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STATEMENT BY SENATOR HARRY F« BIRD (D~VA.) BEFORE THE SSKATE BANKING AND CURRENCY COMMITTEE RELATIVE TO S* 1376 FOR THE ABOLITION OF THE R. F* C*, APRIL 30, 1951 Functions and programs of the RFC which are a t present authorized by e x i s t i n g law and executive and administrative orders roughly may be grouped i n four broad categories, as f o l l o w s : 1* The old l i n e lending programs which are currently a c t i v e 3 such as loans to business enterprises and the purchases of t h e i r obligations, and loans t o meet catastrophes i n the event they occur? 2* The old l i n e lending programs which are currently INACTIVE3 such as XoanFTo f i n a n c i a l i n s t i t u t i o n s including banks and insurance companies j loans to states, municipalities and other subdivisions and public bodies t o finance public projects, and purchase of s e c u r i t i e s and obligations f o r the same purpose; loans to drainage, levee, and i r r i g a t i o n d i s t r i c t s , loans f o r marketing a g r i c u l t u r a l commodities} loans to f o r e i g n governments; loans t o mortgage companies and guaranteeing.veterans mortgages and insuring FHA mortgages; and l i q u i d a t i o n of T/orld IVar I I a c t i v i t i e s including the a f f a i r s of the Defense Homes Corporation* 3# The servicing of the new defense production loans and c i v i l i a n defense l o a n s as an agent for other f e d e r a l agencies which Save primary r e s p o n s j b & i t y i n these programs; and h . TET operation of defense plants and ac£xvitie s , 'such as those now engaged i n the production of t i n , synthetic rubber, abaca f i b e r and aluminum* B r i e f l y , Senate B i l l 1376, sponsored by Senators Robertson, B r i c k e r , Kem, Williams, Ferguson and myself, would discontinue RFC a c t i v i t i e s i n the f i r s t two categories, and provide for the continuance elsewhere of the a c t i v i t i e s l i s t e d i n the second two categories* OLD LINE R* F* C* LENDING ACTIVITIES The sponsors of t h i s b i l l take the p o s i t i o n that t h e ' o l d l i n e lending a c t i v i t i e s of the RFC, currently both active and inactive^ under present coi>* d i t i o n s , and the requirements of the foreseeable f u t u r e , are nonessential, i n f l a t i o n a r y , and constitute a temptation f o r abuse* And under provisions of the b i l l these a c t i v i t i e s and programs would be discontinued immediately upon enactment, and the Secretary of the Treasury would proceed witfr an orderly l i q u i d a t i o n honoring a l l of the terms of agreements made i n connection w i t h a l l approved loans* R* F* C* SERVICE TO DEFENSE PRODUCTION LOANS Primary r e s p o n s i b i l i t y for defense production loans, under the Defense Production Act of 19f>0j l i e s i n the component departments of the National M i l i t a r y Establishment, the Commerce Department and f*such other agencies engaged i n procurement for the national defense11 as the President may designate* The RFC has been u t i l i z e d l a r g e l y f o r the servicing of defense production loans under directions set f o r t h i n Executive Order 10161* This .Executive Order could be changed w i t h i n the provisions of the Defense Production Act without regard f o r any provision i n the RFC Act of 19li7» ®ut as a means of precaution against any delay, interruption or interference w i t h IVoduction Act loans which have been assigned to the RFC, the pending b i l l provides that the RFC may remain a c t i v e w i t h respect to Defense Production Act loans f o r as long as 120 days a f t e r enactment, or u n t i l the Secretary of the Treasury or any other agency designated by'the President indicates a b i l i t y t o take over a c t i o n on these loans without delay, interruption or interference* CIVILIAN DEFENSE LOANS THROUGH R# F* C* The C i v i l i a n Defense Act provides f o r loans through the RFC* To date no loans have been made under t h i s authority* Therefore, t h i s b i l l could cause l i t t l e or no delay, interruption or interference i n connection w i t h C i v i l i a n Defense loans* But the same 120 day provision, under terms of the b i l l , would apply t o RFC lending a c t i v i t i e s i n r e l a t i o n t o c i v i l i a n defense loans which may have been originated by the date of enactment* ALUMTNUM PLANT TRANSFER An Administration b i l l (S 312) i s now pending before the Senate t o transfer the aluminum and magnesium forgings plant to the Department of Defense* Section 6 of t h i s RFC b i l l (S 1376) contains language i n substantial conformity w i t h the Administration b i l l providing f o r the transfer of t h i s operation from RFC to the A i r Force* This language has been worked out w i t h the assistance and advice of the Bureau of the Budget* TIN, RUBBER AND FIBER PLANTS The RFC i s a t present operating t i n , rubber and f i b e r plants* Section 3 of the pending b i l l would transfer these operations to the Department of Commerce* The provisions f o r these transfers t o the Commerce Department are modeled a f t e r those i n Section 30$ of Senate B i l l 3936 of the 8 l s t Congress (The Defense Production B i l l ) as i t was reported from the Senate Committee on Banking and Currency* ARGUIEHI A0&I1I0T ABOLISHING R* F . C. The burden of the c r i t i c i s m o f proposals t o a b o l i s h RFD, as represented by the Chairman of the RFC Board, i n a l e t t e r t o the Senate Banking and Currency Committee of A p r i l 1, and by a l e t t e r from the Defense i i o b i l i z a t i o n Director t o the Senate Committee on lixpenditures i n lixecutive Departments, dated A p r i l U, waft that i t would i n t e r f e r e w i t h the defense! loan program and disrupt the operations o f defense plants now under the supervision o f It. F . C. Senate B i l l 1376 s p e l l s out i n s p e c i f i c terms the precautions t o be taken to preclude delay or d i s r u p t i o n i n any of these programs * LOMGr TERM AMD DISASTER LOAMS Another argument f o r continuance of RH5 i s that i t woilld provide long-term loans f o r small businesses which have already been turned dorm by banks and other private lending i n s t i t u t i o n s , and to provide loans i n cases of d i s a s t e r . This contention appears t o be refuted i n large degree by figures contained i n a t a b l e submitted t o the Senate Committee on Expenditures i n Lxecutive Departments March 23, 1951, along Tdth a l e t t e r by the Chairman of the RFC Board. These figures show that business loans o f over (>100,000 outstanding as of. January 31 t h i s year t o t a l e d more than 0353 m i l l i o n as compared t d t h outstanding loans of £100,000 or l e s s which, as of the same date ? t o t a l e d (>17U million# I n 1950 RFC made U,90U business loans o f l e s s than (>100,000, and of these approximately 3,000 were f o r less than (>25,000. I n connection w i t h RFC loans such as these 3,000 the Hoover Commission Task Force founds f, The maj -rity of the loans now being made by the Corporation a r e small loans to finance new businesses or the a c q u i s i t i o n of e x i s t i n g businesses by new owners, x x x These are important enterprises, but, i n d i v i d u a l l y , they are not s i g n i f i c a n t from a national standpoint. The assistance extended by RFC i n many of these cases may even have a negative value from the national point of view i n that i t encourages the continuance, of ventures which should be permitted t o discontinue, and i n that i t prevents t h e i r owners from going i n t o occupations f o r which they may be better suited. Any tendency t o perpetuate mistaken enterprises w i l l weaken the general economy out of a l l proportion t o the i n d i v i d u a l gains T4Iich i t may make. CATASTROPHE LQAHS Ample funds short-of-war catastrophes are provided through the Farm Home Administration, the community f a c i l i t i e s program of the Housing and Home Finance Agency and the P r e s i d e n t s emergency fund. QUESTIONS AMD AiTSTSRS I n an e f f o r t , as f a r as possible, t o bo sure that a l l of the d e t a i l s i n cident t o such a ramified operation as the RFC have been taken c are of i n Senate B i l l 1376, the Senate L e g i s l a t i v e Drafting Counsel has prepared answers, r e p r e senting t h e i r best judgment, t o a series of questions which either have been, or might be raised* These questions and answers may bo summarized as f o l l o w s : 1. (question) T/hat would be the e f f e c t of the b i l l on o l d l i n e loans (exclusive of Befenso Production Act loans) made by RFC p r i o r t o d i s s o l u t i o n upon which there are s t i l l disbursements t o be made? 2. (answer) Under the terms of the pending b i l l i t c l e a r l y would be the duty of the Secretary of the Treasury as l i q u i d a t o r t o provide f o r disbursements l e g a l l y obligated by the Corporation p r i o r t o enacement of the bill* (question) TJliat t r i l l happen w i t h rospcet t o "servicing" o l d l i n e RFC loans? (answer) The "servicing" o f loans i n existence p r i o r t o enactment would become the duty o f the Secretary of the Treasury as liquidator* A c t u a l l y , i n most instances, "servicing" provisions are included i n loan contracts and therefore constitute l e g a l o b l i g a t i o n on the part of both parties t o the loan. The agent through which the "servicing" would be performed would bo determined administratively by the Secretary of the Treasury as the liquidator* This would be neither a new nor an insurmountable task for the Secretary of the Treasury who p r i v i o u s l y has used the Bureau o f Accounts t o l i q u i d a t e the r e s i d u a l a f f a i r s of war agencies* Tiber eas, RFC now has 35 regional o f f i c e s , the Bureau o f Accounts has 26 s i m i l a r o f f i c e s throughout the United States and t e r r i t o r i e s * 3 3* (Question) What would be the e f f e c t upon participation: agreements with banks where, p r i o r to dissolution of RFC, the entire amount of the loan htfs not been disbursed or the bank has not exercised i t s option to have the RFC participate i n the loan? (Answer) The answer to this question i s i d e n t i c a l t o the answer to Question No. 1. Agreements entered into p r i o r to dissolution would constitute legal obligation which must be met i n a l l respects* 4* (Question) How would t h i s b i l l a f f e c t renewals of loans o r i g i n a l l y made p r i o r to enactment? (Answer) The Secretary of the Treasury, to achieve orderly l i q u i d a t i o n , may allow any obligor to make interim payments on revised schedules, but he i s s p e c i f i c a l l y denied the power to extend the maturity date of, or renew any loan made, or other obligation purchased by the RFC, beyond the date provided i n the loan contract or other agreement* 5. (Question) What would happen to the Defense Production loan program authorized by section 302 of the Defense Production Act of 1950? (Answer) The pending b i l l provides f o r uninterrupted continuity of the defense production loan program* The RFC i s currently performing certain functions with respect to t h i s program under authority of section 303 of Executive Order 10161, i n vihich the President vested i n the RFC functions conferred upon him by Section 302 of the Defense Production Act# In t h i s connection the pending b i l l provides that the President may at any time transfer t h i s program to the Secretary of Defense, the Federal Reserve Banks, or any existing department, agency, o f f i c i a l or corporation of the government, or to a new agency. Accordingly the President i s given wide discretion with respect t o the agency which s h a l l administer the program, just as he has under the Defense Production Act* However, i f the President does not make provision f o r the transfer of the program within 120 days after the enactment the program passes to the Secretary of the Treasury, and he may s t i l l transfer the program at any time t o any agency he sees f i t . 6* (Question) What would happen to the C i v i l Defense loan program, authorized by section 409 of the Federal C i v i l Defense Act of 1950? (Answer) The pending b i l l would permit RFC to continue to administer the loans of this program for as long as 120 days after enactment* Thereupon or before, i t i s indicated i f disruption i s precluded, the program would pass over to the Secretary of the Treasury who would administer i t i n accordance with the C i v i l Defense Act* 7* (Question) What disposition would be made of the defense plant operations now conducted by RFC? (Answer) Under terms of the b i l l the aluminum plant would be transferred to the A i r Force i n accordance with Administration recommendations, and the t i n , rubber and f i b e r plants would be transferred to the Department of Commerce under provisions similar to those recommended by the Senate Banking and Currency ConmLitee during the 81st Congress* 8. (Question) Are there funds available to the President f o r any other government agency to make disaster loans such as Jbhe HFC now makes? (Answer) There i s an emergency fund of #1 m i l l i o n available to the President for use i n emergencies affecting the National interest or security without regard to provisions 'of law regulating expenditures of government funds and to supplement efforts of state and l o c a l governments or other agencies i n a l l e v i a t i n g hardship or suffering,caused by flood, f i r e , hurricane, earthquake or other catastrophe* This Presidential fund i s to be succeeded, by the provisions of the Act of September 30, 1950, authorizing federal assistance tc state and l o c a l governments i n major disasters* The Secretary of Agriculture, through the Farmers1 Home Administration, can make emergency loans f o r damage to a g r i c u l t u r a l crops and products* In addition the Federal Government, through the Federal Housing Commission, insures banks and other private i n s t i t u t i o n s and loan agencies against certain loans and credit advances f o r repairing and replacing structures damaged as result of catastrophes* 9. (Question) What happens t o personnel of RFC (a) engaged i n lending a c t i v i t i e s , .and (b) engaged i n rubber, t i n , abaca f i b e r , and aluminum operations? (Answer) Most employees engaged i n the lending a c t i v i t i e s are covered under C i v i l Service and therefore would be e n t i t l e d to reemployment rights granted employees with C i v i l Service status* Such matters as retention of key personnel, etc*, f o r work i n connection with the l i q u i d a t i o n would be a matter within the administrative decision of the Secretary of the Treasury as liquidator* 10* (Question) tlhat would be tho e f f e c t of enactment of t h i s b i l l upon court proceedings K i t h the RFC as a party? (Answer) The b i l l c l e a r l y provides that s u i t s , actions, or other proceedings l a w f u l l y commenced by or against the corporation p r i o r t o the expiration of i t s succession s h a l l not abate upon the expiration of i t s succession* U* (Question) Could any other government agencies make or authorize the making of loans similar t o the old l i n e loans now made by BSC? (Answer) There are a number of other federal departments and agencies which can make loans similar to those now being made by RFC although none of them has quite as broad authorization which RFC has with respect t o whom loans may be made* Among these departments and agencies are the Federal Reserve Banks,, agencies of the M i l i t a r y Establishment, Farmers 'Home Administrations Commodity Credit Corporation, REA, Public Housing Administration^ and numerous mixed ownership corporations such as Federal Land Banks, Intermediate Credit Banks, Production Credit Corporation and Associations, Banks f o r Cooperatives, JDIC, etc* 12* (Question) What happens t o proceeds from the RFC liquidation? (Answer) The pending b i l l permits the Secretary of the Treasury to use the proceeds of l i q u i d a t i o n to meet administrative expenses, but congressional supervision of amounts to be allowed w i l l be continued and provisions of the Corporation Control Act would continue to be applicable* Beyond administrative expenses incident to l i q u i d a t i o n the proceeds would be applied t o the curtailment of the federal debt* PERESCTED BILL I t i s obvious from t h i s anlaysis that Senate B i l l 1376 has been thought out i n minute d e t a i l and drafted with extreme care* I t has been introduced t o substitute f o r Senate B i l l 1116 introduced at an e a r l i e r date* The drafting has been done by the Senate Legislative Drafting Counsel and i t represents the combined judgment of p r a c t i c a l l y a l l of the lawyers on the Counsel1 s very e f f i c i e n t staff* In addition they have checked out many of the d e t a i l s -with the Bureau of the Budget, the General Accounting Office and the jRSC i t s e l f * Every e f f o r t has been made t o protect and preserve tlio defense-delated functions now performed by RFC and t o continue them without disruption, i n t e r f e r ence, or delay* By tho same token e f f o r t has been made t o discontinue the old l i n e functions of the RFC, which wore spawned i n depression and are not nonessent i a l i n i n f l a t i o n , and t o liquidate those f-unctions and the RFC as a corporate e n t i t y i n an ox-derly fashion honoring a l l tho agreements that have been made* SUPPORT FCft BIE BILL Unqualified support f o r the objective of t h i s b i l l has been given, among others, by the Honorable Herbert Hoover, former President of the United States who originated the RFC as an instrument to combat inflation^ by tho Honorable' Josse Jones, former Secretary of Commerce, and f i r s t administrator of tho RFC, who f o r 8 years directed the tremendous operations of tho Corporation without a suggestion of impropriety or scandal, and accomplished magnificently the purposes for which the instrumentality was originated^ and the Honorable James F» Byrnes, nor; Governor of the great southern State of South Carolina, who'probably among a l l men now l i v i n g , has the richest experience i n federal service, having served f o r years i n both houses of Congress, as Justice of the United States Supreme Court, and i n the Executive Branch "as p r i n c i p a l advisor t o the President of the United States as Secretary of State* &r* Hoover, who has accepted an i n v i t a t i o n to appear before t h i s committee as a witness i n favor of the b i l l to abolish RFC, recently said as a member of tho Commission on Organization of the Executive Branch of tho Federal Government n I favored tho a b o l i t i o n and do yet*tt Abolition of RFC was recommended by the Task Force of the Commission on Organization of tbe Executive Branch of the Federal Government i n connection with i t s report on "Federal Lending Agencies11* - 5 - The Task Force for t h i s report was the firm of Price, Waterhouse and Company, C e r t i f i e d Public Accountants who enjoy an international reputation i n the f i e l d of business analysis* With respect to RFC t h i s task force report said: USE OF RFC TO AVOID THE APPROPRIATIONS PROCEDURES n 0n a number of occasions beginning as early as 1933$ RFCfs statutory autho r i t y to borrow from the Treasury has been used by the Congress as a means of financing various governmental a c t i v i t i e s while avoiding the ordinary congressional procedures f o r the appropriation of public funds from the Treasury, x x x " I t i s characteristic of such loose financing methods that they lend themselves t o abuse and greatly increase the Government's exposure to unnecessary costs and losses* RFC AS A 3TANDLBY FACILITY " I t i s not i n the public interest f o r the Government to keep en emergency agency alive during nonemergency periods, i n the hope that i t s existence may mitigate the effects of a future c r i s i s , the date, the nature, the duration, the scope and the magnitude of which are a l l unpredictable* x x x "RFC can not obtain the services of f i r s t - r a t e executives during normal times* "Outstanding executives who would be w i l l i n g to serve during emergencies would not wish to be bound by the organisation forms and by the operating practices developed under nonemergency circumstances by less competent people, or people with less extensive business experience* "The assignment of functions to an emergency agency to give i t something t o do and thus t o keep i t s organization from stagnating during a nonemergency period, i s not a good public policy* "The contention that RFC breaks even on p r o f i t s i s based upon the $552,000,000 net p r o f i t reported by the Corporation through June 30, 1947, and there may therefore be a f a l l a c y i n the related oontention that the continued existence of RFC w i l l cost the Government very l i t t l e * "The aggregate net p r o f i t reported with respect t o operations f o r a period ended June 30, 1947* has not been corrected for a substantial difference between the interest paid t o the Treasury by RFC and the corresponding interest cost incurred by the Treasury.* The Corporation's accounting records do not distinguish between the various classes of loans insofar as f i n a n c i a l net results of a c t i v i t i e s are concerned* There i s no way of knowing whether past loans to business enterprises yielded a p r o f i t or a net loss* Furthermore, the business loans which RFC i s making at the present time contain a r i s k factor d i f f e r e n t from that which characterized i t s previous lending activities* "It should not be presumed that the Corporation^ present operations can be conducted at no net cost to the Government* "The majority of the loans now being made by the Corporation are small loans to finance new businesses or the acquisition of existing businesses by new owners, x x x These are important enterprises, but, individually, they are not significant from a national standpoint* The assistance extended by RFC i n many of these cases may even have a negative value from the national point of view i n that i t encourages the continuance of ventures which should be permitted to discontinue, and i n th«t i t prevents t h e i r owners from going into occupations f o r which they may be better suited* Any tendency to perpetuate mistaken enterprise w i l l weaken the general economy out of a l l proportion to the individual gains which i t may make*" The f u l l Commission d i d not go a l l the way with the recommendation by the Task Force, but i n fact i t did recommend, among other things, "That Congress review the power t o make direct loans x x x taking into account the problems of economy, e f f i c i e n c y and i n t e g r i t y x x x j " and that, "The Government should not engage i n d i r e c t lending where loans can be obtained from private sources on reasonable terms*" Some of the d i f f i c u l t i e s which beset the Commission on Organization of the Executive Branch of the Federal Government i n arriving at a recommendation with respect to abolishing RFC are indicated i n the published "individual views" by Commissioners Dean Acheson, James K* Pollock and James H* Rowe, Jr* who, among other statements, said: "We have seen no evidence whatever i n the material submitted to us to j u s t i f y the blanket assertion of the Commission that d i r e c t lending br the Federal. Government 1 x x x opens up dangerous p o s s i b i l i t i e s of waste find favoritism t d individuals dr p i r a t e efttefrprised/1" - 6 - A NONESSENTIAL CORPORATION Without going into the recent disclosures by the Senate Banking and Currency Subcommittee under the chairmanship of Senator Fulbright, Messers Acheson, Pollock and Rowe t o the contrary, the RFC i s now a nonessential, i n f l a t i o n a r y agency i n dulging i n a c t i v i t i e s detrimental t o the public i n t e r e s t . While the government i s i n s i s t i n g on r e s t r i c t i n g private c r e d i t t o curb i n f l a t i o n , the primary purpose of RFC i s to make easy money a v a i l a b l e . Some idea of the easy money operations i n which the RFC i s currently engaging and projecting w i l l be obvious from the f o l l o w i n g summary of v i t a l s t a t i s t i c s on the Corporation* 1. RFC loans to business t h i s year are estimated at $623 m i l l i o n and next year the estiiaate i s $692 m i l l i o n . 2. Under the RFC Act of 1947, RFC investments, loans and commitments may t o t a l $2 b i l l i o n at one time • 3. The RFC i s c a p i t a l i z e d at $100 m i l l i o n but i t i s further authorized t o issue notes, debentures, bonds and other such obligations to the Treasury i n amounts s u f f i c i e n t to carry out i t s functions. 4. The Corporation, including i t s franchise, c a p i t a l , reserves, surplus and income, i s exempt from a l l taxation by Federal, State, l o c a l and t e r r i t o r i a l governments. 5. I t i s estimated that RFC loans and investments i n the current year w i l l t o t a l #869 m i l l i o n and that i n tlie coming f i s c a l year 1952 they would increase t o £941 m i l l i o n . I t s t o t a l assets i n the current year are estimated at #944 m i l l i o n and for next year at more than $1 b i l l i o n . 6. I t s interest-bearing obligations t o the Treasury for general purposes t h i s year are estimated at #361 m i l l i o n and for next year the estimate i s $441 m i l l i o n f 7. I t s administrative expenses i n the current year are estimated at ^>20 m i l l i o n , and for next year the estimate i s #18^ m i l l i o n . 8. The Chairman of the RFC Board l a s t January 8 t o l d the Senate Banking and Currency Committee that "the operations of the Corporation have not cost the taxpayers a single penny." This statement i s at variance w i t h the General Accounting O f f i c e ; i t i s at variance with estimates by U. S* Senator John J . Williams of Delaware who, i n a statement accompanied by Bureau of tfie Budget charts, inserted i n the Congressional Record A p r i l 5, 1951, asserted that over the period of i t s existence RFC losses totaled more that #12 b i l l i o n * and i t i s at variance with Hoover Commission Task Force f i n d i n g s . CONCLUSION In conclusion, Senate B i l l 1376 protects and preserves a l l requirements for defense production c r e d i t which have been created by Congress t o t h i s date. V i r t u a l l y every other aspect of the a c t i v i t i e s and programs of the RFC f o r emergency purposes are duplicated i n other federal credit f a c i l i t i e s — even business loans which may be made through Federal Reserve provisions. And I have no doubt that i f and when ordinary business loans are required by an emergency s i t u a t i o n , w i l l be q u i c k l y adjusted to f u l f i l the requirement. /they There are nearly a score of federal c r e d i t agencies operating at t h i s time w i t h at l e a s t a hundred c r e d i t programs under t h e i r d i r e c t i o n . In a s p e c i a l federal c r e d i t analysis the Budget Document for f i s c a l year 1952 states: "Federal credit urograms, i n the main, are designed to supplement or r e enforce private financing!" and that, "Most lending agencies either by law or by administrative p o l i c y l i m i t d i r e c t loans t o cases where the borrowers can not obt a i n c r e d i t on reasonable terms from private f i n a n c i a l i n s t i t u t i o n s . " And despite the governmentrs much-publicized p o l i c y of attempting t o r e s t r i c t private c r e d i t , the Budget Document continues w i t h the statement t h a t : "Under loan insurance and guarantee programs, the government agency shares the r i s k and thus encourages p r i vate f i n a n c i n g . " In the next paragraph the Budget Document says: "Total new commitments for a l l of these types of programs (federal d i r e c t loans and f e d e r a l l y insured and guaranteed loans) f o r f . y . 1952 are estimated at $13#3 b i l l i p n . " The Budget Document shows that a v a i l a b l e f e d e r a l c r e d i t authority i n the current f i s c a l year i s estimated at $58.6 b i l l i o n and that more than $44 b i l l i o n would be used. I t i s estimated that t o t a l available f e d e r a l credit authority next year would increase t o $ 6 l | b i l l i o n and that $49 b i l l i o n would be used. This obviously i s one tremendous fountain-head of i n f l a t i o n which i s now cont r i b u t i n g t o commodity shortages and r i s i n g p r i c e s . Under these conditions there should be no doubt that we can get along without the RFC p i p e - l i n e to the Treasury of the United States f
@FedFRASER