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IMMEDIATE RELEASE AUGUST lU, 19U6 MEMORANDUM OF DISAPPROVAL I am withholding my approval of H.R. 14*28 entitled, "An Act to adjust the rate of dividends paid by the Federal Savings and Loan Insurance Corporation on its capital stocks and to decrease the premium charge for its insurance." The major provision of this bill provides for the reduction of the insurance premium paid to the Federal Savings and Loan Insurance Corporation. The premium would be reduced from one-eighth of one per cent to one-twelfth on one per cent. The legislative history of the original bill creating the Federal Savings and Loan Insurance Corporation indicates that the Congress originally contemplated that the reserve of the Federal Savings and Loan Insurance Corporation should some day reach five per cent of the insured risk, but after ten years of operation this reserve had reached less than one per cent of the insured risk. The Federal Savings and Loan Insurance Corporation has one hundred million dollars of government-furnished money. This amounts to a subsidy for the benefit of private institutions. It is particularly important, from a budgetary standpoint, that this money be returned to the government at as early a date as possible. At the present time when such vigorous efforts are being made to increase government receipts and reduce expenditures, prudent policy requires that the premium of the Federal Savings and Loan Insurance Corporation should be maintained with the ultimate view of effecting the repayment of the one hundred million dollars to the Treasury- HAHRI S. TRUMAN THE T/HITE HOUSE, August Hi, 19l|6.
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