000

300,000,000

600,000,000

25,000,00076,000,000

103.300,000

2,008,300,000


$10,912,060

10,912,060

Disbursed

i $5,000,0009.955,592

26,980,307

18,623,81029,387,09733,437,95539,256,018

102,185,075148,020,253208,870,488218,870,619

191,931,710220,081,662216,902,868190,009,171

88,907,80133,239,00231,299,90144,846,890

13,369,783117,643,025

1,623,1082,836,209

4,110,716

1,997,387,950


$18,543440,739

7,306,6189,847,893

10,724,2827,680,085

39,763,64760,161,97790,647,08597,353,867

116,546,888489,663,606199,760,410105,475,187

100,806,925200,530,83163,363 07861,056,480

20,728,236140,887,266

3,208,176t, 763,298

164 883,943

1,997,387,950

Outstanding

$5,000,00014,937,04941,476,617

62,793,80972,333,01395,046,686

126,722,619

189,144,047277,012,323395 335,726516,852,488

592,237,310322,665,356339,817,814424,361,798

412,452,674245 160,845213 097,668196,888,078

189,529,625166,285,384164,700,316160,773,227

164,883,043

1 Capital stock.


TABLE W-8


RUBBER DEVELOPMENT CORPORATION

Year andquarter

19431st2d -3d4th

19441st2d3d4th

19451st2d3d4th

19161st2d3d

Total

Authorized

Number

1

2

1

11

1111

12

13

Amount

$1

75,000,000

25,000,000

25,000,00025,000,000

25,000,00050,000,00025,000,00025,000,000

25,000,00050,000,000

350,000,001


$12,868,477

12,868,477

Disbursed

$1

56,049,404

18,715,95719,305,76019,081,37117,288,075

24,459,48957,856,85921,699,85420,156,785

24,169,45058,348,519

337,131,624


$69,960

6,346,35712,433,93340,017,07717,885,780

30,043,25128, 453, 40923,706,44713,541,568

20,952,43885,465,63958, 215,665

337,131,524

Outstanding

$1

155,979,445

68,349,04575,220,87254,285,16663,687,461

48,103,69977.507,14975,500,55682,115,773

85.332,78568,215,665

TABLE W-9

Purchases of Capita! Stock in and Loans to RFC Wartime Subsidiaries Under the ActApproved June 2 5 , 1 9 4 0

PETROLEUM RESERVES CORPORATION

Year andquarter

19433d4th

19441st2d3d4th

19451st2d3d4 th" :

19161st2d

Total

Authorized

Number

1

I"

2

Amount

$1,000,000

1,000,000

2,000,000


$900,000

900,000

Disbursed

$100,000

1,000,000

1,100,000


1,100,000

Outstanding

$100,000100,000

100,000100,000100,000100,000

100,000100,000100,000100,000

1,100,000


TABLE SP-1

Purchases of Securities From Federal Emergency Administrator of Public Works (PublicWorks Administration)



Outstanding

1st....2d3d. .4th.

1st.,2d._

4th.

1st-.2d._3d. .4th_,

1st..2d__3d . .4th.,

1st-2d._3d. .4th_

l s t .2d._3d. .4th.

1st.2d__

4th_

1st..2d._3d . .4th.

1st.2d._3d._4th.

1st2d..__.3d . . . . .

1st..2d._3d. .4th-

1935

1st...2d . . .3d . . .4th. .

1936

1937

1938

$75,450,05C15,689,00

127,567,25175,862,722

141,020,94*34,488,01244,803,00C20,359,237

10, 520,35C10,623,80C31,780.70C71,745,540

749,31065,53?

$10,00C

970,00G1,000,000

3,726,000

1939

1940

1941

1,481,266

825,0005,558,5004,105,000

416,720

1,624,7002,142,5004,612,584

10,982,840

80018,2002,352

22,794,000

5,925,000

3,206,000

1942

3,000,000130,000

1943

19443,334

66,667

1945

1946

$74,095,05015,589,000

127,342,45075,827,423

92,987,20033,454,31130,846,90022,560,237

15,494,8509,980,3003,351,70050,226,495

17,887,1408,415,0044,220,06110,292,600

5,600,0005,764,50012,899,0005,346,720

1,694,70037,500

13,583,9171,961,000

80011,507,040

502,352

3,334

$56,605,05016,912,00038,284,05C27,051,801

95,395,02250,877,51124,539,35044,116,147

12,794,25011,493,30037,839,5753,283,917

9,454,5464,263,093

11,671,9137,795,159

14,703,87320,278,1445,000,0069,014,428

8,436,1673,039,1588,432,2762,477,939

2,547,5112,588,2645,700,7142,503,723

3,886,2112,456,5192,082,9381,804,342

2,094,20612,181,3322,756,6063,537,104

1,333,2451,152,554781,716

l,757f563

2,122,363907,211

2,302,423906,508

2,444,9614,400,5481,095,601158,135

$17,490,00016,167,000105,225,400154,001,022

151,593,200134,170,000140,477,650118,921,640

121,622,240120,109,24085,621,365132,563,943

140,996,637145,148,448137,696,596140,194,037

131,090,164

124,475,514120,807,806

114,066,339111,064,681116,216,322115,699,383

113,152,672122,071,448116,873,086114,369,363

110,483,152108,026,633105,943,695104,139,353

102,045,14789,863,81587,107,20983,570,105

82,240,19481,087,64080,305,92478,548,361

76,425,99875,518,78773,216,36472,309,856

69,864,89565,464,34764,368,84664,210,711


TABLE 8P-1—Continued

Purchases of Securities From Federal Emersency Administrator of Public Works (PublicWorks Administration)—Continued

Year and quarter

19471st2d

4th

19481st2d3d4th

1949

2d3d4th

19501st2d3d4th

19511st2d3d4th :.:

19521st2d3d. --*-.* .4th

19531st2d

Total

Authorized

$692,299,251


$40,827,667

Disbursed

$651,471,584


$215,7713,261,951

663,936393,446

334,657452,60785,655

102,247

606,40244,196,292

199,656252,249

400,554195,369351,465667,699

1,873,01757,485

620,000616,698

177,2381,699,096

20,35075,865

319,14349,387

128,404

645,177,512

Outstanding

$63,994,94060,732,98960,069,05359,675,607

59,340,95058,888,34358,802,68858,700,441

58,094,03913 897 74713,698,09113l 445,842

13,045,28812,849,91912 498,45411,930,755

10,057,73810 000,2539,380,2538,763,555

8,586,3176 887 2216,866,87161791,006

6,471,8636,422,476

6,294,07*

6,294,072


TABLE A-l

Summary of Allocations and Loans to Other Government Agencies by Direction of theCongress

Year and.quarter Authorized Canceled Disbursed Repaid

Recoveredby note

cancellationOutstanding

1st2d.._3d...4th..

1932

1st..2d..3d..4th.

1933

$50,000,00035,000,00060,455,171100,857,702

290,194,6661,087,883,461

1st..2d__3d..4h

1934

10,000,000515,000,000

1st...2d...3d...4th_.

9,000,000

505,000,000

1st,.2d..3d..4th..

1936

102,000,000$15,001

1st..2d...3d.,.4th..

1937

1st..2d..,34th.

1938

1st..,2d...3d...4th..

1940

2d I3d4th

1st..2d3d..,4th..

1941

ist.....

3fcr4th

3,000,000

6,000,000CO. 621,0757,600,0002,000,000

1,900,0003,000,00034,500,00033,000,000

44,125,0008,400,0005,000,0003,000,000

4,000,000176,640,306101,000.0001,000,000

1,000,0005,000,000

272,000,0002,000,000

1,000,000

97,400,000

1st..2d..3d..4th.

1943

131,000,00010,000,000

2.000,000500,000

90,000,000

$50,000,00025,000,00014,159,58493,627,458

168,207.140191,125,809152,055,192298,116,457

335,625,612101,426,35163,939,011485,000.000

9.200,0003,600,000

314,150,000

204,146,300102,800,0005,200,00015,427,400

8,634,7009,030,97512,925,00018,402,000

12,057,00017,743,0004,500,0003,000,000

11,575,000100,950,0005,000,0003,000,000

4,000,0001,640.30611,000,00019,000,000

74,100,00080,500,00041 790,00045,923,000

98,187.00048,200,00020,450,00032,55a 000

74,040,00014,335,00019,895,00035,405,000

$466,145503,940

23,070449,388533,050235,816

63,03221,550590,010472,350

190,17722,760419,000412,000

6,354,5006,148,070178,42578,374

$2,675,337,8421 3,000,000

4,500,0003,000,000

4,125,0008,400,0005,000,0003,000,000

5,640,306

23,329,2921,676,236

34,122.750

48,381,7893,432,70262,073,830

1,000,0005,000,0001,000,0003,000,000

1,000,000

*i,"o65,"boo"

46,509,7967,053,60487,237,109

2,000,000500,000

$50,000,00076,000,00089,159,584182,787,042

350,994,182541,653,846693,205,098991,321,555

1,326,924,0971,427,901,0601,491,307,0211,976,071,205

2,006,406>2582,015,584,7082,018,594,6982,332,272,348

2,536,228,4712,639,005,7112,643,786,7112,658,802,111

2,661,082,3112,663,965,2162,676,711,7912,695,035,417

31,754,57546,497,57546,497,57546,497,575

53,947,575146,497,675146,497,675146^497,575

150,497,575146,497,575157,497,575174,497,575

224,268,283298,092,047304,759,297347,682,297

396,487,508441,254,806408,630,976441,180,976

466,711,180473,492,576406,150,467441,555,467


TABLE A-l—Continued

Summary of Allocations and Loans to Other Government Asencies by Direction of theCongress—Contin ued

Year andquarter

19441st2d3d4th

19451st2d3d.4th

19461st2d3d4th

19471st2d_.3d4th

19481st2d3d4th

19491st2d3d4th

13::::::::::::::4thTotal loans and

allocations.-Expenses

Grand total. . .

Authorized

$7,500,000175,000

82,500,000

142,500,00080,000,000

120,000,000

15,000,000120,000,000100,000,000

250,000,000175,000,000

1,100,000.00025,000,000

8,000,0001,000,000,000

30,000,0008,000,000

7,178,252,3856,996,068

7,235,248,44

Canceled

$7,737,000

393,490,000

145,000,000

643,642,001934

643,642,935

Disbursed

$37,365,00017,358,00026,055,00053,480,000

22,440,00017,500,00030,160,00049,415,000

43,250,00055,875,00076,850,00087,650,000

62,950,000287.225,000

1,165,666,66625,000,000

1,008,000.000

30,000,0008,000,000

6,534,610,38056,995,134

6,591,605,514

Repaid

$73,318,28515,238,03772,996,840

73,914,88132,907,3696,508,213

75,474,96740.326,1947,627,265

82,588,774101,835,922175,000,000

1,105,000,000

25,000,0008,000,000

1,000,000,000

30,000,000

3,254,715,512

3,254,715,512

Recoveredby note

cancellation

$175,000

551,216,720

3,279,894,86856,995,134

3,336,890,002

Outstanding

$405,602,182407,547,145360,605,305414,085,305

362,610,424347,203,055370,854,842420,269,842

388,044,875403,593,681472,816,416560,466,416

540,827,642726,216.720

25,000, OW25; 000,000

25,000,0001,008,000,0001 000 000,000

30,000,0008000,0008000,000


TABLE A-2

Allocations and Loans to Other Government Asencies by Direction of the Congress

Allocations to the Secretary of Agriculture under sec. 2 of the RFC Act, as amended by sec. 201(c) of theEmergency Relief and Construction Act of 1932, and sec, 5(a)(l) of the Farm Credit Act of 1933

Year andquarter

1932lst._2d_. '3d4th . „ .

19331st2d "3d "4th

19341st2d " "3d4th. „ _ „ _ " "

2d " " "3d " "4th

19361st2d "3d " "4th

19371st2d3d. . . . _4th .

19381st—.

Total

Authorized

$50,000,00036,000,00025,000,00023,000,000

39,000,00028,000,000

200,000,000

Canceled Disbursed

$50,000,00025,000,000

27,000,000

17,000,00040,500,000

40,500,000

200,000,000

Repaid

_ _ ^ ____„__..__

Recoveredby note

cancellation

^._.

$200,000,000

200,000,000

Outstanding

$50,000,00075,000,00075,000,000

102,000,000

119,000,000159,500,000159,500,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

Sec. 2 of the original RFC Act, as amended, made available to the Secretary of Agriculture 10 percent ofRFC's capital (including amounts borrowed from Treasury) up to a maximum of $200 million. Of thisamount, $135 million was paid to the Secretary of Agriculture, and $20 million of this was returned by himto RFC. Of the $85 million then available, $44,500,000 was reallocated and disbursed as capital of the

w vi i,ue ûiergency Relief and Constructionfarm Credit Administration pursuant to the

505257—59 295


TABLE A^3

Allocations and Loans to Other Government Agencies by Direction of the Congress

Loans to the Secretary of Agrlcuture for Farm Rehabilitation under the Emergency Relief AppropriationAct, fiscal year 1041

Year andquarter

19402d3d4th

19411st2d3d4th

19421st2d.3d4th

19431st-2d_

&

1944

£-&:::::::::::::'-

19451st2d3d...

19461st

Sr4th

19471st .2d3d

Total

Authorized

$125,000,000

120,000,000

97,600,000

60,000,000

7,600,000

67,500,000

67,600,000

15,000,00070,000,000

630,000,000

Canceled

$7,737,000

1.160,000

8,887,000

Disbursed

$10,000,00015,000,000

43,500,00042,760,0008,690,000

20,973,000

68,337,00025,750,0007,700,000

20,160,000

64,100,0005,365,0009,675,000

23,575,000

27,165,0008,133,000

13,680,00042,006,000

11,864,0005,000,000

15,360,00024,640,000

22,500,00015,200,00023,000,00035.000,000

7,000,000

621,113,000

Repaid

$23,329,292

34,122,750

39,799,746

48,720,303

40,079,314

79,740,351

64,716,790

62,324,092

65,532,65710,047,705

67,500,00015,200,000

70,000,000

621,113,000

Recoveredby note


$10,000,00025,000,000

45,170,70887,920,70862,487,95883,460,958

111,998.212137,748,21296,727,909

116,877,909

140,898,595146,263,59576,198,24499,773,244

62,221,45470,354,45421 710,36263,716,362

10,047,7056,000,000

20,360,00045,000,000

""287666*00063,000,000


TABLE A-4


Loans to the Secretary of Agriculture for farm tenants under the Department of Agriculture AppropriationActs, 1941-48

Year andquarter

H..J?.3d4th : ; /

19411st2d .3 d ; ; ; • •4th

19421st.2d

4th " "

19431st2d

4th " "

19441st2d ._3d : :4th "

19451st2d " " " "3d4th

I s t . . . . . ^ . . -2d

4th : / " *

19471st2d3d...

Total

Authorized

$50,000,000

B6,OO6,6OO

32,500,000

30,000,000

15,000,000

60,000,000

- 60,000,000

277,600,000

Canceled

$63 040,000

63,040,000

Disbursed

$3,000,000

11,600,00014,760,00011,100,00010,950,000

16,860,00012,450,0007,760,0006,400,000

6,940,0005,970,0007,220,0005,830,000

6,700,0004,550,0003,375,0006,474,000

1,576,0002,300,0001,800,0003,775,000

5,750,0007,675,0008,350,000

12,650,000

10,950,00017,225,000

214,460,000

Repaid

$1,676,236

3,432,702

7,053,604

15,238,037

22,869,664

25,126,194

98,705,747

174,092,184

Recoveredby note

cancellation

$40,367,816

40,367,816

Outstanding

$3,000,000

14,600,00027,673,76438,773,76449,723,764

66,5 73,76475,691,06283,341,06289,741,062

06,681,06295,697,458

102,817,458108,647,463

115,347,458104,669,421108,034,421114,608,421

116,064,42195,524,75797,324,757

101,099,757

106,849,75789,398,56398,248,663

110,898,563

121,848,56340,367,816

??der the provisions of the Department of Agriculture Appropriations Act, 1948, the RFC turned overthe Secretary of the Treasury $40,367,816 in notes for loans made by the Secretary of Agriculture, andhe Secretary of the Treasury $40,367,816 in notes for loans made by the Secretary ^ ^ c u l t u r e , andCfs notes payable to the Secretary of the Treasury were canceled in like amount, eflective as of July 1,


TABLE A-5

Allocations and Loans to Other Government Agencies by Direction of the CongressAllocation to the Land Bank Commissioner to make loans to joint-stock land banks under sec. 301 (a) of the

Emergency Farm Mortgage Act of 1933

Year andquarter

19332d3d4th

19341st2d3d4th

19351st2d3d4th

19361st2d3d : : : : : : :4th

19371st2d

4th

19381st

Total

Authorized

$100,000,000

100,000,000

Canceled

$97,400,000

97,400,000

Disbursed

$200,000400,000

2,000,000

2,600,000

RepaidRecovered

by notecancellation

$2,600,000

2,600,000

Outstanding

$200,000600,000

2,600,000

2,600,0002,600,0002,600,0002,600,000

2,600,0002,600,0002,600,0002,600,000

2,600,0002,600,0002,600,000% 600,000

2,600,0002,600,0002,600,0002,600,000


TABLE A-6


Allocation to the Land Bank Commissioner for direct loans to farmers, under sec. 32 of the EmergencyFarm Mortgage Act of 1933

Year andquarter

19332d3d4th

19341st2d _

4th

19351st2d3d4th _. . .

19361st2d3d "4th

19371st2d.3d4th

Total

Authorized

$200,000,000

200,000,000

Canceled Disbursed

$2,000,0008,000,000

70,000,000

120,000,000

200,000,000

RepaidRecovered

by notecancellation

$200,000,000

200,000,000

Outstanding

$2,000,00010,000,00080,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000

During the 1st quarter of 1934, the undisbursed portion ($55 million) of the allocation was transferred anddisbursed to the Federal Farm Mortgage Corporation in accordance with sec. 3 of the Federal Farm Mort-gage Corporation Act, approved Jan. 31,1934.

TABLE A-7


Purchase of stock of Commodity Credit Corporation under the act approved Apr. 10,1936

Year andquarter

*L. m 6

3 d . . . . :4th

19371st2d " "3 d . . . „_4 t h . . : : : :

1st 1 9 3 8

Total

Authorized

$97,000,000

97,000,000

Canceled Disbursed

$97,000,000

97,000,000

RepaidRecovered

by notecancellation

$97,000,000

97,000,000

Outstanding

$97,000,00097,000,00097,000,000

97,000,00097,000,00097,000,00097,000,000


TABLE A-8

Allocations and Loans to Other Government Agencies by Direction of the Consress

Loans to the Rural Electrification Administration under the Rural Electrification Acts of 1936 and 1938,and Department of Agriculture Appropriations Acts 1941-18

Year andquarter

19364th

19371st2d3d4th

19331st2d3d4th

1939

&:::::::::::::::3d4th

19401st

3d4th

19411st

3d4th

19421st2d3d4th

19431st2d

4th

1944

&::::::::::::::3d4th."".""IIII"

19451st2d3d4th

19461st2d3d4th

Total

Authorized

$1,000,000

45,500,000

30,000,00030,000,000

40,000,000

100,000,000

100,000,000

10,000,000

25,000,00080,000,000

120,000,000

100,000,000

260,000,000

931,500,00

Canceled

. . . . . . . . . . . .

$329,300,000

329,300,000

Disbursed

$100,000

498,0003,402,0004,425,000

13,175,000

10,167,00014,743,000

7 450 00092!550|000

18,000,00018,000,00020,000,00012,000,000

12,000,00010,000,0004,000,0006,000,000

1,000,0002,500,0003,000,0006,000,000

3,500,0004,500,0009,000,0006,000,000

9,000,00010,200,00013,000,00021,000,000

16,000,00033,000,00040,000,00040,000,000

45,000,00095,000,000

602,200,000

Repaid

$2,425

8,682,043

3,353,527

6,430,482

7,496,758

8,601,495

10,672,748

8,382,224

6,508,213

7,974,067

7,627,266

12,688,7743,130,175

91,351,096

Recoveredby note

cancellation

«ftin 040 Q04

510,848,904

Outstanding

$100,000

598,0004,000,0008,422,575

21,697,575

31,754,57546,497,57546,497,57546,497,575

63,947,575146,497,575146,497,575146,497,575

146,497,575146,497,575146,497,575146,497,575

164,497,575182,497,675202,497,575214,497,575

217,915,532227,915,532228,562,005234,562,005

229,131,523231,631,523227,134,765233,134,765

228,033,270232,533,270230,860, W2235,860,522

236 478 2982461678,298253 170,085274,170,085

281,195,118314 195,118346,567,853386;667,853

418,979,079510,848,004


TABLE A-9

Allocations and Loans to Other Government Agencies by Direction of the CongressAllocations to the Federal Housing Administrator under sec. 4, title I, of the National Housing Act,

approved June 27,1934

Year andquarter

19343d4th

19351st2d3d .4th I.

19361st2d "3d "4th "

2d : :3d4th I "

1st.....1.*8....2d3d4th ""*

19391st

3 d ; : ; • "

4th

19401st.2d3d ; ; •—4th " "

1941

fczSfcr~~1942

1st2dM:::::::::::.::;4th

1st.....1943

2d " " " "3d4th ::::::

iff -Total

Authorized

$10,000,00015,000,000

9,000,000

5,000,000

5 000 000

2,000,000

4,000,0001,121,0755,600,000

1,900,0003,000,0004,500,0001,000,000

2,125,0004,400,0003,000,0001,000,000

2,000,0001,640,3061,000,0001,000,000

1,000,0005,000,0002,000,0002,000,000

1,000,000

1,000,000

2,000,000500,000

175,000

97,861,381

Canceled Disbursed

$10,000,00015,000,000

9,000,000

5,000,000

5 000 000

2,000,000

4,000,0001,121,0755,600,000

1,900,0003,000,0004,500,0001,000,000

2,125,0004,400,0003,000,0001,000,000

2,000,0001,640,3061,000,0001,000,000

1,000,0006,000,0002,000,0002,000,000

1,000,000

1,000,000

2,000,000600,000

171 Oftfl

97,861,381

KepaidRecovered

by notecancellation

$58,521,0753.000.0004,600,0001,000,000

2,125,0004,400,0003,000,0001,000,000

3,640,306

2,000,000

1,000,0005,000,0001,000,0003,000,000

1,000,000

1,000,000

2,000,000600,000

175,666"

97,861,381

Outstanding

$10,000,00025,000,000

25,000,00034,000,00034,000,00039,000,000

39,000,00044,000,00044,000,00046,000,000

60,000,00051,121,07656,621,07566,621,076

2,000,000

1,000,000

1,000,000

The total allocation was not limited to any specific amount; for statistical purposes, the amount disbursedwas considered to be the amount authorized.


TABLE A-10


Allocation to the Secretary of the Treasury to pay for capital of the Federal home loan banks, under sec. 2of the RFC Act was amended by the Federal Home Loan Bank Act

Year andquarter

19324th

19331st2d . . .3d4th

19341st2d3d4th

19351st2d3d4th

19361st2d3d4th

19371st2d

4th

19381st

Total

Authorized

$820,000

123,621,000

124,741,000

Canceled Disbursed

$820,000

29,800,00012,350,00014,400,00018,375,700

3,900,000

1,800,000

200,0003,600,0009,160,000

4,146,300800,000

5 200 00013,327,400

2,136,700607,900

1,000,0003,227,000

124,741,000

RepaidRecovered

by notecancellation

$124,741,000

124,741,000

Outstanding

$820,000

30,620,00042,970,00057,370,00075,745,700

79,645,70079,645,70081,445,70081,445,700

81,445,70081,645,70085,245,70094,395,700

98.542,00099,342,000

104,542,000117,869,400

120,006,100120,514,000121,514,000124,741,000

that "in order to enable the Secretary of the Treasury to make paymentsl bantft s n t v i H h i t H ht \ j i+v +V T ? ^ 1 "FfvmA Loanme loan banks subscribed for n u n i n accordance w i t n t n e

as m a y be necessary for suchl f h

SSSf t«Si vJi ^ o f f,1?,111*1111?.11' o r s o m u c n thereof as may be necessary for such purpose, is herebyS ^ S ? ^?? m a d ? B VS aSb^ i t 0 îSecretary of the Treasury out of the capital of the Corporation and/ort he proceeds of notes, debentures bonds and othar nhlifmtinTis i s s P H w t h * n n n t t t i "

entire amount advanced, and that transaction is treated as a secu-


TABLE A-ll

Allocations and Loans to Other Government Agencies by Direction of the Confess

Allocation to the Secretary of the Treasury to pay for capital of Home Owners' Loan Corporation, undersec. 4(b) of the Home Owners^ Loan Act of 1933, approved June 13,1933

Year andquarter

19332d3d4th _

19341st2d3d

19351st2d_.3d " "4th

19361st2d . . „3d4th_ .. ..

19371st.—2d " "3d4th. „

19381st..

Total

Authorized

$200,000,000

200,000,000

Canceled Disbursed

$1,000,0001,000,000

17,000,000

40,000,00095,000,00046,000,000

200,000,000

EepaldRecovered

by notecancellation

$200,000,000

200,000,000

Outstanding

$1,000,0002,000,000

19,000,000

59,000,000154,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000

200,000,000200,000,000200,000,000200,000,000


TABLE A-12

Allocations ond Loons to Other Government Agencies by Direction of the Congress

Amounts made available for relief and work relief under sec. 1, title I, of the Emergency Relief and Construe-

Year andquarter

19323d4th

19331st2d — —3d4th

19341st2d3d4th

19351st2d3d4th

19361st2d

4th

19371st2d

4th

19381st

Total

Authorized

$35,455,17177,037,702

127,273,66660,233,461

300,000,000

Canceled

$15,001

15,001

Disbursed

$14,159,58465,807,458

121,407,14097,165,6671,445,150

299,984,099

Repaid

$466,145503,940

23,070449,383533,050235,816

63,03221,550

590,010472,350

190,17722,760

419,000412,000

6,354,5006,148,070

176,00078,374

17,159,232

Recoveredby note

cancellation

$282,825,767

282,825,767

Outstanding

$14,159,68479,967,042

201,374,182298,073,704299,014,914299,014,914

298,991,844298,542,456298,009,406297,773,590

297,710,558297,689,008297,098,998296,626,648

296,436,471296413,711295994,711295,582,711

289,228,211283,080,141282 9041141282,825,767


TABLE A-13


Allocations for direct relief under the Federal Emergency Relief Act of 1833, approved May 12,1933

Year andquarter

3d4th

19341st2d3d4th

19351st2d3d4th "

19361st2d3d4th : :

1st.....1.937

2d3d "4th

Total

Authorized

$499,650,000

499,650,000

Canceled

___.„ .„.,..,

Disbursed

$37,910,142126,810,042150,240,757

171,725,6126,426,3516,139,011

398,085

499,650,000

RepaidRecovered

by notecancellation

$499,650,000

499,650,000

Outstanding

$37,910,142164,720,184314,960,941

486,686,553493,112,904499,251,915499,251,915

499,650,000499,650,000499,650,000499,650,000

499,650,000499,650,000499,650,000499,650,000

499,650,000499,650,000499,650,000499,650,000

The act cited authorized and directed the RFC to make available from RFC funds not to exceed $500million for expenditure upon the certification of the Federal Emergency Relief Administrator. Of thetotal. $499,650,000 was earmarked for grants to States, and the remaining $350,000 was earmarked for theadministrative expenses of the Federal Emergency Relief Administration. There was disbursed as grantsto States $499,650,000, as show] * "" " ' "disbursed and $934 canceled.

wpvtut <frx<79,udu,uvAf was euruiariteu mr grouts w own-ca, ouu w o *cmtmnn^ »3oU,UW was earmarKeu iur tuwadministrative expenses of the Federal Emergency Relief Administration. There was disbursed as grantsto States $499,650,000, as shown above. Of the $350,000 earmarked for administrative expenses, $349,066 was


TABLE A-14


Allocation for direct relief, under the Emergency Appropriation Act, fiscal year 1935, approved June 19,193

Year andquarter

19344th

19351st2d3d4th

19361st2d

4th

19371st2d3d4th

19381st

Total

Authorized

$500,000,000

500,000,000

Canceled Disbursed

$470,000,000

30,000,000

500,000,000

RepaidRecovered

by notecancellation

$600,000,000

500,000,000

Outstanding

$470,000,000

600,000.000500,000,000600,000,000600.000,000

500,000,000500,000,000500 000,000600;000,000

500,000,000600,000,000600,000.000500,000,000

TABLE A-15


Allocation for direct relief under the Emergency Relief Appropriation Act of 1935, approved Apr. 18,1935

Year andquarter

19354th

19361st2d

4th

19371st2d

4th

193S1st

Total

Authorized

$500,000,000

600,000,000

Canceled Disbursed

$300,000,000

200,000,000

600,000,000

RepaidRecovered

by notecancellation

$500,000,000

500,000,000

Outstanding

$300,000,000

500,000,000500,000,000600 000,000600,000,000

600,000,000600 000,000600 000,000600,000,000


TABLE A-16


Purchase of stock of Disaster Loan Corporation, under the act approved Feb. 11,1937

Year andquarter

19371st2d3d4 t h : : : . . : : : : : : : : : :

19381st2d3d4th

19391st2d. -3d4th . „

19401st2d

Total

Authorized

$2,000,0004,000,0002,000,0002,000,000

2,000,000

2,000,0004,000,0002,000,0002,000,000

2,000,000

24,000,000

Canceled Disbursed

$2,000,0004,000,000

2,000,000

2,000,000

2,000,0004,000,0002,000,0002,000,000

2,000,000

24,000,000

RepaidRecovered

by notecancellation

$10,000,000

2,000,000

2,000,0004,000,0002,000,0002,000,000

2,000,000

24,000,000

Outstanding

$2,000,0006,000,0008,000,000

10,000,000

2,000,000

Under the act cited, the RFC was authorized and directed to subscribe for the capital stock of DisasterLoan Corporation from time to time, as needed, out of the unexpended balance of the $50 million whichRFC was authorized to lend for catastrophe relief by sec. 1 of the act of April 17,1936. The limiting amountor such stock purchases was originally $20 million and this was later raised to $40 million. In the absenceof a specific allocation, the amount disbursed for such capital stock was considered to be the amount author-ized.

TABLE A-17


Advances to the Secretary of State and Economic Cooperation Administration

Year andquarter

ad....!917.3d \_ " "4th _

19481st2d :3d4th

19491st,—.2d-3d

19501st2d3dAt-Yi

Total

Authorized

$175,000,000

150,000,000

1,166,666,66625,000,000

8,000,0001,000,000,000

30,000,0008,000,000

2,496,000,000

Canceled

$145,000,000

145,000,000

Disbursed

$175,000,000

1,165,666,66625,000,000

1,008,000,000

30,000,0008,000,000

2,351,000,000

Repaid

$175,000,000

1,165,666,666

25,000,0008,000,000

1,000,000,000

30,000,000

a nno 000

2,351,000,000

Recoveredby note


$175,000,000

25,000,00025,000,000

25,000,0001,008,000,0001,000,000,000

30,000,0008,000,0008,000,000



APPENDIX D

SELECTED REFERENCES

309



APPENDIX D

SELECTED REFERENCESThere are listed in this appendix a number of books, reports, and other ma-

terials dealing with one phase or another of RFC's operations. It has beenfound impractical to list the many hundreds of articles on RFC's activitieswhich appeared in newspapers and periodicals during the Corporation's exist-ence, as well as the routine financial reports prepared by RFC for internal useor to fulfill legislative requirements. Also omitted from the list are the hearingsheld before congressional committees on appropriations in connection with theCorporation's budget requests.

The most comprehensive reference materials available on the operations ofthe Reconstruction Finance Corporation are contained in congressional publi-cations and documents. Noteworthy among these are the hearings held beforeSenate Committees on Banking and Currency in connection with S. Res. 132,80th Congress, 2d session (the Buck committee), and those in connection withS. Res. 219, 81st Congress, 2d session (the Fulbright committee). Also veryinformative are the audits made of the RFC by the General Accounting Officeand published as House of Representatives documents. The audit for the fiscalyear ended June 30, 1945, was very extensive and reviewed the activities of theCorporation and its subsidiaries up to that date in much detail.

I. BOOKS, ETCThe Reconstruction Finance Corporation. The Olass-Steagall Amendment.

Federal Home Loan Bank Act New York: American Institute of Banking,1932.

Anti-Depression Legislation. A Study of the Acts, Corporations, and TrendsGrowing Out of the "Battle With Depression." New York: American Insti-tute of Banking, 1933.

Reconstruction Finance Corporation Loans to the Railroads, 1932-1937, by Her-bert Spero. Boston, New York: Bankers Publishing Co., 1939.

Steel Expansion for War. A Report of Steel Division, War Production Board,by W. A. Hauck. Reprinted by Steel magazine, Cleveland: Penton Pub-lishing Co., 1945.

Fifty Billion Dollars. My Thirteen Years With the RFC, by Jesse H. Jones,with Edward Angly. New York: Macmillan, 1951.

Federal Lending and Loan Insurance. A Study by the National Bureau ofEconomic Research, by R. J. Saulnier, Harold G. Halcrow, and Niel H. Ja-coby. Princeton: Princeton University Press, 1958.

II. CONGRESSIONAL PUBLICATIONS

A . House of Representatives

DOCUMENT ROOM

Reconstruction Finance Corporation Act With Amendments. Compiled byGilman G. Udell, Superintendent, Washington: U.S. Government PrintingOffice, 1958.

505257- "*


HOUSE DOCUMENTS

79th Congress* 2d Session:Document No. 899. Report of the Reconstruction Finance Corporation,

Feb. 2, 1932, to June 30, 1945, inclusive. Washington: U.S. GovernmentPrinting Office, 1946.

80th Congress, 1st Session:Document No. 316. Report on Audit of Reconstruction Finance and Affili-

ated Corporations for the Fiscal Year Ended June 30, 1945. Vol. 1.Washington: U.S. Government Printing Office, 1947.

Document No. 439. Report on Audit of Defense Supplies Corporation forthe Fiscal Year Ended June 30, 1945. Vol. 5. Washington: U.S. Gov-ernment Printing Office, 1948.

Document No. 4*7$. Report on Audit of Defense Plant Corporation for theFiscal Year Ended June 30, 1945. Vol. 4. Washington: U.S. Govern-ment Printing Office, 1948.

80th Congress, 2d Session:Document No. 444. Report on Audit of Rubber Reserve Company and

Rubber Development Corporation for the Fiscal Year Ended June 30,1945.Vol. 7. Washington: U.S. Government Printing Office, 1947.

Document No. 450. Report on Audit of Reconstruction Finance Corpora-tion, the RFC Mortgage Company, and Federal National Mortgage As-sociation for the Fiscal Year Ended June 30, 1945. Vol. 2. Washington:U.S. Government Printing Office, 1947.

Document No. 605. Report on Audit of War Damage Corporation for theFiscal Year Ended June 30, 1945. Vol. 3. Washington: U.S. Govern-ment Printing Office, 1948.

Document No. 622. Report on Audit of Petroleum Reserves Corporationfor the Fiscal Year Ended June 30, 1945. Vol. 9. Washington: U.S.Government Printing Office, 1948.

Document No. 623. Report on Audit of Disaster Loan Corporation for theFiscal Year Ended June 30, 1945. Vol. 10. Washington: U.S. Govern-ment Printing Office, 1948.

Document No. 713. Report of Audit of U.S. Commercial Company for theFiscal Year Ended June 30, 1945. Vol. 8. Washington: U.S. Govern-ment Printing Office, 1948.

Document No. 758. Report on Audit of Metals Reserve Company for theFiscal Year Ended June 30, 1945. Vol. 6. Washington: U.S. Govern-ment Printing Office, 1949.

81st Congress, 2d Session:Document No. 468. Report on Audit of Reconstruction Finance Corporation

and Subsidiaries for the Fiscal Years Ended June 30, 1946 and 1947.Washington: U.S. Government Printing Office, 1950.

Document No. 688. Report on Audit of Reconstruction Finance Corporationand Federal National Mortgage Asociation for the Fiscal Years EndedJune 30, 1948 and 1949. Washington: U.S. Government Printing Office,1950.

82d Congress, 1st Session:Document No. 125. Report on Audit of Reconstruction Finance Corporation

and Federal National Mortgage Association for the Fiscal Year EndedJune 30, 1950. Washington: U.S. Government Printing Office, 1951.

82d Congress, 2d Session:Document No. 867. Report on Audit of Reconstruction Finance Corporation


for the Fiscal Year Ended June 30, 1951. Washington: U.S. GovernmentPrinting Office, 1952.

83d Congress, 1st Session:Document No. 104* Report on Audit of Reconstruction Finance Corporation


83d Congress, 2d Session:Document No, 884. Report on Audit of Reconstruction Finance Corporation

for the Fiscal Year Ended June 30,1953. Washington: U.S. GovernmentPrinting Office, 1954.

84th Congress, 1st Session:Document No* 143. Report on Audit of Reconstruction Finance Corporation


84th Congress, 2d Session:Document No. 885. Report on Audit of Reconstruction Finance Corporation

(In Liquidation) and Defense Lending Division, Office of Production andDefense Lending, Department of the Treasury, for the Fiscal Year EndedJune 30,1955. Washington: U.S. Government Printing Office, 1956.

Document No. 886. Report on Audit of Federal Facilities Corporation, Officeof Production and Defense Lending, Department of the Treasury, for theFiscal Year Ended June 30,1955. Washington: U.S. Government PrintingOffice, 1956.

REPORTS

Committee on Banking and Currency:74th Congress, 1st Session:

Report No. 84. Report on Extension of the Functions of the Reconstruc-tion Finance Corporation. To Accompany S. 1175. Washington: U.S.Government Printing Office, 1935.

80th Congress, 1st Session:Report No. 626. Reconstruction Finance Corporation Act To Accom-

pany H.R. 3910. Washington: U.S. Government Printing Office, 1947.80th Congress, 2d Session:

Report No. 1886. Reconstruction Finance Corporation Act To Accom-pany S. 2287- Washington: U.S. Government Printing Office, 1948.

Select Committee on Small Business:84th Congress, 2d Session:

Report No. 2970. Final Report Pursuant to H. Res. 114, a ResolutionCreating a Select Committee To Conduct a Study and Investigation ofthe Problems of Small Business. Washington: U.S. GovernmentPrinting Office, 1957.

HEARINGS

Committee on Expenditures in the Executive Departments:79th Congress, 2d Session:

On House Document No. 674. Audit of the Reconstruction Financeby the General Accounting Office. July 2 and 10,1946. Washington:U.S. Government Printing Office, 1940.

Committee on Banking and Currency:73d Congress, 2d Session:

On H.R. 8082 and other bills to provide loans through ReconstructionFinance Corporation. Feb. 13, 14, 15, 19, 20, 2% 26, 27, 28; Mar. 7,


15, 19, 22, and 27, 1934. Washington: U.S. Government PrintingOffice, 1934.

74th Congress, 1st Session:On H.R. 4240 (8. 1175), a bill to extend the functions of the Recon-

struction Finance Corporation, and for other purposes. Jan. 21,22,23,24, and 25,1935. Washington: U.S. Government Printing Office, 1935.

74th Congress, 2d Session:On H.R. 11968 and H.R. 12014, and other bills relating to the authority of

the Reconstruction Finance Corporation to make rehabilitation loansfor the repair of damages caused by floods or other catastrophes.Mar. 26 and 27, 1936. Washington: U.S. Government Printing Office,1936.

75th Congress, 3d Session:On H,R. 10608 superseding H.R. 10505 (8. 3948), relating to loans to

railroads by Reconstruction Finance Corporation. May 6, 9, and 10,1938. Washington: U.S. Government Office, 1938.

76th Congress, 3d Session:On H.R. 9687 (superseded oy H.R. 9958), relating to loans by Recon-

struction Finance Corporation to assist in the national defense pro-gram. May 13, 14, 15, 20, 22, 23, and 24, 1940. Washington: U.S.Government Printing Office, 1940.

77th Congress, 2d Session:On H.R. 6S82 (8. 2198), a bill to amend the Reconstruction Finance

Corporation Act, as amended, to provide for the financing of the WarInsurance Corporation, and for other purposes. Feb. 2, 3, 4, and 5,1942. Washington: U.S. Government Printing Office, 1942.

78th Congress, 2d Session:On H.R. 4420 (superseded hy H>R. 3873), a bill to amend the Reconstruc-

tion Finance Corporation Act by adding a new title thereto relatingto the sale or other disposition of surplus property of the United States.Jan. 17-21, Feb. 14 and 16, and March 22, 1944. Washington: U.S.Government Printing Office, 1944.

79th Congress, 1st Session:On 8, 502, an act to permit the continuation of certain subsidy payments

and certain purchase and sale operations by the corporations createdpursuant to section 5d(3) of the Reconstruction Finance CorporationAct, as amended. Apr. 24, 25, and 26, 1945. Washington: U.S. Gov-ernment Printing Office, 1945.

On 8.J. Res. 65, to transfer to the Reconstruction Finance Corporationthe functions, powers, duties, and records of certain corporations.June 26, 1945. Washington: U.S. Government Printing Office, 1945.

80th Congress, 1st Session:On the Creation and Control of Credit By the Federal Government

Part 1. The Reconstruction Finance Corporation. May 19, 20, 21,22, 26, 29; June 2 and 9,1947. Washington: U.S. Government Print-ing Office, 1947.

80th Congress, 2d Session:On 8. 2287, an act to amend the Reconstruction Finance Corporation

Act, as amended, and for other purposes. Apr. 22, 23, and 26, 1948.Washington: U.S. Government Printing Office, 1948.

83d Congress, 1st Session:On JBJl. 4090 and H.R. 5141, to create the Small Business Administra-

tion and to preserve small business institutions and free, competitive


enterprise. May 14,15, and 18, 1953. Washington: U.S. GovernmentPrinting Office, 1953.

Committee on Armed Services:81st Congress, 2d Session:

Before a special subcommittee, On the President's RecommendationsConcerning Synthetic Rubber. No. 171. Feb. 20, 21, 23, 24, and 27,1950. Washington: U.S. Government Printing Office, 1950.

83d Congress, 1st Session :Before a subcommittee, On S.R. 5425. To authorize the Disposal of

the Government-owned Synthetic Bubber Facilities, and for otherpurposes. No. 25. June 3, 4, 5, 8, 9, and 10,1953. Washington: U.S.Government Printing Office, 1953.

84th Congress, 1st Session:On H.R. 2882, H. Res. 170, and H. Res. 171. Disposal of Government-

owned Synthetic Rubber Producing Facilities. No. 10. Mar. 10, 11,14, and 15,1955. Washington: U.S. Government Printing Office, 1955.

85th Congress, 1st Session:On E.R. 2528, to authorize sale of Government-owned Alcohol Butadiene

Facility at Louisville, Ky. No. 3. Jan. 24, 1957. Washington: U.S.Government Printing Office, 1957.

Select Committee on Small Business :79th Congress, 1st Session:

On H. Res. 64, a Study and Investigation of the National Defense Pro-gram in Its Relation to Small Business. Part 7. Jan. 22-25, 1946.Washington: U.S. Government Printing Office, 1946.

Committee on Appropriations:82d Congress, 1st Session:

Before a Special Subcommittee On Rehabilitation of Flood-StrickenAreas. Sept. 19, 20, 21, 25, and 26, 1951. Washington: U.S. Govern-ment Printing Office, 1951.

B. SenateREPORTSCommittee on Expenditures in the Executive Departments:

82d Congress, 2d Session:Report No. 1142. Interim Report made by the Senate Permanent Sub-

committee on Investigation on American Lithofold Corp., WilliamM. Boyle, Jr., Guy George Gabrielson. Jan. 31, 1952. Washington :U.S. Government Printing Office, 1952.

Committee on Banking and Currency:80th Congress, 2d Session:

Report No. 974. To accompany S. 2287 on the Operations of the Re-construction Finance Corporation. Mar. 10,1948. Washington: U.S.Government Printing Office, 1948.

81st Congress, 2d Session:Report No. 1689. Study of Reconstruction Finance Corporation, Pur-

suant to S. Res. 219 (81st Cong.). Texmass Petroleum Co. lioan.May 19, 1950. Washington: U/S. Government Printing Office, 1950.

Report No. 1689—Part 2. Study of Reconstruction Finance Corpora-tion, Pursuant to S. Res. 219 (81st Cong.). Lustron Corp.—Trans-portation contract. Aug. 11, 1950. Washington: U.S. GovernmentPrinting Office, 1950.


82d Congress, 1st Session:Report No. 76. Study of Reconstruction Finance Corporation, Pursuant

to S. Res. 219 (81st Cong.). Favoritism and Influence, Feb. 5, 1951*Washington: U.S. Government Printing Office, 1951.

Report No. 552. Study of Reconstruction Finance Corporation, Pur-suant to 8. Res. 219 (81st Cong.). Loans to Kaiser-Frazer Corp.and Kaiser-Frazer Sales Corp. July 19, 1951. Washington: U.S.Government Printing Office, 1951.

Report No. 649. Study of Reconstruction Finance Corporation. ToAccompany S. 515 and To Serve as a Final Report Pursuant to S. Res.219 (81st Cong.). Aug. 20, 1951. Washington: U.S. GovernmentPrinting Office, 1951.

83d Congress, 1st Session:Report No. 604. To Accompany S. 1523, a Bill to Dissolve the Re-

construction Finance Corporation, to Establish the Small BusinessAdministration, and for other purposes. July 18,1953. Washington:U.S. Government Printing Office, 1953.

HEARINGS

Committee on Expenditures in the Executive Departments:82d Congress, 1st Session:

On 8. Res. 16. Disapproving Reorganization Plan No. 1 of 1951 (Re-organization of the Reconstruction Finance Corporation). Mar. 21,22, and Apr. 3, 1951. Washington: U.S. Government Printing Office,1951.

Select Committee on Small Business:81st Congress, 2d Session:

On the Degree of Availability of Reconstruction Finance CorporationFunds to Small Business, June 14, 1950. Washington: U.S. Govern-ment Printing Office, 1950.

Committee on Armed Services:81st Congress, 2d Session:

Before a Subcommittee, On HJt. 7519 and 8. 8294, Extension of theRubber Act of 1948. June 5, 6, and 8, 1950. Washington: U.S.Government Printing Office, 1950.

82d Congress, 1st Session:Before the Preparedness Subcommittee, On Stockpiling of Tin and

Rubber, July 24, 1951. Washington: U.S. Government PrintingOffice, 1951.

82d Congress, 2d Session:Before a Subcommittee, On Extension of the Rubber Act of 1948. May

14, 1952. Washington: U.S. Government Printing Office, 1952.Committee on Banking and Currency:

72d Congress, 1st Session:On 8. I, a bill to provide emergency financing facilities for banks and

other financial institutions and for other purposes. Dec. 18, 19, 21,and 22, 1931. Washington: U.S. Government Printing Office, 1932.

72d Congress, 2d Session:Before a Subcommittee, On 8J. Res. 245, to suspend the making of

loans to railroads by the Reconstruction Finance Corporation* Jan.31, Feb. 1, 9, and 10, 1933. Washington: U.S. Government PrintingOffice, 1933.


76th Congress, 3d Session:Before a Subcommittee, On 8. 3988, a bill to authorize the purchase by

the RFC of stock of Federal Home Loan Banks, to amend the Be-construction Finance Corporation Act, as amended, and for otherpurposes. May 14, 1040. Washington: U.S. Government PrintingOffice, 1040.

79th Congress, 2d Session:On 8. 2198, a bill to provide for the financing of War Insurance Cor-

poration, to amend the Reconstruction Finance Corporation Act, asamended, and for other purposes. Jan. 27, 28, and 29,1942. Wash-ington : U.S. Government Printing Office, 1942.

80th Congress, 1st Session:Before a Special Subcommittee, On 8. Res. 132, a resolution for an

inquiry into the operation of the Keconstruction Finance Corporationand its subsidiaries. Parti. Dec. 3,11, and 12,1947, Washington:U.S. Government Printing Office, 1948

80th Congress, 2d Session:Before a Special Subcommittee, On 8. Res. 182, a resolution for an

inquiry into the operations of the Reconstruction Finance Corpora-tion and its subsidiaries. Jan, 14,15,16, and 22,1948. Washington:U.S. Government Printing Office, 1948.

81st Congress, 1st Session:Before a Subcommittee, On 8.1871, a bill to amend the Reconstruction

Finance Corporation Act to prohibit employment of certain personnelof the Corporation by organizations receiving loans or other financialassistance therefrom. June 16,1949. Washington: U.S. GovernmentPrinting Office, 1949.

Before a Subcommittee, On a Review of the Loan Policy of the Recon-struction Finance Corporation. June 22, 23, and 30, 1949. Wash-ington : U;S. Government Printing Office, 1949.

Before a Subcommittee, On 8. 2844, a bill to amend the ReconstructionFinance Corporation Act, as amended. Aug. 2, 3, 11, 12, and 18,1949. Washington: U.S. Government Printing Office, 1949.

81st Congress, 2d Session:Before a Subcommittee, On a Study of the Operations of the Recon-

struction Finance Corporation Pursuant to 8. Res. 219, 81st Con-gress. Texmass Loan. Apr. 13, 22, and 27,1950. Washington: U.S.Government Printing Office, 1950.

Before a Subcommittee, On a Study of the Operations of the Recon-struction Finance Corporation Pursuant to 8. Res. 219, 81st Congress.Analyses of Income and Costs. May 8 and 9, 1950. Washington:U.S. Government Printing Office, 1950.

Before a Subcommittee, On a Study of the Operations of the Recon-struction Finance Corporation Pursuant to 8. Res. 219, 81st Congress.Lending Policy. June 8, 9, 13, 15; July 3, 5, and 10, 1950. Wash-ington: U.S. Government Printing Office, 1950.

On 8. 529, 8. 2948, 8..2947, 8. 2975, 8. 3886, and 8. 8625, bills to makecapital and credit more readily available for financing small business.June 22, 23, 27, and 28,1950. Washington: U.S. Government PrintingOffice, 1950.

Before a Subcommittee, On a Study of the Operations of the Reconstruc-tion Finance Corporation Pursuant to 8. Res. 219, 81st Congress.Lustron Corp.—Transportation Contract June 26, 27, 28, 29, and


30, 1950. Washington: U«S. Government Printing Office, 1950.Before a Subcommittee, On a Study of the Operations of the Reconstruc-

tion Finance Corporation Pursuant to 8. Res. 219, 81st Congress.Loan to Waltham Watch Co. July 20 and 21, 1950. Washington:U.S. Government Printing Office, 1950.

82d Congress, 1st Session:Before a Subcommittee, On a study of the Operations of the Reconstruc-

tion Finance Corporation Pursuant to ifif. Res. 219, 81st Congress.Lending Policy—Part 2. Feb. 21, 22, 23, 26, 27, and March 1, 1951.Washington: U.S. Government Printing Office, 1951.

Before a Subcommittee, On a study of the Operations of the Reconstruc-tion Finance Corporation Pursuant to 8. Res. 219, 81st Congress.Lending Policy—Part 3. Mar. 2, 5, 7, 8, 12, 19, 28; May 10 and 11,1951. Washington: U.S. Government Printing Office, 1951.

On the Nomination of W. Stuart Symington to be Administrator of theReconstruction Finance Corporation. Apr. 26, 1951. Washington:U.S. Government Printing Office, 1951.

On 8. 514, S. 515, 8.1116, 8.1128, ifif. 1329, 8. 1316, and 8J. Res. U, billsto amend the Reconstruction Finance Corporation Act, as amended,and for other purposes. Apr. 27, 30; May 1, 2, 22, and 23, 1951.Washington: U.S. Government Printing Office, 1951.

To Hear Stuart )8ymington, Administrator, Reconstruction Finance Cor-poration. RFC Administrative Policy. Aug. 15, 1951. Washington:U.S. Government Printing Office, 1951.

83d Congress, 1st Session:On the Nomination of Eenton R. Cravens To Be Administrator of the

Reconstruction Finance Corporation, Apr. 14, 1953. Washington:U.S. Government Printing Office, 1953.

On 8. 892 and other Ulls, to dissolve the Reconstruction Finance Cor-poration and transfer its functions and to create a small-businesslending agency. May 20, 21, 22, 25, 26, and 27, 1953. Washington:U.S. Government Printing Office, 1953.

On *ST. 2041, a bill to amend the Rubber Act of 1948, as amended, to pro-vide for the sale of Government-owned rubber-producing facilities,and for other purposes. June 24, 25, 26, 29, and July 1, 1953. Wash-ington : U.S. Government Printing Office, 1953.

On 8. 892 and other bills, to dissolve the Reconstruction Finance Corpo-ration and transfer its functions and to create a small-business lendingagency. Part 2. July 13 and 14, 1953. Washington: U.S. Govern-ment Printing Office, 1953.

83d Congress, 2d Session:On the Progress of Liquidation of the Reconstruction Finance Corpo-

ration. Mar. 26, 1954. Washington: U.S. Government Printing Of-fice, 1954.

84th Congress, 1st Session:Before a Subcommittee, On 8.691, a bill to permit the disposal of Plancor

877 at Baytown, Tex., and the Report of the Rubber Producing Fa-cilities Disposal Commission to Congress. Mar. 8, 9,10, and 11, 1955.Washington: U.S. Government Printing Office, 1955.

85th Congress, 1st Session:Before a Subcommittee, On H.R. 2528, to authorize sale of the Govern-

ment-owned alcohol butadiene facility at Louisville, Ky. Mar. 7,1957. Washington: U.S. Government Printing Office, 1957.

318


Committee on Appropriations:82d Congress, 1st Session:

On H.R. 5215 (extract), making supplemental appropriations for thefiscal year ending June 30,1952, and for other purposes. Reconstruc-tion Finance Corporation. Sept 11, 1951. Washington: UJ3. Gov-ernment Printing Office, 1951.

Ill- PUBLICATIONS OF EXECUTIVE DEPARTMENTS AND AGENCIESCIVILIAN PRODUCTION ADMINISTRATION

Evolution of Premium Price Policy for Copper, Lead and Zinc. January 1945 toNovember 1943. Historical Reports on War Administration: War ProductionBoard: Special Study No. 4. Washington, 1946.

Lead and Zinc Policies of the War Production Board and Predecessor Agencies.May 1940 to March 1944. Historical Reports on War Administration: WarProduction Board: Special Study No. 8. Washington, 1946.

Policies Governing Private Financing of Emergency Facilities. May 1940 toJune 1942. Historical Reports on War Administration: War ProductionBoard: Special Study No. 12. Washington, 1946.

Alcohol Policies* of the War Production Board and Predecessor Agencies. May1940 to January 1945. Historical Reports on War Administration: War Pro-duction Board: Special Study No. 16. Washington, 1946.

The Facilities and Construction Program of the War Production Board andPredecessor Agencies. May 1940 to May 1945. Historical Reports on WarAdministration: War Production Board: Special Study No. 19. Washington,1946.

Aluminum Policies of the War Production Board and Predecessor Agencies. May1940 to November 1945. Historical Reports on War Administration: WarProduction Board: Special Study No. 22. Washington, 1946.

Rubber Policies of the National Defense Advisory Commission and the Office ofProduction Management. May 1940 to December 1941. Historical Reportson War Administration: War Production Board: Special Study No. 28. Wash-ington, 1947.

Copper Policies of the War Production Board and Predecessor Agencies. May1940 to November 1945. Historical Reports on War Administration: WarProduction Board: Special Study No. 29. Washington, 1947.

FEDERAL FACILITIES CORPORATION

Report to the Congress on Tin Operations, June 30,1955, Pursuant to Public Law125,80th Congress. Washington, 1955.

United States Government Tin Program Conducted by Reconstruction FinanceCorporation and Federal Facilities Corporation During Period 1940-1957.Washington, 1957.

Report to the Congress on Synthetic Rubber Operations, June 30,1955, Pursuantto the Rubber Act of 1948, as amended. Washington, 1955.

The Government's Rubber Projects (Vol. I I ) , A History of the U.S. Government'sNatural and Synthetic Rubber Programs, 1941-55. Washington, 1955. (VoLII of the history covers the synthetic rubber program. I t was originally pre-pared in 1948 by Brendan J. O'Callaghan in the Division of Information, Re-construction Finance Corporation. I t was revised and brought up to date in1954 by Dorothy Rigdon, Office of the Secretary, Reconstruction Finance Cor-poration, and again revised and brought up to date in 1955 under the super-

319


vision of Bertram H. Wimer, Office of Synthetic Kubber, Federal FacilitiesCorporation. Vol. I of the history covers natural rubber, but was never repro-duced and is available only in the National Archives.)

RUBBER PRODUCING FACILITIES DISPOSAL COMMISSION

Report to Congress Recommending Disposal of Government-Owned SyntheticRubber Facilities (Public Law 205—83d Cong.). Washington, Jan. 24,1955.

Report to Congress Recommending Disposal of the Government-Owned SyntheticRubier Plant at Baytown, Texas (Public Law 19—84th Cong.). Washington,June 10,1955.

Report to Congress Recommending Disposal of the Government-Owned SynthetioRubier Plant at Institute, West Virginia (Public Law 336—84th Cong.).Washington, Jan. 12,1956.

RECONSTRUCTION FINANCE CORPORATION

Annual Report and Financial Statements. June 30,1946-54, inclusive.Financing the Construction of Self-Liquidating Public Projects Through the

Reconstruction Finance Corporation. Washington, U.S. Government PrintingOffice, 1932.

Seven-Year Report to the President and the Congress. Feb. 2, 1939.How To Do Business With RFC. Washington, 1945.Report on the Rubber Program, 1940-1945. Rubber Reserve Company, Feb. 24,

1945.Report on the Rubber Program, Supplement No. 1,1945. Office of Rubber Reserve,

Apr. 8,1946.Report With Respect to the Development of a Program for Disposal of the

Government-Owned Rubber-Producing Facilities. Washington, U.S. Govern-ment Printing Office, 1949.

Program for Disposal to Private Industry of Government-Owned Rubier Pro-ducing Facilities. Eeport to the President and the Congress. Mar. 1, 1953.

Review of Lending Activities January lt 1950-March 31, 1953. Office of theController, 1953.

Program of Liquidation. What the RFC Holds—How It Is Liquidating. No-vember, 1953.

The Government's Abaca Project. An Account of the Establishment and Opera-tion of Central American Plantations for the Production of Abaca (Manilahemp), an Essential Material in the Manufacture of Marine Cordage. Febru-ary, 1954.

The Reconstruction Finance Corporation in Liquidation. Report of Kenton R.Cravens, Administrator, to the President. Mar. 31,1954.

Report to the Congress on Abaca Fiber Operations, Pursuant to Public Law 683,81st Congress. June 30,1954.

Report to the Congress on Synthetic Rubber Operations, Pursuant to the RubberAct of 1948, as amended. June 30,1954.

Report to the Congress on Tin Operations, Pursuant to Public Law 125, 80thCongress. June 30,1954.

The Role of RFC in Expanding American Industrial Plant During World War II.(Prepared in the Division of Information, Reconstruction Finance Corporation,by Gerald T. White. Not reproduced. Available in typescript in the NationalArchives.)

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Rubber in World War II. A History of the U.S. Government's Natural andSynthetic Bubber Programs in World War II. (Prepared in the Division ofInformation, Reconstruction Finance Corporation, by Brendan J. O'Callaghan.Not reproduced. Available in typescript in the National Archives.)

TREASURY DEPARTMENTReport to the Congress. Liquidation of Reconstruction Finance Corporation.

June 30, 1957. Washington, U.S. Government Printing Office, 1958.

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Documents

Reconstruction Finance Corporation