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December 4, 1944




Subject: SWPC Bill - S. 2004,
Passed December 1, 1944


During the debate on this bill, an effort was made by Mr.
Crawford, with some Republican support, to have the bill amended
limiting the use of funds to the guaranteeing of loans, eliminating
direct lending. The argument was made that a guarantee plan was
much better than direct lending and that our bill would make the
pending bill unnecessary. Chairman Spence then made the point that
there was no conflict between the two bills. In his statement, he

„ *** After the Baruch report and the recommendations made that the Federal Reserve insure the
loans of banks in order to provide adequate funds
for smaller business throughout the United States,
I called up Mr. Eccles and told him I thought that
was a most excellent plan, and if he desired to have
a bill introduced to carry out that purpose, I would
be glad to introduce it» He prepared such a bill,
and I have introduced it. *** After the pending bill
is passed, and I presume it will be by an overwhelming
majority, I am going to see that the Banking and Currency Committee holds a hearing on the bill Mr. Iccles
proposed, and I hope that bill will pass, I hope we can
give to the smaller plants which are now in a condition
in which they need help because of the existing emergency some effective help. I am sure it can be done by
way of a guaranty, and I see no reason why that bill
should not pass or why it should be in conflict with
the present bill. Certainly the more accommodation we
can give to these small plants the better it will be
for them. *** "