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FINAL REPORT
on the
Reconstruction Finance
Corporation
Pursuant to Section 6(c)
Reorganization Plan No. 1 of 1957
SECRETARY OF THE TREASURY
UNITED STATES
GOVERNMENT FKttJTING OFFICE
WASHINGTON
1959
For a l e by the Superintendent ef Decutacnti, U-S.GovcnracQt Printing Office
THC SECRETARY OF THE TREASURY
WASHINGTON
May 6, 1959
Sirs:
I have the honor to submit herewith the final report on the
Reconstruction Finance Corporation which is required under
Section 6 (c) of Reorganization Plan No* 1 of 1957.
The report was prepared under the direction of Mr* Laurence
B. Robbing, who presently is serving in the capacity of Assistant
Secretary of the Treasury. Prior to confirmation in his present
position, Mr. Robbins served both as Deputy Administrator and
Administrator of the Reconstruction Finance Corporation and
directed 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
iii
FOREWORD
The Reconstruction Finance Corporation was among the largest
and undoubtedly was the most complex of all Federal lending agencies. In its operations it disbursed more than $40 billion, and was
conditionally committed to disburse many billions more under guaranties of loans and investments made by private financial institutions.
Organized during a severe economic depression, the RFC passed
through periods of recovery, preparedness, war, reconversion, economic expansion, another war and, finally, stability and prosperity.
During all these different periods RFC played an active and very
important role.
Being a corporation, with unlimited authority to borrow funds
from the U.S. Treasury, the RFC had more flexibility than agencies
operating under traditional Government appropriation procedures.
Besides making loans of many types, the RFC subscribed for, purchased, and traded in the securities of private business enterprises,
State and local government agencies and other agencies of the Federal
Government. Advances and allocations were made to other Government agencies. Mortgages, on both residential and income-producing
properties, were purchased and sold by RFC subsidiaries. RFC also
served as liquidating agent for discontinued Government agencies
and programs.
Beginning in 1940, RFC organized a group of subsidiaries to handle
national defense and war programs. The operations of these subsidiaries were of types far removed from those usually associated
with financial institutions. These subsidiaries developed sources for,
manufactured, procured, stockpiled, and sold a long list of strategic
materials and commodities. Industrial facilities for war production
were built and operated. There were programs to collect and salvage
scrap materials. Preclusive buying operations were conducted
abroad, designed to handicap enemy powers. Subsidy payments were
made to domestic producers and transporters of essential materials,
not only to encourage production but to help control prices. There
was a program to provide insurance against loss due to enemy action.
And, finally, for a short period after World War II, an RFC subsidiary undertook to dispose of surplus war property.
An overwhelming volume of materials has accumulated on the operations of RFC and its subsidiaries. For one example, the minutes
of the meetings of RFC's Board of Directors alone occupy about 250
cubic 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 3,250
cubic feet The records of testimony before committees of the Congress in hearings on matters related to RFC fill many dozens of closely
printed volumes. Also, there are in the various Government record
centers countless thousands of documents and pieces of correspondence related to RFC's individual loans and other transactions. To
sift and collate this mass of material, to note policy changes and the
shifting emphases of operations, and then to put together a comprehensive, documented exposition of RFC's manifold activities
would require many years of research.
Under the provisions of Reorganization Plan No. 1 of 1957, the
Secretary of the Treasury is required to submit a final report on the
Reconstruction Finance Corporation on or before June 30,1959. After
careful consideration of the vast amount of material available, it was
decided that the most practicable and useful form of report would be
an outline of the various programs which RFC was authorized or
directed by law to undertake, and a summary of the things which
RFC did or did not do under those authorities. This plan has been
followed. Subjective interpretations and critical analyses of RFC's
operations have been avoided. It is hoped and intended that this
report will serve as a source and reference book for legislators, Government officials, and students and researchers in the fields of economics, finance, and political science. With this in mind, there has
been incorporated in the report a considerable volume of statistical
material on RFC lending and investment functions, much of which
heretofore has been unavailable in organized form.
One question frequently raised relates to whether the RFC "made
a profit." Nowhere in the basic RFC legislation are there any indications that RFC was established for the purpose of making a profit.
The stated purposes for RFC's existence were to deal with emergency
situations and to aid in attaining broad economic goals. To judge
whether or not these purposes were accomplished requires something
more than measurement against a dollar yardstick. Asking whether
RFC "made a profit" implies that the Corporation was regarded as a
business enterprise. In its most publicized activities, the Corporation
did operate as a business, but there were many RFC activities in which
funds were disbursed with no expectation that any recoveries could be
made. Chief among these were the grants and allocations made by
RFC to other Government agencies and to States for relief and related
programs during the 1930's, and, beginning in 1940, the subsidies paid
and the unusual expenditures made in furtherance of the war effort.
In such instances, the Congress recognized the unbusinesslike nature of
these expenditures and canceled the notes which RFC had issued to the
Secretary of the Treasury to obtain the funds so used.
vi
FOREWORD
In the Corporation's lending activities, loans and investments were
made under the requirement that there be reasonable assurance of
repayment Taken as a whole, the accounting records of the lending
programs show that interest income and other revenues exceeded
losses and expenses. It should be noted, however, that this did not
hold true for each and every program. For example, the Corporation
charged off as losses more than one-fourth of all amounts disbursed on
loans to mining enterprises. Also, the administrative costs and other
expenses incurred in connection with disaster loans and the smaller
loans and investments of other programs were not covered by the
income received from them. In most instances RFC's multimillion
dollar loans and investments worked out to the Corporation's advantage, and much of the expense incurred in administering the smaller
loans was absorbed in the income received from large loans and investments. In realizing upon its loans and investments the RFC benefitted
from the general long-term trend of economic expansion which began
shortly after the Corporation was organized. This was particularly
noticeable beginning in 1940, when the economic activity generated by
defense and war programs accelerated realizations upon outstanding
loans and investments.
The responsibility for the necessary extensive research and the preparation of this report was assigned to Douglas S. Wilson and Thomas
H. Graham, with editorial and stenographic assistance provided by
Louise B. Lord and Jean H. Dougherty* All of these individuals had
the benefit of many years of experience as RFC employees. Their
efforts, and the assistance rendered by other former officers and
employees of the Reconstruction Finance Corporation, are gratefully
acknowledged.
LAUBENCE B. ROBBINS,
Assistant Secretary of the Treasury.
vii
TABLE OF CONTENTS
Page
Foreword
_
Origin and succession of RFC
Legislative authorities
.__Management and organization
_
_
Financing of RFC
_
_
_
Lending and investment functions:
Summary
>
_
_
_
Financial institutions
_
Business enterprises
_
_
Agricultural financing institutions
_
Mortgages
Railroads
Political subdivisions of States and Territories
U.S. Government agencies
Foreign governments
_
_
Disaster victims..
_
Civil defense
_
_
_.
Minor lending functions
_
World War II subsidiaries...
_
__
Purchases of securities from Public Works Administration
Allocations and loans to other Government agencies by direction of the
Congress..
_
Results of lending operations
_
_
Functions as agent for other Government agencies:
Defense production loans
_
Smaller War Plants Corporation
Liquidation and dissolution of RFC
Appendices:
A. RFC legislation
B. Directors and administrators
_
_
C* Statistical tables
_
D. Selected references
v
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3
25
33
45
51
65
87
93
97
99
105
109
Ill
119
121
123
149
151
161
165
167
169
185
193
201
309
IX
Origin and Succession
In a message to Congress on December 7, 1931, President Hoover
said:
In order that the public may be absolutely assured and that the Government
may be in position to meet any public necessity, I recommend that an emergency
Reconstruction Corporation of the nature of the former War Finance Corporation should be established. It may not be necessary to use such an instrumentality very extensively. The very existence of such a bulwark will strengthen
confidence. The Treasury should be authorized to subscribe a reasonable capital
to it, and it should be given authority to issue its own debentures. It should
be placed in liquidation at the end of 2 years. Its purpose is by strengthening
the weak spots to thus liberate the fuU strength of the Nation's resources. It
should be in position to facilitate exports by American agencies; make advances
to agricultural credit agencies where necessary to protect and aid the agricultural industry; to make temporary advances upon proper securities to established industries, railways and financial institutions which cannot otherwise
secure credit, and where such advances win protect the credit structure and
stimulate employment.
An act creating the Eeconstruction Finance Corporation was passed
by the Congress, and approved on January 22, 1932. Upon signing
the 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 railway
structure, in order to permit business and industry to carry on normal activities
free from the fear of unexpected shocks and retarding influences.
Its purpose is to stop deflation in agriculture and industry and thus to increase employment by the restoration of men to their normal jobs. It is not
created for the aid of big industries or big banks. Such institutions are amply
able to take care of themselves. It is created for the support of the smaller
banks and financial institutions, and through rendering their resources liquid
to 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 extend
financial aid to agriculture, commerce, and industry through the medium of direct loans to banks, trust companies, and other financial
institutions. The Corporation was also authorized to make loans to
railroad companies or receivers of railroads with the approval of the
Interstate 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
1
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
period. The Congress later extended the lending authority, and
broadened the Corporation's functions by including authority to purchase the capital stock of banks, insurance companies, agricultural
credit corporations, and national mortgage associations. Authority
was also given to RFC to make loans to business enterprises, mining
interests, agricultural improvement districts, disaster victims, public
school authorities, and to assist in financing the construction of public
works. Further, the Corporation was directed to purchase the securities 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 RFC
new responsibilities in connection with the national defense programs
then being undertaken. For the most part, these defense programs
were conducted through subsidiary corporations and these activities
were greatly expanded during the World War I I period.
The act which gave RFC its national defense responsibilities also
extended the Corporation's succession to January 22, 1947. An act
approved August 7,1946, extended RFC's succession to June 30,1947,
and an act approved June 30, 1947, extended the succession to June
30, 1948. Finally, by an act approved May 25, 1948, RFC's succession was extended to June 30,1956.
Before the date of final extension was reached, the RFC Liquidation Act became effective. This act, approved July 30, 1953, terminated 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 Corporation in accordance with sections 9 and 10 of the amended RFC Act.
Under those provisions, the RFC contmued as an independent agency
until June 30, 1954. Thereafter, for further liquidation, the Secretary of the Treasury succeeded to and exercised all powers, duties, and
authority previously lodged in the Administrator of RFC.
On June 30, 1957, the Reconstruction Finance Corporation was
abolished as provided by Reorganization Plan No. 1 of 1957.
Legislative Authorities and Limitations
Under the original Reconstruction Finance Corporation Act, the
Corporation's major functions were the extension of credit to agriculture, commerce, and industry through loans to banks and other financial institutions, insurance companies, agricultural credit agencies,
and railroads. The Corporation's functions subsequently were modified and extended both by amendments to the original act and by
provisions in independent legislation. The lending authority of the
Corporation was broadened by including authority to purchase the
capital stock of banks, insurance companies, agricultural credit corporations, and national mortgage associations. Authority was also
given the Corporation to make loans to business enterprises, mining
interests, disaster victims, and public school authorities, and to assist
in financing the construction of public works. It also was authorized
and directed to allocate funds to, to make loans and advances to, and
to purchase the securities of, various U.S. Government corporations
and agencies.
During the emergency period beginning in 1940, and during World
War II, the responsibilities of the Corporation were considerably
augumented, principally on the basis of authority derived, directly or
indirectly, from section 5d of the KFC Act, as amended, from the
First War Powers Act, and from the Emergency Price Control Act
of 1942. In order to aid the Government in its national defense
program, the Corporation was authorized to engage in financing of
plant conversion and construction, to acquire and construct and to
own and operate war plant facilities, to make subsidy payments, to
deal in and to stockpile strategic and critical materials, to administer
the war damage insurance program, and to conduct a great variety of
other activities unrelated to its normal lending operations.
By legislation approved June 30, 1947, the Corporation's lending
powers were substantially curtailed and its wartime functions were
terminated, except with respect to the programs for the production of
synthetic rubber, tin, and abaca fiber. The lending powers thereafter
were confined to business enterprises, including railroads and air carriers, financial institutions, municipalities and political subdivisions
of States and Territories, and disaster victims. Except for certain
lending authorities assigned to the Corporation under provisions of
the Defense Production Act and the Federal Civil Defense Act of
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
1950, the aforementioned lending powers remained unchanged until
enactment of the RFC Liquidation Act.
In the following description, the legislative authorities of RFC are
shown under four general headings: Part I deals with the authorities
for the Corporation's so-called "normal" lending and investment
functions. Part I I covers the legislative authorities for allocations
and loans made to other Government agencies by direction of the
Congress. Part I I I gives the authorities for the Corporation's nonlending activities, including those undertaken in connection with national defense and wartime programs. Part IV covers the legislative
authorities and restrictions having to do with the Corporation's
financing. A list of RFC's legislative authorizations according to
dates of approval, statute references, and public law numbers will be
found 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 original
act authorized RFC to make loans to banks, savings banks, and trust
companies, including loans secured by the assets of any banks that
were closed or in process of liquidation to aid in the reorganization
or liquidation of such banks.
All loans made under the foregoing provision were to be "fully and
adequately secured," and maturities could not exceed 3 years. The
loans to any one corporation could not exceed 5 percent (reduced on
July 2, 1932, to 2% percent) of RFC's authorized capital stock and
borrowing authority.
An act approved June 19,1934, permitted maturities up to 5 years
for loans made under this section 5. In 1935, the maturity limitation
was changed to a deadline of January 31,1945. In 1940, this maturity deadline was extended to January 31,1955.
Emergency Bank Act—approved March 3, 1933.—Section 304 of
this act provided that if in the opinion of the Secretary of the Treasury a bank needed funds for capital purposes, he could, with the approval of the President, request the RFC to subscribe for preferred
stock of such bank or to make a loan secured by such stock. By an
amendment of March 24,1933, this power was limited to cases where
the preferred stock was nonassessable. In cases where nonassessable
stock could not be issued, RFC was authorized to lend on capital notes
or debentures. Under the provisions of this act, no limitations similar
to those of section 5 of the RFC Act were imposed.
LEGISLATIVE AUTHORITIES
An act approved June 30, 1947, repealed section 304 of the Emergency Bank Act, which provided for the purchase by RFC of preferred stock, capital notes, and debentures of banks and trust
companies. This act, under a new section 4, extended the authorities
contained in section 5 of the original RFC Act relating to banks and
other financial institutions. In this act the term "financial institutions" was used instead of specifying types of institutions as was done
in the original act. The extension of these powers was intended for
emergency use only and the authority was never exercised by the
Corporation.
(b) Insurance Companies
Section 5 of the original act also included insurance companies in
the list of financial institutions to which loans could be made ^ith
the same terms and conditions as loans to banks.
The Insurance Company Act approved June 10,1933, authorized
the RFC to subscribe for, or make loans secured by, the preferred
stock of insurance companies. This act followed the provisions of the
Emergency Bank Act, as amended, which permitted lending on capital notes or debentures in cases where nonassessable preferred stock
could not be issued. However, this act contained additional provisions 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 employees of the company received compensation in excess of $17,500 a
year; and (3) unless the company agreed not to increase salaries or
to retire any of its capital stock or debentures until the RFC's holdings were retired. There was a proviso to the first limitation that the
Corporation might make loans secured by such preferred stock or
capital notes if it believed that the loans were adequately secured.
As in the case of banks, such subscriptions or purchases had to be
initiated by the Secretary of the Treasury.
An act approved June 30,191ft, repealed the provisions of the Insurance Company Act relating to the purchases by RFC of preferred
stock, capital notes, or debentures of insurance companies. However, the authority was restored by an act approved May 25, 1948,
intended for emergency use only, and the authority was exercised
in only one instance by the Corporation.
(c) Building and Loan Associations
Section 5 of the original act authorized RFC to make loans to
building and loan associations on the same terms and conditions as
other financial institutions.
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
An act approved June 14,1933, amended section 5 of the RFC Act
to include authority to make loans on the assets of closed building
and loan associations.
(d) Mortgage Loan Companies
Section 5 of the original act authorized RFC to make loans to
mortgage loan companies on the same basis as loans to other financial
institutions. As in the case of loans to other financial institutions,
such authority existed in the statutes throughout the life of RFC, but
was utilized principally during the depression years.
(c) Other Financial Institutions
The original section 5 also authorized RFC to make loans to the
following financial institutions which were mostly quasi-Government
institutions:
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 of
the original section 5 authorized the RFC to make loans to railroads,
with the approval of the Interstate Commerce Commission, for temporary financing, to railroads in process of construction, and to receivers of railroads. This authority was subject to the same
limitations as other loans made under section 5. These were the
provisions limiting the amount of advances to any one corporation
to 2% percent (originally 5 percent) of RFC's capital stock and
borrowing power, and the terms of the loans to 3 years. The loans
could be made only if the railroads were unable to obtain funds on
reasonable terms through banking channels or from the general
public, and the Corporation was "adequately secured."
An act approved June 10,1933\ authorized the Corporation to make
loans to trustees of railroads reorganizing under section 77 of the
Bankruptcy Act. On June 16,1933, a law was passed forbidding the
ICC to approve a loan to a carrier, as distinguished from a receiver
or trustee, in the event it believed that a reorganization was needed
in the public interest.
The act approved June 19,1934, which permitted 5-year maturities
for loans made under section S of the RFC Act also provided that the
LEGISLATIVE AUTHORITIES
Corporation might require railroads to make arrangements for amortization as a condition to granting loans for a period longer than 3
years.
An act approved January 31,1935^ rewrote the original provisions
of section 5 by eliminating the reference to temporary financing, and
authorized the Corporation to purchase the obligations of railroads,
or to guarantee the payment of such obligations, "notwithstanding any
limitation of law as to maturity." This act also changed the security
requirements from "adequately secured" to "full and adequate
security."
Amendments to the RFC Act approved June 30,1947, and May 25,
1948, extended these authorities for aid to railroads under section
4(a) (1) of the new acts. Limited use of such powers was made
thereafter.
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 purchase securities in connection with self-liquidating projects undertaken by public instrumentalities. The Corporation was authorized
to bid for such securities, without regard to maturity, for the purpose
of financing any project authorized by law; (2) to make loans to
certain types of corporations to provide housing for families of low
income or for reconstruction of slum areas, for the construction or
improvement of bridges, tunnels, etc., devoted to public use, and for
the protection and development of forests and other natural resources;
(3) to make loans to construct any publicly owned bridge, the cost of
which was to be returned part by tolls and part by taxes imposed by
State law. The Corporation was authorized to purchase bonds for
this purpose without regard to maturity.
The loans under this section were to be fully and adequately secured
and the general maturity limitation was 10 years, although some of
the loans could have a longer maturity under certain limited conditions.
Section 301 of the National Industrial Eecovery Act, approved June
16, 1933, provided that no applications to KFC under this section
201 (a) should be approved after 10 days from the date upon which
the Federal Emergency Administrator of Public Works took office.
By an act approved January 31, 1935, the EFC was authorized to
exchange any obligations held under this section for other obligations
of the borrower which were more desirable in the opinion of the
Corporation.
An act approved April 13^ 1938, amended section 5d of the EFC
Act to include a new provision empowering EFC to make loans, on
605257—59
2
7
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
terms and conditions determined by the Corporation, to public agencies to aid in financing projects authorized under Federal, State, or
municipal law. This provision gave RFC a broader grant of authority
to make loans to, or purchase the securities of, municipalities and
other public bodies than had been contained in the provisions of the
Emergency Belief and Construction Act of 1932, and which had been
transferred by subsequent acts to the Federal Emergency Administrator 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 superseded 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 approved
June 16,1933, were repealed.
EFC was authorized, under section 4(a) (3) of the amended act, to
purchase the securities of, or make loans to, municipalities, public
agencies, and public corporations for the purpose of financing projects
authorized by law. This authority was limited to public projects as
distinguished from ordinary governmental and nonproject operating
expenses. However, it was broad enough to cover the self-liquidating
loans and the loans to drainage districts permitted under the old
authorities.
(b) Drainage, Levee, Irrigation and Similar Districts
Emergency Farm Mortgage Act approved May 12,1933.—Section
36 of this act authorized RFC to make loans to drainage and irrigation
districts which had completed projects devoted to the improvement
of lands for agricultural purposes. The loans were to enable the
districts to refinance their outstanding indebtedness.
The loans were to be subject to the same terms and conditions as
loans under section 5 of the EFC Act, except that (1) the maturities
could not exceed 40 years; (2) that the loans should be secured by
liens on the properties or on the assessments levied, or by other collateral; (3) that the borrowers agree not to issue any other bonds so
secured; (4) that the borrowers pay to the Corporation the excess of
assessment collections over cost of operations; and (5) that the borrowers agree to reduce the outstanding indebtedness of the landowners to the borrowers by the amount of the borrowers' reduction
of indebtedness.
It was also required that EFC make an appraisal, that it determine
the project be economically sound, and that it be satisfied that an
agreement had been entered into between the applicant and its creditors for a refunding of the applicant's outstanding bonds at a reasonable price.
LEGISLATIVE AUTHORITIES
An act approved June 19,1934, amended section 36 to include authority for BFC to make loans for repairs or improvements to any drainage
district to which a loan had been authorized. By an amendment
approved June 22, 1936, this was expanded further to permit loans,
not only for refinancing but also to permit acquisition or construction
of such a project or appurtenances in connection therewith.
The RFC Act, as amended, Jime 30, 1947, repealed section 36 of
the Emergency Farm Mortgage Act. Thereafter, authority for
making drainage, irrigation, and levee loans was contained in section
4(a) (3) of the amended act under the broad term "loans to public
agencies, etc.," previously discussed in connection with "self-liquidating projects."
(c) Securities Purchased From Federal Emergency Administrator of Public
Works
Emergency Appropriation Act approved June 19,1934, authorized
the purchase by RFC of marketable securities acquired or to be acquired by the Federal Emergency Administrator of Public Works.
This was apparently designed to increase the funds available to that
Administrator, since he was authorized to use the funds so acquired
in 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 adding
a new paragraph in which EFC was authorized to make loans, if
adequately secured, to any State insurance fund for the purpose of
paying compensation to injured and disabled workmen. This authority was never exercised by the Corporation.
This amended act added a further paragraph to section 5 which
authorized RFC to make loans, if adequately secured, to any fund
created by a State to insure the repayment of deposits of public
moneys.
By section 16 of cm act approved Jwne 19,1934, the Corporation
was authorized to make loans on full and adequate security to public
school districts for the payment of teachers' salaries.
An act approved August 84,1935, authorized EFC to make loans
to public school districts to enable those districts to reduce their
total indebtedness by a refinancing of existing obligations. The act
contained complete provisions as to the steps to be followed by the
Corporation before it could make any such loans and as to the terms
and conditions of the loans made.
The foregoing authorities in this subsection were repealed by an
act approved June 30,1947.
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
4. BUSINESS LOANS
(a) Loans to Business Enterprises
An act approved Jvm 19,1934, added a new section 5d to the original RFC Act which authorized the first loans directly to business
enterprises- This new section empowered RFC to make loans to any
industrial or commercial business established prior to January 1,
1934, provided credit was not otherwise available at banks at prevailing interest rates. These loans were to be "adequately secured"
as contrasted with "fully and adequately secured" as provided in the
original section 5 of the RFC Act dealing with loans to financial institutions. The loans could be made directly, in cooperation with
banks or other lending institutions, or by the purchase of participations (later expanded to include "agreements to participate"). The
maturities were not to exceed 5 years, and the amounts were not to
exceed $500,000 to any one borrower. The loans were to be made
only when they assured continued or increased employment and only
when the borrower was solvent.
An act approved January 31, 1935, extended the functions of RFC
for 2 years and substantially revised the limitations of section 5d.
Instead of "adequately secured," the provision "so secured as reasonably to assure repayment" was inserted. The restriction to businesses established prior to January 1,1934, was eliminated. The maturity limitation was changed from 5 years to a deadline of not later
than January 31, 1945. The limitation on the amount to any one
borrower was eliminated.
An act approved April 13,1938, expanded the authority under section 5d to include the purchase of securities and obligations of, as
well as the making of loans to, "any business enterprise." The security standard was changed from "so secured as reasonably to assure
repayment" to "of such sound value, or so secured, as reasonably to
assure retirement or repayment."
An act approved Jvms 25, 191ft, extended the maturity deadline
from 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 enterprises under a new section 4(a) (1) which superseded section 5d of
the original act. This new section authorized RFC to purchase the
obligations of, and to make loans to, any business enterprise, including railroads and air carriers. This authority was as broad as the
previous ones and remained in effect until the lending powers of the
Corporation were terminated on September 28, 1953.
10
LEGISLATIVE AUTHORITIES
(b) Loans for Prefabricated Housing
Section 102 of the Housing Act of 1948 authorized RFC to make
loans to, and purchase the obligations of, any business enterprise for
the purpose of providing financial assistance for the production of
prefabricated houses or prefabricated housing components, or for
large-scale modernized site construction. Effective September 7,1950,
responsibility for administration of this part of the National Housing
Act was transferred to the Housing and Home Finance Agency under
the 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 paragraphs
to cover aid to the national defense program. Subsection (1) of this
act authorized the Corporation to make loans to, or purchase the stock
of, any corporation for the purpose of acquiring critical materials
and manufacturing equipment and supplies necessary to the national
defense.
By an amendment approved June 11, 1943, these authorizations
were to be on such terms and conditions and with such maturities as
the Corporation might determine. They were therefore far different
from the business loans under the original section 5d, which carried
the requirements of unavailability of credit, sound value or security,
and limited maturities.
An act approved June SO, 1947, repealed all provisions of previous
acts which related to authorizations for making loans for national
defense purposes.
(d) Loans to Mining, Milling, or Smelting Businesses
Section 14 of an act approved June 19, 1934, authorized RFC to
make loans "upon adequate security" to organizations engaged in the
business of mining, milling, or smelting of ores. In January of 1935,
this was amended to read "upon sufficient security," and the authority
was 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 be
developed sufficient to pay a profit upon the mining operations. In
September of 1940, this section was amended to cover the development
of any critical or strategic mineral which in the opinion of the Corporation 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 the
President to make provision for loans (including participations in
or guarantees of loans) to business enterprises for expansion of
11
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
capacity, development of technological processes, and the production
of essential materials. To carry out the purposes of this act, the
President was authorized to utilize such existing agencies of the
Government as he deemed appropriate, or to create new agencies.
By Executive Order 10161, dated September 9,1950, the President
directed that the facilities of the RFC be utilized for the purposes
of the Defense Production Act. The Corporation served as credit
adviser and fiscal agent for the Defense Production Administration
until September 28, 1953, when the provisions of section 107 of the
RFC Liquidation Act became effective.
Loans under this act were made on terms and conditions determined
by RFC, subject to the requirements of unavailability of credit from
other sources and, except for working capital purposes, a loan could
be made only upon certificate of essentiality of the loan by the
sponsoring Government agency.
5. MORTGAGES
(a) The RFC Mortgage Company
An act approved January 31,1935, added a new section (5c) to the
RFC Act. This section authorized the Corporation to subscribe for
or make loans upon the stock of any national mortgage association
organized under title I I I of the National Housing Act or of any
financial institution engaged in the business of making loans upon
mortgages, deeds of trust, or other instruments conveying, or constituting a lien upon, real estate or any interest therein.
In March of 1935, the Corporation organized the RFC Mortgage
Company under the laws of the State of Maryland and subscribed
for all capital stock of that Company. The function of the Mortgage
Company was to carry out the purposes of section 5c "to assist in
the reestablishment of a normal mortgage market."
An act approved August 7, 1946, authorized the Corporation to
purchase, directly or through a subsidiary, loans insured or guaranteed
by the Veterans' Administration. Using this authority, RFC Mortgage Company created a secondary market for veteran home loans by
purchasing such obligations at the request of the originating
institutions.
Section 203 of Public Law 132 approved Jum 30,19$, abolished
the Mortgage Company and transferred its assets and liabilities to
the parent corporation for liquidation.
(b) Federal National Mortgage Association
In April of 1938, the Federal National Mortgage Association was
organized under title I I I of the National Housing Act for the purpose
12
LEGISLATIVE AUTHORITIES
of assisting in the establishment of a normal mortgage market- The
Association's capital stock was purchased by EFC. The functions of
the Association were to provide a secondary market for FHA
mortgages and, later, VA guaranteed mortgages.
Reorganization Plan No. 82 of 1950 provided for the transfer of
the Association from EFC to the Housing and Home Finance Agency
effective September 7, 1950.
6. MISCELLANEOUS
(a) Catastrophe Loans
By an act approved March 23\ 1933\ the Corporation was authorized
to make loans to nonprofit corporations for the repair of buildings
damaged by earthquake in the year 1933. The loans were to be fully
and adequately secured, with maturities not exceeding 10 years. On
May 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 loans
to finance the acquisition of home or building sites to replace sites
declared unsafe by reason of flood or earthquake and to finance the
repair or construction of buildings or utility systems damaged by
earthquake, conflagration, tornado, cyclone, or flood in the year 1933
and in the months of January and February of 1934. An act approved
April 17,1936, greatly expanded the substantive provisions of this second Catastrophe Relief Act and applied them to the years 1935 and
1936.
An act approved February 11,1937, created a Disaster Loan Corporation to make such loans as it might determine to be necessary or appropriate because of floods or other catastrophes. EFC was directed
to subscribe and pay for the stock of such Corporation from the funds
which it had been allocated for catastrophe loans under an act approved April 17, 1936. On June 30, 1945, the powers and duties of
the Disaster Loan Corporation were merged with RFCThe catastrophe loan authority was extended in the amended RFC
Act approved June 30,1947 under a new section 4(a) (4). This authority was as broad as previous catastrophe loan authorities and remained in effect until RFC's lending powers were terminated on September 28, 1953. At that time the disaster loan function became the
responsibility of the Small Business Administration.
(b) Agricultural Loans
Section mi (c), title II, of the Emergency Belief and Oomtruction
Act of 1932, authorized the Corporation to make loans for the purpose
13
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
of financing the sale of surplus agricultural products in foreign countries. Section 201 (d) of this act authorized the Corporation to make
loans to finance the carrying and orderly marketing of agricultural
commodities and livestock. The loans made under this act were to be
fully and adequately secured and the maturities were limited to 3
years. These authorities were repealed by Public Law 132, 80th
Congress, 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 processing taxes imposed by that act should be eligible for loans from RFC
under section 5 of the original EFC Act. This provision was repealed
by Public Law 132, 80th Congress, approved June 30,1947.
(d) Civil Defense Loans
The Federal GivU Defense Act of I960 authorized EFC to purchase
securities or make loans (including participations therein or guarantees thereof) for the purpose of aiding in financing projects for civil
defense purposes. These required the certification of the Federal
Civil Defense Administrator, Maturities were limited to 50 years.
The total of loans, purchases, participations, and guarantees was limited to $250 million outstanding at any one time. By the provisions
of Reorganization Plan No. 2 of 1954, the civil defense lending functions were transferred to the Secretary of the Treasury.
Part II.—Loans and Allocations to Other U.S. Government
Agencies and to Foreign Governments
1. AGRICULTURE
(a) Gop Loans
Section % of the original RFO Act directed that one-tenth of BFC's
original capital stock and borrowing authority should be made available to the Secretary of Agriculture for crop loans during 1932. The
terms and conditions of such loans were to be prescribed by the Secretary. The Secretary's authority to make crop loans was later extended,
and by Executive Order No. 6084 dated March 27, 1933, such function was transferred to jurisdiction and control of Farm Credit
Administration.
By section 201 (e) of the Emergency Relief and Construction Act of
$#, the Corporation was authorized to create regional agricultural
credit corporations and to pay for the capital stock out of the allocations to the Secretary of Agriculture under section 2 of the EFC Act.
14
LEGISLATIVE AUTHORITIES
These credit corporations were empowered to make loans to farmers
for agricultural or livestock purposes. RFC was further directed to
pay all expenses of operating such corporations.
(b) Loans to Farmers
The Farm Credit Act of 1933 authorized and directed RFC to make
available to the Governor of the Farm Credit Administration any
balance available under section 2 of the RFC Act for the purpose of
establishing production credit corporations.
Department of Agriculture Appropriation Acts of 194,1 and 191$
authorized and directed loans by RFC to the Secretary of Agriculture
to enable the Secretary to make loans under title I of the BankheadJones Farm Tenant Act, approved July 22,1937. By the Farm Tenant
Act the Secretary was authorized to make loans to tenant farmers to
enable them to purchase farms.
Under the Emergen/yy Belief Appropriations Act, fiscal year 1941,
the Corporation was authorized and directed to make loans to the
Secretary of Agriculture to enable him to make rural rehabilitation
loans to needy farmers.
Section 32 of the Emergency Farm Mortgage Act approved May 18,
1983, directed RFC to make available to the Farm Loan Commissioner
the sum of $200 million, or so much thereof as may be necessary, for
loans to farmers secured by first or second mortgages on any farm
property. In January of 1934, the Federal Farm Mortgage Corporation was created and given the authority to continue this function.
(c) Rural Electrification
The Rural Electrification Act of 1936 authorized the Administrator
of Rural Electrification to make loans for rural electrification and for
the furnishing of electric energy in rural areas. Section 3(a) of this
act directed the RFC to make loans to the Administrator upon the
security of the obligations of the original borrowers.
(d) Joint-Stock Land Banks
The Emergency Farm Mortgage Act of 1933 directed RFC to make
available to the Farm Loan Commissioner the sum of $100 million for
the purpose of making loans to the joint-stock land banks organized
and doing business under the.Federal Farm Loan Act.
(e) Commodity Credit Corporation
An act approved April 10,1936, directed the RFC to acquire $97
million of the capital stock of the Commodity Credit Corporation, the
principal function of which was to make agricultural loans.
15
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
2. HOUSING
(a) Federal Home Loan Banks
On July 22,1932, section 2 of the original RFC Act was amended to
allocate $125 million to the Secretary of the Treasury out of the capital
of the Corporation and/or the proceeds of notes, debentures, bonds,
and other obligations issued by the Corporation, to enable the Secretary
to make payments upon stock of Federal home loan banks subscribed
for 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 that
RFC allocate and make available to the Secretary of the Treasury
the sum of $200 million, or so much thereof as may be necessary, to
enable 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 the
Corporation to make available to the National Housing Administrator such funds as he deemed necessary to carry out the provisions of
title I I (mutual mortgage insurance) and title I I I (national mortgage
associations) of that act.
3. RELIEF
Section I of the Emergency Relief and Construction Act, approved
July 21,1932, authorized the Corporation to make the sum of $300
million available to the States to be used in furnishing relief and work
relief to needy and distressed persons and in relieving the hardship
resulting from unemployment, but not more than 15 percent of such
sum to any one State.
An additional $500 million was authorized for relief by section I I
of the Federal Emergency Relief Act, approved May 12, 1933, upon
the certification of the Federal Emergency Relief Administrator
approving the request of a State for such funds. The amounts to be
allocated for direct relief were increased by $1 billion by two appropriation acts of 1935 (Emergency Appropriation Act approved June
19,1934, $500 million, and Emergency Relief Appropriation Act approved April 18,1935, $500 million).
4. EXPORT-IMPORT BANK
An act approved September 26, 191fi, added a new paragraph to
section 5d of the original RFC Act by which RFC was authorized to
make loans to, or subscribe for the preferred stock of, the Export16
LEGISLATIVE AUTHORITIES
Import Bank to enable that bank to assist in the development of resources of countries in the Western Hemisphere. By amendments to
section 9 of an act approved January 31, 1935, EFC was authorized
to continue to supply capital to the bank through loans or subscription for preferred stock.
5. FOREIGN GOVERNMENTS
(a) General Authority
An act approved Jwie 10,1941, added a new subsection (4) to section 5d of the RFC Act which authorized the Corporation to make
loans to any foreign government for the purpose of achieving the
maximum dollar exchange value in the United States. Such loans
could be made only on the request of the Federal Loan Administrator,
with the approval of the President. A loan to Great Britain was
made 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 the
National Advisory Council on International Monetary and Financial
Problems. A loan of $70 million subsequently was made under this
authority.
An act approved May £8,19$, directed RFC to make advances up
to $100 million for aid to Greece and Turkey. By an act approved
May 31, 1947, RFC was directed to advance up to $75 million for wardevastated areas. An act approved December 17,1947, directed the
Corporation to make advances of $150 million for aid to European
countries. In the act approved April 3,1948, the RFC was directed
to advance $50 million for aid to China, $50 million for aid to Greece
and Turkey, and $1 billion for foreign economic aid. An act approved August 11,1948, directed the Corporation to make available
$25 million for construction of the United Nations Headquarters
building. The act approved March %4i 1949, directed the Corporation to advance $8 million for the relief of Palestine refugees. By an
act approved April 19,1949, the Corporation was directed to advance
$1 billion to carry out the provisions of title I of the Economic Cooperation Act of 1948. The act approved February 14> 1950, directed
the RFC to advance $20 million for Far Eastern relief. And the act
approved June 5,1950, directed the Corporation to advance an additional $8 million for the relief of Palestine refugees.
The foregoing measures were to be administered under the direction
of the President, and RFC was used only as a means of providing
immediate temporary financing. Funds for these advances were bor
17
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
rowed by RFC from the Treasury, without interest, and the sums
were made available to the Secretary of State and the Administrator
of EGA. The advances were repaid from funds specifically appropriated for such purposes.
The RFC was also authorized and directed to make similar advances under the Mutual Assistance Act of 1949 and the India Emergency Food Aid Act of 1951, but no advances were required to be
made under these acts.
Part III—Nonlending Functions
An act approved June £6,1940, added to section 5d of the RFC
Act new paragraphs to cover aid to the Government in its national
defense program. Subsection (2) of this act authorized the Corporation to create or to organize a corporation or corporations for the
purpose of producing, acquiring, and carrying strategic and critical
materials, and for the construction of plants to be used in the manufacture of equipment and supplies necessary to the national defense
program. Section 4{b){3) of an act approved Jwie 10^ 19jl,
broadened this authority to include, among other things, the authority
to take such other action as might be deemed necessary to expedite
the national defense program.
There were eight subsidiary corporations organized by RFC under
the aforementioned authority and through these the Corporation's
wartime programs were conducted.
Following the close of World War II, three of the production programs which had been undertaken by RFC's wartime subsidiaries
were continued on an active basis. These were: the program for
production and sale of synthetic rubber undertaken by the Rubber
Reserve Corporation; the program for production and sale of tin
undertaken by Metals Reserve Corporation; and the program for the
production and sale of abaca fiber undertaken by Defense Supplies
Corporation.
Synthetic Rubber
The act of March #0,19$, continued the powers, functions, duties,
and authority relating to the manufacture and sale of synthetic rubber until March 31,1948, or until permanent legislation was adopted.
The Rubber Act of 1948, approved March 31, 1948, and the acts
approved June 24, 1950, and June 23, 1952, further extended the
authority to manufacture and sell synthetic rubber.
The Rubber Producing Facilities Disposal Act, approved August
7,1953, provided for the disposal of the Government's synthetic rubber plants to private industry. Section 107 of the RFC Liquidation
18
LEGISLATIVE AUTHORITIES
Act directed that all authority of the RFC under the Eubber Act of
1948 be transferred from EFC not later than June 30, 1954. By
Executive Order 10539, effective June 30, 1954, the synthetic rubber
program was transferred from RFC to Federal Facilities
Corporation.
Tin
An act approved July #5,1946, authorized RFC to continue operation of the Government-owned tin smelter and the program for
purchase and sale of tin ores and refined tin until June 30, 1947.
Subsequent legislation relating to the operation and continuation of
the tin program was contained in the acts approved June 28, 1947,
June 29, 1948, June 30, 1949, and August 21, 1950. Section 107 of
the RFC Liquidation Act, approved July 30, 1953, directed that all
functions of RFC relating to the tin program be transferred from
RFC. In Executive Order 10539, the President transferred the tin
program to Federal Facilities Corporation. The act approved June
22, 1956, provided for operation of the tin smelter until January 31,
1957, and also directed Federal Facilities Corporation to take steps
to sell or lease the tin-producing facilities. After negotiations, the
smelter was sold on January 3,1957.
Abaca
The agreements which had been entered into with the contractor
operating the abaca plantations established by Defense Supplies Corporation in Central America were extended until December 1948.
Abaca continued to be designated as a strategic material, and operation of the plantations was continued under the general authority
contained in section 12 of the act approved June 30, 1947. The
Abaca Production Act of 1950^ approved August 10, 1950, provided
for continuation of the program until March 31, 1960, unless earlier
termination was directed by the President or the Congress. In the
RFC Liquidation Act, it was provided that the abaca program be
transferred from RFC. General Services Administration was named
by the President to receive the abaca program in Executive Order
10539, effective June 30,1954.
Smaller War Plants Corporation
Smaller War Plants Corporation (an independent agency) was
created by an act approved June 11, 1942. The purpose of the act
was to mobilize the productive capacity of all small business concerns
to augment war production. To accomplish that purpose, SWPC
was authorized to make loans to small business, to purchase land and
equipment and lease it to small business, and to enter into contracts
19
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
with the Government for the furnishing of materials and to sublet
such contracts to small business. By Executive order dated December 27, 1945, the assets and liabilities of SWPC were transferred to
RFC for liquidation.
Electric Home and Farm Authority
The Electric Home and Farm Authority was created under the
provisions of an act approved June 16, 1933. The purpose of the
Authority was to finance installment sales of electrical and gas equipment and appliances to families of moderate incomes. Under Keorganization Plan No. 1 of 1939, EHFA was grouped in the Federal
Loan Agency. Executive Order 9256 of October 13,1942, transferred
the assets of EHFA to RFC for liquidation.
Contract Renegotiation
Under the Renegotiation Act of 1942, as amended, RFC was given
the responsibility for organizing a Price Adjustment Board to renegotiate contracts in those cases where RFC business was predominant.
In July of 1943, the RFC Price Adjustment Board was created to
renegotiate such contracts as were assigned by the War Contracts
Price Adjustment Board.
Purchase of Surplus Property for Small Business
Section 18 (e) of the Surplus Property Act of 1944 authorized the
Smaller War Plants Corporation to purchase surplus property for
resale to small business. Such purchases were given top priority as
transfers from one Government agency to another. When the functions of SWPC were assumed by RFC in December of 1945, RFC
took over this function of purchasing surplus property for resale to
small business*
Marketing Agreements for New-Type Building Material and Prefabricated
Houses
Section 12(a) of the Veterans' Emergency Housing Act of 1946
authorized the Corporation to underwrite or guarantee a market for
new-type building materials and prefabricated houses to the extent
that the Housing Expediter found it necessary in order to assure a
sufficient supply for the veterans' emergency housing program.
Part IV—RFC Financing
1 . Capital Stock
Section 2 of the original RFC Act established the capital stock
of the Corporation at $500 million. Subscription for this stock was
20
LEGISLATIVE AUTHORITIES
made and paid for by the Secretary of the Treasury on behalf of
the United States.
In accordance with amendments to the EFC Act approved June
25,1940, the Corporation retired $175 million of the original capital
stock, and retired an additional $225 million under the provisions
of an amendment to the RFC Act approved May 25, 1948. Authority for the remaining $100 million of capital stock was outstanding until the Corporation was abolished on June 30, 1957.
2. Borrowings
Section 9 of the original RFC Act provided that the Corporation
was "authorized and empowered with the approval of the Secretary
of the Treasury to issue and have outstanding at any one time in
an amount aggregating not more than three times its subscribed
capital, its notes, debentures, bonds, or other such obligations." Accordingly, the initial borrowing authority of RFC for "general purposes" was established at $1.5 billion. This initial borrowing authority was greatly increased by subsequent legislation. By June 5,
1942, the Corporation had been empowered to issue its obligations up
to $14,089,528,165 under its general borrowing authority. This
amount remained unchanged until June 30, 1947, at which time the
Corporation's activities were substantially curtailed. A summary
of the changes in the Corporation's general borrowing authority
from its inception in 1932 to. June 30,1947, is shown below:
Borrowing authority
and increase*
Enactment
Initial authorization. __
Act approved July 21, 1932_._
Act approved Jan. 20, 1934_
Act approved Sept. 26, 1940_
Act approved June 10, 1941
Act approved Oct. 23, 1941_
Act approved Mar. 27, 1942
Act approved June 5, 1942
—_
Total
Decreases:
By act approved June 16, 1933
By note cancellations, act of Feb. 24, 1938
$1, 500, 000, 000
1, 800, 000, 000
850, 000, 000
1, 500, 000, 000
— 1, 500, 000,000
_ — 1, 500, 000, 000
2, 500, 000, 000
5,000, 000,000
—
16,150,000,000
400,000,000
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 Congress called upon the Corporation from time to time to carry out other
21
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
functions for which it authorized additional borrowing authority to be
used only to provide funds for those specific purposes. For the most
part, these consisted of specific allocations, loans, advances to, and
purchases of securities of other U.S. Government agencies. Some of
these authorizations were in specific amounts and others were not limited, except for whatever amounts were sufficient to carry out the provisions of the various acts authorizing the specific functions. At June
30,1947, a total of $4,977,500,000 had been authorized for specific purposes in which the note issuing authority was limited. There were
also three specific programs for which KFC was authorized to borrow
any necessary amounts. RFC had disbursed on these three programs
$1,271,721,698 through June 30,1947. On that date, the unpaid principal amount was $170,213,974.
Changes in Borrowing Authority Effective July 1,1947
On June 30, 1947, legislation was enacted (Public Law 132, 80th
Cong.) which repealed all previous provisions related to RFC's borrowings and substituted a single provision authorizing the Corporation to borrow from the Treasury funds in an amount sufficient to enable the Corporation to carry out the provisions of the RFC Act, as
amended, and to perform such other functions as might be assigned to
it under any other provision of law. This provision, together with
other sections of this act which terminated most of the Corporation's
wartime functions, substantially reduced the Corporation's borrowing
authority by placing a limitation of $2 billion on the total outstanding
amount of investments, loans, purchases, and commitments made after
June 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 limitation were granted by the Congress principally as a result of the increased mortgage activity of Federal National Mortgage Association,
an RFC subsidiary.
Within the general authority of $3.75 billion, the Congress imposed
certain specific limitations. The purpose and amounts of such limitations were:
For construction by public agencies
For catastrophes
For capital of insurance companies
For civil defense loans
l_l
II_™I_II
$200, 000,000
40,000,000
15,000,000
250,000,000
In addition to the general lending authority, the Corporation was
authorized by the Housing Act of 1948 to make loans to, or purchase
the obligations of, any business enterprise, under such terms and conditions as the Corporation might determine, for the purpose of providing financial assistance for the production of prefabricated houses
22
LEGISLATIVE AUTHORITIES
or prefabricated housing components, or for large-scale modernized
site construction, the aggregate amount of which could not exceed
$50 million at any one time.
Other borrowings for specific purposes were made from time to
time after June 30, 1947, to carry out directives of Congress. The
Corporation made advances to other U.S. Government agencies, principally to the Secretary of State and the Economic Cooperation Administration, for the purpose of providing temporary financing for
foreign aid programs. Subsequent to June 30,1947, a total of $2,176
billion was borrowed by RFC from the Treasury on interest-free notes
for these purposes. The advances were repaid out of subsequent appropriations for the programs.
Transfers of Authorities Effective September 7,1950
Under the provisions of Reorganization Plan No. 22 of 1950, which
transferred the Federal National Mortgage Association from RFC
to Housing and Home Finance Agency, the Corporation's lending
authority was reduced by $2.75 billion effective September 7, 1950.
This amount of RFC's authority was transferred to Housing
and Home Finance Agency with the Federal National Mortgage
Association.
Reorganization Plan No. 23 of 1950 further reduced RFC's lending
authority, effective September 7,1950, by transferring to Housing and
Home Finance Agency (1) all loans and commitments authorized
under the Housing Act of 1948, together with the available balance
of the $50 million limitation; and (2) loans and commitments of
approximately $7 million related to prefabricated housing loans made
under the RFC Act.
After giving effect to the two reorganization plans, the Corporation's lending authority was reduced to approximately $993 million
outstanding at any one time of investments, loans, purchases, and
commitments made subsequent to June 30, 1947. This limitation of
$993 million remained unchanged throughout the remaining years of
RFC's existence as a lending institution.
505257—59
3
23
Management and Organization
During most of the 25 years of its existence, the Reconstruction Finance Corporation was managed by a Board of Directors. Beginning 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 managed
by a Board of Directors. At the beginning, the Board was made up
of the Secretary of the Treasury, the Governor of the Federal Reserve Board, and the Farm Loan Commissioner, as ex oflicio members, plus four others appointed by the President, by and with the
advice and consent of the Senate.
The directorate so constituted continued until August 1,1932. At
that time, the Governor of the Federal Reserve Board and the Farm
Loan 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 remaining as an ex officio member, continued until February 24, 1938.
Provision was made at that time for afive-memberBoard of Directors,
all of whom were to be appointed by the President, by and with the advice and consent of the Senate.
Membership on RFC's Board of Directors was subject to specific
qualifications provided by law. Throughout, it was required that not
more than a simple majority of the members could belong to any one
political party, and not more than one could be appointed from any
Federal Reserve district. Other qualifications, which were modified
from time to time, related to terms of office, filling of vacancies, salaries, time devoted to the business of the Corporation, and the prohibition against participation in the deliberations upon or the determination of questions affecting a director's personal interests.
The RFC Act originally provided that each director devote such
of his time as was not otherwise required by the business of the
United States principally to the business of the Corporation. This
requirement remained in effect until June 30,1947. Thereafter, until
May 25, 1948, the law provided that each director devote his time
principally to the business of the Corporation. After May 25,1948,
25
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
membership on EFC's Board of Directors was required to be a fulltime position.
Originally, the terms of Presidential appointees to the Board ran
for 2 years from January 22, 1932, or until their successors were
appointed and qualified. Persons appointed to fill vacancies held
office for the unexpired portion of the term of the director whose
place 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 incumbent 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 years
or until successors were appointed and qualified. In the event of a
vacancy other than by expiration of term, the person appointed to
fill such vacancy held office for the unexpired portion of the term of
the director whose place he was selected to fill.
Prior to May 25,1948, the Chairman of EFC's Board of Directors
was designated by the Board itself, with the concurrence of the President. Subsequent to that date, the President designated one of the
directors to serve as Chairman for a period coextensive with his term.
For the period from 1932 to June, 1947, the salaries of appointive
members of the Board of Directors were fixed at $10,000 per annum
each. Beginning in July 1947, the annual salaries of the directors
were increased to $12,500, with the Chairman receiving $15,000.
Under the provisions of Reorganization Plan No. 3 of 1947, the
Chairman of EFC's Board of Directors served as a member of the
National Housing Council. This provision remained in effect until
September 1,1951. Also, by the act approved June 30,1949, the Chairman served as a member of the Board of Directors of the Virgin
Islands Corporation.
From January 1932 to May 1951, 37 persons actually served or
were authorized to serve as members of EFC's directorate. Ten of
these served as members exofficio, and 27 were appointed by the
President. Presidential appointments to the Board of Directors were
divided almost equally between the two major political parties—15
were classed as Democrats and 12 as Eepublicans. They represented
21 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 Directors
and established the offices of Administrator and Deputy Administrator. The Administrator and Deputy Administrator were subject
to appointment by the President, by and with the advice and consent
26
MANAGEMENT AND ORGANIZATION
of the Senate. All functions of the Board of Directors, including
those of the members and chairman and those with respect to management were transferred to the Administrator, effective May 4,1951.
The Deputy Administrator was authorized to perform such duties as
might be designated from time to time by the Administrator. He
acted as Administrator and performed the duties thereof during the
latter's absence or disability, or in the event of a vacancy in that office.
Those who served as Administrator and Deputy Administrator of the
Corporation are listed in appendix B.
While holding office, the Administrator ajid Deputy Administrator
were prohibited from engaging in any business, vocation, or employment other than that involved in the holding of such office. The
Administrator and the Deputy Administrator, moreover, were Chairman and Vice Chairman, respectively, of the Loan Policy Board
established by the reorganization plan, which included, in addition,
the Secretary of the Treasury, the Secretary of Commerce, and one
other member designated from time to time by the President from
among the officers of the United States required to be appointed by
and with the advice and consent of the Senate. The Secretary of the
Treasury, the Secretary of Commerce, and the designee of the President each were authorized to designate an officer of his department
or agency to act in his stead as a member of the Loan Policy Board.
The Loan Policy Board was empowered "* * * to establish general policies (particularly with reference to the public interest involved
in the granting and denial of applications for financial assistance
by the Corporation and with reference to the coordination of the
functions of the Corporation with other activities and policies of
the Government) which shall govern the granting and denial of applications for financial assistance by the Corporation." It met on a
number of occasions and approved documents establishing the principles and policies to be followed in the conduct of the Corporation's
lending operations, including participation in loans.
Secretary of the Treasury
Section 10 of the Eeconstruction Finance Corporation Act, as
amended, provided that if at the close of June 30,1954, the liquidation
of the assets and winding up of the affairs of the Corporation were
not completed, the completion thereof "* * * shall be transferred
to the Secretary of the Treasury * * *," who was authorized to assign
to any officer or officers of the United States in the Treasury Department his powers and duties in this respect.
The liquidation and windup of KFC had not been completed by
June 30, 1954, so the responsibility for further liquidation passed
to the Secretary of the Treasury. Final liquidation of the Corpora
77
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
tion's affairs was conducted under the immediate direction of an
Assistant Secretary of the Treasury.
Organization
The activities of RFC were conducted through its principal office
in Washington, D.C., and through 31 loan agency offices located in
certain of the principal cities of the United States (listed below).
All policies were determined in the Washington office and, in the beginning, virtually all loans applied for through the loan agencies required
approval by the Washington office before being consummated. The
lending operations in the Washington office were conducted through
separate and distinct organizational units, according to the types of
lending activities involved. Operating units such as the Examining
Division, Railroad Division, Self-Liqudating Division, and others
were established to perform the various functions, which included
examination of applications for loans, and administration of the loan
portfolio maintained in the Washington office. Members of the staffs
of these Divisions dealt directly with the Board of Directors in presenting their recommendations for disposition of loan applications
and other matters requiring the Board's consideration.
On October 1,1947, there was established in the Washington office
of RFC an Office of Loans, an integrated unit under one management,
into which all operating units dealing with lending activities were
merged. This office, staffed by a loan manager and assistants, was
comprised of the Review Committee, the Practices and Procedures
Committee, the Marketing and Liquidation Committee, the Engineering and Appraisal Service, the Loan Operations Division, and the
Field Operations Division. Under this reorganization, the responsibility for the administration of all loan operations of the RFC was
placed in the Office of Loans under delegation of authority by the
Board of Directors.
The 31 loan agencies (regional offices) were established throughout
the United States in order that the Corporation's facilities would be
more conveniently available to applicants for financial assistance
and to others who might have dealings with the Corporation. With
the exception of a few types of loans, it was required that all applications for loans originate in the loan agency serving the district in
which the applicant was located.
Each loan agency was staffed with the necessary personnel and
headed by a loan agency manager appointed by the Board of Directors
or, after May 4,1951, by the Administrator of RFC.
During the early years of the Corporation, the authority of the
loan agencies to make loans and carry out other related functions was
restricted by the requirement of prior approval by the Washington
28
MANAGEMENT AND ORGANIZATION
office. However, as the loan agencies became seasoned in lending
activities, their delegation of authority was expanded.
Generally, the loan agency managers had authority, under certain
conditions, to approve direct business loans up to $100,000, and loans in
which EFC participated with banks up to $350,000. If an application
was for an amount greater than the agency manager was authorized to
approve, or if an application, regardless of amount, was recommended
for decline, it was referred to the Washington office, together with all
recommendations, for review and further consideration. Other functions of the loan agencies included the servicing and administration of
loans made in their respective districts and, after January 1948, each
agency performed its own fiscal functions. Prior to that time the accounting for the agencies was maintained in the Washington office with
the Federal Reserve banks acting asfiscalagents.
The administrative details in connection with the Corporation's
responsibilities relating to the national defense programs were handled
in part at the Washington office and in part through the loan agencies.
In the Washington office these new responsibilities were administered
primarily through the wartime subsidiary corporations. However, in
the loan agencies the managers were required to accept many new
responsibilities, such as supervising the performance of others under
contracts for the acquisition, transportation, warehousing, and disposal of commodities; the collection of war-plant rentals; the auditing
and settlement of subsidy claims; and the supervision of the activities
of residential housing projects operated in conjunction with certain of
the Corporation's war plants.
The 31 RFC loan agencies were located in the following cities :
Atlanta, Ga.
Birmingham, Ala.
Boston, Mass.
Charlotte, N.C.
Chicago, HI.
Cleveland, Ohio
Columbia, S.C.
Dallas, Tex.
Denver, Colo.
Detroit, Mich.
Houston, Tex.
Jacksonville, Fla.
Kansas City, Mo.
Little Rock, Ark.
Los Angeles, Calif.
Louisville, Ky.
Minneapolis, Minn.
Nashville, Tenn.
New Orleans, La.
New York, N.T.
Oklahoma City, Okla.
Omaha, Nebr.
Philadelphia, Pa.
Portland, Oreg.
Richmond, Va.
St Louis, Mo.
Salt Lake City, Utah
San Antonio, Tex.
San Francisco, Calif.
Seattle, Wash.
Spokane, Wash.
The Corporation also at times had branch offices located in the following cities:
Anchorage, Alaska
El Paso, Tex.
Helena, Mont
Memphis, Tenn.
Phoenix, Ariz.
Pittsburgh, Pa.
San Juan, P.R.
29
[FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Subsidiaries of Reconstruction Finance Corporation
The Corporation had two subsidiary corporations and one other
affiliate (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 Company and the Federal National Mortgage Association) were created
and their capital stock was acquired under the authority conferred
upon RFC by section 5(c) of the EFC Act in order to assist in the
restablishment of a normal mortgage market.
The EFC Mortgage Company was organized under the laws of the
State of Maryland on March 14,1935. The Federal National Mortgage Association was chartered by the Federal Housing Administrator
on February 10,1938. Its organization by EFC was directed by the
President of the United States.
Specific authority to create or organize corporations was granted to
RFC by the provisions of an act approved June 25,1940, in order to
aid the Government in its national defense program. The following
seven wartime subsidiaries were created by RFC pursuant to this
authority:
Defense Plant Corporation
Defense Supplies Corporation
Metals Reserve Company
Rubber Reserve Company
War Damage Corporation
Petroleum Reserve Corporation
U.S. Commercial Company
The Corporation also acquired the capital stock of Rubber Development Corporation (formerly Pacific Development Co., Inc.), a
corporation of the State of Delaware. This capital stock was purchased by RFC from Defense Supplies Corporation, an RFC war subsidiary which had advanced funds to finance the Pacific Development
Co., Inc., and had acquired the capital stock when that enterprise
became inactive.
Immediately after June 30, 1945, the war subsidiaries which were
being administered by RFC, with the exception of War Damage
Corporation, were dissolved by law and their assets, liabilities, and
functions were merged with those of the RFC. Disaster Loan Corporation, an affiliated lending enterprise, the stock of which was wholly
owned by the Treasury of the United States, and the operations of
which had been under RFC administration, also was dissolved and
merged with RFC by the same enactment. Liquidation of War
Damage Corporation was completed by June 30, 1949. The RFC
Mortgage Company was dissolved, effective June 30, 1947, and its
assets and liabilities were merged with those of RFC for liquidation.
The Federal National Mortgage Association was transferred to the
Housing and Home Finance Agency effective September 7, 1950,
30
MANAGEMENT AND ORGANIZATION
under the provisions of Reorganization Plan No. 22 of 1950. Petroleum Reserve Corporation became War Assets Corporation on November 15, 1945. Rubber Development Corporation's charter expired
•on June 30,1947, and the powers vested in U.S. Commercial Company
expired on June 30, 1948. The three subsidiaries last named had
been under the management supervision of the Foreign Economic
Administration 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 component of the Federal Loan Agency, which was organized by act of
Congress to coordinate the functions and activities of various Government lending agencies. This Agency was headed by an Administrator
until July 22,1945, and from that date the duties of the Administrator
were discharged by the Chairman of the Board of Directors of RFC.
Because the Agency had been reduced to a mere administrative
superstructure over the Board of Directors of EFC, it was abolished
by Congress on June 30,1947.
Employment
The number of employees on RFC's payroll varied widely throughout the years, generally in accord with expansion and contraction in
the volume of the Corporation's activities. The chart below shows the
number of RFC employees on June 30 of the years from 1935 to 1956.
RFC EMPLOYMENT (As of June 30,1935-1956)
EMPLOYEES
Thousands
1935
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The steady increase in employment which began in 1940 and continued until 1946 was occasioned by the Corporation's national defense and wartime programs. For the most part, employees assigned
duties in connection with RFC's wartime subsidiaries were carried
on RFC's payroll and were considered to be employees of the parent
corporation.
Not reflected on the chart above is the rapid rise in RFC employment
which occurred temporarily in 1945 and 1946 when War Assets
Corporation (then an RFC subsidiary) undertook the disposal of
the Government's World War I I surplus property. The peak of
employment was reached in February 1946, when for a short period
there were more than 35,000 RFC employees immediately prior to
the transfer of the surplus property disposal functions and employees
from RFC to the War Assets Administration.
32
The Financing of RFC
The operations of the Reconstruction Finance Corporation were
financed by funds provided from subscriptions to its capital stock,
from borrowed funds, from the Corporation's net earnings, and from
funds held by RFC for terminated or affiliated programs.
Capital Stock
The original RFC Act provided that the Corporation should have
capital stock of $500 million subscribed by the United States of
America, and that amount was authorized to be appropriated for the
purpose of making payments on the subscription. In a resolution
approved January 27, 1932, $500 million was appropriated, and the
subscription made and paid for by the Secretary of the Treasury on
behalf of the United States.
On April 25,1941, the Corporation retired $175 million of its capital
stock in accord with the amendments to the RFC Act approved June
25, 1940. On July 23, 1948, the Corporation retired an additional
$225 million of its capital stock pursuant to Public Law 548, 80th
Congress. There were no further statutory changes in the amount
of the Corporation's capital stock. However, from funds realized
during 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's
operations were financed. Under section 9 of the original RFC Act,
the Corporation was "authorized and empowered, with the approval
of the Secretary of the Treasury, to have outstanding at any one time
in an amount aggregating not more than three times its subscribed
capital, its notes, debentures, bonds, or other such obligations." This
initial borrowing authority of $1.5 billion was greatly increased
through 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
Notes issued to the public
Total
_.
$51,346,850,497
3,072,634,547
54,419,485,044
33
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
1932
3d...
4th..
1933
1st-...
2d
3d
4th._._
Amount issued
$350,000,000
250,000,000
885,000,000
Canceled or
transferred
$350,000,000
600,000,000
810,000,000
$675,000,000
"2,"225,"666,"56o"
1,220,000,000
1,585,000,000
1,720,000,000
2,530,025,854
771,271,526
323,000,000
91,250,000
583,372,000
134,481,068
1,645
260,100,000
70,000,000
3,166,816,312
3,489,814,667
3,320,964,667
3,834,336,667
121,195,500
115,332,500
3,908,852,500
529,507,167
149,093,000
17,000,000
3,741,050,000
254,621,667
3,806,439,167
3,904,771,667
4,072,574,167
4,347,459,667
270,125,000
51,045,000
3,995,120,000
25,000,000
191,000,000
196,000,000
4,265,000,000
100,025,000
4,426,584,667
4,281,629,667
4,011,749,667
3,936,724,667
70,360,000
15,050,000
150,366,000
121,150,000
120,900,000
41,000,000
229,478,000
3,886,184,667
3,860,234,667
3,781,122,667
3,902,272,667
41,473,500
1,067,854,666
1,045,249,319
1,113,284,431
5,000,000
1,152,728,166
1,077,589,318
971,838,098
$2,688,151,334
3,156,500
4,707,051
3,189,062
1,250,594,833
1,162,564,833
1,125,517,783
1,263,775,054
328,390,000
33,500,000
125,100,000
352,268,000
389,180,000
161,000,000
122,000,000
302,857,877
4,240,176
8,508,251
5,155,750
3,135,554
1,198,744,878
1,062,736,627
1,060,680,877
l| 106,955,446
5,100,000
13,002,396
29,200,000
25,200,000
15,886,946
35,966,500
11,500
5,802,396
33,500
2,195,750
1,096,157,000
1,103,357,000
1,096,557,000
1,119,561,250
297,941,000
724,492,000
618,463,000
918,000,000
60,000,000
314,440,692
277,357,250
409,839,000
1,093,808
5,094,500
1,019,000
3,230,000
1,356,408,442
1761,365,250
2,101,452,000
i 606,383,000
726,000,000
1,004,320,000
699,000,000
1,333,000,000
310,090,000
272,320,000
258,548,000
674,895,000
1,088,000
83,554
1,152,500
96,500
3,021,205,000
3 753,121,446
4,192,420,946
4,850,429,446
1,554,000,000
1,090,000,000
1,839,000,000
1,419,000,000
740,000,000
670,000,000
814,397,000
765,000,000
39,304,000
993,322
792,000
815,000
5,625,125,446
6 044,132,124
959,000,000
1,380,000,000
772,000,000
212,000,000
430,000,000
1,036,363,000
280,000,000
90,000,000
403,000
875,000
640,000
1,335,000,000
1935
1st..
3d...
4th.,
1st
2d
3d
4th.....
1st
2d
3d.
4th_...
1st
2d
3d
4th__._,
1st
1936
1937
1938
1939
2d
3d
4th._._
1st..
2d__.
3d...
4th..
1st
2d
3d.
h
1st.
2d_.
1940
1941
1942
4th..
1st....
2d...._
3d
4th..._
1st...
d
3d..
4th.
1943
1944
34
Outstanding
end of period
410,000,000
1,700,000,000
135,000,000
3,035,025,854
1934
1st..
2d...
3d...
4th..
Retired or
refunded
%SS3
ssag3
FINANCING OF RFC
Summary of Notes Issued by RFC to the Secretary of the Treasury and to the Public—Con.
Year and quarter
Amount Issued
1945
1st
2d
3d
4th..-
240,000,000
65,000,000
185,000,000
205,000,000
200,000
26,333
96,000,000
1,254,000,000
45,000,000
68,000,000
170,000,000
190,000,000
183,000,000
61,000,000
683,624,482
89,000,000
1,314,790,449
181,000,000
514,000,000
71,000,000
1,119,000,000
41,000,000
12,000,000
9,365,306,817
7,537,665
2,742,865
..
156,000,000
1,112,000,000
209,000,000
219,000,000
39,937,609
36,000,000
1,026,000,000
2,929,990
639,112
91,996
48,922
784,789,480
1,856,212,759
2,029,120,763
1,222,071,841
. : : : . „ .
...
190,000,000
122,209,551
79,000,000
108,058,527
77,973,915
19,000,000
160,143,429
7,360
53,867
1,147,949,450
1,033
1,412,064,481
1,456,246,250
368,296,800
316,210,865
34,000,000
49,000,000
24,000,000
95,118,034
72,946,133
52,209,651
78,995,384
66,000,000
4,616
277,260,116
274,050,565
219,055,181
248,173,215
20,000,000
35,000,000
46,000,000
9,000,000
77,000,000
29,000,000
60,000,000
9,000,000
191,173,215
197,173,215
183,173,215
183,173,215
6,000,000
2,000,000
6,000,000
26,173,215
183,173,215
159,000,000
159,000,000
157,186,029
1949
1st
2d
3d
4th::...
1st
2d
3d.. 4th. . .
1st
2d
3d
4th":.::
:
:
:
:
1950
::.
1951
„
_
„:.:::::
1952
1st
2d
3d
4th
1953
1st
2d
3d
4th
:::.
$375,000
16,697
188,244
1,813,971
1954
1st
2d.
3d *
$9,081,947,124
9,019,947,124
9,254,572,124
9,125,555,427
44,000,000
341,000,000
109,000,000
52,000,000
1948
1st
2d
3d
4th
Outstanding
end of period
$9,505,947,124
285,000,000
75,000,000
215,000,000
1947
1st
2d
3d
4th
Canceled or
transferred
$9,381,947,124
223,000,000
310,000,000
86,000,000
1946
1st
2d . . 3d
4th
Retired or
refunded
Total
8,500,000
154,000,000
23,686,029
142,000,000
6,681,667
147,318,333
54,419,485,044
40,275,555,254
14,143,929,790
8,929,555,427
9,205,355,427
9,129,329,094
8,976,329,094
8,902,140,850
9,966,140,850
9,144,516,368
9,151,516,368
9,169,516,368
132,462,335
631,719,470
142,000,000
154,000,000
Borrowings From the Treasury
The first KFC borrowings were on notes issued to the Secretary of the
Treasury on April 27,1932. These notes matured in 6 months and bore
3y2 percent interest. Maturities and interest rates on notes issued to
the Secretary of the Treasury prior to June 30,1947, were not subject
to statutory limitations, but were set by agreement between RFC and
Treasury. The maturities of the notes issued through June 30,1947,
ranged from demand to 3% years. Interest rates varied widely,
35
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
ranging from % to $y2 percent The average rates paid by EFC on
borrowings from the Treasury from 1932 through 1939 were as follows:
Percent
1932
1933
1934
1935
1936
1937
1938
1939
3.500
3.086
2.414
2.362
2.305
2.250
1.474
1.072
From 1939 to June 30,1947, all notes issued by EFC to the Secretary
of the Treasury carried an interest rate of 1 percent, with two exceptions. The first exception was a note for $124,741,000, with interest at
one-quarter percent, issued by EFO on February 2,1941, in payment
for the capital stock of the Federal home loan banks previously held
by the Secretary of the Treasury; on April 17, 1941, this note was
retired from the proceeds of an issue sold to the public. The other
exception was a series of notes amounting to $175 million issued in May
and June 1947, for advances to the Secretary of State for European aid
pursuant to acts of Congress approved May 22 and 31, 1947. These
notes 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 borrowings
from the Treasury subsequent to June 30,1947, the EFC pay interest
"at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States." The interest-bearing notes issued by EFC
after June 30,1947, totaled $2,367,176,561, and carried the following
interest rates:
Amount of notes issued
17s percent
2 percent
2% percent
$2,187,176,561
173,000,000
7,000,000
2,367,176,561
In addition to the interest-bearing notes, EFC also borrowed $2,176
million without interest during the period from April 1948 through
June 1950. These funds were borrowed to provide advances to the
Secretary of State and the Economic Cooperation Administration for
various foreign aid programs. All funds borrowed by EFC for such
advances were repaid prior to December 1950 from funds appropriated
by the Congress for such purposes.
The amounts borrowed by EFC from the Secretary of the Treasury
and amounts retired and outstanding are shown in the following table:
FINANCING OF RFC
Notes Issued by RFC to the Secretary of the Treasury
Amount Issued
Year and quarter
1932
2d
3d
4th
$360,000,000
250,000,000
885,000,000
.„_.
1933
._
1st
2d
3d
4th
_
1934
1st
2d
3d
4tb
lst_..._
2d
.
3d
4th
1st
2d3d.. "
4th
1st
2d
3d
4th«:.:
1940
:
1941
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1942
1943
1944
1st
2d
3d
4th
1st
2d
3d™
4th
590,000,000
315,000,000
75,000,000
580,000,000
255,000,000
70,000,000
2,940,000,000
3,255,000,000
3,075,000,000
3,685,000,000
55,000,000
115,000,000
3,905,000,000
380,000,000
85,000,000
16,000,000
3,740,000,000
105,000,000
3,555,000,000
3,655,000,000
3,820,000,000
4,095,000,000
270,000,000
35,000,000
3,995,000,000
25,000,000
190,000,000
180,000,000
4,265,000,000
100,000,000
4,175,000,000
4,030,000,000
3,760,000,000
3,685,000,000
70,000,000
10,000,000
25,000,000
120,000,000
120,000,000
40,000,000
145,000,000
3,635,000,000
3,605,000,000
3,485,000,000
3,605,000,000
40,000,000
815,945,431
5,000,000
1,151,828,666
1,077,589,318
672,945,431
$2,688,151,334
3,156,600
4,707,051
3,189,062
951,848,666
863,692,166
614,985,116
754,796,064
18,000,000
33,000,000
125,000,000
70,000,000
389,000,000
161,000,000
122,000,000
302,857,877
4,240,176
8,508,251
6,155,760
3,135,554
379,555,878
243,047,627
240,891,877
1089*446
5,000,000
12,802,396
29,000,000
25,000,000
15,886,946
"35^9667506'
11,500
5,802,396
33,500
2,195,750
297,741,000
80,000,000
47,000,000
918,000,000
60,000,000
314,440,692
65,897,250
110,000,000
1,093,808
5,094,500
1,019,000
3,230,000
259,451,442
19,916,250
726,000,000
1,004,320,000
699,000,000
1,333,000,000
255,000,000
355,000,000
1,088,000
83,554
1,152,500
96,500
1,529,682,000
2,533,918,446
2,976,765,946
3,954,669,446
1,554,000,000
1,090,000,000
1,839,000,000
1,419,000,000
740,000,000
670,000,000
490,000,000
765,000,000
39,304,000
993,322
792,000
815,000
4,729,365,446
5,148,372,124
6,496,580,124
7,149,765,124
959,000,000
1,380,000,000
772,000,000
212,000,000
430,000,000
465,000,000
280,000,000
90,000,000
403,000
875,000
640,000
7,678,362,124
8,692,487,124
9,083,947,124
9,205,947,124
9,381,947,124
223,000,000
310,000,000
86,000,000
9,505,947,124
285,000,000
75,000,000
215,000,000
1,
1939
1945
!„.
$350,000,000
600,000,000
810,000,000
$675,000,000
"2,'225,"o6o,"6o6"
1938
.
Outstanding
end of period
1,220,000,000
1,685,000,000
1,720,000,000
2,350,000,000
1937
1st
2d
3d
4th
Canceled or
transferred
410,000,000
1,700,000,000
135,000,000
2,855,000,000
„„
1935
1st
2d . .
.
3d."...:i—:::::.:::::::::.::
4th
1936
1st
2d
3d
4th
Ketlred or
refunded
1,335,000,000
375,000
16,697
7,000,000
804,770,000
9,081,947,124
9,019,947,124
9,254,572,124
9,125,555,427
37
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Notes Issued by RFC to the Secretary of the Treasury—Continued
Year and quarter
1st
2d
3d
4th-—.
1946
1947
1st
2d
3d
4th.-.-.
194S
1st.
3d—
4th1949
1st- —
2d
3d
4th—.
Amount issued
Retired or
refunded
lst....
2d.
3d
4th_—
1st.-..
2d—..
96,000,000
1,254,000,000
45,000,000
63,000,000
170,000,000
190,000,000
183,000,000
61,000,000
"683*624482'
89,000,000
1,314,790,449
181,000,000
514,000,000
71,000,000
1,119,000,000
41,000,000
12,000,000
9,365,306,817
7,537,665
2,742,865
132,462,335
631,719,470
156,000,000
1,112,000,000
209,000,000
219,000,000
39,937,609
36,000,000
1,026,000,000
2,029,990
639,112
91,996
48,922
784789,480
1,856,212,759
2029,120,763
ll 222,071,841
190,000,000
122,209,551
79,000,000
108,058,527
77,973,915
19,000,000
160,143,429
7,360
53,867
1,147,949,450
1,033
1,412,064,481
1,456,246,250
368,296,800
316;210,865
34000,000
49,000,000
24,000,000
95,118,034
72,946,133
52,209,551
78,995,384
66,000,000
4,616
277,260,116
274050,565
219,055,181
248,173,215
20,000,000
35,000,000
46,000,000
9,000,000
77,000,000
29,000,000
60,000,000
9,000,000
191,173,215
197,173,215
183,173,215
183,173,215
6,000,000
2,000,000
6,000,000
26,173,215
183,173,215
159 000,000
159,000,000
157,186,029
1951
$200,000
188,244
1953
4th...
1,813,971
1st.....
2d
3d
1954
Total.
$8,929,555,427.
9 205 355; 427
9,129,329,094
8,976,329,094
$240,000,000
65,000,000
185,000,000
205,000,000
1952
1st-.
2d.~
3d—
4th..
Outstanding
end of period
$44,000,000
341,000,000
109,000,000
62,000,000
1950
lst_.
2d—
3d...
4th_.
Canceled or
transferred
8,500,000
154000,000
51,346,850,497
8,902,140,850
9 966,140,850
9,144,516,368
9,151,516,368
142,000,000
154,000,000
142,000,000
6,681,667
147,318,333
37,202,920,707
14,143,929,790
Cancellation and Transfers of RFC Obligations
Of the $51,346,850,497 in notes issued by KFC to the Secretary of
the Treasury, more than one-fourth were either canceled by direction
of the Congress or transferred to other Government agencies under
reorganization plans. Cancellation of notes by direction of the Gongress amounted to $12,848,664,320, as shown below:
38
FINANCING OF RFC
Notes Issued by RFC to the Secretary of the Treasury and Canceled by direction of the
Congress
By the act approved Feb. 24, 1938:
Capital stock of Federal home loan banks
_
$124, 741,000
Capital stock of Home Owners' Loan Corporation
200, 000,000
Secretary of Agriculture—for crop loans
115, 000, 000
Land Bank Commissioner—for loans to joint-stock land
banks
_
2, 600,000
Land Bank Commissioner—for loans to farmers
145, 000, 000
Capital stock of Federal Farm Mortgage Corporation
55, 000, 000
Governor of Farm Credit Administration.
40, 500, 000
Capital stock of Regional Agricultural Credit Corporations44, 500, 000
Expenses of Regional Agricultural Credit Corporations
23, 341, 776
Capital stock of Commodity Credit Corporation..
97, 000, 000
Capital stock of Disaster Loan Corporation
24, 000, 000
Federal Emergency Relief Administrator—FER Act of
1933
500,125, 938
Federal Emergency Relief Administrator—Emergency Appropriation Act of 1935
500, 000, 000
Federal Emergency Relief Administrator—Emergency Relief
Appropriation Act of 1935
_
._
500, 000, 000
Governors of States—Emergency Relief and Construction
Act of 1932.
280, 025,144
Municipalities and other public bodies—Emergency Relief
and Construction Act of 1932
2, 800, 623
Interest costs
33,177,420
By sec. 602 National Housing Act: Federal Housing Administrator
_
97, 861, 381
By act approved June 30, 1947:
Capital stock of Federal home loan banks
122, 672, 200
Unrecovered costs of national defense, war, and reconversion
activities
_
9, 313, 736, 531
Costs incurred in handling materials transferred to stockpiles
_..
18, 111, 542
Interest costs
_
_
--46,005,553
By the act approved July 30, 1947:
Loans to Rural Electrification Administration. _
510, 848, 904
Loans to the Secretary of Agriculture—farm tenancy program__
_
_
40, 367, 816
By the Government Corporations Appropriation Act, 1948:
Title to land and buildings transferred to Federal Works
Agency
9,735,562
By the act approved June 28, 1948: Net investment in properties transferred to Howard University
* > 512, 930
Total
12, 848, 664, 320
^Reorganization Plans Nos. 22 and 23 of 1950 both were effective
September 7, 1950. Plan No. 22 transferred from EFC to the Administrator of the Housing and Home Finance Agency the functions,
capital stock, assets, and liabilities of the Federal National Mortgage
505257—59
4
39
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Association. Plan No. 23 transferred to the Administrator of the
same agency the functions of RFC under section 102 of the Housing
Act of 1948 and under other laws with respect to financing predominantly for the production and sale of prefabricated houses and prefabricated housing components. In each case, a settlement was arranged between RFC and the Housing Administrator under which the
Administrator borrowed from the Treasury amounts determined to
represent RFC's net investment in the transferred programs and
paid these amounts to RFC. RFC, in turn, used the cash so provided
to retire its notes to the Secretary of the Treasury in amounts equivalent to its net investment in the transferred programs. The amounts
of RFC notes retired under these arrangements were as follows:
Under Reorganization Plan 22 of 1950
Under Reorganization Plan 23 of 1950
Total
$1,127,776,840
20,170,297
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 by
RFC were placed under the jurisdiction of other agencies responsible
for similar continuing programs. The foreign loans and securities
then held by RFC were transferred to the Export-Import Bank of
Washington; the functions of RFC relating to loans to victims of
floods and other catastrophes were transferred to the Small Business
Administration; and the functions relating to mortgages then held
by RFC which were made or acquired under the authorities of the
RFC Mortgage Company and Defense Homes Corporation were
transferred to the Federal National Mortgage Association in the
Housing and Home Finance Agency. In each case, a settlement was
arranged under which RFC's notes payable to the Secretary of the
Treasury were transferred to the receiving agencies in the amount of
RFC's net investment in the transferred programs. The notes assumed by each of the three receiving agencies under Reorganization
Plan No. 2 of 1954 were as follows:
Federal National Mortgage Association
Export-Import Bank of Washington
Small Business Administration
Total
$91,768,173
IIIIIIIIIIIIIII. 42, 000,000
I I ™ I I I _ ™ I I I I I I I I I 13,550,160
U7f
318 ,333
Borrowinss From the Public
During the period from October 31,1933, to July 3,1943, the RFC
sold 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 Treas40
FINANCING OF RFC
ury. Notes issued and outstanding to the public are shown in the
following table:
Notes Issued by RFC to the Public
Year and quarter
1933
1934
1st.
3d..
4th.
1935
1st..
2d._
3d_.
4th.
1st..,
2d._
3d...
4th..
1st...
2d.
3d
4th_...
1937
1938
3d..
4th.
1939
1st..
2d__
3d..
4th.
1940
1st..
2d..
3d..
4th.
1941
1st2d
3d..
4th-
Amount issued
Retired or
refunded
$180,025,854
$180,025,854
181,271,526
8,000,000
16,250,000
3,372,000
$134,481,063
1,645
5,100,000
226,816,312
234,814,667
245,964,667
249,336,667
66,195,600
332,500
3,852,500
149,507,167
64,093,000
2,000,000
251,439,167
249,771,667
252,674,167
252,459,667
1,050,000
149,621,667
125,000
16,045,000
120,000
1,000,000
16,000,000
360,000
5,050,000
125,366,000
1,150,000
900,000
1,000,000
84,478,000
251,184,667
255,234,667
296,122,667
297,272,667
1,473,500
1,026,000
211,660,000
297,339,000
899,600
298,746,167
298,872,667
510,532,667
608,979,000
310,390,000
600,000
100,000
276,268,000
25,000
"298,*892,"667
180,000
200,000
644,492,000
671,463,000
1,096,957,000
1,741,449,000
2,101,452,000
1,801,613,000
310,090,000
272,320,000
3,648,000
319,895,000
1,491,523,000
1,219,203.000
1,215,655,000
895,760,000
324,397,000
1944
1st...,
2d
819,189,000
819,689,000
819,789,000
1,096,057,000
211,460,000
299,839,000
1943
1st...
2d._
3d4th..
251,684,667
251,629,667
251,749,667
251,724,667
1,096,157,000
1,096,357,000
1,096,557,000
1,096,757,000
100,000
200,000
200,000
200,000
1942
lst-,
2d..
3d..
4th..
Outstanding
end of period
895,760,000
895,760,000
671,363,000
671,363,000
671,363,000
571,363,000
Total.
3,072,634,647
3,072,634,547
At the end of March and September 1940, and again at the close of
September 1941, amounts outstanding in notes issued to the public
represented all borrowed funds used to finance RFC's operations.
41
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Many of the notes sold by RFC to the public were taken by bants,
trust companies, and similar institutions from which KFC had purchased preferred stock, capital notes, or debentures. I n some instances, the KFC notes held by these institutions were retired by
crediting the amount of the notes against the principal amounts of
loans made to the same institutions.
The first notes issued by RFC outside of the Treasury were given
in payment for newly mined domestic gold or gold bullion from foreign sources. This action was related to the moves then being made
to devalue the dollar and establish a Government market for gold.
The notes were issued from October 1933 to January 1934, and all
matured on February 1, 1934. Interest rates on the notes ranged
from *4 to 1% percent, discounted. The effective rate on the $134,482,713 issued was 0.52 percent. Under this program, RFC acquired
695,027 ounces of domestic gold for $23,363,754, and 3,418,993 ounces
of foreign gold for $111,037,196. The discount taken by RFC in exchanging its notes for this gold was $81,763. The gold which RFC
took in exchange for these notes was turned over to the Treasury for
cash and the notes retired at their maturity.
The other 12 issues of notes sold by RFC to the public matured
in from 1 to 3 years from the date of issue. Nominal interest rates
on these issues ranged from % to 3 percent; effective interest rates
varied according to whether the issues were sold at par or for a
premium. The amount received in excess of par for the five issues
which sold at a premium was $1,483,524. The average rates of interest paid by RFC on its borrowings from the public were as follows:
Percent
0.905
2.065
2.187
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
IJIIIII
™ I 1.714
_
_
~
"
~
~
~ " _
1.567
! . 237
t932
#906
*92l
1.020
047
t
II"~IIIIII~III~I 1.000
Retained Earnings
Prior to June 30,1948, there were no statutory provisions which
called for RFC to relinquish any earnings which had accrued from
its operations. Those earnings were held by the Corporation and
were available for the financing of its operations. Under the provisions of Public Law 864, 80th Congress, the RFC was required to
42
FINANCING OF RFC
pay as a dividend to the Treasury that amount by which its accumulated net income exceeded $250 million, after reasonable reserves for
losses. The first dividend payment under this act was $307,391,555
which was paid in December 1948, based upon the Corporation's accumulated net income of $557,391,555 through June 30, 1948. Dividends paid from accumulated net earnings in excess of $250 million
in years subsequent to 1948 were as follows:
1049
1950
1951
1952
1953
1954
$1,345,185
18,6T4,005
16,345,812
12,293,880
34,288,019
After the program for liquidation of the Corporation was underway, considerable amounts of cash were realized from liquidation of
the Corporation's assets. There being no reasons to hold this cash
in amounts exceeding estimated future requirements, the excess was
returned to the Treasury and the Corporation's retained earnings reduced accordingly. The amounts of accumulated net earnings held by
RFC at the close of fiscal years 1955 through 1957 were as follows:
1955
1956
1957
$163,216,742
26,193,788
33,744,065
At various times throughout its existence, the RFC also utilized in
its lending activities funds held by the Corporation for various other
programs. The principal amounts so utilized were the profits of the
War Damage Corporation; the proceeds from liquidation of the assets of the Smaller War Plants Corporation; proceeds realized from
the assets of the national defense, war, and reconversion programs;
and profits from the sale by RFC of securities purchased from the
Federal Emergency Administrator of Public Works (later Public
Works Administrator). All funds so utilized by RFC had been paid
over 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 subsidiaries of the RFC and financed with funds secured from the parent
organization. The total is made up of three main categories, as
follows:
Amount authorized
Loans and investments made at the discretion of RFCs
management
$38,541,174,998
Loans and aUocations to other Government agencies tinder
congressional directives
7,235,248,449
Securities 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 Corporation disbursed a total of $40,632,648,806, of which amount $40,555,894,138 was disbursed prior to September 28, 1953, when the
program for liquidation of the Corporation's assets began as provided
by the RFC liquidation Act.
Recoveries of amounts disbursed, in the form of principal repayments, 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 September 28,1953, are shown in the following table:
Summary of Loans, Investments, Security Purchases, Allocations, and other Authorizations
Feb. 2,1932-Sepl\ 28,1953
Authorized
Year and quarter
1332
1st
2d
3d. .
. .
4th::::.:::::::::":::
1st
2d
3d
4th
«.
„
:„.::::.„
: :„
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
$283,934,132
851,475 940
523,483,618
409,904,881
$174,400
10,047,604
34,387,786
25,117,894
$242,446,308
637,803,699
389,451,559
357,965,572
$8,892,728
72,134,708
114,751,307
104,169,706
$233,553,580
799,222,571
1,073,922,823
1,327,718,689
806,669,128
1,476,153,389
303,608,610
1,340,357,666
97,234,954
79,549,058
42,795,955
34,170,978
543,827,758
530,943,433
388,349,470
902,773,528
124,237,998
181,670,234
248,204,011
188,460,882
1,747,308,449
2,096,681,648
2,236,727,107
? 951,039,753
45
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Summary of Loans, Investments, Security Purchases, Allocations, and Other Authorizations—Continued
Year and quarter
1st... . .
2d"; :
3d-. ..
4th.
1st
2d_
3d...
4th. „.
Repayments
and other.
reductions
Outstanding
878,255,063
$992,333,107
544,167,766
511,397,624
765,461,329
$260,215,400
225,495,635
651,065,602
267,204,351
$3,683,157,460
4,001,829,591
3,862,161.713
4,360,418,691
164,049,957
253,660,388
312,543,568
773,012,035
34,835,088
53,884,345
21,807,595
110,634,728
248,130,865
280,531,375
348,908,206
480,234,648
245,366,638
165,841,617
173,594,166
215,049,266
4,363,182,918
4,477,872,676
4,653,186,716
i, 918,372,098
298,403,653
287,127,008
265,566,844
70,739,941
65,548,267
16,906,625
117,349,412
22,457,610
395,716,483
213,747,477
123,994,566
102,194,718
272,850,532
360,402,141
327,735,023
176.314,526
5,041,238,049
4,894,583,385
4,690,842,928
4,616,723,120
51,051,465
209,242,303
332,396,758
169,769,757
125,891,576
23,660,072
336,300,548
110,055,697
103,889,708
81,523,352
180,404,678
173,898,252
103,679,424
155,773,146
59,540,042
4,546,714,576
4,524,558,504
4,457,010,2X8
4,577,874,854
104,921,843
183,605,062
233,364,311
212,922,268
8,935,293
23,879,856
310,768,594
15,988,869
114,133,979
106,184,371
106,051,468
189,738,983
2,748,788,456
186,569,491
123,811,189
86,073,643
1.943,220,377
1,862,835,257
1,845,075,536
[, 948,740,876
160,581,667
86,105,851
74,050,033
97,918,829
23,466,870
33,214,260
27,010,849
21,684,549
75,819,285
185,311,328
97,869,446
75,183,484
111,081,909
229,284,877
59,475,368
105,394,673
,913,478,252
,869,504,703
,907,898,781
1877,687,592
126,361,600
336,500,855
432,885,507
529,662.848
19,781,411
15,930,299
25,422,608
12,646,097
111,207,188
110,722,660
120,458,803
166,145,611
99,130,547
107,659,557
116,970,659
59,635,225
1,889,764,233
1,892,827,326
1896,315,470
£ 002; 825,856
713,079,220
330,501,672
1,584,011599
1,110,343,744
12,246,734
14,062,940
40,634,063
114,078,680
433,676,588
457,531,027
463,006,430
697,691,127
87,275,901
172,363,327
109,653,223
285,199,586
2,349,226,543
2 634 394,243
2^987 747,450
3, 400; 238,991
1,182,530,212
681,630,871
1,376,705.949
1,177,164,678
17,056,468
29,913,055
65,321,418
158,78^995
820,035,858
1,036,102,085
l,194,3lf,196
1,
351,551,865
270,463,311
685,785,984
775,126,382
3,868,722,984
4 634,362,658
5,142,887,870
5,8
2,144,495,269
1,289,270 758
1,703,34<085
1,823^ OS, 681
59,005,896
126,634,722
3184i;084
1,645,511,604
1,722,562,636
1,742,70^784
1,592,021,961
821,927,001
969,378,081
871,852,992
872,456,847
7 403,812,808
8 274 661,600
8 9 H 226714
39,266,207
52,407,091
62,618,424
1,487,563,398
1,573,025,345
1,54929^026
1,606,722,435
942,851,533
1,185,322,116
1,325,264,577
1,399,817,952
9 926,641,808
10,150,670,157
10; 357,674,640
-,—>,301
141,914,626
46,40<901
1,400,607,425
2,069,473,662
311904;261
,904;261
372,922,694
1,606,072,253
2,085,271,683
8,167,423,157
300,379,092
79,857,685
73,152,082
43,108; 450
49,792,653
166,192,347
165,836,036
125,79?, 439
158,625,956
314,264,660
416,762,231
239,691,824
108,730,838
1936
1938
1st
2d
3d
4th
1939
1st.
2d
3d
4th
1940
1st
2d
3d
4th
1941
1st
2d._
3d
4th
1942
1st
2d
3d
4th
1943
1st
2d
3d
4th
1st
2d
3d
4th
Disbursed
1937
1st
2d""
3d
4th
1st
2d
3d
4th
Canceled or
withdrawn
$95,690,637
67,791,093
217,977,132
79,207,046
$734,961,565
468,544,297
1935
1st.
2d
3d
4th
1st
2d
3d
4th
1934
Authorized
..
1944
1,609,984,060
1,461,666,461
1,398,982) 240
1945
1,648,540,263
1,641,731,071
776,010,273
1946
46
111
205; 216; 415
239,921,425
370,741182
2,205,264,284
1954 348,089
SfififfiS
RFC'S LENDING FUNCTIONS—SUMMARY
Summary of Loans, Investments, Security Purchases, Allocations, and Other Authorizations—Continued
Year and quarter
Canceled or
withdrawn
Disbursed
68,536,666
206,108,139
$150,692,300
211,284,840
440,947,034
64,617,039
$145,062,739
711,261,696
72,642,198
73,306,196
$152,122,706
501,161,810
886,552,852
47,074,145
$1,883,282,855
2,093,382,741
1,279,372,087
1,305,604,138
43,331,200
1,178,965,091
118,818,831
178,287,010
59,212,684
242,202,498
39,461,000
38,244,441
40,882,499
1,174,387,691
112,866,050
129,323,927
44,205,419
1,316,836,716
44,341,097
45,896,875
1,302,281,218
1,159,832,193
1,228,357,146
1,311,784,198
227,139,510
1,290,709,535
345,242,533
319,146,886
39,321,799
59,361,672
39,251,889
50,677,102
160,910,466
1,229,733,836
242,944,455
260,679,726
36,409,839
182,143,226
45,394,592
1,065,537,172
1,436,284,815
2,483,875,425
2,681,425,288
1,876,567,842
303,749,143
188,386,123
153,943,145
72,900,682
63,546,004
58,681,476
68,464,016
44,646,458
253,551,600
167,801,965
151,863,706
46,487,396
57,198,658
141,082,631
1,200,780,510
170,127,920
2,072,920,884
2,089,640,318
1,040,713,514
917,072,990
134,622,812
52,493,673
41,600,704
23,142,010
60,308,914
79,586,158
60,839,673
22,042,160
49,949,350
62,019,435
33,486,494
25,676,470
60,638,941
72,670,334
73,589,242
61,375,604
906,383,399
895,732,600
855,629,752
819,930,613
36,406,815
71,691,313
29,226,557
24,652,786
16,802,600
13,815,809
21,034,814
16,581,352
15,600,468
66,869,779
79,198,967
54,406,846
42,895,032
770,642,191
707,043,692
705,812,917
717,324,731
26,603,080
12,268,313
4,335,739
13,279,830
18,890,738
11,630,972
29,829,759
30,141,778
18,030,641
43,107,085
42,282,923
35,456,794
704,047,405
691,906,260
674,480,107
934
56,995,134
56,995,134
5,802,609,347 40,656,894,138
30,881,414,031
Authorized
Repayments
and other
reductions
Outstanding
1947
1st..
$374,764,605
2d..
3d..
4th.
1948
1st
2d
3d
4th_.__,
1949
1st
2d
3d
4th.__
1950
1st....
2d._..
3d....
4th...
1951
1st
2d
4th.
1952
1st....,
2d_.__.
3d
4th....
1st..
2d..
3d..
1953
Undistributed expenses
Total
56,996,068
46,468,722,698
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 $23,817,714
SJfJ.f?odr for administrative expenses of other Government agencies and $33,177,420 authorized and diaJST«
"Merest expenses on borrowed funds, all in connection with loans and allocations made to other
Government agencies at the direction of the Congress. The notes which KFC had issued to obtain the
The amount of outstanding loans and investments dropped $7.8
billion between the second and third quarters of 1945. This was
occasioned by the manner in which EFC treated its investments in the
wartime subsidiaries which were merged with EFC under the provisions of the act approved June 30, 1945. At that time, EFC's investment in the merged subsidiaries consisted of capital stock and
loans amounting to $7.6 billion. In the merger, EFC received the
remaining assets of the merged corporations, but the original investments were treated as "other reductions" or, in effect "charged off."
These transactions were recognized by the Congress in the act approved June 30,1948, which canceled the notes which EFC had issued
to the Secretary of the Treasury in an amount representing the unrecovered costs of EFC's national defense, war, and reconversion
activities.
47
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
There was $38,541,174,998 authorized for loans and investments at
the discretion of EFC's management. The composition of these
authorizations was as follows:
Amount
authorized
Loans to and investments In financial institutions
Loans to business enterprises
—
Loans to agricultural financing institutions
Loans to railroads . „,_.,...-,..
Loans to and investments in public agencies
Investments In RFC mortgage loan subsidiaries
"Loans to foreign governments
,
Investments in Government agencies.
Other loans and investments.
Investments in RFO's wartime subsidiaries
_
Total
Disbursements to
Sept. 28,1953
$4,815,324,697
5,153,294,815
2,454,133,430
1,059,867,787
1,024,203,892
1,831,551,598
495,000,000
391,991,000
97,507,778
21,218,300,001
$3,906,201,681
2,637,329,690
1,452,502,107
938,440,875
793,600,115
1,778,093,357
460,000,000
391,933,000
77,098,982
20,877,617,233
38,541,174,998
33,312,817,040
Summary Table S-l in appendix C is a distribution of amounts
authorized, canceled or withdrawn, disbursed, recovered, and outstanding for quarter-year periods from 1932 through September 28,
1953.
During the first 3 years of its existence, KFC's activity in loans
and investments was concentrated in providing assistance to financial
institutions, railroads, and agencies providing financial assistance to
agriculture. Beginning in 1935, activity in connection with financial
institutions was greatly diminished, and that related to business enterprises, mortgage loans, and public agencies, took over greater relative
importance. These relationships are illustrated in the chart below:
LOANS AND INVESTMENTS AUTHORIZED, 1932-1939
DOLLARS
Billions
*~
_
ill!
111!
!•-
Other (Primarily Business Enterprises
and Public Agencies)
^Railroads
m
Agricultural Financing Institutions
Financial Institutions
JIMP
48
1932
34
"35
'36
:;;;:;;;;:;;;:
'37 * ~V38
"39
HFC'S LENDING FUNCTIONS—SUMMARY
During the period from 1940 through 1945, the Corporation's investments in its wartime activities overshadowed all other types of
lending and investment functions. During this period, more than 80
percent of all amounts authorized were to the wartime subsidiaries.
Loans to business enterprises made up the bulk of the remaining
amounts authorized during this period. The chart below shows the
relationship of investments in wartime subsidiaries to other activities
from 1940 through 1945.
LOANS AND INVESTMENTS AUTHORIZED, 1940-1945
DOLLARS
Billions
6*
1940
Following World War II, EFC's lending and investment activities
were largely in the fields of business loans and residential mortgages.
Mortgage activity was greatest during 1949 and 1950. The peak of
business loan authorizations was reached in 1949; thereafter there was
a steady decline until the Corporation's lending authority was termi-
49
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
nated in 1953. The nature of the Corporation's lending activity
after 1945 is shown in the chart below:
LOANS AND INVESTMENTS AUTHORIZED, 1946-1953
DOLLARS
Billions
1946
Activity in connection with the $7.2 billion which was authorized
at the direction of the Congress for allocations and loans to other
Government agencies was concentrated in the years prior to 1937,
and during 1948 and 1949. However, from inception of the Corporation until 1947 there were at all times amounts outstanding as the
result of these transactions. Details on the loans and allocations
made by RFC under congressional directives will be found in this
report beginning on page 151.
Purchases of securities from Federal Emergency Administrator
of Public Works (later Public Works Administrator) were made by
RFC from 1935 to 1941. Such purchases amounted to nearly $700
million. Although the purchase of these securities was substantially
completed before the end of 1940, realizations on this investment
continued over a protracted period and some of these securities were
still outstanding when RFC was abolished in June 1957. Details
on RFC's purchases of securities from FERA (PWA) will be found
in this report beginning on page 149.
50
Financial Institutions
"To provide emergency financing facilities for financial institutions" was the first of the purposes stated in the original EFC Act.
Immediately upon organization, the Corporation began to operate as
a secondary source of credit to aid in the stabilization of the Nation's
financial institutions.
The methods through which EFC aid was extended to financial
institutions included loans, subscriptions for preferred stock, and
purchases of capital notes or debentures. The extent of financial
assistance provided to the various types of financial institutions is
shown in the following table (as used in this section of this report,
the term "financial institutions" does not include the agricultural
financing institutions discussed beginning on p. 87, since most of these
were either Government or quasi-Government institutions):
Banks and trust companies..
— ; e l o a n companies....
Building and loan associations.
insurance companies
Credit unions™
Total..
Authorized
Disbursed
$3,081,365,688
404,636,731
178,989,660
169,689,750
642,968
$3,265,450,731
3H1«576
3H«,
140,158,068
145,843,210
600,096
4,815,324,697
3,906,201,681
More than three-fourths of the total disbursed to financial institutions was paid out during the first 2 ^ years of the Corporation's
existence. Activity in this field continued at a slackening rate until
1945. When the Corporation began its liquidation in the fall of 1953,
there was still $44.6 million outstanding in these loans and investments. (See table F I - 1 in app.C:)
Banks and Trust Companies
By far the largest group of loans and other investments in financial
institutions were in banks and trust companies* Under the provisions
of section 5 of the original EFC Act, the Corporation was authorized
to make loans to banks, savings banks, and trust companies, including
loans secured by the assets of banks which were closed or in process
of liquidation. The purpose of this latter provision was to aid in the
reorganization or liquidation of such banks, and such aid was limited
to $200 million.
The original act also required that loans to banks and trust companies be "fully and adequately secured" and could be made for periods
not exceeding 3 years, with provision for extensions or renewals up
to 5 years. Loans made to any one corporation could not exceed
51
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
5 percent of RFC's authorized capital stock and borrowing authority.
This limitation was later reduced to 2% percent by the act approved
July 21,1932. By an amendment approved June 19,1934, loans with
maturities of 5 years were permitted, and, by another amendment
approved January 31, 1935, the maturity limitation was changed
to a deadline of January 31,1945. This deadline was again extended
to January 31,1955, by the act approved June 25,1940.
In the Emergency Bank Act, approved March 9,1933, it was provided that the RFC could subscribe for the preferred stock of any
national banking association or any State bank or trust company
which, in the opinion of the Secretary of the Treasury, was in need of
capital funds for organization or reorganization. This act also authorized the RFC to make loans secured by the preferred stock of baiiks
and trust companies. By an amendment approved March 24, 1933,
the authority of RFC to subscribe for the preferred stock of banks
and trust companies was limited to instances wherein such stock was
nonassessable. To provide assistance in cases where State laws might
prevent the issuance of nonassessable preferred stock, this amendment
authorized RFC to purchase the capital notes or debentures of State
banks and trust companies.
The Corporation's authority to subscribe for or purchase the preferred stock, capital notes, and debentures of banks and trust companies expired on June 30, 1947, when the applicable provision of
the Emergency Bank Act was repealed. On that same date, the earlier
authorities of RFC relating to banks and other jBnancial institutions
were extended by a new section 4, which gave the Corporation authority "to make loans to any financial institution organized under the
laws of any State or of the United States." Although banks and trust
companies were eligible for loans under the amended authority, it
was definitely understood that, with respect to banks and trust companies, such power was intended for use in emergencies only, and no
loans to banks and trust companies were authorized by RFC tinder this
amendment.
The loans to and investments in banks and trust companies by the
RFC are summarized below:
Authorized
Loans to banks and trust companies, sec. 5
unui) uu
ui closed
ciosea banks
oanss and
ana trust
trust companies,
companies, sec.
sec. 5(e)
5(e)
Loans
on m»«b3
assets of
Loans
on
preferred
stock of
and- trust,
T
V i a n dft-n
nratavfii*
*+««.*- * 1banks
1— —
*—
• mYnnnnf a»
Subscriptions for
Purchases of capital notes and debentures.
11
Total..
Disbursed
$2,516,821,790
118,332,229
52,746,026
859,592,768
433,872,875
343', 261,875
3,081,365,688
3,265,450,731
Activity, by quarters, for loans to and investments in banks and
trust companies is summarized in table FI-2 in appendix O.
52
FINANCIAL INSTITUTIONS
Loans to Banks and Trust Companies
Under the authority of section 5 of the RFC Act, as amended, the
Corporation authorized a total of 15,409 loans to more than 7,300
banks 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. (See
table FI-2 in app. C.) Loans were made in all 48 States, and in
the District of Columbia, Alaska, Hawaii, and Puerto Rico. The
distribution of the loans among the States is shown in the following
table, as of June 30, 1940 (data for activity subsequent to that date
cannot readily be distributed by States; however, the data shown
cover about 98 percent of the amounts authorized):
Loans to Banks and Trust Companies as of June 3 0 , 1 9 4 0
Number of Number oJ
authoriza- borrowers
tions
Alabama
Arizona
Arkansas
California. „
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Idaho.
Illinois
""""
Indiana...11 ---Iowa..
Kentucky.
Louisiana
Maine
Maryland."!
Massachusetts
Michigan
Minnesota
Mississippi
"
,
"
*
Montana_m
Nebraska
Nevada
New Hampshire
New J e r ~
Wofc::
North Carolina
North Dakota ""
Ohio
_" "
Oklahoma
Oregon
11.111
Pennsylvania
Rhode Island
South Carolina
South Dakota. "
Texas
Utah
I"
Vermont
Virginia..
Washing
West Vii OMW
Wisconsin.....
Wyoming
Alaska
H.
Hawaii
Puerto Rico—.
Total....
314
39
312
424
128
78
3
103
150
280
98
1,264
507
871
297
380
372
117
152
105
812
549
257
624
99
443
32
18
378
27
425
241
154
504
299
226
1,125
7
117
252
433
503
94
86
234
378
300
730
41
2
2
7
15,393
138
16
156
159
72
30
3
25
110
146
50
610
276
494
165
179
132
33
77
48
328
279
129
314
52
177
9
13
149
14
192
118
77
264
127
80
529
2
53
122
198
239
55
37
116
147
138
444
17
2
2
5
7,347
Amount
authorized
Amount
disbursed
$12,946,066
2,061,300
26,690,006
126,234,475
5,338,993
18,493,218
257,000
30,875,001
8,926,298
11,773,680
3,659,857
218,972,701
47,932,774
62,920,365
8,864,529
20,780,858
118,954,408
61,827,134
62,344,394
42,933,700
414,348,935
13,749,679
18,463,259
62,967,003
3,120,987
7,841,849
6,503,726
1,794,000
80,847,892
1,513,773
118,732,293
37,981,187
7,649,285
285,393,900
4,691,875
9,372,881
219,117,160
1,911,856
21,579,446
5,140,917
73,117,431
31,498,475
8,261,388
11,314,097
20,315,809
32,467,510
25,089,356
41,720,991
1,486,574
100,000
850,000
2,703,000
$9,313,224
1,874,252
20,926,437
117,702,098
4,209,801
16,243,658
249,000
27,852,465
4,986,115
9,340,063
2,902,146
184,487,399
38,190,963
54,399,451
6,964,554
17,329,389
86,786,560
53,946,880
53,419,469
36,812,320
320,163,785
10,240,942
15,847,631
40,838,085
2,715,113
6,391,985
6,101,132
1,437,860
69,902,114
974,354
97,791,909
28,179,929
6,609,404
22*, 314,847
3,227,902
7,751,202
166,602,103
1,651,695
18,861,409
4,044,803
66,660,785
26,441,603
5,828,455
9,095,807
16,941,257
20,773,842
21,404,355
31,393,811
1,196,533
100,000
835,897
845,306
2,464,438,291
1,983,102,099
53
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Included in the loans made to banks and trust companies under section 5 of the EFC Act, as amended, were 10,592 authorizations made
to open banks and 4,817 made to conservators, receivers, or liquidating agents to aid in the reorganization or liquidation of closed banks.
The table below is a summary of the loans made to banks and trust
companies under section 5, according to the nature of the loans:
Loans to Banks and Trust Companies Under Sec. 5 of the RFC Act, as Amended
Number of Number of Amount authorized
authoriza- institutions
tions
Loans to open banks
National
State
Loans to doied banks, to aid in reorganization or liquidation.
Conservators—national and B.C
Conservators—State...
Receivers—national and D.C
Receivers—State.
Liquidating agents—national
Liquidating agents—State
Total
10,592
4,922
$1,335,047,661
2,224
8,368
4,817
813
4,109
360,439,541
974,608,120
2,421
1,181,774,129
197
38
2,915
1,631
9
27
181
19
955
1,233
9
24
129,813,204
33,030,264
537,738,731
464,603,947
10,028,664
6,559,319
15,409
7,343
2,516,821,790
All of the loans made to open banks had been liquidated prior to
the close of 1947. Repayments on the $1,138,366,280 disbursed
amounted to $1,116,918,900; the remaining $21,447,380 had been
charged 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 liquidation
of closed banks amounted to $889,081,125. Of this, $885,384,197 had
been repaid and $2,868,386 charged off prior to December 81,1947. At
that 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 authorized
to make loans upon or purchase the assets of any bank, savings bank,
or trust company which had been closed during the period from
December 31,1929, to January 1,1934. This authority differed from
that granted in section 5 of the original act primarily in that the
Corporation was directed to appraise the assets in anticipation of an
orderly liquidation over a period of years rather than on the basis
of forced selling values. The RFC did authorize loans amounting to
$118,332,229 under this authority, but the authority to purchase the
assets of closed banks was never used. The loans made on the assets
of closed banks are summarized in table FI-4 in appendix C.
54
FINANCIAL INSTITUTIONS
Loans on the assets of closed banks were made in a total of 24
States. Of the total amount disbursed, more than 90 percent was in
Ohio and Michigan, as shown in the following table:
Loans on the Assets of Closed Banks Under Sec. 5(e) of the RFC Act
Authorized
Arkansas
California
Colorado
Florida
Illinois .
Indiana
Iowa
Kansas
Michigan
Minneapolis
Missouri
NebraskaNevada
_.
_
$793,034
35,902
10,060
1,100
680,685
26,600
105,002
24,500
42,022,393
139,847
14,500
253,952
6,000
Authorized
Disbursed
$729,990
35,393
7,238
1,100
604,635
22,500
75,455
13,392
33,623,734
93,002
14,500
187,529
New York
North Carolina
..
North Dakota
Ohio
Oklahoma
..
Pennsylvania
South Carolina
South Dakota
Texas
Washington
Wisconsin
Total
Disbursed
$16,923
15,005
563,594
70,465,493
8,800
268,000
2,192,500
317,675
194,053
75,000
101,721
$14,232
15,005
523,796
28,802,648
8,372
265,045
1,992,747
229,667
101,873
60,687
15,574
118,332,229
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. To
that date, out of $67,438,014 disbursed, $67,344,566 had been repaid
and only $74,221 charged off. The amount which was outstanding
on December 31,1947, was $19,227.
Loans on the Preferred Stock of Banks and Trust Companies
Under the Emergency Bank Act, approved March 9, 1933, the
Corporation was authorized to make loans secured by the preferred
stock of any bank or trust company which, in the opinion of the
Secretary of the Treasury, was in need of funds for capital purposes
for organization or reorganization.
The RFC authorized 1,122 loans to 274 borrowers under this authority. The loans authorized amounted to $52,746,026, against
which $45,096,801 was disbursed. (See table FI-5 in app. C.) The
amounts disbursed on these loans were completely liquidated before
June 30, 1948. The amounts charged off totaled approximately
$1,800,000.
Subscriptions for the Preferred Stock of Banks and Trust Companies
The Emergency Bank Act also authorized the RFC to subscribe for
the preferred stock of any bank or trust company which, in the
opinion of the Secretary of the Treasury, was in need of capital funds
for organization or reorganization. By an amendment approved
about 2 weeks after the Emergency Bank Act, subscriptions for preferred stock were limited to instances in which the preferred stock
was exempt from double liability.
Beginning in March 1933, and continuing until 1945, the RFC
authorized 4,480 subscriptions for the nonassessable preferred stock
of 4,202 banks and trust companies. The amount authorized to be
506257—60
5
55
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
subscribed was $859,592,768; the amount disbursed for the purchase
of such stock was $782,206,636. (See table FI-6 in app. C.) On
December 31, 1947, there was still outstanding $118,317,931 in this
preferred stock. To that date, liquidation of amounts disbursed included $657,578,063 received in retirements, and $6,310,642 charged
off.
Purchase of Capital Notes and Debentures of Banks and Trust Companies
The amendment to the Emergency Bank Act approved March 24,
1933, authorized the RFC to purchase the capital notes of banks and
trust companies located in States whose laws prevented the issuance
of nonassessable preferred stock. As with loans on and subscriptions for preferred stock, the purchase of bank and trust company
capital notes and debentures by RFC was subject to the requirement
that the institutions concerned were in need of capital funds for organization or reorganization in the opinion of the Secretary of the
Treasury.
The Corporation authorized the purchase of the capital notes or
debentures of 2,913 institutions. The amount authorized to be purchased was $433,872,875; disbursements on these authorizations
totaled $343,261,875, and were completed in 1941. (See table FI-T
in 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 the
purchase of capital notes and debentures of banks and trust companies was in connection with such purchases from institutions
located 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 the
distribution by States of activity under the authorities of the Emergency Bank Act (loans on and subscriptions for preferred stock, and
purchases of capital notes or debentures of banks and trust companies).^ There are many instances where all three types of authorization were made in a single State, and some instiutions were
granted more than one type of authorization. Since the activity
under the Emergency Bank Act made up a significant portion of the
aid furnished to banks and trust companies, it has been considered
desirable to present here some statement of how this was distributed
among the States. Accordingly, there is shown below the distribution, by State, of activity under the Emergency Bank Act as reported to December 31,1940. The number of institutions is reported
to be net, after elimination of instances where more than one type
of authorization was made to the same institution. The amount
56
FINANCIAL INSTITUTIONS
shown as "unallocated" is that necessary to reconcile to the totals
for these activities shown above, and is less than 1 percent of the total
amount.
Loans on and Subscriptions for Preferred Stock, and Purchases of Capital Notes or
Debentures, of Banks and Trust Companies
Number of
institutions
Alabama
... . . .
. .
. . . . ... . ..
Arizona
. . . .
» . .
Arkansas
. ...
.
California . . . . . . . . . . . . .
..
.. ........
Colorado
.
Connecticut
_
Dataware. . . . . . . . . . . . . . . „ . . . . . . . . . . .
District of CoinmMft.
,. .„
„. ,.
Florida.
Georgia
Illinois.
Indiana
Iowa
...
. .
Kentucky
Louisiana . .
Maine
Maryland
Massachusetts
Michigan...... . . .
Minneapolis
Mississippi
Missouri.
... .
Montana
.
Nebraska
Nevada
New Hampshire
New Jersey...
New Mexico
. . .
New York .
NorthDakota. . . . . .
Ohio
Oklahoma
Oregon
...
Pennsylvania . . .
Ehode Island
South Carolina.. . .
South Dakota. . . .
Tennessee. . . . .
Texas
..
..
. . .„
.
. . .
..
.
.
.
„
.
. . . .
.. .......
...
.
. . .
.
. . . . .
.
...
-
.
Vermont
.
.
Virginia.
Washington. . . . .
. . . . .
West Virginia
Wisconsin
Wyoming .
. . .
. . . .
Alaska!!?. . . .
"
Puerto Rico
Virgin Islands".. . . M
Total...
*
.—
*
. ——
-
78
6
127
138
59
42
14
8
46
95
28
254
308
153
221
136
120
41
68
76
205
282
159
253
60
161
16
248
22
532
141
141
435
52
56
376
4
41
128
133
443
44
Amount authorized
$16,493,200
2,455,000
5,365,500
108,423.070
5,040,000
8,609,800
2,680,000
5,200,000
2,332,200
6,897, COO
2,335,000
95,044,500
18,839,250
12,665,000
6,049,250
11,382,600
16,607,000
11,173,000
11,808,130
20,031,000
43,965,100
18,386,125
15,718,150
25,923,300
4,214,000
9,608,300
205,000
1,398,000
106,101,800
1,077,500
413,006,200
8,182,500
4,534,500
100,565,764
11,301,000
2,300,000
56,306,850
1,100,000
2,946,800
4,522,100
14,221,550
36,594,750
4,360,000
17 90*1 ftfYt
163
112
95
454
25
1
3
1
12,788,000
8,246,500
R OOA nnn
38,313,500
1,687,500
37,500
1,500,000
251,000
4,121,480
6,868
1,346,211,669
Amount disbursed
$16,203,575
2,430,000
4,419,000
96,029,225
4,893,500
7,192,126
567,300
2,900,000
2,201,200
4,835,500
2,130,000
91,731,114
16,966,250
10,263,000
6,272,750
9,079,850
15,547,000
9,125,500
9,348,170
16,674,200
40,725,261
17,378,525
14,663,150
21,034,925
4,030,600
8,623,050
205,000
786,635
96,461,516
715,000
336,920,659
7,488,500
4,044,500
93,432,237
10,944,000
1,950,000
46,010,097
898,500
2,786,800
4,438,100
12,599,050
31,404,125
4,045,000
17 295 000
10,694,650
6,614,500
A l A i 067
33,585,600
1,367,500
37,500
1,250,000
125,000
3,840,105
1,170,565,312
Mortgage Loan Companies
Loans to mortgage loan companies were specifically authorized to
be made by RFC under the provisions of section 5 of the original RFC
Act Under this authority, the Corporation authorized 737 loans to
432 mortgage loan companies. The first of these loans was made in
1932, and activity continued into 194L (See table FI-8 in app. C.)
57
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
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 for
relending to business enterprises and others were to assist in the reorganization or liquidation of closed banks. According to purpose,
the loans authorized to mortgage loan companies were as follows:
Number of
authorizations
For relending to business enterprises
To aid in reorganization or liquidation of closed banks...
Other
Total
Amount
authorized
Amount
disbursed
163
217
357
$16,422,275
122,299,024
355,915,432
$5,701,835
103,316,761
245,130,080
737
494.636,731
354,149,576
The loans authorized to mortgage loan companies were widely distributed among the States, but about one-half of the amounts disbursed
were in three States—California, New York, and Ohio. The State
distribution of loans to mortgage loan companies is shown in the table
below:
Loans to Mortgage Loan Companies
Number of Number of Amount authorauthoriza- borrowers
ized
tions
Alabama
Arizona
Arkansas.
Cl
Califomia
Colorado
,
Connecticut
District of Columbia..,
Florida
,
Oeorgia
,
Idaho
Illinois
Indiana.
Iowa
III"!
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minneapolis
Mississippi.
Missouri
Montana
Nebraska
Nevada
New Jersey
New Mexico
New York
I
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
South Dakota
Tennessee
Utah
Virginia
Washington
West Virginia-.
Wisconsin
Total.
58
18
1
7
10
8
4
6
8
21
3
47
1
4
4
2
18
1
30
64
$2,417,760
93
4
2
14,554,962
3,102,500
517,478
7,842,104
156,370
695,225
1,732,507
23,074,189
209,000
146,022,300
5,718,959
65,000
42,968,048
4,879,650
1,241,420
6,550,586
6,576,000
10,072,166
22,888,327
1,285,000
5,939,922
11,483,218
72,500
6,488,763
17
1
8
4
38
5
54
25
1
27
18
9
26
3
34
69
2
13
26
3
8
~737
100,000
1,453,500
69,742,403
1,374,000
1,675,000
1,114,533
878,033
1,811,995
2,414,000
10,794,670
220,000
2,773,550
172,500
92,500
6,483,502
3,200,000
35,114,853
28,667,648
Amount disbursed
$1,670,420
1,120,671
68,259,743
1344,096
1359,757
1114,533
782,313
1,328,130
2 369,976
4 533,440
197,492
50,000
50 000
4,325,519
25,239,009
25,141,890
'514,278
4,578,525
156.168
654,246
1,294.601
16^737,980
149,000
*8
41,105,967
7,060,126
1,844,738
20!07l!222
iSS
4,646,377
154^149^76
FINANCIAL INSTITUTIONS
By December 81, 1947, all except $38,696 of the $354,149,576 disbursed to mortgage loan companies had been repaid or liquidated.
To that date, repayments amounted to $329,188,068, and principal
amounts charged off totaled $24,961,508.
In July 1935, the RFC authorized the subscription of $2 million for
the capital stock of an Illinois mortgage company. In July 1936, the
$2 million subscription was rescinded, and a subscription of $1,500,000
authorized. In August 1936, the $1,500,000 subscription was rescinded,
and a subscription of $1,250,000 authorized. The $1,250,000 subscription authorized was canceled in the fourth quarter of 1936, without
any disbursements having been made.
In July 1936, $500,000 was authorized for a subscription to the
capital stock of a New York mortgage company. This authorization
was rescinded in September 1937, and was not reauthorized. No disbursements were made.
Building and Loan Associations
Loans to building and loan associations were authorized under section 5 of the original RFC Act. Beginning in 1932, and continuing
until 1944, the Corporation authorized 1,468 such loans to 1,183 associations. The amount of the loans authorized was $178,989,560, and
disbursements amounted to $140,158,068. All amounts advanced were
repaid 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 loans
to building and loan associations after June 30, 1940. However, the
loans made to that date represent about 90 percent of the total, and
the State distribution up to that date was as follows:
Loans to Building and Loan Associations as of June 3 0 , 1 9 4 0
Number of Number of
Instituauthorizations
tions
Alabama
Arkansas
California...
Colorado
„
Connecticut
. ..
Georgia
_
Illinois
Indiana
Iowa
'K&nsAs
Kentucky
„„
Louisiana
. „
Maryland
Michigan..
Minnesota
Mississippi
Missouri
w
Montana
___„ . ...
Nevada..
New Jersey.
New York.
" _.
North Carolina
North Dakota
„
Ohio
3
45
61
1
8
1
73
16
15
2
16
33
24
24
5
4
1
4
339
36
85
3
239
3
28
33
1
8
1
70
16
13
2
16
26
19
16
3
4
1
4
1
209
24
68
2
173
Amount
authorised
$111,000
2,795,378
9,990,135
110,000
549,000
5,000
3,988,989
1,683,000
1,132,800
100,000
1,449,500
3
'?2'?SS
2,628,127
2,091,288
107,500
103,500
250,000
313,605
85,000
45,686,293
9,267,159
3,580,018
155,000
52,178,835
Amount
disbursed
$110,183
2,658,363
9.448,057
106,737
499,758
5,000
3,686,018
1,660,821
1,107,690
45,581
1,395,012
3,182,999
2,470,752
1,869,793
104,274
95,997
247,770
235,536
30,000
31,993,098
7,306,025
3,604,149
151,977
29,631,211
59
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Loam to Building and Loan Associations as of June 30,1940—Continued
Number of Number of
authorizainstitutions
tions
Pennsylvania...
South Carolina.
South Dakota..,
Tennessee.
,
Texas
,
Utah
Virginia
,
Washington
West Virginia..
Wisconsin
Wyoming
.
Total
113
1,339
Amount
authorized
Amount
disbursed
108
10
5
6
20
1
9
5
16
75
2
$5,528,100
1,668,049
261,077
290,000
1,718,160
29,000
975,662
849,000
1,626,000
9,248,000
872,508
$5,206,966
1,518,820
246,065
289,595
1,612,734
1,097
164,700,533
122,657,242
950,611
158,409
1,610,319
8 784,788
By an act approved June 14,1933, the authority under which these
loans were made was amended so as to permit loans on the assets of
closed building and loan associations. The amount of loans authorized
to receivers and liquidating agents of closed building and loan associations was $86,231,796, of which $3,858,355 was disbursed and fully
repaid.
Insurance Companies
Loans to insurance companies were authorized to be made under
section 5 of the original RFC Act. Such loans were to be "fully and
adequately secured," were limited to maturities of 3 years, and could
not be used to finance any new enterprise. This last restriction was
removed by an act approved July 21,1932. Maturities up to 5 years
were permitted by an amending act approved June 19, 1934. Later
amendments (1935 and 1940) extended possible maturities to deadlines of January 31, 1945, and January 31, 1955, respectively.
By an act of June 10,1933, the Corporation was authorized to make
loans on or to subscribe for the preferred stock of insurance companies.
In general, this Insurance Company Act followed the provisions of
the Emergency Bank Act which authorized the RFC to make loans on
or subscribe for the preferred stock of banks and trust companies. The
Insurance Company Act provided that "if, in the opinion of the
Secretary of the Treasury, any insurance company of any State of the
United States is in need of funds for capital purposes either in
connection with the organization of such company or otherwise, he
may, with the approval of the President, request the Reconstruction
Finance Corporation to subscribe for preferred stock of any class,
exempt from assessment or additional liability, in such insurance
company, or to make loans secured by such stock as collateral * * * "
The Insurance Company Act contained some additional provisions
not found in the Emergency Bank Act. These prohibited the subscription for, or purchase of, preferred stock (1) until the insurance
60
FINANCIAL INSTITUTIONS
company showed that it had unimpaired capital or that it would
furnish new, subordinate capital; (2) if any employees of the
company received annual compensation in excess of $17,500; and (3)
unless the company agreed not to increase salaries or to retire any of
its capital stock or debentures prior to retirement of RFC's holdings.
There was a proviso to the first limitation that RFC might make
loans secured by preferred stock if it believed that the loan was
thereby adequately secured.
The act also gave RFC authority to lend on capital notes or debentures in cases where nonassessable preferred stock could not be issued
by insurance companies. This latter authority was never used.
The RFC loans to and investments in insurance companies under
the authorities cited above were as follows:
Number of Number of
authoriza- borrowers
tions
Sec. 5, RFC Act
Act of June 10.1933:
Loans on preferred stock
Subscription for preferred stock
.
Total
Amount
authorized
Amount
disbursed
209
133
$104,439,760
$90,693,210
13
12
65,150,000
100,000
66,050,000
100,000
228
146
159,689,750
145,843,210
The period of greatest activity in financing insurance companies was
during the first 30 months of the Corporation's existence. However,
such activity continued sporadically into 1949. (See table FI-10 in
app.C.)
Insurance Company Loans Under Section 5
There was no activity after 1938 in loans to insurance companies
made under section 5 of the EFC Act, as amended. All outstanding
amounts were liquidated in 1947. (See table FI-11 in app. C.) Out
of $90,693,210 disbursed, $89,234,034 was repaid and $1,459,176 was
charged off as unrecoverable.
The distribution by State of loans to insurance companies under section 5 of the KFC Act was as follows:
Loans to Insurance Companies Under Sec. 5, RFC A c t
Number of Number of
authoriza- borrowers
tions
Alabama
Arkansas
Colorado
District of Columbia
Florida
Illinois
Indiana
Iowa
„ .
Kansas
Kentucky
„.._
6
4
1
1
2
27
10
24
7
1
3
4
1
1
2
14
6
13
7
1
Amount
authorized
$339,050
435,000
50,000
75,000
33,000
6,028,600
4,498,000
3,653,000
422,000
1,000,000
Amount
disbursed
$297,750
355,000
50,000
75,000
33,000
5,932,468
3,235,979
3,550,709
334,017
61
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Loans to Insurance Companies Under Sec. 5, RFC Aci—Continued
Number of Number of
authoriza- borrowers
tions
Amount
authorized
Amount
disbursed
Nebraska
New Jersey
New York
North Carolina-—
North Dakota.—.
Ohio
•
Oklahoma
Pennsylvania
South C a r o l i n a South Dakota
Tennessee
Texas
Virginia
West Virginia.—
Wisconsin
2
6
16
2
3
14
10
6
17
7
2
6
3
6
3
1
4
12
1
3
2
2
2
10
2
1
6
6
5
9
5
2
4
2
5
2
1
3
9
1
2
2
$1,270,000
13,985,000
4,816,914
28,500
112,000
9,327,892
2,399,150
902,000
28,483,600
1,932,500
74,500
15,865,000
275,000
1,816,225
504,000
50,000
711,000
4,170,732
385,196
736,991
60,000
$1,248,056
13,985,000
4,207,519
22,500
112,000
8,614,575
1997,486
813,500
27,397,243
1,932,388
Total-
209
133
104,439,750
90,693,210
Louisiana
Maryland
Michigan
Minneapolis
Mississippi
8,831,338
273,050
1,071,900
504,000
50,000
676,875
4,126,648
375,092
460,627
60,000
Insurance Company Financing Under the Act Approved June 10,1933
Although three types of financing were authorized under the Insurance Company Act—(1) loans on preferred stock, (2) subscriptions
for preferred stock, and (3) loans on capital notes or debentures
almost all activity was in the form of loans on preferred stock. In only
one instance was preferred stock purchased, and there were no loans
made on capital notes or debentures. The periods in which the activity
occurred are shown in table FI-12 in appendix C.
The one instance wherein RFC subscribed for the preferred stock of
an insurance company occurred in August 1934. The amount involved
was $100,000, and this was outstanding until the third quarter of 1941
when it was repaid in full.
The distribution by State of the loans on and subscriptions for the
preferred stock of insurance companies was as follows:
Authorized
Kansas
Maryland
Michigan
Minnesota
Missouri
New Jersey
.....
$100,000
34,850,000
4,125,000
100,000
425,000
4,000,000
Authorized
Disbursed
$100,000
34,850,000
4,125,000
100,000
425,000
4,000,000
New York
North Carolina
Unallocated
Total
Disbursed
11,600,000
50,000
100,000
55,250,000
55,150,000
The only loss sustained by RFC in connection with loans on or
subscriptions for the preferred stock of insurance companies was that
which arose out of the loans to the Preferred Protective Corp. The
RFC made three loans totaling $8 million to Preferred Protective
Corp. for the purpose of aiding the Preferred Accident Insurance
Co* of New York to prevent its failure.
62
FINANCIAL INSTITUTIONS
Preferred Protective Corp. was formed to facilitate this transaction. The holding company pledged with EFC as collateral to the
loan all of the preferred stock of Preferred Accident Insurance Co.
and 100 shares of its own capital stock which had been issued to
Preferred Accident Insurance Co.
In May 1951, Preferred Accident Insurance Co. was taken over by
the Superintendent of Insurance for the purpose of liquidation. In
July 1951, a public sale was held of the preferred stock of the Preferred Accident Insurance Co., pledged as collateral for the loans,
and this was bought in by RFC for $51,000. The balance of the principal amount of the loans—$7,949,000—was charged off as a loss in
June 1952.
Credit Unions
The RFC was authorized to make loans to credit unions by section
5 of the original RFC Act. The authority was but little used. A
total of 10 loans were made to 7 credit unions. These loans were authorized for $642,968, and $600,096 was disbursed. All sums disbursed were repaid in full. (See table FI-13 in app. C.)
The distribution by State of loans to credit unions was as follows:
Number of Number of Amount authorized
authoriza- borrowers
tions
Massachusetts..
Michigan
Minneapolis
VT-—
Wew XT'
York1*
Rhode Island.
Virginia
'.
I
Total
„ _.
3
1
1
2
1
1i
2
2
1
1
10
7
$74,655
65,000
10,000
20 000
46^446
6,967
642,068
Amount disbursed
$73f7U
55,496
0,739
465,183
6,967
600,096
63
Loans to Business Enterprises
During the early years of HFC's existence, the function of making
loans to business enterprises was in effect a sideline activity. However, the function was continually expanded, and in the years following World War I I became the dominant lending activity.
Legislative Authorities
RFC was first authorized to make direct loans to business enterprises with the amendments to the original RFC Act approved June
19, 1934. The purpose given for the new section 5d was to maintain
and increase the employment of labor. Borrowers under this authority were limited to those whose businesses had been established prior
to January 1, 1934, and who could not obtain bank credit at the rates
prevailing for loans of the character applied for. Maturities were
limited to 5 years, and the aggregate amount of loans to any one borrower could not exceed $500,000. It was also required that, in the
opinion of RFC's Board of Directors, the borrower be solvent and the
loan "adequately secured." Loans under this authority could be
made directly by RFC, or in cooperation with banks or other lending
institutions, or by the purchase of participations. This first authority to make loans to business enterprises expired on January 81,1935,
and the aggregate amount of loans outstanding at any one time was
limited to $300 million.
By an act approved January 31,1935, the Corporation's authority
to make loans to business enterprises was extended and substantially
revised. Under the revised authority, loans could be made to borrowers whose businesses had been established since January 1, 1934,
and the 5-year maturity restriction was changed to a deadline of January 81,1945. Also, the limitation on the aggregate amount of loans
to any one borrower was eliminated, and the security provisions were
changed from "adequately secured" to "so secured as reasonably to
assure repayment." The requirement that loans be made only when
there was "reasonable assurance of continued or increased employment of labor" remained unchanged. The revised authority to make
loans to business enterprises was to expire January 31,1937, but the
provisions of an act approved January 26,1937, extended the expiration date to June 30,1939.
The authority to make loans to business enterprises was again revised in the act approved April 13, 1938. Under this revision, the
65
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Corporation was empowered to purchase the securities and obligations
of business enterprises in addition to the making of loans. The limitation as to maturity was entirely removed, and the security standard
was changed from "so secured as reasonably to assure repayment" to
"of such sound value, or so secured, as reasonably to assure retirement
or repayment." Also, RFC was authorized to provide financial assistance to business concerns by means of "agreements to participate"
in loans made by banks or other financial institutions. Except for
some later revisions relating to maturity limitations, the authority for
business loans provided by the act of April 13, 1938, remained substantially unchanged to the expiration of the Corporation's lending
authority on September 28,1953.
In the act approved June 25,1940, the maturities of loans authorized by the Corporation were permitted to extend to January 31,
1955. However, by the act approved May 25, 1948, maturities of
loans authorized to business enterprises were limited to 10 years, plus
such an additional period as might be estimated to complete the construction of industrial facilities in the case of loans made for such
purposes.
In an act approved June 25, 1940, for purposes of aiding in the
national defense program, the Corporation was authorized to make
loans to or purchase the capital stock of, any corporation for the
purposes of acquiring critical materials and manufacturing equipment and supplies necessary to the national defense. This act of
June 25, 1940, was in the nature of an addition to the then-existing
authority to make loans to business enterprises provided by section
5d of the RFC Act, as amended, and the national defense loans were
subject to the same restrictions and limitations as other loans. However, in an act approved June 11,1942, it was provided that national
defense loans or security purchases could be authorized to any business enterprise (rather than to corporations exclusively), and that
such loans and security purchases could be made under such terms
and conditions and with such maturities as RFC might determine.
Table BE-1 in appendix C is a summary by quarter-year periods of
the 63,517 loans authorized to business enterprises. The amount authorized in these loans was $5,153,294,815, and disbursements
amounted to $2,637,329,690 through September 28, 1953, when the
Corporation's lending authority was terminated.
Types of Business Loans
The loans made by RFC to business enterprises were authorized
under several different legislative authorities, and were of three principal types—direct loans, immediate participation loans, and deferred participation loans. Direct loans were authorized, disbursed,
66
LOANS TO BUSINESS ENTERPRISES
and serviced by RFC. Immediate participation loans were those
made in cooperation with financial institutions, wherein part of a
loan was disbursed by RFC and the balance by the participating institution. In some instances, the RFC disbursed the entire amount of
the loan and immediately sold part of the loan to the participating
institution; in the other immediate participation loans, the entire
amount of the loan was disbursed by the participating institution with
RFC purchasing an agreed-upon part of the loan at the time of disbursement. Immediate participation loans were serviced either by
RFC or by the participating institutions as provided in the participation agreements. In general, sales of participations were serviced
by RFC and purchases of participations by the participating institutions. Deferred participation loans were disbursed and serviced by
banks and other financial institutions with an agreement with RFC
under which the Corporation agreed to purchase a stated portion of
the outstanding loan upon the request of the institution making the
loan.
In a limited number of cases, loans made to business enterprises by
RFC took the form of purchases of capital stock and other obligations
issued by business concerns.
Prior to June 19,1934, when the act giving RFC authority to make
direct loans to business enterprises was approved, the Corporation
had made loans to banks and mortgage loan companies in which
the loan proceeds were to be reloaned to specific business concerns.
Loans of this type made to banks amounted to $167,500, and those to
mortgage loan companies $16,422,275. In some statistical presentations of RFC's activities, these have been considered as business loans.
However, in this report, they are included with loans made to banks
or mortgage loan companies.
The RFC Mortgage Company, a subsidiary of RFC organized
March 14, 1935, was engaged primarily in buying and selling mortgages on residential properties which were either insured by FHA
or guaranteed by the Veterans' Administration. However, there were
4,182 authorizations, amounting to $173,016,510, for the purchase of
mortgages which were not so insured or guaranteed. Most of these
were mortgages on commercial or industrial property. The RFC
Mortgage 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 the
Corporation's statistics. The statistics used in this report have been
adjusted so as to include these uninsured mortgages with business
loans.
Prior to June 30, 1947, the RFC's business loan statistics treated
participation loans (both immediate and deferred) in a manner differ
67
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
ent from that followed in subsequent periods. During the earlier
period, sales of participations were treated as direct loans, and purchases of participations grouped with deferred participations. Beginning July 1, 1947, both types of immediate participations were
grouped in a single class, with direct loans and deferred participations each making up separate groups.
With the qualifications noted above, the loans made by EFC to
business enterprises are summarized by general type as follows:
Authorized
Disbursed
52,932
$3,300,846,049
$1,718,642,480
14,041
797,072,135
554,508,269
16^355
352
27
11,333
684,167,370
20,659,800
809,700
1,142,836,250
33,078,651
10,118,109
71? 675
819,545,185
Number
Loans under authorities other than national defense...
Direct loans and sales of participations (through
June 30,1947)
Deferred participations and purchases of participations (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.
1,047
216,512,534
152,891,523
Deferred participation loans (July 1, 1947-Sept.
28,1953)
Direct mortgage loans classified as business loans
5,595
4,182
265,771,750
173,016,510
48,386,291
99,394,772
Loans under national defense authorities (Jane 25*
1940-June 30,1947
10,585
1,852,448,766
918,687,210
4,391
1,261,473,769
153
382,071,384
132,143,106
3,673
6
75,652,157
1,108,350
63,517
5,153,294,815
Direct loans and sales of participations
.
Deferred participations and purchases of participations
Security Purchases for Automobile Financing
Loans and Purchases of Rationed Articles and Commodities
.—
..........
.
.__,
Contract Settlement Loans
Total.
17,422,595
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 section 5d which was added to the RFC Act by the amendments approved June 19,1934. With some modifications, this authority continued until June 30,1947, when the EFC Act was rewritten and the
business loan authority continued in the new section 4(a). To June
30, 1947, there were 30,775 business loans approved under the 5d
authority. These amounted to $1,502,709,005. This activity is summarized by quarters in table BE-2 in Appendix C. The loans included are as follows:
Number
Direct loans (including sales of participations)
Deferred participation loans and purchases of participations
,
Loans to the mining industry
Loans to the fishing Industry
Total
68
Authorized
Disbursed
14,041
$797,072,135
16,355
352
27
684,167,370
20,659,800
809,700
33,078,651
30,775
1,502,709,005
598,424,704
LOANS TO BUSINESS ENTERPRISES
Direct Loans and Sales of Participations
Although somewhat fewer in number than participation loans, direct
loans accounted for the greater part of the dollar volume of authorizations and disbursements to business enterprises from 1934 to 1947,
when business loans were being made under the authority of section
5(d) of the EFC Act, as amended. For this period, the data shown
for direct loans include 772 loans in which EFC authorized and disbursed the entire amount of the loans, with portions of the disbursed
loans sold to banks, usually at the time of disbursement. The amount
authorized 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 made
by EFC were later sold to banks with EFC agreeing to repurchase a
part of the loan upon request of the purchasing bank. The amount
which EFC agreed to repurchase in these 22 cases was $3,546,800.
For the most part, the loans sold with a repurchase agreement during
this period had originally been made in participation with banks, and
the banks purchased EFC's participation. Some statistical data released by EFC did include the loans sold with a repurchase agreement
as additional authorizations. However, since the borrowers received
no additional funds, and because the transactions were in the nature of
modifications of the original loans, to include them as additional authorizations is to duplicate part of the original transactions.
During the defense and war periods beginning in 1940, certain loans
authorized tinder the authority of section 5(d) were administratively
determined to be "national defense" loans. The amount authorized in
such loans was $59,691,096. The basis on which certain loans made
under section 5 (d) during the defense and war periods were classified
as "national defense" loans cannot be specifically ascertained. However, the decline in the volume of 5 (d) loans during this time is apparent, and it is likely that, because of the credit and economic controls
then 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 EFC
authorized loans to veterans with the guaranty of the Veterans'
Administration. These loans were made under the basic authority of
section 5(d). To June 30, 1947, the EFC authorized 3,525 direct
loans guaranteed by VA. The amount authorized in these was
$14,590,075, and $8,692,829 was disbursed. The Corporation also
authorized 170 direct loans to veterans which were not guaranteed by
VA. The amount authorized in these was $1,591,489, and disbursements amounted to $918,689.
The quarterly activity in direct business loans authorized under section 5(d) of the EFC Act is shown in table BE-3 in appendix C.
69
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Participation Loans
A total of 16,355 participation loans to business enterprises were
authorized under section 5(d) of the RFC Act The composition of
these was as follows:
Authorized
BFC's share
Purchases of participations (immediate)
Deferred participations
_
Total
Disbursed by
RFC
Bank's share
$27,787,448
656,379,922
$12,258,507
254,376,256
$17,277,242
15,801,409
684,167,370
266,634,763
33,078,651
Although "agreements to purchase participations" (deferred participations) in loans to business enterprises were authorized by RFC
over a long period of years, about three-fourths of the total authorizations were made in the 2 years following the end of World War
II. (See table BE-4 in app. C.) The concentration of deferred
participation loans in this period was brought about by the Blanket
Participation Agreement Program which was undertaken at that time.
As with direct loans, some of the participation loans authorized
during the national defense and war periods were classified as "national defense" loans, and a few were made to veterans without the
guaranty of the Veterans* Administration. Purchases of participations 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 participation loans amounted to about 2% percent of the total authorized.
Cancellations in the case of deferred participation loans show a much
higher ratio to authorizations than do direct loans because repayments to banks on loans disbursed by them canceled a proportionate
part of RFC's commitments to take up these loans.
Blanket Participation Agreements
In March 1945, in a move announced as designed to make credit
readily available during the reconversion period, the RFC organized
what was known as the "Blanket Participation Program." Under this
program, the Corporation executed agreements with interested banks
which provided for RFC automatically to take a deferred participation of up to 75 percent, when so requested by the banks, in any
loans made by the banks to business enterprises. Initially, a limit of
$250,000 was placed on the aggregate amount which could be outstanding to any one borrower, but in June of 1946 this limitation
70
LOANS TO BUSINESS ENTERPRISES
was increased to $350,000. For the protection, or insurance, provided
by KFC's agreement to take up its shares of the loans upon request
by the banks, the banks paid RFC a fee ranging from one-half to
three-fourths of 1 percent, depending upon the percentages covered
by 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 it
expired in accordance with original plans. Additional amounts were
authorized after expiration of the plan, however, due to the revolving
nature of some of the loans. The table below shows quarterly activity
under the BPA program from the beginning through 1951. A total
of 11,073 loans were authorized under the program, and HFC's share
of the total amount committed was $388,664,044. Including amounts
taken by banks, total authorizations were $535 million. Thus, EFC's
share of the total amount made available to business enterprises under
the program was 72.6 percent.
Loans to Business Enterprises Under Blanket Participation Agreements
Year and
quarter
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d.
4th
1st.
2d
3d
4th
Authorized
Number
1945
.. ....
1946
1947
Repayments
and other
reductions
Outstanding
166
403
635
$6,276,919
13,941,266
22,379,033
$264,010
1,270,365
4,649,268
$16,341
1,294
2,855
1,767
2,722
43,195,602
97,866,035
63,766,584
89,850,203
6,119,542
26,677,844
17,685,420
27,651,372
18,000
199,450
606,527
3,158,018
$11,252
6,785
46,968
624,347
23,089
215,754
775,313
3,308,984
1,133
82
13
3
38,258,398
5,821,070
1,446,679
1,309,040
30,697,956
56,595,621
19,167,961
23,224,516
2,617,110
2,441,203
2,344,547
2,187,157
395,313
780,560
612,473
1,117,635
5,530,781
7,191,424
8,923,498
9,993,020
700,000
150,000
400,000
400,000
19,000,000
18,000,000
13,000,000
11,000,000
2,000,000
2,390,502
2,863,116
1,180,126
1,250,000
1,845,390
1,144,187
1,144,187
10,743,020
11,288,132
13,007,061
13,043,000
405,913
581,091
477,765
797,981
9,309,786
7,308,686
7,489,723
7,527,177
1,839,862
1 195,543
977,217
776,653
2,044,862
1,868,576
945,470
1,209,907
12,838,000
12,164,867
12,196,714
11,763,460
189,735
240,902
187,353
3,750
6,268,842
5,716,989
5,082,192
4,721,364
570,069
699,718
474,633
424,482
1,396,435
1,826,456
1,389,488
828,127
10,937,044
9,710,306
8,795,451
8,391,806
9,375
3,750
5,550
4,651,472
3,103,481
2,640,997
£ 79$, 183
159,477
376,198
94,093
51,367
1,194,002
1,183,372
575,226
545,499
7,356,381
6,549,207
6,068,074
5,673,942
388,664,044
341,627,770
29,561,409
23,987,467
5,573,942
1948
.. f c 1949
1951
Total...
Disbursed
Amount
1950
1st. . . .
2d.:...:::::
3d
4th
1st
2d
3d
4th
Canceled or
withdrawn
11,073
505287—59
6
$16,341
71
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Bank disbursements on BPA loans totaled almost $500 million,
and EFC's agreed participation was $360 million. Requests by banks
for RFC to take up its share of disbursed loans aggregated about
$30 million, of which about $4 million was charged off by RFC as
uncollectible.
In & study made as of April 15,1946, it was shown that about 21
percent of the Nation's banks entered into blanket participation
agreements with RFC. About 2,400 banks actually made loans under
the program. The table below shows the number of banks in each
State and the number which had signed BPA agreements, as of April
15,1946.
State
Alabama
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District ot Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana......
Missouri
I
Maryland
Massachusetts..
Michigan
Minnesota
Mississippi
MissouriMontana
Nebraska
Total
number
of banks
216
11
212
193
139
196
42
21
170
306
46
850
492
646
613
386
151
95
180
377
424
678
202
589
111
410
Banks
with BPA
agreements
86
10
65
81
42
20
2
10
56
136
11
176
109
88
51
60
28
13
30
49
131
137
21
90
23
157
State
Nevada
New Hampshire..
New Jersey
New Mexico
New York
North Carolina...
North Dakota,...
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina. _.
South Dakota....
Tennessee
Texas
Utah
Vermont
Virginia
,
Washington......
West Virginia...,
Wisconsin
Wyoming
Total
Total
number
of banks
Banks
with BPA
agreements
56
6
10
114
16
219
47
30
73
116
14
108
5
31
27
95
184
22
6
54
44
17
102
19
14,445
3,049
8
107
370
41
821
228
150
680
380
70
1,029
31
109
166
293
842
57
79
314
123
178
557
The Blanket Participation Program was a wide departure from the
practices followed by EFC incident to the authorization of direct and
regular deferred participation loans in that the RFC relied entirely
upon banks for an opinion of a borrower's creditworthiness, and made
no independent investigation of any sort. The agreements between
EFC and the cooperating banks did contain provisions designed to
prevent abuse of the program by banks, and in a small number of
instances the Corporation did refuse to take up its participation when
so requested by banks because of imprudent actions by the banks
resulting in violations of the agreements.
Small Loan Participation Program
After the BPA program was terminated, the Corporation continued
to make deferred participation loans to small business on a more-or-less
streamlined basis. Under the Small Loan Participation Program,
72
LOANS TO BUSINESS ENTERPRISES
which, succeeded the BPA program, banks continued to request RFC's
participation in loans of $100,000 or less, but RFC approved each request individually, and participation was not automatic as was the
case under the BPA program.
There was no fixed expiration date for the SLP program, and insofar as can be determined, it was continued throughout the calendar
year 1951. The table below is a quarterly distribution of activity
under the SLP program:
Small Loan Participation (SLP) Program
Authorized
Year and
quarter
Number
1947
1st..... ...
2d
3d
4th
1948
1st....
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
„
Amount
Repayments
and other
reductions
Outstanding
$13,060,855
27,279,532
17,525,045
15,858,891
$114,085
3,220,692
4,256,797
8,565,093
$166,130
552,169
669,291
$1,866
8,689
93,335
$164,264
707,744
1,283,650
550
378
230
164
13,700,000
9,000,000
6,642,499
4,000,000
9,503,051
10,000,000
7*500,000
7,200,000
600,000
700,000
1,849,383
781,505
156,615
163,091
719,327
125,505
1,727,035
2,263,944
3,394,000
4,050,000
250
272
242
233
6,000,000
5,718,141
6,015,026
6,044,131
6,698,975
5,858,977
6,118,533
6,518,907
1,218,397
828,713
585,138
484,414
715,397
786,548
551,898
442,676
4,653,000
4,595,165
4,62*405
4,670,243
277
254
172
99
6,910,572
5,304,236
3,779,155
2,259,854
6,348,886
6,713,712
5,878,119
5,192,734
467,455
627,023
772,218
797,353
698,216
905,921
642,640
562,988
4,449,482
4*170,584
4,400,162
4,634,527
78
59
17
13
2,037,025
1422,787
413,389
352,146
4,814,489
4,483,295
3,206,925
3,319,907
326,800
780,822
200,000
210,996
373,636
698,770
460,000
486,125
4,687,691
4,669,743
4,409,743
4,134,614
6,328
151,323,284
115,513,177
12,617,807
8,493,193
4,134,614
1950
2d
3d
4th
Total
Disbursed
549
1,090
764
647
1949
.I.
Canceled or
withdrawn
The outstanding indebtedness of any borrower arising under the
SLP program could not exceed $100,000, and the total indebtedness of
the 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 basic
business loan authority a separate section which authorized the Corporation to make loans to recognized and established incorporated
agencies, individuals, and partnerships engaged in the mining, milling, or smelting of ores. The loans were to be made upon adequate
security, based on mineral acreage. This authority remained unused
until the section was amended by the act approved January 81,1935.
In this amendment, "adequate security" was changed to "sufficient
73
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
security" and the reference to mineral acreage eliminated. Further,
the Corporation was authorized to make loans to individuals, partnerships, and corporations engaged in the development of mineral bodies
and deposits containing gold, silver, or tin when there was sufficient
reason to believe that ore was present in quantities which would permit profitable mining operations. The aggregate amount which could
be loaned for development purposes was limited to $10 million, and not
more than $20,000 could be loaned to any one borrower.
In an act approved September 16,1940, the section relating to mining loans was amended to cover the development of any critical or strategic mineral which, in the opinion of the Corporation, would be of
value to the country in time of war. In this amendment the limitation
of amounts for any one borrower was increased to $40,000.
Authority to make mining loans continued without further change
until June 30,1947, at which time section 4(a) was added to the EFC
Act and the separate authority for mining loans was removed.
The Corporation authorized a total of 352 mining loans to 279
borrowers. The amount authorized was $20,659,800, and disbursements amounted to $10,118,109 through June 30, 1947.
The amounts authorized and disbursed according to type of loan
were as follows:
Number of
authorizations
Development loans
Other loans
276
76
Amount
authorized
$4,063,800
16,596,000
Amount
disbursed
$2,828,800
71289; 309
Quarterly activity for mining loans is shown in table BE-5 ia
appendix C.
Loans to Fishing Industry
The act approved June 19,1934, which contained KFC's basic business loan authority, also contained, in a separate section, specific authority to make loans to the fishing industry under the same terms
and conditions as other business loans. These "fishing industry" loans
were for the purpose of financing the production, storage, handling,
packing, processing, carrying, and orderly marketing of fish and
fish products from American fisheries.
The loans to the fishing industry were not specifically mentioned in
the extension of the business loan authority approved April 13,1938.
However, loans to commercial fishing enterprises could continue to
be made under the basic authority.
Under the act approved June 19,1934, the Corporation authorized
a 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 was
repaid except $10,730 charged off as uncollectable.
Table BE-6 in appendix C shows quarterly distribution of activity
for loans made to the fishing industry. Such loans were made in
eight States as follows:
Number Amount
of author- authorized
izations
Florida
Georgia
Maine
Massachusetts..
Oregon
12
4
2
3
2
$57,100
76,600
600
29,000
625,000
Number Amount
of author- authorized
izations
Amount
disbursed
$12,200
31,375
600
29,000
525,000
South CarolinaVirginia
Washington
Total
Amount
disbursed
1
1
2
$22,000
42,600
67,000
$22,000
42,500
67,000
27
809,700
719,675
Business Loans for National Defense
By an act approved June 25,1940, a new paragraph was added to
the business loan authority of the EFC Act. The purpose of the
added powers given to the Corporation was "to aid the Government
of the United States in its national-defense program," and EFC was
authorized to make loans to or purchase the capital stock of any corporation for the purpose of (a) producing, acquiring, and carrying
strategic and critical materials, and (&) plant construction, expansion, and equipment, and working capital to be used in the manufacture of equipment and supplies necessary to the national defense.
Purchases of capital stock for these purposes were to be made at the
request of the Federal Loan Administrator and with the approval
of the President, Loans, however, could be made upon such terms
and conditions and with such maturities as the Corporation might
determine. Thus, for the purposes of national defense, loans could
be made to business enterprises without the requirements relating to
unavailability of private credit and sound value of security which
applied to business loans made for purposes other than national
defense.
The authority to make business loans for national defense purposes
was modified by an uct approved June 11,1942, which extended eligibility to "any business enterprise" rather than "any corporation."
This act also authorized the War and Navy Departments to guarantee any loans made by RFC for national defense purposes. The
national defense business loan authority continued until June 30,1947,
when the entire RFC Act was rewritten and the provisions relating
to national defense loans eliminated.
The RFC authorized a total of 10,585 business loans under
the national defense authority. The amount authorized was
$1,852,448,766, and disbursements were $918,687,210. Activity was
greatest during 1942 and 1943. (See table BE-7 in app. C )
75
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The various types of loans and other authorizations made by RFC
under the authority provided by the act approved June 25,1940, are
summarized below:
Authorized
Number
Direct loans (including sales of participations and stock
purchases) -- . . . . . . . . . . . . . . . ....
Purchases of participations and deferred participation
loans
..........................................
Security purchases—auto
financing
_.
Loans on and purchases of rationed articles and com*
modi ties
Contract settlement loans
Total
Disbursed
Amount
4,301
$1,261,473,769
$839,059,796
2,362
153
382,071,384
132,143,106
17,422,595
3,673
6
75,652,157
1,108,350
*M
10,585
1,852,448,766
918,687,210
Direct Loans
Approximately two-thirds of the dollar volume of authorizations
made to business enterprises under the national defense authority
were in the form of direct loans. There were 4,391 authorizations
made for direct loans in amounts totaling $1,261,437,769; disbursements on these were $839,059,796, accounting for about 90 percent of
all national defense disbursements by RFC for loans to business enterprises. Quarterly activity in direct national defense loans to business enterprises is shown in table BE-8 in appendix C.
Included in the direct national defense loans are 176 loans made to
15 borrowers in connection with subsidies paid to meat and butter producers by Defense Supplies Corporation. These loans were temporary
in nature, and were made in cases where DSC, for one reason or another, held up payments to the producers. The loans made by RFC
were repaid from the subsidy payments ultimately disbursed by DSC.
The amounts of the subsidy loans included are as follows:
Number of Number of
authoriza- borrowers
tions
Meat
Butter.
Total
••SS
143
33
176
Amount
authorized
15
% 052, 497
AU amounts authorized for subsidy loans were disbursed, and all were
repaid in full.
76
LOANS TO BUSINESS ENTERPRISES
Participation Loans
Under the national defense authority of the act approved June 25,
1940, the EFC authorized 2,362 loans in participation with banks and
other financial institutions. Most of these were deferred participation loans, as shown in the following table:
Amount authorized
RFC share
Immediate participationsDeferred participations
Total
Total
Banks' share
$12,652,167
369,419,217
$12,439,040
107,002,037
$25,092,116
476,421,254
382,071,384
110,441,986
501,513,370
Quarterly activity for participation loans authorized under the national 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 goods
following Pearl Harbor, the EFC undertook a program for the relief
of those whose funds were tied up in inventories of restricted items.
The Corporation made loans secured by inventories of rationed
articles, or purchased such inventories outright and resold them to
qualified buyers.
A total of 2,843 loans were authorized on rationed articles. The
amount authorized was $67,766,130, and disbursements were $57,024,534. The types of commodities on which loans were made were as
follows:
Authorized
Number
Automobiles...
Oil burners...
Tires.
Typewriters..
L.p.gase<
.gas equipment
Gas-burning equipment
Commercial refrigeration and air conditioning
Bakery equipmentTractors
Total.
Disbursed
Amount
2,620
101
40
34
10
25
11
1
1
$66,523,402
615,356
264,752
121,117
51,933
151,175
125,644
4,246
8,605
$56,080,582
421,318
156,332
100,482
36,609
116,667
108,370
4,173
2,843
67,766,130
67,024,533
Of the $57,024,533 disbursed, $56,918,209 was repaid and $106,324
charged off as uncollectible.
77
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The Corporation also made 830 authorizations for the purchase of
rationed articles, as follows:
Authorized
Number
Automobiles
Ranges
Oil burners and equipment
Gas burners and equipment
Typewriters
—
Commercial air conditioning and refrigeration.
Fluorescent lighting
Total
830
Disbursed
Amount
$6,161,796
11,359
1,370,238
245,089
6,140
72,953
19,452
$3,494,269
10,798
1,311,445
221,098
5,140
71,983
19,452
7,886,027
5,134,185
The articles purchased by RFC were sold for $4,972,629, leaving
a loss of $161,556.
Quarterly activity for loans on and purchases of rationed articles
and commodities is shown in table BE-10 in appendix C.
Security Purchases—Automobile Financing
Related to the financing of inventories of rationed articles were
the authorizations made by RFC to banks and commercial credit
companies who had provided financing for automobile dealers whose
inventories were frozen. The Corporation authorized the purchase
of notes and other obligations held by these financing agencies in the
amount of $132,143,106. These authorizations were never disbursed,
however, and served more or less as an umbrella during a critical
period. Quarterly activity in the authorization of security purchases
for automobile financing is shown in table BE-11 in appendix C.
Contract Settlement Loans
The Contract Settlement Act of 1944, approved July 1,1944, designated RFC as a contracting agency for the purposes of that act
As such, the Corporation was authorized to make, guarantee, or
participate in loans made to war contractors whose contracts had been
terminated and were in process of settlement.
This lending authority was but little utilized by the RFC. A total
of six loans, amounting to $1,108,350, were authorized under the provisions 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 in
which RFC's share was $62,250. The RFC disbursed no funds on
these deferred participation loans. Lending activity under the
78
LOANS TO BUSINESS ENTERPRISES
authority of the Contract Settlement Act of 1944 is summarized in
table BE-12 in appendix C.
Business Loans Made Subsequent to June 30,1947
Prior to June 30, 1947, the business loans made by EFC were
authorized under the basic authority of section 5d of the KFC Act,
or, for national defense loans, under the provisions of the act approved June 25,1940.
The lending authorities of EFC were completely rewritten in the
act approved June 30, 1947, and the authorities to make loans to
business enterprises were substantially modified. This new act
authorized EFC to "purchase the obligations of and to make loans to
any business enterprise organized or operating under the laws of any
State or the United States." It was further provided that no financial assistance could be extended by EFC if such assistance was
otherwise available on reasonable terms, and all securities and obligations purchased and 'all loans made were required to be "of such
sound value or so secured as reasonably to assure retirement or repayment." The Corporation was authorized to make business loans
"either directly or in cooperation with banks or other lending institutions through agreements to participate or by the purchase of participations, or otherwise."
From July 1, 1947, to September 28, 1953, when the Corporation's
authority to make loans was terminated by the provisions of the EFC
Liquidation Act, the Corporation authorized 17,975 business loans
amounting to $1,625,120,534, as follows:
Number
Direct loans
[mmediate £>artlcir>ation loans
deferred participation loans
Total
—
Amount
Authorized
(RFC share)
11,333
1,047
6f595
$1,142,836,250
216,512,534
265,771,760
17,975
l r 625,120,534
Quarterly activity in business loans for periods subsequent to June
30,1947, is shown in appendix C in table BE-13 for direct loans, table
BE-14 for immediate participation loans, and table BE-15 for
deferred participation loans.
Housing Loans
To aid housing production, the Housing Act of 1948 authorized
RFC to make loans to or purchase the obligations of any business
enterprise for the production of prefabricated houses, prefabricated
79
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
housing components, or for large-scale, modernized site construction.
These loans could be made upon such terms and conditions as the
Corporation might determine, and the aggregate amount of these
loans 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, the
EFC authorized a total of 35 loans amounting to $42,864,451. Of
these, three loans in which RFC's share was $2,885,000 were made in
participation with banks on an immediate basis, and one was a deferred
participation in which RFC's commitment was $170,000.
Included in the direct loans are five loans totaling $12 million made
to the Lustron Corp. In addition to the loans made to Lustron under
the authority of the Housing Act, there was a loan of $15,500,000 made
under the national defense lending authority (sec. 5d(2)) of the act
approved June 25, 1940, and a loan of $10 million made under the
business loan authority (sec. 4(a) (1)) of the revised RFC Act. Foreclosure proceedings against Lustron were authorized on February 14,
1950, at which time the unpaid principal balance due on all of the
Lustron loans totaled $36,466,273, of which $28,867,354 was
subsequently charged off.
Both before and after the effective date of the lending authority
contained in the Housing Act of 1948, the RFC had made loans to
manufacturers of prefabricated housing and prefabricated housing
components, as well as loans to supply interim financing for housing
construction. Under the authority of section 4(a) (1) of the RFC
Act, as amended effective July 1, 1948, the Corporation authorized
a total of 84 housing loans amounting to $70,230,911. Other housing
loans had previously been authorized under the national defense
lending authority of the act approved June 25,1940. Reorganization
Plan No. 23 of 1950, effective-September 6, 1950, transferred to the
Housing and Home Finance Administrator all functions of RFC related to financing predominantly for the production, manufacture,
distribution, sale,, purchase, or erection of prefabricated housing and
prefabricated housing, components. The outstanding loans and commitments made by RFC for the purposes stated were also transferred
to the Housing and Home Finance Administrator. Pursuant to the
provisions of Reorganization Plan No. 23 of 1950, 136 loans and
commitments were transferred as follows:
80
LOANS TO BUSINESS ENTERPRISES
Lending authority
RFC Act
Sec.5(d)(2)
Undlsbursed commitments:
Direct loans
Imm ediate participation
Deferred participation
-
Outstanding loans:
Direct
..
Immediate participation
„
1,928,050
Sec.4(a)(l)
National
Housing Act
Total
$5,775,400
250,293
$8,303,815
1,403,365
120,478
$14,079,215
1,653,668
120,478
6,025,693
9,827,658
15,853,351
709,076
322,127
15,432,936
1,260,395
18,070,062
1,572,522
Total loans
1,928,050
1,031,203
16,683,331
19,642,584
Total loans and commitments
1,928,050
7,056,896
26,510,989
35,495,935
Direct Mortgage Loans
During its existence, from March 14, 1935, to June 30, 1947, the
RFC Mortgage Company authorized 4,182 direct loans on income
producing properties. These loans, amounting to $173,016,510, were
secured by mortgages on the properties financed. A total of $99,394,772
was disbursed on these loans, of which $7,081,564 was unpaid on
June 30, 1947, when the RFC Mortgage Company was merged with
its parent corporation.
Prior to the time of th& merger, the loans made by the RFC Mortgage
Company were not regarded as "business loans" in any of the statistical
material prepared by the Corporation. However, after the merger,
such of the direct mortgages as were then outstanding were included
with outstanding business loans. The statistical data on quarterly
activity for business loans included in this report have been adjusted
to include these outstanding direct mortgage loans.
Approximately one-half of all direct mortgage loans made by the
RFC Mortgage Company were authorized during the first 2 years of
RFC-MC's existence. Only 55 of the loans, authorized in the amount
of $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 among
the loans made by RFC to business enterprises. Among the few
exceptions were newspapers, radio stations, and other communications
media which were excluded as a matter of policy.
81
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Throughout the Corporation's existence, there were many changes
in the emphases placed upon the statistical data collected with respect
to lending operations. It is probably for this reason that there is not
available a summary by industrial classification of the loans made by
RFC to business enterprises.
In order to close part of this gap in the information related to the
Corporation's lending, there are given below industrial classifications
of loans authorized during three representative periods. The first of
these covers all business loans authorized through December 31,1941,
as follows:
Number of Amount authorized
business
concerns
Manufacturing—total.
Food and kindred products
Tobacco
Textiles and their products
Lumber and timber products
Paper and allied products
Printing and allied industries
Chemicals and allied products
Products of petroleum, coal, and natural gas
Rubber
ather products
and leather p
Leatherclay,
and and
leather products
Stone,
Stone
clay
a dandgglass
ltheir
s products
d t
Iron and
steel
products
(except machinery)-.
Transportation equipmentNonferrous metals and their products
—
Machinery
Miscellaneous manufacturing.
Nonmanufacturing—total.—
Agriculture, forestry, and fishing..
ing and
and quarrying......
q
Mining
...
Construction
Wholesale trade
Retail trade
Services, including transportation and other utilities
Grand total.
,
4,347
$347,492,046
895
8
616
780
121
273
196
24
30
83
230
363
119
104
40,839,135
188,000
71,662,506
63 465,827
36,179,245
397
.108
10,467,128
2,602,500
2 187,950
6,805,235
14,100,215
Z% 304; 357
34,078,993
4 285,719
25 571803
3 416,476
3,777
135,928,680
183
229
124
588
2,384,672
23 633,558
3 319,644
19,054,122
8,124
483,420,726
1,137
1,516
Most of the business loans authorized by RFC during defense and
war periods were to assist in financing the acquisition of plant facilities. The table below shows the loans authorized by RFC for
manufacturing plant and equipment from June 25, 1940, to June 30,
1945:
82
LOANS TO BUSINESS ENTERPRISES
Amount
authorized
Basic materials:
Aluminum, including fabrication
„
.
Aviation gasoline
Chemicals
Hemp
...
Jewel bearings and diamond
dies
Magnesium, including fabrications
_
Minerals^.
Steel and pig iron
Synthetic rubber
Total, basic materials
$63,065,925
64,900,000
39,980,384
168,750
60,200
29,292,265
17,626,869
134,139,928
23,090,000
377,324,321
Military equipment and supplies:
Aircraft, aircraft engines, and
Medical supplies
Motor vehicles and parts
Ordnance
Packing boxes
308,562.402
506,872
133,990,556
239,229,241
8 730,133
Amount
authorized
Military Equipment and Supplies—Continued
Radio and communications
equipment
Shipbuilding, and vessel components.
135,940,445
Total, military equipment
and supplies
869,700,265
$42,740,616
Other products:
22,744,657
Textiles and products
48,874,929
Food products.*.
26,470,839
Lumber and wood products
13,782,475
Machine tools
28,245,574
13,625,112
Machinery
*
2,193,412
Miscellaneous metal products
Stone, clay, and glass products155,936,998
Total, other products
1,402,961,584
Grand total-—
The third table shows the number of business loans authorized, by
industry classification, during the period from January 1, 1950,
through February 28,1953, as follows :
Number
Nonmanufacturing industries:
Poultry farms, greenhouses, crop specialities, forestry,fisheries,e t c . .
Mining* „,
..
.„
.
Construction
Wholesale and retail trade
Finance, insurance, and real estate
Transportation, communication, and other public utilities
Services: personal, business,recreational,public, semlpublic,. professional,
and other
Manufacturing industries:
Ordnance and accessories
—
Food and kindred productsTextile mill products
Apparel and other products made from fabrics
Lumber and timber basic products
Furniture andfinishedlumber products
Paper and allied products
Printing, publishing, and allied industries Chemicals and allied products.......
Products of petroleum, coal, and natural gas
Hubber products
Leather and leather products
Stone, clay, and glass products..
Iron and steel and their products..
Transportation equipment (except automobiles)...
Nonferrous metals and their products
«.
Electrical machinery
Machinery (except electrical)
Automobiles and automobile equipment.
Miscellaneous manufacturing industries
158
144
424
1,445
63
377
17,110
171,621
26,653
59,720
37,718
931
26,324
3,542
361,955
32
743
124
84
325
184
44
116
162
19
25
24
226
380
137
115
166
501
52
147
35,363
4,421
33,142
12,872
14,016
4,673
20,541
4,430
1,943
1,744
25,563
195,387
61.506
10,063
37,509
63,366
13,480
14,115
3,606
Total...
Amount
7,148
13,658
630,175
992,130
83
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Geographic Distribution of Business Loans
The RFC authorized loans of one kind or another to business concerns in each of the States, the Territories and possessions, and in
Canada. The two loans made to Canadian concerns were authorized
under the national defense lending authority which did not limit
business loans to domestic enterprises as did the other business loan
authorities.
The table below is a distribution of the number and amount of
business loans authorized by EFC, by State and type of loan:
States
Alabama
Arizona
,
Arkansas
,._*_^_.
California
Colorado
„_,
Connecticut
,
Delaware
District of Columbia...
Florida
t
Georgia
Idaho
Illinois
Indiana
„.
Iowa
,
K'fvnsas ,.
_^_
Kentucky
I.IIIII!
Louisiana
,
Maine
Maryland
Massachusetts
Michigan
,
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
,
New Hampshire.—
New Jersey
New Mexico
New York
North Carolina-. ..
North Dakota
Ohio
""
Oklahoma
I
Oregon
,
Pennsylvania..
Rhode Island
South Carolina .
South Dakota
I
Tennessee
Texas
"
Utah
I
Vermont
Virginia
M "
Washington
.m
West Virginia__I.I."I
Wisconsin
,
Wyoming
I
Alaska
Hawaii
Puerto Rico
Virgin Islands
I.I
Canada
Total
84
,
Direct loans and immediate participations
Deferred participations
Number
Number
362
928
1,410
940
300
42
146
1,775
1,904
367
1,788
400
202
387
647
246
93
442
1,003
1,529
414
261
815
501
290
97
57
819
274
2,121
426
110
932
1,229
951
1,180
86
191
91
1,369
3,674
243
42
306
2,808
148
383
81
192
140
6
2
Amount
$30,227,157
16,667,136
26,609,787
410,607,681
32,843,782
43,417,245
3,065,000
33,032,370
92,045,238
70,757,193
8,799,637
149,379,400
111,764,697
16,482,627
32,028,802
68,703,433
84,076,112
16,884,195
92,149,543
121,131,200
452,848,090
19,517,023
15,070,180
51,692,510
14,976,378
33,832,399
8,209,772
6,596,359
70,605,901
5,825,794
274,526,086
25,497,073
2,628,215
243,101,752
19,567,966
48,011,835
197,354,731
6,685,124
15,924,741
1,213,257
63,982,429
278,074,304
8,077,147
2,607,748
91,190,636
65,949,351
11,575,310
37,158,301
3,154,607
29,272,684
268,600
8,304,250
1,153,000
5,055,000
35,852 3,579,980,488
972
343
605
737
408
136
8
63
448
1,287
155
1,065
535
428
692
439
216
66
210
283
1,231
563
324
1,088
262
901
1
58
639
265
1,401
303
98
517
498
340
533
12
232
96
909
1,776
172
91
375
987
143
460
168
99
4
1
Amount
$43,441,992
10,202,615
21,213,491
63,967,671
16,843,460
6,021,510
427,800
2,763,271
43,976,349
63,228,665
5,766,871
43,913,714
27,486,792
17,513,526
20,029,270
18,076,164
9,816,463
2,914,668
12,316,889
18,200,414
77,664,797
26,818,045
10,181,869
57,082,292
7,273,390
30,753,587
30,000
3,117,185
on OiX)
R9R t3SA
OU,
OoO
14,121,416
70,654,633
22,408,871
1,745,261
29,392,945
13,152,242
69,369,706
44,039,146
330,792
10,661,686
1,429,500
48,822,825
103,647,638
4,674,963
1,331,336
19,919,223
106,868,187
6,203,239
18,210,008
5,118,974
4,266,204
364,600
37,600
Total
Number
1,670
705
1,633
2,147
1,348
436
50
209
2,223
3,191
522
2,853
935
630
1,079
1,086
462
159
652
1,286
2,760
967
685
1,903
763
1,191
98
115
1,458
539
208
1,449
1,727
1,291
1,713
98
423
187
2,278
5,450
415
133
681
3,795
291
843
239
291
8
141
6
2
69,475
Amount
$73,669,149
26,869,751
47,823,278
474,575,262
49,687,242
49,438,755
3 492 800
35,795,641
136,021,687
133,985,748
14! 566,608
193,293,114
139,261,489
33,996,153
52,058,072
86;779597
86;779,59
93,892,575
19 798,863
104,466,432
139,331,614
530,512,887
46 335,068
25 252,049
'SStS
9 713! 544
101,032,287
19,947,209
345,180,719
3S
117381; 541
241,393,877
Z9!$2!S
% 642,757
H i 805,254
381,721,942
12! 152; 100
111109 859
172^817,538
8,341,750
1153 000
5055,000
1 0 A N S TO BUSINESS ENTERPRISES
The data in the foregoing table were drawn from a tabulation made
as of March 31, 1954. There are some unreconciled differences between these data and those used in this report. In the main, the
differences are that the State distribution above does not include loans
on rationed articles and commodities nor security purchases for automobile financing made under the national defense lending authority
in the act approved June 25,1940.
Size of Business Loan Authorizations
The table below is a size distribution of the same data making up
the State distribution above. The amounts shown are RFC's share
of the loans authorized.
Direct loans and
immediate participations
Number
Amount
$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
11,028
5,780
7,424
4,743
3,613
1,396
1,127
370
362
$29,630,483
45,279,454
130,617,683
181,802,146
282,915,218
210,834,136
358,287,319
270,189,762
2,070,424,287
Total
35,852
3,579,980,488
Deferred participations
Number
2,198
3,326
6,459
5,010
3,911
1,333
1,056
171
159
23,623
Amount
$5,363,664
19,266,651
82,799,687
136,839,622
222,392,609
145,407,043
235,936,746
91,505,773
348,828,028
1,288,339,823
85
Agricultural Financing Institutions
The original RFC Act (sec. 5) provided specific authority for the
Corporation to make loans, upon such terms and conditions as the
Corporation might determine, to any Federal land bank, joint-stock
land bank, Federal intermediate credit bank, agricultural credit corporation, or livestock credit corporation organized under the laws of
any State or of the United States. The act further provided that all
such loans "shall be fully and adequately secured." To a great extent,
the loans made by RFC under this authority were to Government or
quasi-Government institutions. However, they differed from the loans
and allocations made to other Government agencies by specific direction of the Congress, as described beginning on page 151 of this report,
in that the RFC could prescribe the terms and conditions of the loans
and in that security for the loans was required, implying that repayment was expected. In some cases, the starting capital of these agricultural financing institutions was provided by RFC under specific
direction of the Congress, and later needs for funds supplied through
the medium of loans under the authority of section 5 of the RFC Act.
In sections 201 (c) and (d) of the Emergency Relief and Construction Act of 1932, the RFC was authorized to make such loans as it
might judge necessary to finance the sale of agricultural surpluses in
foreign markets, and to make loans tofinancethe carrying and orderly
marketing of agricultural commodities and livestock produced in the
United States. Also, under section 5, title I, of the Agricultural
Adjustment Act of 1933, the Corporation was authorized to make
loans to the Secretary of Agriculture for the purpose of acquiring
cotton.
The loans authorized by RFC to agricultural financing institutions
under the authorities cited above amounted to $2,454,133,430, as
follows:
Authorized
Under sec. 5. RFO Act:
Federal land banks
Joint-stock land banks
Federal intermediate credit banks
Begional agricultural credit corporations
Other agricultural credit corporations
__ Livestock credit corporations
——
Under Emergency Relief and Construction Act, 1932:
Commodity Credit Corporation
To finance agricultural commodities
—
To finance exports of agricultural surplus
r~3—X
Under the Agricultural Adjustment Act, 1933: Secretary of AgricultureTotal
Disbursed
$399,636,000
33,055,359
9,250,000
178,840,453
6,120,867
14,511,328
$387,236,000
26,194,970
9,250,000
173,243,641
5,643,618
12,971,599
1,604,712,665
86,061, £13
08,445,245
23,500,000
767,716,962
19,644,492
47,300,825
3,300,000
2,454,133,430
1,452,502,107
87
605257—58
7
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The periods in which these loans were authorized and disbursed are
shown in table Ag-1 in appendix 0.
Federal Land Banks
Beginning in July 1932, and continuing for a period of 2 years, the
RFC made a series of 75 loans to the Federal land banks, one or more
loans 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 of
which was outstanding on that date. These balances were refinanced
in the second quarter of 1934 in 12 new loans and the banks then
began to repay the amounts borrowed. (See table Ag-2 in app. 0.)
All sums advanced had been repaid before the close of the third
quarter of 1938.
Joint-Stock Land Banks
Beginning in March 1932, the EFC made a total of 72 loans to 28
joint-stock land banks. The amount authorized for these loans was
$33,055,359, of which $26,194,970 was disbursed, and all advances were
repaid by the borrowers. (See table Ag-3 in app. C.)
The Corporation was also directed to make available to the Farm
Loan Commissioner the sum of $100 million by section 301 (a) of th©
Emergency Farm Mortgage Act of 1933, this being for the purpose
of allowing the Commissioner to make loans to joint-stock land
banks. Only $2,600,000 of the amount was disbursed, and this was
recovered by the RFC through cancellation of the notes payable to
the Treasury which had provided RFC with the funds to advance to
the Farm Loan Commissioner.
Federal Intermediate Credit Banks
During March 1933, the RFC authorized loans totaling $9,250,000
to eight Federal Intermediate Credit Banks. These loans were disbursed and repaid in full during that same month. (See table Ag-4
in app. C.)
Regional Agricultural Credit Corporations
Section 201 (e) of the Emergency Relief and Construction Act of
1932 authorized the RFC to create regional agriculture credit corporations in any of the 12 Federal land bank districts. The act
further provided that each such bank should have a "paid-up" capital
of not less than $3 million. The funds to provide this capital were
to come from the unexpended balance of the amounts allocated and
made available to the Secretary of Agriculture under section 2 of the
original RFC Act.
AGRICULTURAL FINANCING INSTITUTIONS
The act also provided that the regional agricultural credit corporations were to be managed by officers and agents appointed by the RFC,
and all expenses of such corporations were to be supervised and paid
by the EFC.
The EFC established 12 regional agricultural credit corporations
and disbursed $44,500,000 for their capital stock. The amount paid
for the expenses of the corporations was $23,341,776. Both of these
sums were included in the EFC notes payable to the Secretary of the
Treasury which were canceled at the direction of the Congress in the
act approved February 24,1938.
Beginning in December 1932, the EFC made loans to the regional
agricultural credit corporations under the authority of section 5 of
the EFC Act. The EFC disbursed $173,243,641 on such loans, all
of which was repaid. (See table Ag-5 in app. C.)
Other Agricultural Credit Corporations
In addition to the loans made to regional agricultural credit corporations, which were wholly Government owned, the EFC also made
loans to 20 local agricultural credit organizations under the authority
of section 5 of tiie EFC Act. A total of 250 loans amounting to
$6,120,867 were authorized to these enterprises. Against these authorizations, $5,643,618 was disbursed. All sums advanced were
liquidated before 1942. (See table Ag-6 in app. C.) Only $39,381
of the total amount disbursed was charged off as a loss.
The heaviest concentration of these loans was found among credit
organizations serving fruitgrowers, particularly in the Pacific Northwest The State distribution of loans to local agricultural credit
corporations was as follows:
Authorized
Arizona
Arkansas
Colorado
Florida
Idaho
Iowa
Louisiana
New York."."
Authorized Disbursed
Disbursed
$880,000
214,136
71,455
435,000
480,000
120,000
397,251
$880,000
214,136
435,000
58,723
455,000
120,000
232,591
Boutb Carolina..
Tennessee.—.-.
Texas.
Washington.....
$1,000
116,790
58,500
124,250
95,491
3,063,104
89,251
2,981,172
Total
6,120,867
5,643,618
North Dakota..,
$1,000
116,790
Livestock Credit Corporations
Section 5 of the EFC Act provided the Corporation with authority
to make loans to livestock credit corporations. During 1932 and 1933
a total of 154 such loans was authorized to 19 local livestock credit
corporations. The total amount authorized in these loans was $14,511,328; disbursements on these amounted to $12,971,599, all of which
was repaid prior to 1938, (See table Ag-7 in app. C.)
89
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Loans authorized to local livestock credit corporations were concentrated in the Western States, as follows:
Authorized Disbursed
Colorado
—
Idaho
Missouri
Montana
New Mexico
Oregon
—
$382,850
2,132,035
421,000
2,142,250
874,442
270,740
$138,450
2,030,235
Texas
Utah
Wyoming
1,996,350
768,192
242,290
Total
Authorized
Disbursed
$2,468,425
3,477; 443
2,342,143
$2,442,445
3,172,617
2,181,020
14,511,328
12,971,599
Included in the loans made to livestock credit corporations is one
loan authorization for $400,000 ($321,643 disbursed) for the specific
purpose 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 Act
of 1932, the RFC was authorized and directed to make such loans as
might be judged necessary for the purpose of financing sales of agricultural surpluses in the markets of foreign countries. The authorizing language provided that no such loans could be made if, in the
Corporation's judgment, the sales so financed would adversely affect
the world market for the products involved. The act also specifically
prohibited the making of such loans to finance export sales of cotton
owned by the Federal Farm Board or the Cotton Stabilizing
Corporation.
The Corporation under the authority cited authorized a total of 10
loans 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 in
App. C.) The repayments included $13,537,388 paid in April 1936
by the Export-Import Bank of Washington as the purchase price
at par of the balance due on loans made to the Republic of China.
The following loans were authorized to finance export sales of
agricultural surpluses:
Authorized
Republic of China
Kingdom of Norway
Federal Surplus Commodity Corporation
Cotton Export Corporation
Others
Total...
$50,000,000
10,000,000
30,000,000
5,074,290
3,370,955
98,445,245
Disbursed
$17,105,386
3,119,201
47,300,825
The loan to the Cotton Export Corporation was a revolving credit
of $5 million, later increased to $5,074,290 by reason of repayments. Of
the total, $574,290 was taken by RFC and $4,500,000 was made by
90
AGRICULTURAL FINANCING INSTITUTIONS
banks with HFC's agreement to participate in the loan. HFC disbursements under this loan arrangement were the $74,290 redisbursed
under the revolving credit, and the $1,948 which was disbursed under
the participation agreement and which was not recovered. This loan
was eligible both under section 5 (d) of the RFC Act, as amended, and
section 201 (c) of the Emergency Relief and Construction Act of 1932.
Loans To Finance the Carrying and Orderly Marketing of Agricultural
Commodities and Livestock
The RFC was authorized and empowered by section 201 (d) of the
Emergency Relief and Construction Act of 1932 to make loans for the
purpose of financing the carrying and orderly marketing of agricultural commodities and livestock produced in the United States. Loans
amounting to $1,690,774,178 were authorized under this power. About
95 percent of the dollar amount authorized was in loans to Commodity
Credit Corporation.
Excluding the loans made to CCC, the RFC authorized 159 loans to
105 different borrowers for the purpose of financing the carrying and
orderly marketing of agricultural commodities and livestock. The
amount authorized in these loans was $86,061,513. However, the two
largest authorizations (American Cotton Cooperative Association,
$15 million, and Cotton Stabilization Corporation, $35 million) were
canceled without disbursement Most of the $19,644,492 disbursed on
these loans was repaid before 1940. However, some small amounts
remained outstanding until 1951. (See table Ag-9 in app. C.)
The distribution by States of the loans authorized to finance the
carrying and orderly marketing of agricultural commodities and livestock is shown in the following table, exclusive of loans to Commodity
Credit Corporation:
Authorized
Alabama
Arkansas...:":
California
Colorado.
Delaware..
Florida
I™
Georgia....
Illinois
Indiana
Kentuckyllllll
Louisiana
Maine....::::::
Maryland
Massachusetts
Michigan.
MissisMisso
$150,000
725,000
5,063,750
500,000
100,000
393,377
15,000
10,500
757,112
5,561,512
50,495,000
35,000
575,000
350,000
570.000
60,760
104,000
Authorized Disbursed
Disbursed
$2,500
285,000
1,700,270
120,000
6,000
350,000
318,500
12,610,723
219,551
211,396
127,597
Montana
New Jersey
New York
North Carolina...
North Dakota
Ohio
Oregon
Pennsylvania
TennesseeTexas
•
Virginia
Washington
West Virginia
Wisconsin
Puerto Rico
66,000
TotaL
86,061,513
$121,781
2,594,189
125,050
900
393,377
15,000
8,500
296,900
2,433,923
42,750
375,"566
1,035,000
333,030
175,000
1,571,313
1,000,000
$1,885
273,568
600,926
99,965
4,920
684,782
154,179
290,438
8,301,898
199,651
264,895
187,305
1,475,563
362,254
19,644,492
Commodity Credit Corporation
Beginning in 1933, and continuing into 1938, the RFC authorized a
series of loans to the Commodity Credit Corporation for the purpose
91
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
of financing the carrying and orderly marketing of agricultural commodities. 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 loans
were as follows:
Authorized
Cotton
Com
Seed corn
Turpentine
Tobacco
Figs
_
Prunes
Dates
Raisins
Peanuts
Wool and mohair
.
Collateral trust notes A
Collateral trust notes B
Care and preservation of collateral
„
„
—
—
-
..
_
.
^
__ .
„
„
Total
Disbursed
$868,000,000
318,250,000
76,750,000
20,000,000
13,358,665
140,000
2,700,000
64,000
2,500,000
7,450,000
50,000,000
166,095,762
70,000,000
9,404,238
$542,698,836
133,776,484
6,315,260
7,380,170
8 717,501
83,915
2,264,305
60 398
2,855
5,346,695
58,182,300
2^51,844
36,399
1,604,712,665
767,716,962
Acquisition of Cotton by the Secretary of Agriculture
By provisions of section 5, title I, of the Agricultural Adjustment
Act, the KFC was authorized and directed to make available to the
Secretary of Agriculture such sums as might be necessary to enable
the Secretary to carry out the responsibilities assigned to him by the
act as related to the acquisition of cotton.
The EFC authorized loans totaling $23,500,000 to the Secretary for
this purpose. However, only $3,300,000 was disbursed, all of which
was repaid. (See table Ag-11 in app. C.)
92
RFC Mortgage Subsidiaries
On January 31,1935, an act was approved which added a new section (5c) to the RFC Act. The purpose of the new section was "To
assist in the reestablishment of a normal mortgage market * * *."
Under this section the RFC was authorized to "subscribe for or make
loans upon the nonassessable stock of any class of any national mortgage association organized under title I I I of the National Housing
Act and of any mortgage loan company, trust company, savings and
loan association, or other similar financial institutions, now or hereafter incorporated under the laws of the United States, or of any
State, or of the District of Columbia, the principal business of which
institution is that of making loans upon mortgages, deeds of trust,
or other instruments conveying, or constituting a lien upon, real estate
or any interest therein." The original RFC Act authorized the Corporation to make loans to mortgage loan companies, but did not provide 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 subsidiaries for the purpose of dealing in real estate mortgages. Through
subscriptions for capital stock and loans, the RFC authorized a total
of $1,758,460,130 for these subsidiaries, and disbursed $1,705,001,899
to them. The timing of the Corporation's investments in the RFC
Mortgage Company and the Federal National Mortgage Association
is shown in table MS-1 in appendix C.
RFC Mortgage Company
The RFC Mortgage Company was incorporated March 14, 1935,
under the laws of the State of Maryland. The incorporators were
three individuals who were officials of JRFC, and the capital stock of
the Company was purchased by RFC under the authority of section
5c of the RFC Act, as amended. The bylaws of the Company provided
for management of its affairs by a Board of Directors. In practice,
however, the Board of Directors of the RFC Mortgage Company were
also officials of RFC, and the Company's affairs were administered
through the same organization and offices as those of RFC. Thus,
in effect, the RFC Mortgage Company operated as a division of RFC
with a specialized lending function.
The charter of the RFC Mortgage Company did not provide for
the termination of its period of succession. However, the Government
93
FINAL REPORT O N THE RECONSTRUCTION FINANCE
CORPORATION
Corporation Control Act, approved December 6, 1945, provided that
the Company either must secure a Federal charter by June 30, 1948,
or cease to function as a Federal instrumentality. By the provisions
of the act approved June 30, 1947,_all assets.and.liabilities of the
EFC Mortgage Company were transferred to the RFC, and the
Company subsequently was dissolved.
From 1935 to 1947, the EFC provided the EFC Mortgage Company
with funds amounting to $334,910,020. Of this, $25 million was provided through subscriptions for capital stock and the balance through
loans. Additional loans of $53,458,241 were authorized, but had not
been disbursed and were canceled when the Company ceased its operations. At the time of the Company's merger with RFC, the Corporation's investment in the RFC Mortgage Company was $80,352,871,
including the $25 million subscribed for capital stock. Table MS-2 in
appendix C is a quarterly distribution of activity for RFC's investments in the RFC Mortgage Company.
The RFC Mortgage Company authorized 103,525 loans and purchases for a total of $660,901,581. The composition of these was as
follows:
Disbursed to June 30,
1947
Authorized
Number
Large-scale housing projects—FHA insured-.
Other FHA-insured mortgages
Mortgages Insured by VA
Direct loans on income-producing properties
Purchases of property
Total
Number
Amount
Amount
46
74,180
25,102
4,182
15
$38,098,000
293,989,550
148,537,930
173,016,510
7,259,591
19
63,402
11,367
2,820
15
$7,466,833
244,764,820
67,681,262
99,394,772
3; 228,815
103,525
660,901,581
77,623
422,536,502
On June 30, 1947, when the RFC Mortgage Company was merged
with the parent Corporation, the loans, mortgages, and commitments
outstanding were as follows:
Undisbursed
commitments
FHA-insured mortgages
VA-Insured mortgages
Direct loans on income-producing properties—.
Total,..
$21,231
80,056,460
5 718,266
85,795,957
Outstanding
principal
balances
$1,845,070
67 076,941
7CH&564
76,003,584
All purchases of VA-insured mortgages occurred subsequent to
August 7, 1946, when an act was approved which authorized FRC
to purchase such mortgages directly or through a subsidiary. The
RFC Mortgage Company created a secondary market for GI ho«ie
loans by purchasing such obligations at the request of originating
94
RFC MORTGAGE SUBSIDIARIES
institutions. The authority to purchase VA-insured mortgages expired on June 30,1947, and was not restored until July 1,1948, when
the Federal National Mortgage Association again provided a secondary 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. About
two-thirds of the total recovery was derived from sales of mortgages
to financial institutions, including 10,592 FHA-insured mortgages
amounting to $40,509,731 which were sold to the Federal National
Mortgage Association. A loss of $1,219,635 was incurred in sales of
mortgages. Other credits included $19,603,955 representing the unpaid principal balances of mortgages which were foreclosed.
On June 30, 1947, when the assets of the EFC Mortgage Company
were merged with those of EFC, the following mortgages and commitments were outstanding:
Insured by
FHA
Commitments
Mortgages
..
-
Total
—.
$21,231
1,845,070
1,866,310
Partially
guaranteed
by VA
$80,056,460
67,076,941
147,133,401
The RFC continued to administer and liquidate this portfolio of
mortgages until June 30,1954, when those remaining were transferred
to the Federal National Mortgage Association in accordance with
the 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 the
EFC to organize a national mortgage association with paid-in capital
stock of $10 million, to provide the association with management, and
to reserve an additional $40 million for capital in other national mortgage associations or as additional capital for the association to be organized by EFC. In response to this request, and pursuant to title I I I
of the National Housing Act, as then amended, the Federal Housing
Administrator chartered the National Mortgage Association of Washington on February 10, 1938. On April 5, 1938, the name was
changed to "Federal National Mortgage Association." The EFC
initially subscribed for and paid in $10 million for the capital stock of
FNMA and also paid in $1 million to surplus. In 1948, the capital
stock was increased by $10 million which was also subscribed for and
paid in by EFC.
95
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The Federal National Mortgage Association was staffed by RFC
personnel, operated through RFC's field offices, and otherwise operated much as a division of RFC until September 7, 1950. At that
time, 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 made
loans to FNMA which totaled $1,349,091,869. When FNMA was
transferred to HHFA, there was outstanding $1,007,226,308 in loans
and $21 million in capital stock and paid-in surplus. Quarterly
changes in RFC's investment in FNMA are shown in table MS-3
in appendix C.
During the time FNMA was a subsidiary of RFC, the Association
authorized the purchase of 414,449 mortgages amounting to $3,084,211,324, as follows:
Total
Authorized
Canceled
Disbursed
Repayments and sales
Other reductions
Transferred to HHFA:
Commitments
Mortgages
VA mortgages FHA mortgages
$3,084,211,324
345,497,165
1,851,042,483
709,178,636
12,172,121
$1,891,014,451
101,549,900
1,096,881,372
172,259,012
1,282,302
$1,193,196,873
243 947,265
754,161,111
5361919,634
887,671,676
1,129,691,726
692,583,179
923,340,058
195,088,497
206,351,668
When FNMA was transferred from RFC to the Housing and Home
Finance Administrator, the RFC received payment for its investment
in the Association from the proceeds of borrowings by FNMA from
the Secretary of the Treasury.
96
Railroad Loans and Investments
The RFC was authorized to make loans to railroads, upon the
approval of the Interstate Commerce Commission, by the provisions of
the original RFC Act. Loans could be made to railroads for temporary financing, to railroads in process of construction, and to receivers of railroads in cases where funds could not be obtained on reasonable terms from the public or through banking channels. The maturities of these loans were limited to 3 years, and the act provided that
EFC should be "adequately secured."
By an act approved June 10,1933, trustees of railroads proceeding to
reorganize under section 77 of the Bankruptcy Act of March 3,1933,
were made eligible for loans under section 5 of the RFC Act. A few
days later, on June 16,1933, an act was approved which prohibited the
Interstate Commerce Commission from giving its approval for RFC
loans to any carrier which, in the opinion of the Commission, was in
need of financial reorganization in the public interest. As defined in
this later act, the term "carrier" did not include a receiver or trustee.
On June 19, 1934, an act was approved which permitted 5-year
maturities for loans made to railroads under section 5 of the RFC Act,
and also provided that RFC might require railroads to make arrangements for amortization as a condition to granting loans for periods
longer than 3 years.
The original provisions of the RFC Act relating to railroad loans
were rewritten in an act approved January 31,1935. The new provisions authorized RFC to purchase the obligations of railroads
en
gaged in interstate commerce or to guarantee the payment of such
obligations "notwithstanding any provisions of law as to maturity."
Loans to railroads were also authorized to be made upon "full and
adequate" security, provided that funds were not available on reasonable terms through private channels. Both loans and purchases of
obligations required the approval of the Interstate Commerce Commission, and, except for loans made for purchase or maintenance of
equipment, the Commissioner's approval was required to be accompanied by a certificate that railroads concerned, on the basis of present
and prospective earnings, could reasonably be expected to meet their
fixed charges without reduction thereof through judicial reorganization.
The total amount of loans, commitments, purchases, and guaranties
made to railroads subsequent to January 31,1935, was limited to $350
million at any one time. However, in the act approved June 25,1940,
this limitation was increased to $500 million.
97
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The authority for RFC to provide financial assistance to railroads
was extended by the acts approved June 30,1947, and May 25,1948.
The specific restriction on the amount of loans, commitments, purchases, and guaranties was not included in these extensions, but only
limited use was made of the extended authority.
Prior to February 1, 1935, when the assistance which RFC could
provide to railroads was limited to temporary financing, the Corporation authorized 139 loans to 70 borrowers. These authorizations
amounted to $457,856,080, against which $450,941,524 was disbursed.
The total amount authorized for financial assistance to railroads
under section 5 of the RFC Act, as amended, was $1,059,867,787. This
amount represented 248 loans to 98 railroad companies. Disbursements on these authorizations were $938,440,875. (See table R-l in
app.C.)
In addition to the loans and purchases made under the RFC Act, the
Corporation also purchased some railroad obligations from the Federal Emergency Administrator of Public Works (later Public Works
Administrator). These purchases were authorized by the Emergency
Appropriation Act approved June 19, 1934. The securities so purchased were acquired by FERA and PWA under the authority of title
I I of the National Industrial Recovery Act, and the funds paid by
RFC for such securities were available to FERA and PWA for the
making of additional loans. The authority for RFC to purchase securities from FERA and PWA existed until June 30,1947. However, it
was not exercised after 1941.
RFC authorized the purchase of 54 issues of railroad securities from
FERA and PWA. The amount authorized to be purchased was
$200,460,500, and disbursements were $199,290,500, as follows:
Year and quarter
3d.
1st..
2d_.
3d-
Authorized
Disbursed
1935
$67,643,500
34,019,000
$67,643,500
34,019,000
19S6
79,070,000
11,782,000
650,000
3,651,000
0,tx>itwu |
78,486,000
11,196,000
650,000
3,651,000 11
3,651.000
Disbursed
Authorized
Year and quarter
19S7
$295,000
60,000
$295,000
150,000
1st
2d
3d
4th.—.
Total
|
3,200,000
3,200,000
200,460,500
199,290,500
l_
•
By June 30, 1947, all of the railroad securities which RFC
purchased from FERA and PWA had been sold or retired, with a
single exception. In the marketing of these securities, a premium
of $6,889,202 was collected over the amounts which RFC had paid
for the^ securities. This amount was credited to FERA and successors in the accounts of the Treasury, and was not considered to be
income insofar as RFC was concerned. Further details on the securities which RFC purchased from FERA and PWA will be found
beginning on page 149 of this report.
98
Public Agencies
Beginning in September 1932, the RFC was authorized to purchase
the securities of or make loans to public bodies and instrumentalities
of virtually any character. These included: States and Territories
and their political subdivisions; municipalities; public corporations,
boards, and commissions; drainage,levee, and irrigation districts; and
public municipal instrumentalities formed in more than one State.
The RFC grouped its transactions with bodies of these types under
the general heading "Public agency loans and securities."
The Corporation authorized a total of $1,518,058,180 in public
agency loans and security purchases. Disbursements on these authorizations amounted to $1,278,764,699, including $32,983,500 disbursed on outstanding commitments after the Corporation's lending
powers expired. These are summarized below, according to the authority under which the authorizations were granted.
Authorized
Self-liquidating projects, under the Emergency Relief and Construction
Act of 1932
„
•Drainage, levee, and irrigation districts under the Emergency Farm
Mortgage Act of 1933
Public bodies under sec. 5(d) of the RFC Act.
Securities of public agencies purchased from FERA and PWA
Disbursed
$398,873,884
$339,533,641
160,127,449
475,202,559
493,854,288
101,787,683
1335,262,291
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 distribution
of RFC's activity in public agency loans and securities; however,
this summary does not include the public agency securities purchased
by RFC from Federal Emergency Relief Administrator (Public
Works Administrator) which are discussed beginning on page
149 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 the
Emergency Relief and Construction Act, approved July 21, 1932.
By the provisions of this act, a "self-liquidating" project was deemed
to be one which would be made "self-supporting and financially
99
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
solvent" and whose construction costs would be returned within a
reasonable time by means of tolls, fees, rents, or other charges exclusive of taxation.
The loans and security purchases authorized by this act cited were
not limited as to maturity, and could be made to finance public
projects authorized by Federal, State, or municipal law. In addition, loans could be made to private corporations formed wholly for
the purpose of providing housing for low-income families and for
reconstruction of slum areas where such projects were regulated by
State or municipal law with respect to rents, charges, capital structure, rates of return, and areas and methods of operation. The
Corporation was also authorized to make loans to private corporations
for the construction, replacement, or improvement of bridges, tunnels,
docks, viaducts, waterworks, canals, and markets devoted to public
use; and to private limited dividend corporations to aid in financing
projects for the protection and development of forests and other renewable natural resources.
Under the authorities cited, a few loans were authorized to private
corporations, but, for the most part, the projects financed were entirely public in nature.
By amendments to the Emergency Relief and Construction Act
approved June 16,1933, the authority of the RFC to make loans and
security purchases for "self-liquidating" projects was terminated,
and such power granted to the Administrator of the Federal Emergency Relief Administration. However, a year later, on June 19,
1934, an act was approved which gave RFC authority to make such
further loans and contracts as might be desirable for the completion, improvement, or extension of any "self-liquidating" project
whose 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 gave
RFC authority to refinance "self-liquidating" projects authorized
under the authorities cited, provided the bonds or other evidences of
indebtedness held by RFC were replaced by new ones judged by
RFC to be more desirable.
The "self-liquidating" loans and security purchases authorized by
RFC under the authority of the Emergency Relief and Construction
Act of 1932 and the various amendments thereto totaled $398,873,884,
100
.PUBLIC AGENCIES
and disbursements on these authorizations amounted to $339,533,641.
(See table PA-2 in app. C.) The distribution of amounts authorized and disbursed by State was as follows:
Number of
borrowers
Alabama..
Arizona
Arkansas
California
Colorado
Connecticut
Florida
Georgia
Idaho
Illinois
Indiana.
Iowa
Kansas...
,
'.,
Kentucky. JIII_I
Louisiana
Maryland
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
New Hampshire.
New Jei
New M
New York
North CarolinaOhio
Oklahoma
Oregon
Pennsylvania—
South Carolina-,
South Dakota—,
Texas
Utah
Virginia
Washington
West Virginia...
Wisconsin
Wyoml
Puerto
Total.
Authorized
Disbursed
6
3
10
8
5
1
7
2
1
7
4
1
3
14
4
1
3
I
2
3
2
2
1
4
4
9
8
9
2
2
4
2
1
20
6
8
2
1
1
1
1
$224,000
1,703,500
1,463,852
310,020,097
2,002,234
100 000
1,644,931
41,000
60,000
7,830,723
833,000
9,700
820,000
1,519,624
16,063,000
59,850
718,841
575 000
327,'000
996,140
207,000
75,000
250,000
3,361,904
5,694,600
27,218,000
1,120,473
628,800
299,983
734,625
315,000
230,500
105,000
4,278,623
737,300
2,110,226
3,026,318
3,000
40,000
125 000
1,300,'000
$74,500
1,690,000
948,852
276,107,097
1,429,803
176
398,873,884
339,533,641
714,931
22,000
60,000
3,074,473
60,000
820,000
998,000
14,273,223
59,850
643,841
277,666
42,000
180,000
15,000
250,000
3,276,000
5,385,600
21,862,000
528,000
453,500
299,983
724,625
100,000
149,500
1,093,013
52,000
1,978,850
550,000
40,666
i, 3o6,666
As the foregoing table shows, more than three-fourths of the
amount authorized for "self-liquidating" projects was in the State
of California. This is because one of the largest investments made
by RFC was in the bonds of an agency of that State. This investment was $208 million in bonds issued by the Metropolitan Water
District of Southern California. The project financed was the 2Mmile aqueduct which carries water from the Colorado River to Los
Angeles, San Diego, and 26 smaller communities in southern California. Also included in the data for California is the $70 million
advanced by RFC for the San Francisco-Oakland Bay Bridge.
101
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Drainage, Levee, and Irrigation Projects
Loans to drainage, levee, and irrigation districts were authorized
to be made by RFC under the provisions of the Emergency Farm
Mortgage Act, approved May 12, 1933. With some amendments,
this authority continued to June 30, 1947; thereafter, authority to
make loans of this type was continued in the broad powers for "public
agency" loans granted by section 4(a) (3) of the amended RFC Act
The original authority to make loans of this type was limited to
the refinancing of completed projects devoted chiefly to the improvement of lands for agricultural purposes. However, by an amendment approved June 19,1934, this was broadened to allow loans to be
made for repairs or improvements to any district which had previously been granted a refinancing loan. The authority was again
broadened by an amendment approved June 22, 1936, under which
loans for the acquisition or construction of such projects were
authorized.
Loans to drainage, levee, and irrigation districts were required to
be "fully and adequately secured" and maturities up to 40 years were
permitted. It also was required that RFC make an appraisal of
each project to determine that it was economically sound and that
the Corporation be satisfied that an agreement had been concluded
between the applicant and its creditors for refunding of outstanding
bonds at a reasonable price.
It was originally provided that loans to drainage, levee, and irrigation districts should not exceed an aggregate of $50 million outstanding at any one time. This limitation was increased to $125
million by the amendments approved June 19,1934.
A total of 1,318 loans amounting to $150,127,449 was authorized to
drainage, levee, and irrigation districts under the authorities existing prior to June 30, 1947. The number of districts to which loans
were authorized was 671. The amount disbursed on the authorizations was $101,787,683. Activity in this field was concentrated between 1933 and 1937, but continued at a lower rate into 1947. (See
table 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, and
irrigation loans to December 31, 1941. Data for subsequent activity
cannot be distributed by State, but the data shown cover more than
95 percent of the amounts authorized and disbursed.
102
PUBLIC AGENCIES
Number of
borrowers
Arizona
Arkansas
California
Colorado
Florida
Idaho
Illinois
Iowa
Kentucky
Louisiana.
Minneasota.
Mississippi
Missouri
Montana
Nebraska
Nevada
New Mexico
North Carolina,
Oregon
South Carolina.
South Dakota..
Tennessee
Texas
Utah
Virginia
Washington
Wisconsin
Wyoming
Authorized
$14,004,454
15,187,746
49,705,147
5,194,841
11,675,531
3,081,515
3,919,596
383,500
91,932
1,494,434
302,500
5,465,236
8,130,350
2,102,749
1,694,330
969,433
963,808
174,000
3,170,236
305,160
156,100
110,300
17,131,325
637,500
136,200
1,425,496
22,000
68,900
Total
661
147,704,319
Disbursed
$3,228,601
12,716,746
27,076,080
2,877,766
10,094,968
2,032,406
2,909,276
195 616
69 604
814,686
4,768,020
6,677,661
1,407,865
1,664,667
634,676
868,386
173,000
2,899,643
149,928
160,100
91,799
16,228,627
315,600
136,000
1,168,373
62,400
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 Corporation was empowered to make loans, through the purchase of securities or otherwise, to all types of public agencies and bodies to aid
in financing projects authorized under Federal, State, or municipal
law. This act provided authority similar to that originally given to
EFC in the Emergency Eelief and Construction Act of 1932, but
transferred to the Federal Emergency Administrator of Public Works
in 1933. However, the authority of the 1938 act was less restrictive
than that of the 1932 act. The 1938 act required that loans made or
securities purchased under this authority be "of such sound value, or
so secured, as reasonably to assure retirement or repayment." There
were no statutory limits placed on the maturity of such loans or security purchases. The authority provided by the 1938 act was continued without substantial change in later amendments and extensions
of the EFC Act, and the Corporation continued to authorize loans to
public agencies until its lending authority was terminated.
Under the powers granted by the 1938 act, and its subsequent
amendments and extensions, the Corporation authorized loans and
security purchases totaling $475,202,559, and made disbursements of
505257—59
8
103
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
$385,262,291. The activity from 1938 through 1947 is shown separately in table PA-4 in appendix C; subsequent activity is combined
with other types of public agency loans and shown in table PA-1.
Data are not available to show the distribution by State of these public agency loans. However, it appears that they were widely spread
among the States, with concentrations of dollar amounts being due
to large projects such as the $136 million authorized to the State of
Arkansas Highway Department, the $37 million for the Pennsylvania
Turnpike Commission, the $20 million for the City of Philadelphia
Gas System, the $28,885,000 for the City of Cleveland Transit
Authority, and the $22,450,000 for the hydroelectric project of Public
Utility District No. 1 of Pend Oreille County, Wash.
Public Agency Securities Purchased From FERA and P W A
The authority which EFC had been given to make loans and security purchases under the Emergency Relief and Construction Act
of 1932 was transferred to the Federal Emergency Administrator of
Public Works by amendments approved June 16, 1933. However,
in the Emergency Appropriation Act approved June 19, 1934, the
RFC was authorized to purchase marketable securities from FERA
and the sums paid for such purchases were to be available for the
making of additional loans.
Most of the securities purchased by RFC from FERA and successors were paid for at par value. About one-fourth of those purchased were bought at a discount—usually one-third. The public
agency securities so purchased by RFC were as follows:
Par value
Purchased at par
Purchased at a discount
Total
104
II.I.I
Amount paid
byBFO
$368,976,517
124,877,771
$368,976,517
83,204,667
493,851,288
452,181,084
Financing Other Government Agencies
In addition to the allocations and loans made to other Government
agencies at the specific direction of the Congress, there were a few
instances in which EFO funds were used to finance other Government
agencies within the discretion of the executive branch of the Government. (The loans made to agricultural financing institutions—either
wholly or partially Government owned—are treated with separately
beginning on p. 87 of this report.)
Export-Import Banks
The Export-Import Bank of Washington originally was authorized
in Executive Order 6581, dated February 2,1934, as a banking corporation organized under the laws of the District of Columbia. The
original capitalization of the bank consisted of $1 million transferred
by the President out of the appropriation authorized by section 220
of the National Industrial Kecovery Act, plus $10 million of preferred stock subscribed for by the RFC.
I t was intended that the Export-Import Bank organized under the
Executive order of February 2, 1934, limit its activities to the promotion of trade with the Soviet Union. However, soon after this Bank
was created, requests for loans were received from other foreign
nations. To handle these, the Second Export-Import Bank of Washington was authorized and created under Executive Order 6638, dated
March 9,1934. The capital of the Second Export-Import Bank was
$2,750,000, of which $2,500,000 was preferred stock subscribed for by
RFC. The Second Export-Import Bank was abolished, effective June
30,1936, by Executive Order 7365 of May 7,1936, and merged with the
original Bank.
The RFC subscriptions for the preferred stock of the ExportImport Banks were authorized by section 304 of the act approved
March 9,1933, which allowed the RFC to subscribe for the preferred
stock of any national banking association or any State bank or trust
company which, in the opinion of the Secretary of the Treasury, was
in need of capital funds for the purpose of organization or reorganization.
Section 9 of the act approved January 31,1935, as amended, authorized RFC to continue to supply capital to the Export-Import Bank
through loans or subscriptions for preferred stock. This authority
was continued in the act approved September 26,1940, which author
105
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
ized RFC to supply funds to the Export-Import Bank for the development 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 occurred are shown in table G-l in appendix C.
Defense Homes Corporation
In a letter to the Secretary of the Treasury on October 18, 1940,
the President provided an allocation of $10 million from his emergency fund to the Federal Loan Administrator to provide homes in
areas of extensive defense activities. Pursuant to this, Defense
Homes Corporation was incorporated under the laws of the State of
Maryland on October 23, 1940. The allocation from the President
provided the capital to begin operations; later financing was obtained
as needed by borrowing from RFC.
By Executive Order 9070 of February 24, 1942, DHC was transferred to Federal Public Housing Authority in National Housing
Agency and was thereafter administered by the Housing and Home
Finance Administrator. Throughout its existence DHC was operated
much 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-2
in appendix C. Of this, $40,870,411 was outstanding on June 30,1948,
when the applicable provisions of the Government Corporation Appropriation Act, 1949, became effective. By these provisions, all assets,
liabilities, capital stock, and records of DHC were transferred to RFC
without reimbursement, for the purposes of liquidation. The capital
stock was canceled, and on February 4, 1949, a certificate of dissolution was obtained.
The net assets of DHC acquired by RFC for liquidation amounted
to $52,854,626, as follows:
Cash
Mortgage notes
Accrued Interest
Other assets
Less liabilities assumed
Net assets
721f
787
414
50,037
4 6 150>
_
IIHII_~I_III~III
17^ 139
52
' ° ^ 751
52,854,626
The cash received in the transfer was applied to reduce DHC's loan
indebtedness to RFC. Under the transfer agreement, subsequent collection on DHC assets made by RFC were applied to the payment of,
in order:
1. Administrative expenses.
DH0>
Other t h a n i t s
i6. Jjoan
T^TxVl
indebtedness to RFC.
indebtedness to HFC.
106
FINANCING OTHER GOVERNMENT AGENCIES
The mortgages notes received by RFC for liquidation consisted of
those acquired in the sale of four properties by DHC. RFC continued
to administer and liquidate these mortgage notes until June 30,1954,
when they were transferred to the Federal National Mortgage Association 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:
June 30,1948
Fainnac Corp
Veterans Cooperative Housing Association
Meridian Hill Corp
. „
Bremco, Inc.—
Total
.
June 30,1964
$38,466,746
4 490 295
2,626,922
666,451
$34,960,588
2,191,070
3,760,652
621,324
46,150,414
41,633,634
At the time these assets were transferred to FNMA, RFO's equity
in the assets was $27,307,358 as compared to $40,870,411 when RFC
acquired them on June 30, 1948. FNMA assumed RFC's notes payable to the Treasury in an amount equivalent to the net assets
transferred.
Federal Home Loan Banks
Section 2 of the original RFC Act directed the RFC to make available to the Secretary of the Treasury, out of the Corporation's capital,
up to $125 million for the purpose of enabling the Secretary to subscribe for the stock of the Federal home loan banks. RFC disbursed to the Secretary for this purpose $124,741,000. In 1938, the
amount which RFC had disbursed to the Secretary was included with
other allocations and loans made to other Government agencies at
the direction of Congress for which RFC notes payable to the Secretary of the Treasury were canceled. At this time, the stock of the
Federal home loan banks continued to be held by the Secretary of
the Treasury,
In 1941, when the public debt was approaching its limit, RFC
ceased borrowing from the Treasury, borrowed instead from the public, and with part of the funds so obtained purchased from the Secretary of the Treasury the stock of the Federal home loan banks, thus
providing the Treasury with additional funds. The amount paid by
RFC for this stock was $124,741,000, the same as had originally been
advanced*
RFC continued to hold this stock until July 1,1947. During the
intervening period, some retirements had been made by the banks (see
table 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 act
approved June 30,1947, RFC's notes payable to the Secretary of the
Treasury were canceled in the amount of $122,670,000 and the capital
stock of the banks returned to the Secretary*
107
Loans to Foreign Governments
Under the provisions of an act approved June 10, 1941, the EFC
was authorized to make loans to any foreign government for the purpose of achieving the maximum dollar exchange value in the United
States for the securities or property of any such government. The
act required that these loans could be made only on the request of the
Federal Loan Administrator, with the approval of the President
Only one loan was made under this authority, that being the $425
million authorized to the Government of the United Kingdom of
Great Britain and Northern Ireland.
By an act approved August 7, 1946, EFO was authorized to lend
up to $75 million to the Philippine Republic after consultation with
the National Advisory Council on International Monetary and Financial Problems. A loan of $70 million subsequently was made
under this authority.
Under section 201 (c) of the Emergency Eelief and Construction
Act of 1932, the RFC authorized loans to the Republic of China and
the Kingdom of Norway. These loans were for the purpose of financing sales of agricultural surpluses in foreign markets. In this
report, the statistical data on loans to foreign governments to finance
sales of agricultural surpluses are included with other loans made for
the same purpose.
The loan to the Republic of China was authorized in July 1933, in
the amount of $50 million, of which $17,105,386 was disbursed and
repaid. The loan authorized to the Kingdom of Norway was for $10
million, and was canceled without any disbursements being made.
Great Britain
The Government of the United Kingdom of Great Britain and
Northern Ireland entered into an agreement with RFC on July 21,
1941, for a loan of $425 million. On August 1, 1941, the borrower
executed its note for $425 million "or such lesser sum as shall be advanced." The note bore interest at the rate of 3 percent per annum
payable semiannually, and carried a maturity date of July 1, 1956.
Provision was made to extend the note for 5 years providing that twothirds of the amounts disbursed were repaid prior to maturity.
A total of $390 million was advanced by RFC on the note, all of
which was repaid as shown in table F - l in appendix C*
109
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Collateral for the loan consisted of British-owned shares in U.S.
insurance companies, assignment of income of U.S. branches of British
insurance companies, securities of U.S. corporations in which British
ownership was controlling or substantial, and securities of other U.S.
corporations. At the time of receipt, the RFC valued the collateral
at $538,944,328. Income from the collateral was more than sufficient
to make the stipulated principal and interest payments. The loan
was completely retired on September 28,1951, well in advance of its
maturity.
Philippines
Pursuant to specific legislative authority, in 1946 the RFC authorized a loan of $25 million to the Republic of the Philippines. This was
increased to $70 million in 1947. The loan bore interest at the rate of
2 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 the
recommendation of the National Advisory Council on International
Monetary and Financial Problems.
On June 24,1947, a payment of $10 million reduced the principal
balance to $60 million. The loan agreement was revised upon the
advice of the Council on December 12,1951. Effective January 1,1952,
the interest rate was increased to 2y2 percent per annum, and repayment was to be made in 20 semiannual installments of $3 million each,
beginning January 1, 1952. Table F-2 in appendix C shows the receipt of later payments which reduced the principal balance to $42
million as of June 30,1954. At the close of that day, the loan was transierred to the Export-Import Bank of Washington as provided for by
Reorganization Plan No. 2 of 1954. The Bank assumed KFC notes
U S TreaSUry e( uivaleilt
E ^ 1
l
to the net amout of the assets
110
Disaster Loans
Starting early in its existence the RFC (and its affiliate, Disaster
Loan Corporation) was authorized to make loans for the rehabilitation
and repair of damage, and alleviation of hardship, caused by earthquakes, fires, floods, hurricanes, and similar disasters. These lending
functions continued until September 28,1953, when the provisions of
the EFC Liquidation Act terminated the Corporation's authority to
make new loans of any nature. The Small Business Administration
was authorized to continue the making of disaster loans by the same
act which terminated EFC's lending powers.
Disaster Loans in 1933
By an act approved March 23,1933, EFC was authorized to make
loans to nonprofit corporations organized tofinancethe repair or reconstruction of buildings damaged by earthquake in the year 1933. All
loans were limited to maturities of 10 years, and the act provided that
no loans could be made after December 31,1933. An amendment of
May 29,1933, extended the purposes for which loans could be made to
cover damage by fire, tornado, and cyclone. A second amendment,
approved June 19,1933, provided for maturities of 20 years in the case
of loans to municipalities.
Loans amounting to $10,450,232 were authorized to six nonprofit
corporations in five States during 1933. It was not until the end of
1943 that all of these loans were liquidated. (See table D-l in appendix C.)
The States in which these loans were made were as follows:
Authorized
— (earthquake)
——3 (tornado)
-Umisiana (cyclone)
Maine (fires)
Tennessee (cyclone)
$7,500,000
1,000,232
200,000
1,650,000
100,000
Disbursed
$7,499,361
113,705
156,800
659,373
99,869
Disaster Loans, 1934-36
On April 13,1934, an act was approved which authorized RFC to
make loans to nonprofit corporations organized to finance "the acquisition of home or building sites in replacement of sites formerly occupied
by buildings where such sites are declared by public authority to be
HI
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
unsafe by reason of flood, danger of flood, or earthquake, and for the
purpose of financing the repair or construction of buildings or structures, or water, irrigation, gas, electric, sewer, drainage, flood-control,
communication, or transportation systems damaged or destroyed by
earthquake, conflagration, tornado, cyclone, or flood in the year 1933,
and in the months of January and February 1934 * * *." Maturities
were limited to 10 years in the case of private property, and 20 years
for utility systems and political subdivisions of States and Territories.
By an amendment approved July 26,1935, the act was extended to
cover disasters occurring in the years 1933 through 1936. By an amendment approved April 17, 1936, the restriction limiting loans to nonprofit corporations was removed, and RFC was authorized to make
disaster loans to corporations, partnerships, individuals, and municipalities or other political subdivisions of States and Territories.
Under this act, as amended, loans totaling $5,734,289 were authorized to 669 separate borrowers. Disbursements on these loans amounted
to $3,473,947. Final liquidation of these loans was accomplished in
1947. (See table D-2 in app. C.)
The States in which loans were made under this authority were as
follows:
Authorized
California
Connecticut
Florida
Georgia
Maine
Maryland
Massachusetts
Mississippi
Montana
New Hampshire..
$2,160,000
142,945
£0,000
1,335,600
24,250
™I
24,600
325,159
216,250
150,000
42,050
Authorized Disbursed
Disbursed
$1,252,830
91,175
11,541
989,805
8,450
11,600
66,824
175,871
116,635
23,471
New Jersey
New York.
North Carolina
Ohio
Pennsylvania
Texas
West Virginia
$500
63,697
10,500
4,900
1,035,388
140,000
27,650
Total
5,734,289
$36,072
4*900
643,823
20,000
20,950
3,473,947
Disaster Loan Corporation, 1937-45
The Disaster Loan Corporation was created by an act approved
i ebruary 11,1937, to meet the emergency brought about by the floods
in the Ohio-Mississippi Valley. In the original act, the Corporation's
S? ^
^ to thos* k con nection with disasters in the year
L f r T '
t h r U g h subs
°
equent amendments (acts approved May
1937, March 3,1938, March 4,1939, and June 10,1941), the period
a^2
2
!^
The Corporation was empowered "to make, upon such terms and
conditions and in such manner as it may prescribe, such loans as it
112
DISASTER LOANS
may determine to be necessary or appropriate because of floods or other
catastrophes * * *."
The capital stock of the Corporation was originally limited to $20
million, and was subscribed for by KFC out of the unexpended balance
of the $50 million which RFC was authorized to lend for disaster relief
under the act approved April 17,1936. The limiting amount on DLC's
capital stock was increased to $40 million by an act approved March 4,
1939. EFC subscribed and paid for a total of $24 million of the
capital stock of DLO.
Disaster Loan Corporation was not specifically authorized to borrow
funds under the provisions of the act which created it. However, a
provision of that act specified that the Corporation "shall have such
other powers as may be necessary and incident to carrying out its
powers and duties," and could have been construed to include the
power to borrow. The amounts obtained from sale of its capital stock
were sufficient to meet the Corporation's requirements for funds, and
no borrowings were made.
The EFC had paid in $10 million for the capital stock of DLC prior
to February 24,1938. On that date, an act was approved which canceled RFC's obligations to the Treasury incurred to enable KFC to
finance certain activities of other Government agencies. At the same
time, the securities and other assets acquired by KFC as the result of
such financing were required to be transferred to the Treasury. The
capital stock of DLC was one of these assets.
By this transfer, DLC ceased to be a subsidiary of RFC. By Reorganization Plan No. 1, effective July 1, 1939, the DLC was grouped
with other agencies to form the Federal Loan Agency. Later, DLC
was transferred to the Department of Commerce by Executive Order
9071 of February 24, 1942. It was returned to the Federal Loan
Agency pursuant to an act of February 24,1945. The Disaster Loan
Corporation was dissolved by an act approved June 30,1945, and its
functions, 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 manner
and to the same extent and effect as if originally vested in Reconstruction Finance Corporation."
Although DLC was technically not a subsidiary of RFC after
February 24,1938, it continued to obtain funds through RFC and it
operated with RFC personnel much as if it were a division of that
Corporation.
From the time it began operations through June 30, 1945, the
Disaster Loan Corporation authorized a total of 24,088 loans amount-
113
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
ing to $37,361,659. The disasters in connection with which these loans
were authorized were as follows:
Authorized
Number
1937—Ohio Valley flood
1937—Montana
flood
-1938—New England hurricane and flood
1938—California
floods
*1938—South Carolina—Charleston hurricane
1939—Southeastern States floods.
1940—Qeorgla tornado
„„..
1940—Mississippi flood
1940—California OTtMnfti™ 1940—California flood...
1942—Alaska flre
1942—Oklahoma tornado
.
1942—Pennsylvania flood
1943—Mississippi Valley flood
1943—East Texas sleet and windstorm
1943— Oklahoma fire
1944—New Jersey tornado
- -
Others Involving loan authorizations of less than $50,000 in
each disaster
Total
7,537
30
1,880
342
44
liC
S
22
6
65
23
99
1
2
17
773
24,088
Amount
$8,613,336
121,600
20,331,777
919,989
130,608
1,994,245
110,731
413,962
50,373
72,175
103,000
228,645
157,641
95,165
3,000,000
57,700
67,850
Amount
disbursed
$7,027,390
105,450
19,203,670
681,248
106,985
1,796,318
98,675
345,034
30,035
48,080
42,000
198,491
105,591
77; 205
770,000
57,700
14,000
893,062
646,678
37,361,659
31,354,550
The $31,354,550 which DLC disbursed involved 21,136 loans. By
June 30,1945, when the Corporation was transferred to RFC, 14,801
loans and $27,937,141 had been repaid. In addition, 4,280 loans involving disbursements of $2,002,089 had been charged off as losses.
There were transferred to RFC 2,055 loans with outstanding principal balances aggregating $1,415,321.
The major portion of the losses arising from loans charged off by
DLC was in connection with one loan made, as the result of the New
England hurricane of 1938, to the Federal Surplus Commodities
Corporation, a Government corporation affiliated with Commodity
Credit Corporation.
The hurricane which struck the six New England States in September 1930 felled an estimated 4 billion feet of timber and affected
some 12,500 landowners. The Forest Service of the Department of
Agriculture, after conferences with the President and representatives
of DLC, developed a program for salvaging much of the down timber. Under this program, the Federal Surplus Commodities Corporation salvaged the timber and each owner was paid 90 percent of
114
DISASTER LOANS
his timber's fair value. To finance the salvage operations, FSCO
was loaned $16,269,300, repayable only from the proceeds of the
salvage program.
The program was fully liquidated in the spring of 1945, at which
time there was $1,279,533 of the loan outstanding. This amount was
charged off as a loss by the managing directors of DLC.
A similar program was undertaken in 1943 when a sleet and wind
storm in east Texas damaged a large quantity of timber. To finance
salvage operations in this area, DLC agreed to lend up to $3 million
to FSCC. Disbursements on this loan amounted to $770,000. Much
of the timber damaged by this storm was of pulpwood grade and located in areas which made it impossible to salvage it at costs below
current OPA ceiling prices. As the result of discussions between officials of the War Production Board and the Federal Loan Administrator, the Defense Supplies Corporation (a wartime subsidiary of
RFC) established a subsidy fund of $300,000 out of which to pay the
excess salvage costs. The loan was fully repaid from the proceeds
of 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, the
RFC 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 (2,594
loans authorized for $19,290,630) were in connection with the floods
which occurred along the Kansas, Missouri, and Mississippi Kivers
and their tributaries in July 1951. Some other disasters which occasioned significant numbers of disaster loans being made by RFC
were:
Tornado in Oklahoma-Texas Panhandle area
Explosions at Texas City, Tex
Gulf coast hurricane
Columbia River
floods
Florida hurricane
Ohio and Wabash Rivers
floods
Michigan
floods
1947
ld47
1948
1948
i m
1949
1952
The general characteristics of the disaster loans made by RFC subsequent to June 30,1945, are shown in the following tabulations. The
first of these shows the general purpose of outstanding disaster loans
115
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
and commitments as of December 81,1953, according to the States in
which the borrowers were located.
[Dollars in Thousands]
Home loans
Businsss loans
Total
State
Alabama
-.
.........
California
....
... Connecticut *•
Delaware....
.
Florida
............ . .. .
..
Georgia...... .
•—
.....
Illinois
Indiana
Iowa
Kansas.......
..............
..__.
Kentucky
....
..
.»
.
M a i n e . . . . . . . . . . . . . . . . . . . . . . . . . . . .......
Massachusetts
..
...
.
Michigan
....
.
...
.
Minnesota
._
Mississippi
Missouri
Montana
Nebraska
New Hampshire
New Jersey
North Dakota
Ohio
Oklahoma
_.
Oregon
.
Pennsylvania
Rhode Island
South Dakota
Tennessee
Texas
Virginia
Washington
West Virginia
Wisconsin
Number
Amount
11
102
31
$54.3
275.1
90.4
11
43
9
5
36
1,281
2
26.0
199.6
19.4
27.0
64.5
2,714.4
0.6
2
33
39
3
1
43
3
1
1
9
540
$14.5
258.4
1,146.3
11.0
65.3
500.8
7.0
0.4
7.9
57.3
5,525.3
95
110
51
3
100
27
34
525.2
337.4
84.8
13.9
218.3
63.8
45.1
2
33
4
171
20
4.1
25.6
17.9
234.8
24.4
26
50
71
3
6
2
8
47.3
200.2
127.5
5.6
9.6
3.5
15.6
101
32
2
24
15
99
3
9
2
6
3
1
6
23
3
2
14
9
56.1
71.1
4.4
99.0
119.3
2,512.1
19.0
141.7
0.9
25.6
29.6
19.5
40.4
279.6
202.0
3.1
39.7
121.3
69
1
12
5
5
343.6
2.7
94.6
26.9
22.6.
54
46
10
6
45
1,821
2
101
127
112
75
18
199
30
43
2
8
36
5
177
43
3
2
40
59
71
72
7
14
13
5
2
39.7
2
39.7
3,470
17,384.5
Alaska
Total
Number Amount
Number Amount
2,347
6,475.9
1,123
11,908.6
13
135
70
3
$68.8
533.5
1,236.7
11.0
65.3
526.8
206.6
19.8
34.9
121.8
8,239.7
0.6
56.1
596.3
341.8
183.8
133.2
2,730.4
82.8
186.8
0.9
29.7
55.2
37.4
275.2
304.0
202.0
3.1
87.0
321.5
127.5
349.2
12.3
98.1
42.5
22.5
The next table shows the size of outstanding disaster loans and commitments as of December 31,1953, according to their general purpose.
[Dollars In thousands]
Size
Home loans
Number
Less than $500-...
$500-$999
$l,000-$2,499
$2,500~$4,999
$5,000-$9,999
"
$25,000 and over.
Total
Business loans
Amount Number
Total
Amount
Number
Amount
282
334
921
609
180
21
$80.8
250.3
1,587.5
2,107.6
1,182.6
267.1
132
103
214
234
175
161
104
$35.6
76.2
376.7
834.9
1,258.2
2,586.2
6,740.8
414
437
1,135
'843
355
182
104
$116.4
326.5
1,964.2
2 942.6
% 440.8
2.853.3
& 740.8
2,347
5,475.9
1,123
11,908.6
3,470
17,384.5
On September 28,1953, the authority of RFC to make new loans
of any type was terminated as provided by the RFC Liquidation
Act. At that time, the RFC had outstanding 3,373 disaster loans
116
DISASTER LOANS
with unpaid principal balances of $16,143,000, and 232 undisbursed
disaster 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 accordance 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 first
authorized, to termination of the RFC's lending powers on September 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 according
to legislative authority.
Authorized
Authority
Number
Act of Mar. 23,1933, as amended
Act of Apr. 13f 1934, as amended
Act of Feb. 11,1937, as amended (DLO)
Act of June 30,1945, as amended
Total
Disbursed
Amount
13
705
24,083
6,579
$10,450,232
Si 734| 289
37,361,660
35,439,075
$8,529,103
3 473 947
31,354,550
25,468,043
30,335
83,985,256
68,825,653
The losses incurred in the program approximated $4,860,000, or
about 7 percent of the amounts disbursed.
117
Civil Defense Loans
The Federal Civil Defense Act of 1950 (sec. 409) authorized the
EFC to make loans for civil defense purposes upon certification by
the Federal Civil Defense Administrator. Loans outstanding at any
one time were limited to $250 million, and the loans were financed
by borrowings from the Treasury,
In the EFC Liquidation Act (sec. 104) it was directed that all
powers, duties, and authority of KFC under the Federal Civil Defense Act be transferred to the Secretary of the Treasury. This
transfer became effective September 28, 1953. Following the transfer, the Secretary arranged for the EFC to serve as his agent in
administering the civil defense loan functions, and this arrangement
continued until the abolition of EFC on June 30,1957.
A total of 10 civil defense loans amounting to $7,918,000 were authorized before the Congress effectively stopped the consideration of
applications for new loans by failing to approve a request for a limiting amount on expenditures for administrative purposes during fiscal
year 1956. Although the Federal Civil Defense Act did not specifically limit the use of the lending authority, all loans authorized
were to assist in financing the construction of hospitals.
There were seven loans authorized by EFC under the authority
of the Federal Civil Defense Act in the amount of $5,568,000. (See
table CD-I in app. C.) These were authorized as direct loans,
but two of them, amounting to $2,600,000, subsequently were changed
to deferred participations in which the Government's share was
$1,290,000. Three loans were authorized after the program had been
transferred from EFC to the Secretary of the Treasury. These were
authorized as deferred participation loans* The total amount of
the 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 RFC
was authorized to make loans to public-school districts, or similar
authorities, 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 time
was limited to $75 million.
Only one loan was authorized under this authority. That was a
loan of $22,500,000 to the Chicago Board of Education authorized in
August 1934. There was disbursed on this loan $22,300,000, all of
which 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 to
make loans to tax-supported public-school districts for the purpose of
enabling any such district, or similar authority, to reduce and refinance 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 required
to be allocated equitably among the States on the basis of demonstrated need. Maturities of the loans were limited to 33 years.
Under this authority, the RFC authorized 35 loans to 31 school
districts or authorities. The amount authorized was $3,189,050, and
disbursements were $957,175. All amounts disbursed were repaid in
full. (See table SD-1 in app. C.)
The distribution by State of loan activity under this authority is as
follows:
Number Number
of borof authoriza- rowers
tions
Arkansas
Florida
Texas . . .
Total
_
„
Amount
authorized
Amount
disbursed
23
1
11
20
1
10
$1,138,800
242,000
1,808,250
$165,000
35
31
3,189,050
957,175
792,175
121
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Loans fo Processors or Distributors Subject to Processing Taxes
The Agricultural Adjustment Act of 1933 provided for the payment
of taxes by processors or distributors of a variety of agricultural
products. This act also provided that "In order that the payment of
taxes under this title may not impose any immediate undue financial
burden upon processors or distributors, (any processor or distributor
subject to such taxes shall be eligible for loans from the Reconstruction Finance Corporation under section 5 of the Reconstruction
Finance Corporation Act."
Only seven loans amounting to $26,089 were authorized to processors and distributors under these provisions. The amount disbursed on these loans was $14,718, all of which was repaid. (See
table PD-1 in app. C.) These loans were made in the following
States:
Authorized Disbursed
Authorized Disbursed
Connecticut
Kentucky
MontanaNew Jersey
Ohio
$667
3,428
488
3,300
7,400
$567
3,428
Pennsylvania.-.
Tennessee
$3,906
7,000
$3,906
6^17
Total
26,089
14,718
Loans to State Funds for Securing Repayment of Deposits of Public Money
In an act approved June 10,1933, the E F C was authorized to make
loans, if adequately secured, to any fund created by any State for the
purpose of insuring the repayment of deposits of public moneys of
such State or any of its political subdivisions. The act also required
that any State fund receiving such a loan should assign to EFC, to
the extent of the loan, all amounts which might be received by the
fund from the liquidation of any bank or depository in which deposits of public moneys were made.
The only authorizations made under this authority were to the
Board of Deposits of Wisconsin. Loans amounting to $13,087,716
were authorized, and $13,064,631 was disbursed. All amounts advanced were repaid. (SeetableSF-linapp.C.)
122
Financing RFC's Wartime Subsidiaries
The national defense and wartime activities of EFC began in 1940
with legislation which amended the basic RFC Act for the purpose
of enabling the Corporation "to aid the Government of the United
States in its national-defense program." This act, approved June
25, 1940, empowered EFC to create or purchase the capital stock of
corporations for the purpose of—
1. Dealing in strategic or critical materials.
% Acquiring real estate and plant facilities for the manufacture of strategic and critical materials, arms, ammunition, implements 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 with
them,
6. Acquiring and disposing of facilities for the training of
aviators.
7. Taking such other action as the President and the Federal
Loan Administrator might deem necessary to expedite the national defense program.
Under the powers outlined, the KFC created seven corporations
and acquired one other subsidiary (Eubber Development Corporation) „ The dates of creation and dissolution of these were :
Aug. 22,1940
Aug. 29,1940
Dec. 13,1941
Mar. 26,1912
Petroleum Reserve Corporation (later
)
June 90,1948
June 30,1947
June 30,1946
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 existence except for purposes of liquidation only until Jan. 22,1947.
All of EFC wartime subsidiaries were financed through the purchase of capital stock and loans. The operations of the subsidiaries
did provide funds which were used to repay advances made by the
parent. However, more than one-third of the amounts advanced
recovered by EFC through cancellation of the notes which EFC
123
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
had issued to the Secretary of the Treasury for the funds used to
finance the wartime activities. The funds supplied to the wartime
subsidiaries and the recoveries thereon while the subsidiaries remained
in existence are summarized below:
Stock
purchased
Loans
Total funds
supplied
Recoveries
in cash
Other
recoveries
Metals Reserve Company... $5,000,000 $2,418,237,521 $2,423,237,521 $1,757,576,001 $665,661,520
299,689,956
1,425,433,460
1,720,123,416 1,725,123,416
Rubber Reserve Company-. 6,000,000
2,909,939,547 5,088; 351,300
7,998,290,847
Defense Plant Corporation.. 5,000,000
7,993,290,847
Defense Supplies Corpora4,797,350,451 1,596,995,524
6,394,345,975
tion
5,000,000
1,000,000
1,000,000
War Damage Corporation... 1,000,000 6,389,345,975
164,883,943
1,832,504,007
U.S. Commercial Company. 5,000,000
1,997,387,950
1,992,387,950
Rubber Development Cor*
58,215,665
poration
278,915,859
337,131,524
1
337,131,523
Petroleum Reserves Corporation (later War Assets
Corporation)
100,000
1,100,000
1,100,000
1,000,000
Total
27,000,001 20,850,617,232 20,877,617,233 13,003,819,325 7,873,797,908
Table W-l in appendix C is a summary by quarter-year periods of
RFC's financing of its wartime subsidiaries.
The operations of RFC's wartime subsidiaries were conducted in
conjunction with the programs of other Government agencies administering national defense and wartime functions. In many instances, a specific program involved the War and Navy Departments,
the War Production Board, the Office of Price Administration, the
RFC itself, and one or more of EFC's wartime subsidiaries. The
RFC might make loans to industry to provide working capital or
facilities for production, Defense Plant Corporation would construct
and equip Government-owned production facilities, and Defense Supplies Corporation or Metals Reserve Company would carry on procurement and stockpiling activities and handle subsidy payments^-all
related to a specific material or program.
To detail the extent to which RFC and its subsidiaries participated
in the numerous defense and wartime programs is beyond the scope
of this report. The following descriptions of the activities of RFC's
wartime subsidiaries are limited to outlining their principal operations from the standpoint of what use was made of the funds advanced
by the parent corporation.
Metals Reserve Company
Metals Reserve Company was organized as a Corporation on
June 28, 1940, under the authority of section 5(d) of the RFC Act,
as amended. The company had capital stock of $5 million subscribed
and paid for by RFC, and during its existence borrowed from RFC
a total of $2,418,237,521. (See table W-fl in app. C.)
The management of Metals Reserve Company was vested in a
Board of Directors appointed by RFC. Most of the members of
124
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 other
subsidiaries.
The principal functions of Metals Eeserve Company were (a) the
procurement, stockpiling, and disposal of metals and minerals defined
as strategic and critical; and (b) the payment of subsidies to producers of strategic and critical materials.
All programs and activities of the Company were undertaken at
the request or under the sponsorship of other U.S. Government
agencies. The Company did not exercise policymaking functions
in connection with its undertakings, but assumed responsibility for
administrative and procedural functions only. Policies for the procurement 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 War
and Navy Departments, and other interested agencies of the Government. Policies for the subsidy program were determined by the War
Production 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 Company
also entered into programs for the acquisition, recovery, and conversion of scrap materials, as well as a program for the distribution
of aircraft parts and materials which had become surplus to the
needs of certain aircraft manufacturers operating under Army and
Navy contracts. In these trading activities a total of $2,750 million
was disbursed in acquiring about 50 different metals and minerals from
51 foreign countries, 38 States of the Union, and Alaska and the
Philippines. The quantities of the various commodities purchased
through June 30,1945, are shown in the following table :
Material* Acquired by Metals Reserve Company to June 30,1945
Unit
Aluminum:
Primary aluminum..
Secondary aluminum
A™5 a u x i t ? a n d o t h e r ores"."-"
Amblygonite
Antimony:
Refined
Ores and oxides
Arsenic metal and cres-'IIIIIII
Asbestos
garytes (barium sulpha'toT""
Beryllium ores
!....._
&^dbth
sulphate)
Short ton.
.do.-...
..do..
..do..
..do..
.do..
.....do...
do..,
.do..
do
....-do
do
Pound
Short t o n . .
.....do
do
Quantity
647,353
18,302
5,717,733
490
18,017
60,855
49,195
77,293
64,030
18,186
587
2,107
8,032
14,525
2,441,246
72
125
FINAL REPORT ON THE RECONSTRUCTION FINANCE
CORPORATION
Materals Acquired by Metals Reserve Company ro June 3 0 , 1945—Continued
Unit
Copper:
feeflned
Ores and concentrates
Corundum
Diamonds
Fluorspar ores and concentrates.
Gold
Graphite
Iron, pig and ore..
_
Kyflmtfl (aluminum silicate)
Ores and concentrates. -„
Antimonial lead
Lead base alloys
Magnesium
Manganese:
Ores
Ferromanganese
Mercury.,
Mica
Molybdenum concentrates
Nickel:
Refined and matte
Ores
Platinum and associated metals
Quartz crystals
Rutile ore (titanium dioxide)
Silver
Spodumene
Talc
Tantalum ores
Tin:
Refined
Ores and concentrates
Tungsten ores and concentrates
Vanadium ores and concentrates
Zinc:
Refined
Ores and concentrates
Zircon..
..
. . . . ...... .........
Scrap and salvage:
Aluminum.........
Brass
Copper.
Copper screening
Iron and steel
Manila cordage
Nickel
Oil country pipe
Tin....
.„
White metal
Short ton
.do
do
Carat
Short ton. _.
Troy ounceShort ton
do
do
..do.
..do.
..do.
..do.
..do.
-
do
_..d
Flask
Pound
Short ton.
:
.....do
do
Troy ouncePound
Short ton
Troy ounceShort ton__.
.....do
do
„
.
III"I™~""II™~*IIII"II
._
..
*.
Quantity
2,960,572
1,091,686
18,713
5,013,206
206,842
374,174
29,160
224,796
6,912
1,184,695
449,053
26,147
4 196
8,757
2,778,900
* 6 159
119,915
41,684,472
4,200
49,606
13,414
262,525
6,767
2,439
8053
4; 821
201,045
.do.
.do.
.do.
d
d
.do.
274,450
321710
..do
do
do
970,304
2,768,818
* 201932
_.._do
do
do
"IIII-.-i
Square foot..
Short ton
..do.
..—do
do
illZdo
do
do
12,106
20,048
243 913
867,141
13,030
39,072
16 596
1 167
138 427
I~~ZZ~~IIZ~~~IIIIII~~III~IZIII~~—
3Sbf i X I
The materials purchased by MEG were sold for $2,800 million.
Another $1 billion was disbursed for freight, storage and handling
expenses, operating expenses, and subsidy payments.
The largest single class of expenditure made by Metals Reserve
Company was the payment of over $350 million in direct cash subsidies to producers of strategic metals and minerals, principally copper, lead, and zinc. These payments, which were made under authority contained in the Emergency Price Control Act of 1942 and
subsequent legislation, were granted to stimulate the development of
new sources for, and maximum production of, metals and ores which
were in short supply.
Beginning in July 1940, Metals Reserve Company became active
in the Government's program to assure supplies of tin metal. As
126
FINANCING RFC'S WARTIME SUBSIDIARIES
part of this program, MRC sponsored the construction of a tin smelter
at Texas City, Tex., and supervised the smelter's operations. MRC
also undertook to procure the tin ores needed to supply the smelter.
Following World War II, the program for the operation of the
smelter and procurement of the necessary tin ores was continued by
MRC's successors until the smelter was sold to a private operator in
February 1957.
A full review of the Government's tin program from 1940 to 1957
is contained in the report of the Federal Facilities Corporation noted
on page 319 in appendix D.
The operations of Metals Eeserve Company provided funds sufficient to repay all but $665,661,520 of the sums advanced by BFC
before 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 liabilities
was continued by RFC, and such costs as were unrecovered on June 30,
1947, were included in the RFC notes payable to the Secretary of the
Treasury which were canceled by direction of the Congress.
Rubber Reserve Company
Rubber Reserve Company was organized as a corporation on June
28, 1940, under the authority of section 5(d) of the RFC Act, as
amended. The Company had capital stock of $5 million subscribed
and paid for by RFC, and during its existence borrowed from RFC
a total of $1,720,123,416. (See table W-3 in app. G)
The management of Rubber Reserve Company was vested in a
Board of Directors appointed by RFC. The members of RRC's Board
and the officers appointed by them also served as directors or officers
of RFC itself or of its other subsidiaries.
The primary purpose of RRC was to aid the national defense program by providing supplies of rubber to meet both military and
civilian requirements. Its activities included the acquisition and distribution of all types of natural and synthetic rubber and rubber
scrap.
Rubber Reserve Company received policy guidance from other Government agencies. These agencies, which had overlapping authorities
over the natural and synthetic rubber programs, included the Departments of State, Commerce, Treasury, and Agriculture, the Board of
Economic Warfare (later Foreign Economic Administration), the
War Production Board, the Petroleum Administration for War, the
Office of Rubber Director, all branches of the military services, and
the Maritime Commission.
127
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Rubber Eeserve Company conducted the Government's natural rubber procurement program until February 23, 1943. Thereafter, natural rubber procurement became the function of Rubber Development
Corporation. However, the natural rubber acquired by EDC was sold
to Rubber Reserve Company and distributed by them to industrial
users as directed by allocations from the War Production Board.
Rubber Reserve Company became the sole importer of rubber in
the United States on June 20,1941. This function was continued in
RRC (and, after June 30,1945, in RFC's Office of Rubber Reserve)
until April 1, 1947, when commercial importations were resumed in
accordance with the policy expressed in the act approved March 29,
1947. Total acquisitions of natural rubber to June 30, 1947, were
1,786,904 long tons. The sources of this rubber were as follows:
Eastern Hemisphere:
Crude rubber produced in—
Far East
Africa
.
Liquid latex produced i n Far East
Liberia
Western Hemisphere:
Crude rubber produced in—
Brazil
Bolivia
Other Latin-American countries
Guayule, chiefly from Mexico
Balata and chilite gum
Cryptostegia (Haiti)
Inventories purchased from domestic manufacturers:
Cruderubber
_
Liquid latex..
Total
Quantity
(lono m*)
1, 382, 730
171,070
1,482
22,764
64,521
15,968
34, 068
38,181
3, 805
5
37,104
15,206
1,786,904
In June 1942, Rubber Eeserve Company undertook to handle the
scrap rubber collected in the drive announced by the President on
June 12,1942. To do this, EEC entered into agency agreements with
four of the larger scrap rubber dealers. Under these agreements, the
agents were required to procure, store, and sell scrap rubber, and they
were to be reimbursed for their actual expenses. The procurement
of scrap rubber was continued until December 31, 1943, at which
time stocks on hand were sufficient to supply the operations of all
available reclaiming equipment for at least 2 years. In these operations, Eubber Eeserve Company purchased a total of 1,150,127 short
tons of scrap rubber at a direct cost of $29,857,645.
The synthetic rubber program conducted by Eubber Eeserve Company was initiated in 1941 with plans for the construction of plants
128
FINANCING RFC'S WARTIME SUBSIDIARIES
having a combined annual capacity of 40,000 long tons of synthetic
rubber. The program was greatly expanded after Pearl Harbor, and
by the end of the war the demonstrated annual capacity of the Government-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:
GB^S (Buna-S)
GR-M (Neoprene)
GR-I (Butyl)
GR-P (Thiokol)
Butadiene:
From alcohol
From petroleum
Styrene
Chemicals
Number of plants
15
1
2
1
3
15
5
9
Also included in the program were specialized tank cars, pilot
plants for research, and some miscellaneous projects. The total cost
of the facilities was approximately $700 million. Construction or
acquisition of the facilities was financed and supervised by Defense
Plant Corporation (an RFC subsidiary) at the request of Rubber
Reserve Company, subject to an indemnity agreement under which
RRC was obligated to purchase the plants and equipment should DPC
elect to sell.
The synthetic rubber plants and facilities were leased by Defense
Plant Corporation to private operators for $1 per year. The plants
were operated under agreements between Rubber Reserve Company
and the private operators which provided for the operators to be reimbursed for all costs of plant operation and maintenance, plus management fees based on quantities of production. The synthetic rubber
produced in these facilities was for the account of Rubber Reserve
Company (RFC's Office of Rubber Reserve after June 30,1945) and
was sold to industrial users on allocations from the War Production
Board. The Office of Rubber Reserve was established as an operating
division of RFC after the dissolution of RRC to continue or conclude
the activities of RRC. There were repeated extensions of RFC's
authority to continue operation of the Government's synthetic-rubberproducing facilities, aoid the program continued until 1955 when the
plants were sold to private industry under the Rubber Producing
Facilities Disposal Act.
Rubber Reserve Company also entered into separate agreements
with the agents operating the synthetic rubber plants relative to the
disposition of rights arising out of research and experimental work
which the Company had financed, and the distribution and availability of technical information accumulated in the course of such
129
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
research work. The operators were required to grant the Company
an extensible patent immunity under all inventions made in the
course of research and development work which it financed. Research
contracts with nonprofit institutions provided that all patent rights
covering inventions made in the course of RRC-financed research
work would be assigned to the Company.
The EEC also entered into numerous agreements with private industrial enterprises relating to the interchange of technical information
and operating rights under patents. In general, the Company was
granted royalty-free licenses under synthetic rubber patents.
The story of rubber—both natural and synthetic—from 1940 onward
is so complex and is of such a technical nature that no more than a
bare outline has been attempted in this description of the activities
of Kubber Reserve Company. Full descriptions of the Government's
wartime rubber programs and the ultimate disposal of the syntheticrubber-producing facilities are available in the documents listed in
appendix D.
Rubber Reserve Company was dissolved on July 1, 1945, and its
functions, assets, and liabilities merged with those of RFC as provided by the act approved June 30,1945. Before dissolution, the operation of RRC had provided funds sufficient to repay all but about $300
million of the $1,725 million advanced by RFC. After July 1,1945,
the RFC continued the liquidation of the assets and liabilities received
from RRC, and such amounts as were unrecovered on June 30,1947,
were included in the RFC notes payable to the Secretary of the Treasury which were canceled by direction of the Congress.
Defense Plant Corporation
Defense Plant Corporation was organized on August 22,1940, under
the authority of section 5 (d) of the RFC Act, as amended. The Corporation had capital stock of $5 million subscribed and paid for by
S 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 was
to aid in the national defense program by financing and supervising
theconstruction and equipping of industrial facilities.
The management of DPC was vested in a Board of Directors appointed 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 officers
of 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 the
construction and equipping of manufacturing pllnts and other facilities. The amounts au&orized for these projects totaled nearly $9
130
FINANCING RFC'S WARTIME SUBSIDIARIES
billion. Disbursements amounting to $7.3 billion were made on 2,300
of the projects. The plants and other projects which were partially or
whollyfinancedby DPC embraced almost every type of manufacturing
industry in the Nation. Over 50 percent of DPC's outlays flowed
directly or indirectly into aviation. To build aircraft, their engines,
and parts, the Corporation directly invested $2.6 billion in land, buildings, machines, and other equipment in several hundred new plants.
Including production facilities for aviation gasoline and aluminum
and magnesium metals, which were constructed in order to increase
the supply of materials for aircraft, over $4 billion was provided to
meet wartime aviation needs.
Metals production and processing plants accounted for $2.2 billion
of DPC's investments. Nearly $1 billion of the total was expended to
enlarge steel and pig-iron capacity. Facilities for production of synthetic rubber, which was a new industry, were supplied almost in their
entirety by the $740 million investment of DPC* Other manufacturing facilities in which DPC played a major role in expansion were
ordnance, shipbuilding, and chemicals. I t built and equipped shipyards and erected plants for the manufacture of ship parts. I t helped
to finance the expansion of production facilities for chemicals such as
alcohol, toluene, sulfuric acid, oxygen, and acetylene, all of which
were vital in the manufacture of munitions and to general industry.
DPC also made substantial investments in plants for expanding the
radio and communications industry. Another way in which DPC
assisted in the war effort was by stimulating the increased production
of machine tools and thereby facilitate the conversion of industry to
war production as well as to equip the new plants constructed by DPC.
In addition to manufacturing plants, some of which were the largest in the Nation, a wide range of other facilities were provided, such
&s tugboats and barges for river transportation, railroad tank cars
for transportation of products such as butadiene and chlorine, pipelines (notably the Big Inch and Little Big Inch) for the transportation of petroleum and petroleum products, 1,200 sleeper cars and 400
kitchen cars for troop trains, and streetcars and buses for transportation of war workers.
I>PC assisted the War Department's pilot-training program
through the purchase and expansion of 62 flying schools and by providing 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 process
rice by a new method which permitted the United States to augment
the rice supply for China without danger of weevil infestation, to
develop milkweed to relieve the shortage of kapok for stuffing life
preservers, to produce desalting kits for installation in liferafte, and
131
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
to breed rodents for use in medical laboratories. Four floating generator plants were constructed to relieve electric power shortages in
areas that could be reached by water. A large underground stone
quarry in Kansas was converted into refrigerated storage space. Facilities were provided for dehydrating, curing, and concentrating
fruits and vegetables for distribution to American troops and allies.
Also, DPC financed the expansion of laboratory facilities to produce
penicillin. The number of plants at which DPC projects were located and the amounts authorized for them are summarized by industry classification in the table below.
Number
of plant
locations
Type of facility
Total
Manufacturing facilities
Amount authorized (in
thousands
of dollars)
2,492
$8,977,506
2,265
8,470,822
623
152
45
199
166
79
120
167
100
225
159
230
Nonmanufacturing facilities
227
3,207,328
1,291,884
324,142
214,038
90,939
178,869
495,778
119,699
200,827
1,147,788
1,055,936
143,694
506,684
Flying schools
!
Transportation facilities
Housing
Miscellaneous
66
116
29
16
47,414
423,761
29,496
6,013
Aircraft, aircraft engines, and Darts
-
Aluminum a-nrt TnaimpsinTn
........
- -
Chemicals
Machine t.nnis
Minerals
Ordnance .
Radio and rnmmiinir^tinTi fiqnipTnPnt
Shipbuilding
Steel and iron
Synthetic rubber.
Other manufacturing
,_....
The data in the table above are cumulated through August 31,1946,
and include amounts authorized by RFC's Office of Defense Plant
after the dissolution of DPC on June 80,1945.
Under the provisions of its charter, DPC could undertake to construct and equip facilities on its own authority. However, with very
few exceptions, DPC undertook projects only upon the recommendation and sponsorship of other Government agencies administering
defense and war programs. The amounts of DPC authorizations
sponsored by such agencies is shown in the following table:
Sponsoring Agency
Total
War Department
War Production Board
Rubber Reserve Company. _.
132
Amount
authorized
(in thousands
of dollars)
$8,977,506
4,156,190
2,398,076
836,309
Sponsoring agency
Navy Department
Petroleum Administrator for W a r Office of Defense Transportation
Maritime Commission
Other agencies
Amount
authorized
(in thousands
of dollars)
$694,367
fi25 926
155742
104,' 823
106,073
FINANCING RFC'S WARTIME SUBSIDIARIES
The "Other agencies" shown in the foregoing table as sponsors of
DPC projects include Department of Agriculture, Commodity Credit
Corporation, Metals Eeserve Company, Solid Fuels Administration,
Civil Aeronautics Authority, Office of Strategic Services, Office of
War Information, War Shipping Administration, Foreign Economic
Administration, Treasury Department, War Kelocation Authority,
and National Housing Administration.
For more than half of the amounts authorized by DPC for industrial projects, the Corporation had "takeout" agreements with the
sponsoring agencies under which DPC was eventually to be reimbursed for all or part of its investment. In most cases these "takeout
agreements" provided for DPC to recover from 40 to 50 percent of
the cost of a project as construction progressed. The remainder was
to be received at some later date, if and when the sponsoring agency
would request and receive specific appropriations from Congress for
that purpose. Ownership of the facilities covered was to remain in
DPC, but a sponsoring agency retained the right to take ownership upon fulfillment of its part of the "takeout" agreement. To
June 30, 1945, DPC had received $1,360,974,000 in reimbursements
and $6,969,000 in interest under these arrangements. It was originally
intended that final settlement with sponsoring agencies would be
made on or before June 30, 1945—later extended to June 30, 1946.
However, since at the close of the war it appeared that no useful
purpose would be accomplished by appropriating funds for agencies
to pay over to DPC, none of the sponsors requested appropriations
for the purpose of making final settlements under the "takeout"
agreements.
Defense Plant Corporation relied upon the sponsoring agencies to
determine the nature of the various projects built, their size and location, the processes to be employed, and the selection of the private
enterprise concerns to operate them under lease agreements. The
agreements between DPC and the plant operators were in two parts:
one for the design, purchase, and construction of the facilities for the
account of and under the supervision of DPC; and the other part
for the lease and operation of the properties. Generally, the lease
agreements with the operators were of the following types:
1. Leases specifying a rental of $1 per year were used when
the entire output of a plant was intended for the use of a Government procurement agency, or when the property was leased
to another Federal agency. These leases usually were associated
with the "takeout" agreements noted above.
2. Leases calling for the payment of rentals based upon a percentage of construction cost. These were used in cases where
conditions were favorable for the lessee to assume all financial
133
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
risks in operating the facilities.' The rental rates in these leases
usually were 5 percent per annum on land and buildings and 12
percent 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 unstable market conditions, untried products, or new processes
made the lessees unwilling to assume full financial risks in operating DPC facilities.
4. Lease agreements providing for the payment of fixed
amounts of rentals during each month, quarter, or other time
period.
Although the lessees of DPC facilities generally were private concerns, 92 projects were operated under agency agreements for the account of other RFC subsidiaries, a few were leased to other agencies
of the Government, and 39 were operated for the account of DPC
itself under agreements with private companies, which undertook to
serve as agents, generally on a fee basis.
Except for those covering aluminum, magnesium, and synthetic
rubber plants, the leases included options under which the lessees
might acquire the facilities upon expiration or cancellation of the
leases.
In certain cases, separate units of machinery, tools, and equipment
became excess to the needs of the projects of which originally they
had been a part. At the request of either the War or Navy Departments, DPC would install these units in privately owned plants under
leasing arrangements underwritten by the department making the request. Such arrangements were made in nearly 1,600 instances, and
the users of the equipment paid monthly rentals at the rate of 1 percent of the cost of the equipment
In addition to its activities in connection with the construction
and equipping of industrial facilities, Defense Plant Corporation
undertook to stimulate the production of machine tools, gages, and
cutting tools needed for the conversion of industry to war production and to equip the new plants being constructed. To do this,
DPC entered into firm purchase agreements with manufacturers for
specific types and quantities of cutters, grinders, millers, shapers,
planers, borers, drop hammers, and tools and related equipment. In
effect, these purchase agreements were underwritings. For the most
part, the manufacturers were to sell the machines directly to industrial enterprises even though their manufacture was covered by DPC
purchase orders. DPC agreed to take deliveries of unsold machines
within 30 days after availability, at a discount of 17% percent. Also,
DPC agreed to pay losses incurred by the manufacturers because of
cancellation of DPC purchase orders.
134
FINANCING RFC'S WARTIME SUBSIDIARIES
To assist in financing the manufacturing program, DPC agreed to
advance up to 30 percent of the amount of each purchase order. The
funds so advanced were to be repaid proportionately as deliveries
progressed under the purchase order.
Commitments made by DPC for the purchase of machine tools and
related equipment aggregated approximately $2 billion. The Corporation advanced $418 million to aid in financing the production of
equipment ordered. Under its agreements to purchase unsold machines, DPC was required to take delivery of equipment with a purchase price of only $27 million, before discount.
Defense Plant Corporation was dissolved July 1,1945, and its functions, assets, and liabilities merged with EFC in accordance with the
provisions of the act approved June 30,1945. At the time of its dissolution, DPC held plants, facilities, and other assets which had cost
the 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 and
some further recoveries were made. However, with the bulk of DPC's
assets consisting of industrial facilities which subsequently were declared surplus, substantial recoveries by EFC were precluded, and
such 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 the
Secretary of the Treasury which were canceled at that time as representing the unrecovered costs of the Corporation's national defense, 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 subscribed and paid for by EFC, and during its existence borrowed from
EFC a total of $6,389,345,975. (See table W-5 in app. C.)
The charter of the Corporation provided that the affairs of DSC
should be managed by a Board of Directors appointed by EFC. Most
of the members of DSC's Board of Directors, and most of the officers appointed by them, also were directors of EFC or of its other
subsidiaries.
The Corporation had two principal functions. One, the procurement, stockpiling, and disposal of nonmetallic commodities defined as
strategic and critical by the President. The other, the payment of
subsidies to producers and transporters of strategic and critical materials and for purposes of price stabilization.
505257—$ft
10
135
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
All programs and activities of DSC were undertaken at the request
or under the sponsorship of other Government agencies. The Corporation did not assume responsibility for the policymaking functions
incident to its undertakings, but assumed responsibility for procedural and administrative functions only. Policies for the commodity trading operations 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 War and Navy Departments, and other interested agencies. For
the subsidy operations, policies were laid down by the Office of Economic Stabilization, the Office of Price Administration, the Department of Agriculture, the Petroleum Administration for War, and
others.
The commodity trading activities of DSC included the development,
procurement, manufacture, stockpiling, and disposal of strategic and
critical materials, chiefly those of a nonmetallic character. The table
below shows the types and quantities of materials and supplies acquired by Defense Supplies Corporation (and its successor, RFC's
Office of Defense Supplies) through June 30,1948.
Unit
Material
Abaca
Acetylene black—*
Agar
Agave
fiber
Airplanes
Albarco logs and lumber
Alcohol
Alcohol byproducts
Alkylate, aviation
AlTni
Aluminum rivets
Aluminum wire
Antifriction bearings
Arms, accessories, and ammunition
Arms, frozen 1stocks *
Automobiles
Aviation gasoline:
91 octane
100 octane
—
Benzol
Balsa logs and lumber
Barbed wire«
Belladonna leaves
Benzol, pure
Benzol byproducts
Binder twine and ropeBurlap
Butchers' frocks a
Calcined petroleum coke
Calcium carbide
Caledon khaki dye
Carbon black
Carbonyl, iron
Cashew nut oil
Catalyst (petroleum cracking)
Chemicals
Cinchona bark—
Coal:
Anthracite
Bituminous
Unclassified
For liberated European countries-.
Coir yam and products
..
See footnotes a t end of table.
136
Pound
.do
.do
.do
Each
Board foot,..
Wine gallon..
do
Gallon
Pound
.do
Quantity
37,798,308
9
M
1, 682,673,605
421
4,464
27,475,1H
3,538,784
11,452,821
Each
Dollar....
.do-.
Each.....
Barrel
....do
—.do
Board footpound
..do..
Gallon. _
.....do...
Pound-.
Yard
Each..
TonPound..
do...
do...
..do..
.... -do...
.—.doTon
Pound. .
Ton
do
do
Long ton...
Dollar..—.
3321073,378
179,433,668
08,891
112,000
250,540,121
2,241,318
28,171,770
272,563
FINANCING RFC'S WARTIME SUBSIDIARIES
Material
Unit
Copra
Cork
Cotton and
flax
Cotton fabrics
Cotton ltnters
Cresylicacid
Crude oil, west Texas
—
Diamond bort and cleavage points
Diamond bort, foreign
Diamond dies:
Domestic
Foreign
Die stones
Dock feathers
Elastic web and braid
Emergency field rations
Ergot
Ethyl cellulose
Fiber and fiber seed samples
Fiber, roselle and malva
Gas and coal furnaces *
Goat and kid skins
Goose down
Hair
Hides
Hydrogenated naphtha
Hydrogenated byproducts
Hyocine hydrobromide
Insulated wire
Iodine
Istle fiber
Jewel bearings:
Domestic
Foreign
Jute:
Fiber
Yarn
Kapok
Laundry and drycleaning machinery »..
Leather
Leather, South American
Leather and woolen mittens *
Linseed oil.
Ix)ofa spong
Manila fib
Manila fiber, Philippine...
Meta para cresol..
Mexican,
"
Motor vehicles»
Nitrate of soda
Oil burners!
Oiticicaoi]
IIIII.III
Opium
Pig bristles
Pine lumber, MexicanPolydichlorostyrene
Polyvinyl chloride
Pyrethrum
Quartz crystal plates
Quinine products
Radio components *
Raffia fiber.
R ap
d
oilil
ill andd acetate taffeta
Rayon twill
Red squill
_
Refrigerators^
Requisitioned materials»
Revolvers *
,
.
Rotenone
Rubber thread
Sanseveria fiber.
Sapphire
_
Sapphire boule
Senna seeds
Sewing machines and equipment »„.
Sharkskins and sharklivers
Shearlings and lambskins
Shellac
Quantity
Pound
Metric ton.
Pound
YardPound...
Gallon...
Barrel....
Carat....
....do-...
7,081,955
74,526
84,589,072
145,550,528
56,518,697
6,136,037
5,387,586
10,101
30,000
Each....
do,.
Carat...
Pound..
Yard..
Each
Pound.
..-.do..
.
do..
6,048
16,635
180
107,915
15,431,571
36
288,377
1,249,936
1,010,389
112,858
732
50,565,330
7,582
1,188,755
780,404
2,579,339
851,088
'300
3,516,748
496,705
101,205,164
Each...
—.doPound,
do..
Each..
Barreldo..
Ounce—
FootPound..
do...
Each...
do..
Pound.
do..
..do..
Dollar....do..
Bale...
PairPound.
PieceBoard foot.,
Bale
Pound
doMetric tonPound
Gallon
Bach
Ton
Each
Pound
Ounce
Pound
Board foot.
Pound
do.
Dollar..
Each
Ounce
Dollar
pound
.do
Yard..
Pound
Each
Dollar
Each
Pound
....do
do
do
Ounce
Carat
Pound
Dollar
Kilogram..
Each
Pound..-Pair.
13,361,581
82,634,007
368,916,299
4.090,442
15,092,682
33,309
7,740,001
2,439
34,777
2,348,162
5,257,518
3,301,900
149,239
25,984,800
258,000
1,769
1,664,855
1,251,633,474
97
1,347,958
5,425
4,180,407
10,817,686
4,218,864
8,102,815
16,416
1,050,000
5,294,559
173
13,756,842
40,868
451,597
7,602,688
587,608
822,906
36,824
2,212,663
115,629
4,659,438
2,452,569
1,579,459
41,250
11,293
126,000
388
14,412
200
764,925
64,490,616
14,436
Shoe pacs *
II..1.1
See footnotes at end of table.
137
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Unit
Material
Pound
do
do
Dollar. -. -
Silk
Silk and nylon hosiery, used
Silk waste
Sisal machinery........
Space heaters, oil and gas»
Stirrup pumps*
Storage tanks *
Sugar:
Cuban
Domestic
Sugar bags....
... ......
Sunflower seed oil
Sunn hemp
Tetra ethyl fluid
Tires and tubes *
Trailers 1
Trucks (milk)»
Tung oil
Typhus fever vaccine
Undershirts and underdrawers *
Used clothing
Vinyl acetate
Wool:
Australian and New Zealand
Requisitioned, South AmericanUruguayan
Xylidines
do
Dollar
Ton
d
Each.—
Pound—
d
.—.do
Dollar
Each..
.do..
Pound..
Liter...
Each...
Pound..
do..
.
do
do
..._do
Gallon
Quantity
8,745,040
15,954.858
54,919
6,495
18,832
1,282,198
10^80
1,980,710
95 574
6,000,000
2,634,771
6280,409
253,565
83,888,754
181,751
3,348,084
'704; 747
.
I
302,670,823
5 399 193
- -19,290
J7 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 programs
were either placed in stockpile or sold to manufacturers and other consumers under allocations by the War Production Board and other
Government agencies. A substantial portion of the funds used for the
procurement of strategic materials and commodities was recovered
from sales.
The Corporation's subsidy payment programs, however, afforded
no opportunities for recoveries. Disbursements for subsidy purposes
made up the largest single class of DSC's expenditures. The table
below shows the amounts paid by DSC (and its successor, RFC's
Office of Defense Supplies) in each of its subsidy programs through
June 30, 1948. The data in this table do not give effect to amounts
recovered in cases of overpayment or other adjustments.
Program
Livestock slaughter..
Petroleum transportation
Flour milling....... . .
Butter production.
Stripper well oil production
Coal distribution
Coffee importation.
gency
Disbursements
$1,549,623,139
846 052 671
347,933,431
183,314,390
12177^584
63,115,141
46,344,333
1
._.«.
Program
Sugar transportation
Woodpulp production
Nitrate ofsoda
Others
Disbursements
W
Total..
42,787,522
Defense Supplies Corporation was dissolved July 1,1945, in accordance with the provisions of the act approved June 30,1945. Prior to
that tune, the Corporation's activities had produced funds sufficient to
138
FINANCING RFC5 WARTIME SUBSIDIARIES
repay $4.8 billion of the loans made to DSC by RFC. However, when
DSC was dissolved, it was still indebted to RFC for $1.6 billion of
loans and capital stock. The functions, assets, and liabilities of DSC
were merged with those of RFC, and RFC continued to liquidate and
realize upon DSC's assets. Such amounts as had not been recovered
on June 30,1947, were included in the RFC notes payable to the Secretary of the Treasury which were canceled as representing the unrecovered costs of national defense, war, and reconversion activities.
One program undertaken by Defense Supplies Corporation which
was continued following World War I I was that for the production of
abaca fiber (manila hemp) on plantations in Central America. Authority to continue the program until 1960 was provided by the Abaca
Production Act of 1950. Under the provisions of Executive Order
10539, effective June 30,1954, responsibility for administration of the
Government's abaca program was transferred from RFC to General
Services Administration*
War Damage Corporation
War Damage Corporation was created on December 13,1941, under
the authority of section 5 (d) of the RFC Act, as amended. The Corporation was established as War Insurance Corporation, but by an act
approved March 27, 1942, the name was changed to War Damage
Corporation.
The purpose of the Corporation was to provide reasonable insurance protection against loss of or damage to property as the result of
enemy attack, or from the action of the military, naval, or air force of
the United States in resisting enemy attack.
The charter of WDC provided for a total authorized capital stock
of $100 million. RFC subscribed for all of the stock and paid in $1
million. The remaining $99 million was never disbursed and was
subsequently canceled. (See table W-6 in app. C.)
The management of War Damage Corporation was vested in a
Board of Directors appointed by RFC. Most of the members of
WDC's Board, and most of the officers appointed by them, also served
as directors or officers of RFC itself or of RFC's other subsidiaries.
To conduct its program, War Damage Corporation entered into
agreements with 546 established insurance carriers. These insurance
companies agreed to act as fiduciary agents for WDC in receiving applications, issuing policies, and otherwise handling the program.
There were approximately 1,200 policy-issuing offices active in the
program.
There were approximately 8,700,000 policies and renewal certificates
issued for war damage insurance involving a risk of $117 billion.
There were 1,782 claims paid, amounting to $1,274,744. Of the total,
139
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
1,491 claims amounting to $1,198,705 were paid to residents of Hawaii
and other Pacific islands under the Corporation's "prepolicy" program. This program was in effect until July 1,1942, while the general
program was being formulated, and provided protection for property
in the United States, its Territories, and its possessions without payment of premium or insurance.
By the provisions of its charter, WDC had existence only until
January 22,1947, except for purposes of liquidation. No policies were
issued after March 15,1946, and all policies expired April 1,1947. The
Corporation's operations produced a net income of $210,598,722, all of
which 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 on
December 30,1949. However, the capital stock of WDC was not canceled until 1959. This came about because of lawsuits filed by former
policyholders seeking to recover the Corporation's net income which
had been paid into the Treasury. The stock of WDC was transferred,
from RFC to the Secretary of the Treasury under the provisions of
Reorganization Plan No. 1 of 1957, and was not canceled until the
time for all appeals on the one remaining suit had expired.
For statistical purposes, it has been considered that the investment
in WDC's capital stock was recovered in the net earnings of the Corporation and was returned with the $209,827,810 paid to the Treasury
on August 29,1947.
U.S. Commercial Company
U.S. Commercial Company was created as a corporation on March
26, 1942, under the authority of section 5(d) of the RFC Act, as
amended. The Company had capital stock of $5 million subscribed
and paid for by RFC, and during its existence borrowed $1,988,277,234
from RFC tofinanceits activities. (See table W-7 in app. C.)
Under the provisions of its charter, the affairs of USCC were to be
managed by a Board of Directors appointed by RFC. During the
first 15 months of its existence, the affairs of USCC were managed
by a Board of Directors appointed by RFC. Most of the members
of 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 of
UfeCC were closely allied to those of other RFC subsidiaries, all of
which were conducted under the general supervision of the Federal
^oan Administrator whose authority, by law, transcended that of the
Boards of Directors of RFC and its subsidiaries. However, during
the first 15-month period, the Board of Economic Warfare was influential in the management of USCC and its activities.
By Executive Order 9361, dated July 15, 1943, USCC was trans
FINANCING RFC'S WARTIME SUBSIDIARIES
ferred to the Office of Economic Warfare, established by the same
order to succeed the Board of Economic Warfare. On September
25,1943, by the provisions of Executive Order 9380, all functions of
the Office of Economic Warfare, including USCC, were transferred
to the Foreign Economic Administration established by that same
order.
According to the terms of Executive Order 9361, the capital stock
of USCC was transferred to the Office of Economic Warfare, despite
the stock being described as "nontransferrable" in USCC's charter.
The order did not provide for surrender of the stock certificates by
EFC, nor was any provision made for a consideration to be paid to
RFC for its investment in USCC stock. Throughout, the position of
RFC's management was that the capital stock of USCC was owned
by RFC and that USCC was its subsidiary. The matter was finally
resolved by Executive Order 9630, dated September 27, 1945, which
discontinued the Foreign Economic Administration and assigned
the management of USCC to RFC effective October 20,1945.
The principal functions of USCC were (1) the conduct of preclusive
buying operations and other disruptive activities abroad designed to
prevent the acquisition of strategic commodities by enemy powers,
and (2) the procurement and stockpiling abroad of strategic materials
for delivery to other agencies of the Government.
With a few exceptions, the preclusive buying operations of USCC
were carried on jointly with a British counterpart, United Kingdom
Commercial Corporation. The preclusive buying operations were conducted with great secrecy and with a minimum of administrative restriction. It also was necessary that funds be available to USCC's
foreign 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 a
function assigned to USCC upon its transfer to the Foreign Economic
Administration, which was effective July 15,1943. For the most part,
the commodities purchased were those which formerly had been purchased and imported by Metals Reserve Company, Defense Supplies
Corporation, and Commodity Credit Corporation. Stockpiling abroad
was a secondary objective of the procurement programs and became
necessary in some areas because of the lack of shipping facilities. In
many instances, the procurement programs were supplemented by
development projects designed to increase supplies of strategic
commodities.
Beginning in 1943, the USCC (then under the direction of the Board
of Economic Warfare) undertook to procure and ship farm machinery,
vegetable seeds, fertilizers, and other supplies for the establishment of
141
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
food-producing projects in certain South Pacific islands which had
been liberated from Japan. In addition, trade goods were shipped
to the islands for sale to the natives* In return USCC purchased copra
and native handicrafts. The program was undertaken at the request
of the Navy Department and its purposes were to (1) raise fresh foodstuffs for the Armed Forces and thus conserve shipping space by
decreasing the amount of foodstuffs transported to the islands, and
(2) to supply the natives with trade goods until such time as orderly
private trade could be resumed. This program subsequently was
extended to newly liberated islands, and similar activities were carried
on in the Philippine Islands after their liberation in 1944.
Following World War II, USCC acted as agent for the War Department in the importation of raw materials and manufactured goods
from Japan, Germany, and Korea and the sale of such commodities
both domestically and abroad. The Company also acted as agent for
Commodity Credit Corporation in the exportation of cotton to Japan
and Germany for the manufacture of textiles. These programs were
initiated to expedite the return of international trade to normal channels, assist the War Department to defray occupation costs, and provide dollar exchange for military authorities in occupied areas.
After the management of USCC had been transferred to the Board
of Economic Warfare, a memorandum of understanding was entered
into between RFC and BEW which read, in part, "The Office of the
RFC Treasurer will perform the necessary fiscal services and maintain
the necessary accounting records for USCC. The financial and
statistical 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 in
some 30 locations. With administrative responsibility for USCC resting in BEW and its successors, and with broad and uncontrolled delegations of authority to the many foreign offices, the financial and
statistical records which RFC was able to maintain on USCC's activities were not sufficient to provide data on the operation of specific
programs, 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 funds
sufficient to repay all but about $165 million of the $2 billion advanced
by RFC.
Such investment as RFC had in USCC on June 30,1947, was included in with the cancellation of RFC notes payable to the Secretary
of the Treasury as unrecovered costs from national defense, war, and
reconversion activities.
142
FINANCING RFC'S WARTIME SUBSIDIARIES
Rubber Development Corporation
Pacific Development Co., Incorporated, was privately organized
under the laws of Delaware in November 1940. The ostensible purpose of the company was to exploit certain mining properties in the
Galapagos Islands. The company operated on funds borrowed from
Export-Import Bank of Washington and from Defense Supplies Corporation. The advances made by DSC were not repaid, and when
the project was abandoned in February 1942, the stock was turned
over to DSC. Defense Supplies Corporation sold the stock to RFC
for $1, and Pacific Development Co., Inc., remained inactive until
February 16,1943, when the certificate of incorporation was amended
to change its name to Eubber Development Corporation, and to alter
the nature of its business so as to enable RDC to engage in rubber
trading activities. Also, the authorized capital was changed to 2,000
shares of $100 par value, and new certificates for 1,000 shares were
issued to RFC in exchange for the stock which RFC had acquired
from Defense Supplies Corporation. No assets were received by
RDC in this recapitalization and it thus began operations without
funds.
Rubber Development Corporation was managed by a Board of
Directors. Most of the members of this Board came from private
industry and were not otherwise associated with the management of
RFC itself or of its other subsidiaries. However, the officers and
other personnel of RDC were employees of RFC and their salaries
were paid by that Corporation.
By agreement between RFC, the Board of Economic Warfare, the
Rubber Director, and the Secretary of Commerce, effective February
23, 1943, Rubber Development Corporation was assigned full responsibility for developing sources and acquiring natural rubber and
related products in foreign countries. Prior to this agreement, such
activities had been the functions of Rubber Reserve Company.
Executive Order 9361, dated July 15, 1943, transferred RDC to
the Office of Economic Warfare. However, RFC was not required
to 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 Administration. The latter agency was terminated by Executive Order
9630, dated September 27, 1945, and the management of RDC was
returned to RFC.
By the provisions of its charter, Rubber Development Corporation
expired on June 30,1947. However, its existence after June 30,1946,
was only nominal since its assets, liabilities, and functions were transferred by contract to RFC on that date.
143
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Except for the $1 paid by RFC for the capital stock of the original
company, RDC was financed exclusively by loans from RFC which
aggregated $337,131,523. All but $58,215,665 of this amount had been
repaid when the Corporation was merged with RFC on June 30,
1946. (See table W-8 in appendix C.) Such RFC investment as
remained in the assets of the Corporation on June 30, 1947, was included in the RFC notes payable to the Secretary of the Treasury
which were canceled at that time as unrecovered costs of national
defense, war, and reconversion activities.
Petroleum Reserves Corporation
Petroleum 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 or
interest in foreign oil reserves, and to construct or acquire facilities
abroad 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, and
a loan of $1 million authorized. Of the latter, $100,000 was disbursed to PRC and was expended in the preliminary phases of a
project to construct refinery facilities in Saudi Arabia. The project
was dropped, however, and PRC became virtually inactive.
On November 15, 1945, the Corporation's charter was amended
and its name was changed to "War Assets Corporation" in order to
facilitate use of the Corporation as a disposal agent for surplus
property. At this time, RFC again authorized the purchase of
$1 million WAC capital stock, and this was paid in. (See table W-8
in app. C). On March 25, 1946, War Assets Corporation's functions were transferred to War Assets Administration, and the Corporation ceased to function as a disposal agent. All sums advanced
to PRC and WAC were recovered by RFC, and the Corporation was
dissolved on June 30,1946.
Cancellation of RFCs Notes Payable to Treasury
As RFCs wartime subsidiaries expired, or were otherwise terminated, their assets and liabilities were merged with those of the parent
organization. Except for War Damage Corporation and Petroleum
Reserves Corporation (War Assets Corporation), the ultimate recovery made on the assets of the separate subsidiaries cannot be
determined.
As of June 30,1947, the RFC determined that the unrecovered costs
and net expenses of the national defense, war, and reconversion activities carried on by its wartime subsidiaries amounted to $9,313,736,531,
computed as follows:
144
FINANCING RFC'S WARTIME SUBSIDIARIES
Loans, advances, receivables, and securities:
Loans in connection with the acquisition
of materials (including accrued interest)
Advances for the construction and equipping of plants
Advances in connection with the procurement of materials
Accounts receivable from Treasury Department for strategic materials transferred under Public Law 520, 79th
Cong
Accounts receivable from other U.S. Government agencies, arising principally
from sales of strategic materials; and
reimbursable services performed in connection with the protection and maintenance of capital facilities
Receivables from others, arising principally from sales of strategic materials
and rentals from leased facilities
Miscellaneous securities, principally those
of enterprises operating in foreign countries in connection with the production
or procurement of strategic materials
and supplies
$16, 813, 804
1, 995, 700
22, 888, 325
187, 898, 259
50, 273, 741
102, 573, 985
4, 215, 218
$386, 659, 032
Property, plants, equipment, and related
facilities and costs:
Property, plant and equipment, a substantial part of which was declared
surplus
— Excess of cost over proceeds from sales
and other disposals of plants and equipment
Expenses, principally for servicing and
administering leases, standby, plant
clearance, protection, and maintenance
Development and experimental costs for
special design aircraft
Utility connection charges
Writeoff of investment occasioned by
transfer of Hotel Empire, San Francisco, Calif., to Public Buildings Administration without reimbursement- -
6, 551, 503, 411
360, 339, 945
154, 540, 038
15> 338, 247
4, 349, 653
2, 137, 869
7, 088, 209,163
145
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Property, plants, equipment, and related facilities and costs—Continued
Less:
Payments received from other U.S.
Government agencies under agreements providing for contingent
reimbursement of costs of wartime capital facilities
$1, 379, 877, 783
Rentals and other income—
816, 702, 310
Carrying value of properties acquired
without cost
2,132, 939
2, 198, 713, 032
= = = = = $4, 889, 496,131
Production or procurement, and disposition of
strategic materials and supplies:
Inventories of strategic materials and
operating supplies held for disposal,
declaration as surplus, or transfer to
national stockpile:
Metals and minerals
Rubber and related commodities
Other strategic materials
Operating and other supplies
171, 709, 834
169, 443, 028
38, 814, 066
36, 551, 155
416, 518, 083
Net cost of handling, processing, and manufacturing strategic materials (including
settlements and expense of $47,993,790
on termination of contracts and less expended appropriated funds of $16,302,375 received from other U.S. Government agencies):
Metals and minerals-.
118, 132, 716
Natural, synthetic, and scrap rubber..
69,168, 917
Other commodities, principally alcohol,
aviation gasoline, petroleum, foodstuffs, hides, fibers and their products, and chemicals
i 278, 263, 652
i 90, 962, 019
Cost of strategic materials transferred to
national stockpile, less accounts receivable from Treasury Department of $187,898,259
Cost of inventories declared surplus and
accepted by disposal agencies
Reimbursement to producers of aluminum
for excess power costs
Development and experimental costs in
connection with procurement of strategic
materials
* Excess of income over costs.
146
62, 763, 962
35,250, 370
26, 039, 420
3f 420, 597
FINANCING RFC'S WARTIME SUBSIDIARIES
Production or procurement, and disposition of
strategic materials and supplies—Continued
Cost of preclusive procurement and related
operations abroad, including activities
conducted jointly with United Kingdom
Commercial Corporation
$117, 540, 613
$570, 571, 026
Direct subsidies to producers and others:
Livestock, to slaughterers
1, 547, 148, 094
Petroleum transportation compensatory
adjustments, net-___ 353, 232, 488
Flour, to producers
348, 431, 265
Butter, to producers
.
181, 617, 850
Copper, lead and zinc, to producers who
exceeded quotas
___ 349, 969, 942
Other, principally on production from
stripper oil wells, and on transportation of
coal and sugar
___ 309, 034, 404
— 3,089,434,043
Other costs and expenses:
Interest expense (including $352,820,230
on funds borrowed from Treasury Department)
__
354,134, 288
Administrative expenses
108, 802, 885
Miscellaneous costs and deferred charges.11, 476, 421
—
474, 413, 594
9, 410, 573, 826
Less other income:
Net proceeds of renegotiation settlements—
Discount and interest earned
Service fees
_-„
Miscellaneous income
-
83, 936, 935
7, 611, 753
3, 051,253
2,237,354
96, 837, 295
Unrecovered costs and net expenses
9i 313, 736, 531
In the Government Corporations Appropriation Act, 1949, approved June 30, 1948, the Secretary of the Treasury was authorized
and directed to cancel notes of the RFC in the amount of
$9,313,736,531, plus the interest accrued thereon subsequent to June
30, 1947. The amount of notes canceled for this interest expense
was $46,005,553. The same act also directed that any amounts recovered by EFC after June 30,1947, from the national defense, war,
and reconversion activities be deposited in the Treasury as miscel-
147
Securities Purchased From Federal Emergency Administration of Public Works (Public Works Administration)
Prior to 1934, the Federal Emergency Administrator of Public
Works had been authorized to advance sums for the purchase of
marketable securities issued to finance employment-producing projects undertaken by railroads and by States and Territories or their
political subdivisions. In the Emergency Appropriation Act approved June 19, 1934, the RFC was authorized to purchase marketable securities acquired by FERA (later Public Works Administrator) and the sums paid for such securities by RFC became
available to FERA for the making of additional loans under title
I I of the National Industrial Recovery Act. The amount which
RFC might have invested in such securities at any one time initially
was limited to $250 million. However, this limitation was increased
to $400 million by the Public Works Administration Extension Act
approved June 29,1937.
Altogether RFC authorized the purchase of $694,844,788, par
value, of the securities acquired by FERA (PWA). The amount
disbursed for the purchase of these securities was $651,471,584. Because of redemptions and sales to investment houses, the amount of
RFC's outstanding investment in such securities never exceeded $200
million. (See tableSP-1 in app. C.)
The securities purchased by RFC from FERA (PWA) consisted
primarily of those issued by the political subdivisions of States and
Territories. However, some railroad securities were included in the
purchases. Most purchases of securities from FERA (PWA) were
made at par value. Whenever such securities were purchased at a
discount from par, the amount of the discount was usually one-third.
The table below summarizes RFC's purchases of securities from
FERA (PWA).
Par value of
securities purchased
At par:
Railroads
At a discount:
Railroads
Total
Amount disbursed
$166,090,500
368,976,517
$196,090,600
368,976,617
4,800,000
124,877,771
3,200,000
83,204,567
694,744,788
651,471,584
149
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
By agreement with the Administrator of the Federal Emergency
Administration of Public Works, any net principal profit derived from
the sale or liquidation of the securities purchased would accrue to
the Public Works Administration, and the interest income from the
securities would accrue to KFC. As of November 30,1950, the Corporation had realized a net principal profit of $53,052,448 from sales
or retirements of the securities purchased from FEKA (PWA), At
that date, $42,244,488 of this profit already had been paid to PWA, or
to the Treasury for the account of PWA and its successors. A settlement was made with General Services Administration (successor to
PWA) as of November 30,1950, under which the net principal profit
of $10,807,960 still held by EFC was reduced by $2,339,133, representing the difference between cost and appraised value of the unsold
securities still held by RFC, and $8,468,827 was paid into the Treasury as a final settlement.
150
Allocations and Loans to Government Agencies by
Direction of Congress
From 1932 to 1950, the RFC was used by the Congress to provide
funds for various Government programs by means other than direct
appropriations. The programs so financed were concentrated in the
fields of agriculture, housing, foreign aid, and work relief. Altogether, a total of $6.6 billion was disbursed by KFC for these purposes.
Most of the Corporation's advances were recovered through the
medium of congressional authorizations to cancel the notes which
EFC had issued to the Secretary of the Treasury to obtain the needed
funds. In all of these activities, the management of RFC exercised
little or no discretion as to ultimate use of the funds provided.
The table on page 152 is a summary of the loans and advances made
by RFC to other Government agencies at the direction of the Congress. The distribution of these activities by quarter-year periods
will be found in table A - l in appendix C.
AGRICULTURE
At the start, RFC's operations were closely related to the financing
of the broad programs then being conducted to aid the farm sector
of the economy.
Crop Loans
Section 2 of the original RFC Act directed that there be made available to the Secretary of Agriculture 10 percent of RFC's capital
(including amounts borrowed from the Treasury) up to a maximum
of $200 million. I t was intended that these funds be used for crop
loans during 1932 on terms and conditions to be prescribed by the
Secretary. RFC paid $135 million to the Secretary for these crop
loans, but the Secretary subsequently returned $20 million, leaving
$85 million of the crop loan fund unused. Under the provisions of
the Emergency Relief and Construction Act of 1932, $44,500,000 of
the unused amount was reallocated and disbursed as the capital of
the Regional Agricultural Credit Corporations. The remaining
$40,500,000 was paid to the Governor of the Farm Credit Administration pursuant to the provisions of the Farm Credit Act of 1933.
Further details on the advances made under section 2 of the RFC
Act, as amended, may be found in table A-2 in appendix C.
505257—60
11
151
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Summary of Allocations and Loans to Government Asencies by Direction of Congress
Agriculture:
Secretary of Agriculture:
Allocation for crop loans
Loans for farm rehabilitation
Loans for farm tenants
Land Bank Commissioner:
Allocation for loans to JointStock Land Banks
Allocation for loans to farmers
Regional Agricultural Credit Corporations:
Allocation for capital
Allocation for expenses
Farm Credit Administration, allocation to Governor
Federal Farm Mortgage Corporation, allocation for loans to
farmers
Commodity Credit Corporation,
allocation for capital
Bural Electrification Administration, loans
Total, agriculture
Housing:
Federal Housing Administrator, allocations
Secretary of the Treasury:
Federal home loan banks, allocation for capital 1
Home Owners' Loan Corporation, allocation for capital
Total, housing _
Relief:
Loans to States, Emergency Relief
and Construction Act of 1932
Administrative expenses, Emerief
5 S 5 ia?2 "J^™*™***
Allocations for direct relief to
States, upon certification of the
Federal Emergency Relief Administrator
Allocation to Federal Emergency
Relief Administration, EmerAUocation to Secretary of the
Treasury, for direct relief, Emerim7 R e U e f A PP r °P ri atibn Act,
Total, relief
Miscellaneous:
Disaster Loan Corporation, allocattonfor purchase of capital s t o c k s
Secretary of State and Economic
Cooperation Administration • „
Interest on notes issued for funds
for allocations and loans by
direction of Congress
^ ^
Total, miscellaneous..
RFC notes
canceled
Allocated
Disbursed
Returned
$115,000,000
630,000,000
277,600,000
$115,000,000
621,113,000
214,460,000
$621,113,000
174,092,184
100,000,000
145,000,000
2,600,000
145,000,000
2,600,000
145,000,000
44,500,000
23,341,776
44,500,000
23,341,776
44,600,000
23,341,776
40,500,000
40,600,000
40,500,000
$115,000,000
40,367,816
65,000,000
55,000,000
55,000,000
97,000,000
97,000,000
97,000,000
931,500,000
602,200,000
91,351,096
510,848,904
2,459,341,776
1,960,714,776
886,656,280
1,074,158,496
97,861,381
97,861,381
124,741,000
124,741,000
124,741,000
97,861,381
200,000,000
200,000,000
200,000,000
> 422,602,381
422,602,381
422,602,381
300,000,000
299,984,999
126,872
126,872
126,872
600,000,000
499,999,066
499,999,066
600,000,000
500,000,000
600,000,000
17,169,232
282,825,767
500,000,000
500,000,000
600,000,000
1,800,126,872
1,800,110,937
17,159,232 ^782,951,705
24,000,000
24,000,000
24,000,000
2,496,000,000
2,351,000,000
33,177,420
33,177,420
2,553,177,420
2,408,177,420
2,361,000,000
57,177^420
7,235,248,449
6,591,605,614
3,254,715,512
3,336,890,002
2,351,000,000
33,177,420
Total, allocations and loans to
^^v—^v*»,«» omwt irom me secretary of ^o lIHWlUy In 1941.
- *\,nea
«The advances made for foreign aid were repaid
purposes.
funds appropriated by the Congress for tnose
152
ALLOCATIONS AND LOANS TO GOVERNMENT AGENCIES
Farm Rehabilitation
The Emergency Relief Appropriations Act,fiscalyear 1941, authorized the RFC to make loans to the Secretary of Agriculture for the
purpose of enabling the Secretary to make rural rehabilitation loans
to needy farmers. The RFC authorized a total of $630 million for
these loans, against which $621,113,000 was disbursed. The program
was active until 1947, and all sums advanced were repaid by the Secretary. Further details on these loans are contained in table A-3 in
appendix C.
Farm Tenant Loans
Beginning with the Department of Agriculture Appropriation Act
of 1941, and continuing to that same act for 1948, the RFC was authorized to make loans to the Secretary of Agriculture to enable the
Secretary to make loans under title I of the Bankhead-Jones Farm
Tenant Act for the purchase of farms by tenant farmers. A total of
$277,500,000 was authorized for this purpose, of which $214,460,000
was disbursed. There was returned to RFC by the Secretary a total
of $174,092,184 from these advances. The Department of Agriculture
Appropriations Act for 1948 provided for RFC to turn over to the
Secretary of the Treasury $40,367,816 in notes for loans made by RFC
to the Secretary of Agriculture, and RFC's notes payable to the Secretary of the Treasury were canceled in a like amount, effective as of
July 1,1947. The loans made by RFC to the Secretary of Agriculture
for farm tenant purchases are outlined in table A-4 in appendix C.
Land Banks
The provisions of section 301 (a) of the Emergency Farm Mortgage
Act of 1933 directed RFC to make available to the Farm Loan Commissioner the sum of $100 million for the purpose of making loans to
joint stock land banks organized under the Federal Farm Loan Act
Only $2,600,000 of this authorization was disbursed.
Section 32 of this same act directed RFC to make available to the
Commissioner $200 million, or so much of that amount as might have
been needed, for loans to farmers to be secured by first or second
mortgages on farm property. Of this authorization, $145 million
was disbursed. The remainder, $55 million, was transferred and
disbursed to the Federal Farm Mortgage Corporation, as provided for
by section 3 of the Federal Farm Mortgage Act.
The transactions under these authorities are shown in tables A~5
and A-6 in appendix C.
153
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Regional Agricultural Credit Corporations
As stated above, the sum of $44,500,000 was disbursed by RFC to
pay for the capital stock of the Regional Agricultural Credit Corporations, (See table A-2 in app. C.) This amount was a reallocation of part of the $200 million made available to the Secretary of
Agriculture under section 2 of the original RFC Act. The reallocation was done under the provisions of section 201 (e) of the Emergency
Relief and Construction Act of 1932. This act authorized RFC to
create Regional Agricultural Credit Corporations and to pay in their
capital stock. The act further directed RFC to pay all of the expenses
of operating these corporations. The total amount of such expenses
disbursed by RFC was $23,341,776, and this amount was recovered
by 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 the
original RFC Act, was reallocated and disbursed to the Governor of
the Farm Credit Administration. (See table A-2 in app. C.) These
funds were used to establish Production Credit Corporations.
Federal Farm Mortgage Corporation
Section 3 of the Federal Farm Mortgage Corporation Act, approved
January 31,1934, provided that for the purpose of capital subscriptions to the Federal Farm Mortgage Corporation, "the funds and
proceeds thereof made available to the Land Bank Commissioner under section 32 of the Emergency Farm Mortgage Act of 1933 and the
mortgages taken by the Commissioner and the credit instruments
secured thereby are hereby transferred to the corporation." (FFMC)
The amount of $55 million was undisbursed under the authority of
the Emergency Farm Mortgage Act of 1933, and this sum was disbursed 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 $97
million in nonassessable stock of the Commodity Credit Corporation(See table A-7 in app. C.)
Rural Electrification
on Administration
The Rural Electrification Act of 1936 authorized the Administrator
R E A t o makft Inn/no -fivn ^innl «i
154
J * n J Z j
c J T
J^wiichinfif
ALLOCATIONS AND LOANS TO GOVERNMENT AGENCIES
inal borrowers as security. The program and the underlying directives were continued in the Rural Electrification Act of 1938 and the
Department of Agriculture Appropriations Acts for 1941 through
1948.
Loans to the Administrator of REA were authorized in the amount
of $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 Department of Agriculture Appropriations Act for 1948 provided that the
REA Administrator's notes payable to RFC be transferred to the
Secretary of the Treasury, and for cancellation of RFC notes payable to Treasury in like amount. The notes so transferred and canceled totaled $510,848,904, and the actions were effective July 1,1947.
Details of RFC loans to the Administrator of REA will be found
in table A-8 in appendix C.
HOUSING
Federal Housing Administration
The National Housing Act, approved June 27, 1934, directed the
Corporation to make available to the National Housing Administrator such funds as he deemed necessary to carry out the provisions of
title I I (mutual mortgage insurance) and title I I I (national mortgage associations) of that act.
The total allocation to be made under this directive was not specifically limited. Disbursements continued to 1944, and totaled $97,861,381, all of which was recovered by RFC through the medium
of note cancellations. The timing of the disbursements is shown in
table A-9 in appendix C.
Federal Home Loan Banks
Section 2 of the original RFC Act provided that "in order to enable
the Secretary of the Treasury to make payments upon stock of the
Federal home loan banks subscribed for by him in accordance with
the Federal Home Loan Bank Act, the sum of $125 million, or so
much thereof as may be necessary for such purpose, is hereby allocated and made available to the Secretary of the Treasury out of the
capital of the Corporation (RFC) and/or the proceeds of notes, debentures, 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 amount
of RFC's disbursement was recovered through cancellation of its
notes, the stock remaining with the Secretary of the Treasury. In
1941, when the public debt was approaching its limit, RFC ceased
borrowing from the Treasury, borrowed instead from the public, and
purchased the stock of the Federal home loan banks from the Secre
155
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
tary of the Treasury in order to provide the Treasury with additional
funds.
Home Owners' Loan Corporation
The Home Owners' Loan Act, approved June 13,1933, directed the
RFC to allocate and make available to the Secretary of the Treasury
the sum of $200 million, or so much thereof as might be necessary to
enable the Secretary to pay for the capital stock of the Home
Owners' Loan Corporation subscribed by him. All of this sum was
disbursed as shown in table A - l l in appendix C.
RELIEF
Loans to States
The Emergency Relief and Construction Act, approved July 21,
1932, authorized the Corporation to make the sum of $300 million
available to the States to be used in furnishing relief and work relief
to the needy and distressed and in relieving the hardships resulting
from unemployment. Not more than 15 percent of the total could be
made available to any one State. (This restriction was removed by
the provisions of an act approved March 31, 1933.) The amounts
advanced were to bear interest at 3 percent and were to be repaid by
annual deductions from future grants by the Federal Government
to the States for road construction. Some of these advances ($17,159,232) were repaid to RFC, but most of them ($282,825,767) were
recovered through note cancellations. (See table A-12 in app. 0.)
By the provisions of an act approved February 24, 1938, in connection with cancellation of RFC notes issued to obtain funds for
advances to Government agencies, the corporation was authorized
to include the administrative expenses incurred in carrying out the
provisions of title I of the Emergency Relief and Construction Act
of 1932. The amount of such expenses allocated was $126,872.
Allocations to States
The Federal Emergency Relief Act of 1933 directed RFC to make
payments, not to exceed $500 million in total amount, to the States
upon the certification of the Federal Emergency Relief Administrator 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 disbursed to the States the sum of $799,634,999. The distribution of this
by States is shown in the following table:
156
ALLOCATIONS AND LOANS TO GOVERNMENT AGENCIES
Disbursements to States Under the Emergency Relief and Construction A c t of 1932 and
the Federal Emergency Relief Act of 1933
State
Alabama.
Arizona
Arkansas
_.
California
_
Colorado
Connecticut
Delaware
District of Columbia...
Florida
Georgia
_
Idaho
Illinois
_
Indiana*--_.
Iowa—
Kentucky.
Louisiana
M
M aii n: e :. . . : . : . : : : : :
Maryland
Massachusetts....
Michigan.
,
Minnesota.
Mississippi
Missouri
Montana
Nebraska
Nevada
New HampshireNew Jersey
New Mexico
New Y o r k . . . . . . . .
North Carolina...
North Dakota,._.
Ohio.
,
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina...
South Dakota.
Texas....,
Utah..
Vermont
Viii
Vir
Washing
.
West Virginia.;
Wisconsin
Wyoming
Alaska
Hawaii
Puerto Rico
Virgin Islands,
Total..
Act of 1932
$4,211,688
1,448,239
4,833,967
10,081,631
3,832,990
3,886,512
1,745,692
1,026,566
65,443,721
5,179,931
2,151,430
2,592,934
6,728,987
8,200,127
252,895
176,380
Actofl933
$3,994,391
2,83? 146
7,410,249
15,823,535
3,925,050
4,694,164
1,010,708
1,056,174
13,347,232
7,705,354
809,957
52,240,038
11,259,425
5,248,789
2,732,726
5,045,118
13,034,167
1,251,414
7,171,098
11,355,140
31,369,782
8,831,959
8,550,286
6,685,494
2,853,357
2,125,699
370,801
966,436
15,423,438
Total
$13,206,070
4,282,415
12,244,216
25,905,166
7,758,040
4,694,154
1,010,708
1,056,174
17,233,744
9,451,046
1,836,523
107,683,759
16,439,356
7,400,219
?!22£
12,674,105
21,234,284
1,504,309
7,347,478
11,355,140
53,177,981
11,413,746
12,609,205
11 302,283
6,221,642
2,125,699
633,433
2,333,039
17,432,729
1,277,091
89,731,826
16,659,990
4,205,288
56,020,587
10,879,602
6,011,605
79,036,384
2,994,557
14,999,470
8,839,642
9,744,648
21,202,165
4,646,791
481^644
9,089,378
11 604,605
20,745,817
22,014,415
190,383
394,935
360,000
1,110,561
1,970,201
281 753
349,629
1,605,496
2,330,201
281,763
299,984,999
499,650,000
799,634,000
21,808,199
2,581,787
4,058,919
4,616,789
2,368,285
1,366,603
2,009,291
387,903
26,600,000
5,950,000
592,768
19,257,205
4,570,597
2,798,290
34,929,875
1,123,590
4,575,270
1,803,945
3,375,352
7,952,291
2,923,439
3,495,304
5,977,430
9,655,218
12,395,362
63,131,826
9,709,990
3,612,620
6,309,005
3,213,315
44,108,509
1,870,967
10,424,200
7,035,697
6,369,196
13,249,874
1,723,352
481544
5,594,074
5,627,175
11,090,599
9
Federal Emergency Relief Administration
The Emergency Appropriation Act, fiscal year 1935, provided that
"not exceeding $500 million in the aggregate of any savings or unobligated balances in the funds of the Reconstruction Finance Corporation
may, in the discretion of the President, be transferred and applied to
the purposes of the Federal Emergency Relief Act of 1933 and/or
Title I I of the National Recovery Act * * *."
Under this provision, the Corporation transferred $500 million to
the Federal Emergency Relief Administration. (See table A-14 in
app.C)
157
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
An additional $500 million of RFC funds were transferred for relief
purposes in accord with the provisions of the Emergency Relief Appropriation 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 byfloodsin the Ohio-Mississippi
Valley. Its capital stock was originally limited to $20 million and
was subscribed by RFC out of the unexpended balance of the $50 million which RFC was authorized to lend for disaster relief under the
act approved April 17,1936. By an act approved March 4,1939, the
limiting amount on the Corporation's capital stock was increased to
$40 million. Altogether, the RFC disbursed $24 million for the capital 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 outstanding capital stock of DLC to the Secretary of the Treasury and
canceled RFC's notes payable to Treasury in a like amount.
Although DLC was closely affiliated with RFC throughout its existence (February 11,1937, to June 30,1945), and in fact operated much
as a division of RFC, it could be considered as an RFC subsidiary only
during the first year of its operations.
Secretary ol State and Economic Cooperation Administration
Beginning in 1947, and continuing into 1950, the Congress directed
the RFC to make a series of advances for the purpose of providing temporary financing for foreign aid programs. A total of $2,351 million
was advanced by RFC under these directives. The Corporation °^'
tained funds for the advances through interest-free borrowings from
the Treasury. As appropriations were approved for the various programs, the advances made by RFC were returned and RFC's borrowings retired. The table below summarizes the advances made in connection with foreign aid:
Act approved
May 22,1947
May 27,1947
Dec. 17,1947
Apr. 3,1948
Do
Do
Aug. 11,1948
Mar. 24,1949
Apr. 19,1949
Feb. 14,1960
June 5,1950
158
Authorized
Purpose
1
Aid to Greece and Turkey
Aid to war-devastated areas
Aid to European countries
Aid to China
Aid to Greece and Turkey
European economic aid
Construction of U.N. building
Aid to Palestine refugees.:
European economic aid
Far East relief.
Aid to Palestine refugees
/.
$100,000,000
75 000,000
160 000,000
»s
IS
ALLOCATIONS AND LOANS TO GOVERNMENT AGENCIES
All amounts shown above were disbursed, except that of the $150
million 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 interest
which EFC had paid to the Treasury on funds borrowed for the purpose of making loans and advances to other Government agencies
was included with the RFC notes canceled at that time. The amount
of interest so included was computed as $33,177,420.
159
Results of Lending Activities
There is shown on page 162 a consolidated statement of the net income from RFC's lending activities during the period from February
2,1932, to June 30,1957. The results shown are applicable only to what
have been called RFC's "normal" lending functions. No effect is
given in this statement to the grants and allocations made by KFC to
other Government agencies at the direction of the Congress, nor to
the World War I I activities conducted by RFC's wartime subsidiaries.
That the activities so excluded were outside the "normal" scope of
HFC's functions was recognized by the Congress when the Secretary
of the Treasury was directed to cancel the notes which KFC had issued
for the funds used in these activities. There are included in the statement the results of the operations of RFC's two mortgage subsidiaries—RFC Mortgage Company and Federal National Mortgage
Association.
The net income from RFC's lending activities as shown on the
Corporation's books was $690,017,232, and this figure gives effect to
the actual amount of interest paid by RFC on funds borrowed for and
utilized in the lending programs. During the Corporation's later
years, there were criticisms from many quarters to the effect that
RFC's net earnings were inflated because the Corporation did, on
many occasions, borrow funds from Treasury at rates of interest
below those which Treasury was paying on its borrowings from the
public. RFC was also criticized because it had utilized in its lending
program, without paying interest, certain funds held for other Government agencies and programs, and because RFC had the "interestfree" use of retained earnings and the funds supplied by Treasury for
RFC's capital stock.
If the RFC had paid interest on its capital stock, retained earnings, and all funds loaned to RFC by Treasury at a rate representing
the current average rate on outstanding public debt securities, the
Corporation's interest expense would have been increased by
$356,326,227. Deducting this from the accumulated net income shown
on 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
161
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Consolidated Statement of Net Income from Lending Activities for the Cumulative Period
from Date of Incorporation to June 3 0 , 1 9 5 7
Income:
Interest and dividends earned on loans
and securities
SI, 442, 580, 070
Premiums realized and discounts collected on loans and securities, principally premiums on sales of public
agency bonds, FHA-insured mortgages, and railroad securities
56, 812, 480
Commitment and other fees
12, 305,141
Participation fees earned....
—
10, 439, 460
Other income
696, 270
Total income
Interest and other expenses:
Interest paid on funds:
Borrowed from U.S. Treasury
Borrowed from the public
Held for U.S. Treasury and others
derived principally from the World
War II programs, including War
Damage Corporation and temporarily utilized in the lending program
Total interest paid
Administrative expense
Fees paid for servicing mortgages, etc__
Other expenses
$279, 415, 299
86, 481, 808
61, 377, 562
427, 274, 669
264, 238, 073
18, 419, 036
819, 630
Total expenses
Net income before losses and reserve
provisions
Losses and reserve provisions:
Loans, securities, and other receivables
charged off, less income and profits
from assets acquired in the liquidation
of loans and securities
Provision for losses on loans, securities
and other receivables not liquidated
as of June 30, 1957
Net income as shown on RFC's
books
Deduct:
Increase in interest expense to reflect
the average rate paid by the Treasury
applicable to RFC's borrowings, capital stock, and accumulated earnings
Adjusted net income
162
$1,522,833,421
710,751,408
n
812,082, 013
106, 733, 040
15, 331, 741
122, 064,781
_.
690, 017,232
356, 326,227
333, 691,005
RESULTS OF LENDING ACTIVITIES
shown in the following table. For comparative purposes, the
amounts which RFC disbursed for the loans and investments in which
losses were incurred are also shown.
Summary of Loan Disbursements and Book Losses Cumulative Through June 3 0 , 1 9 5 7
Type of loan
Disbursements
Mining Joans
Others
-
-
Financial institutions
-
Other loans
Miscellaneous losses
-
.
Total—
.
- Deduct:
Income and profits from properties and securities acquired in liquidation of loan indebtedness..
Book losses
Loss experience
$2,670,087,267
$71,565,519
2.68
34,186,708
37,500,000
2,598,400,559
8,899,068
28,867,354
33,799,097
26.03
76.98
1.30
1,138,448,375
3,906,201,681
70,069,410
1,325,190,393
285,613,958
22,934,315
52,982,778
4,862,269
12,485,678
236,082
1 631,238
2.01
1.36
6.94
.94
.08
9,395,611,084
166,697,879
1.77
69,964,839
106,733,040
1.14
More than one-half of the losses on loans to business enterprises
were sustained in connection with the loan made to the Lustron Corp.,
and in connection with loans to mining interests. In the case of the
latter, most of the losses which occured were on loans made for the
development of mining properties to produce strategic and critical
minerals for the national defense programs of World War II.
The "miscellaneous" losses shown in the foregoing schedule are
those relating to accrued interest and other receivables applicable to
all types of loans and investments listed.
For many of HFC's lending programs, there were no losses of any
sort registered on the Corporation's books, and these are not included
in the schedule above. The programs so excluded are as follows:
Amount disbursed
$1» 778,093,357
RFC's mortgage loan subsidiaries
460,000,000
Loans to foreign governments
211,933,000
Loans to other U.S. Government agencies
Loans to agricultural financing institutions (Government or
67,502,962
quasi-government)
3,617,529,319
Also excluded from the table on losses are the loans and stock
subscriptions for KFC's wartime subsidiaries and for the grants,
allocations, and loans made to other Government agencies at direction
of the Congress. In both of these instances, RFC's notes to the Secretary of the Treasury were canceled in amounts which represented the
Corporation's unrecovered costs from such activities.
163
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
One further note as to the manner in which the Corporation's
losses on loans were computed and reflected in the table above: In
determining whether a loss was sustained on any particular loan, the
Corporation always followed the practice of taking into consideration the results of disposing of any collateral acquired in the foreclosure of the loans. Prior to 1948, it was the practice to determine
the loss on a particular loan only after final disposition of all collateral
acquired in the liquidation of that loan had been effected. Subsequent to that time, however, the value of the collateral was determined
by appraisal at the time of foreclosure, and any deficit between the
appraised value and the unpaid balance of the loan immediately
recorded as a loss. The results of the subsequent liquidation of the
collateral, while identifiable with the original loan, were not so treated
in the accounts but were recorded in the financial statements as profits
or losses from the disposal of collateral rather than as increases or
decreases in the amount of losses on loans.
164
Defense Production Loans
Under title I I I of the Defense Production Act of 1950, the President was empowered to make provision for loans to business enterprises for expansion of capacity, development of technological processes, and the production of essential materials. To carry out the
purposes of the act, the President was authorized to utilize such existing agencies of the Government as he deemed appropriate, or to
create new agencies.
By Executive Order 10161, dated September 9,1950, the President
directed that the facilities of the RFC be utilized for the purposes of
domestic loans under the Defense Production Act, and the Corporation thereafter served as credit adviser and fiscal agent for the Defense
Production Administration in processing loan applications and servicing loans made. The loans made under the authority of the Defense
Production Act were financed by borrowings from the Treasury as
provided by section 304 of the act.
The RFC continued to perform services under the Defense Production Act until September 28,1953, when the provisions of section 107
of the RFC Liquidation Act became effective. This section provided
that the Defense Production Act lending program be transferred from
RFC to an agency to be named by the President. In Executive Order
10489, dated September 26, 1953, the President transferred the program to the Secretary of the Treasury. The Secretary arranged to
utilize RFC as his agent for the administration of this program, and
this arrangement continued until June 30,1954. Thereafter, the program was administered by the Secretary of the Treasury through the
Defense Lending Division and the Office of Defense Lending in the
Treasury Department.
RFC served only as an agent in the Defense Production Act lending program, but the policies and procedures followed were those used
in RFC's own lending programs. Through September 28,1953, there
had been authorized under this program 340 loans amounting to
$352,487,022. When the program was transferred to the Secretary of
the Treasury, there was $132,599,000 outstanding in the unpaid principal balances of loans, and $136,397,000 in undisbursed commitments.
165
Smaller W a r Plants Corporation
Smaller War Plants Corporation, an independent agency, was organized in 1942 to assist in mobilizing the production facilities of
small business for war purposes. SWPC was empowered to make
loans, to purchase and lease production facilities to small concerns,
and to contract with the Government to furnish war materials and
equipment, such materials to be procured through subcontracting
arrangements with small business. Later, under the Surplus Property Act of 1944, SWPC was authorized to purchase and resell surplus
property to small business, and to make and guarantee loans to small
business 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 were
transferred to RFC and to the Department of Commerce. The functions of SWPC which were transferred to RFC expired on December
31, 1946. The corporate entity of SWPC was abolished by the provisions of a joint resolution approved June 30, 1947, and RFC was
directed to cany out the liquidation of SWPC's affairs.
The SWPC assets transferred to RFC on January 26,1946, were
as follows:
Cash (less liabilities)
Loans, including accrued interest
Notes and accounts receivable
Machinery and equipment
Furniture and equipment
Total
$129,733,133
29,701,510
871,752
16,334,319
306,316
176,947,030
Subsequent to the original transfer date, there was returned to
RFC $2,315,962 representing the unexpended balances of administrative funds transferred from SWPC to the Department of Commerce.
RFC received from SWPC on January 28,1946,1,546 outstanding
loans having principal balances and accrued interest aggregating
$29,701,510. The authority of SWPC to make new loans was extant
until December 81, 1946, but no major loans were authorized subsequent to the transfer to RFC. The principal new loan activity undertaken by RFC under the SWPC authority was the authorization of
deferred participations in 187 loans made by banks. The amount of
these deferred participations was $5,040,131*
5052OT—58
12
167
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The machinery and equipment received by RFC in the SWPC
transfer was valued at $16,334,319, including that involved in 450
active leases. There were no new lease agreements executed after
January 28,1946.
The program for accommodation purchases of surplus property
constituted the most substantial part of the SWPC functions administered 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 veterans. 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 accountable to the Treasury Department for the net proceeds realized from the
administration and liquidation of the transferred SWPC assets. RFC
remitted to the Treasury a total of $162,675,000 from SWPC sources.
In addition, property and equipment having a cost value of $6,704,603
was transferred without reimbursement to other Government
agencies—mainly to War Assets Administration.
On June 30, 1957, the remaining SWPC assets consisted of the
following:
Cash
Loans
Acquired coUateral
Other receivables
Less reserves.
$261j 254
845j 050
29,791
III!L~I
"
' 879
1,137,874
5 5 8 | 3 32
579,542
The liabilities of the program on June 30,1957, were $1,716, leaving an
equity of the Government amounting to $577,826.
Under the provisions of Reorganization Plan No. 1 of 1957, the assets
and liabilities remaining from the former Smaller War Plants
Corporation were transferred to General Services Administration.
168
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 of
1957.
The liquidation of the Corporation was conducted in accordance with
the provisions of the Reconstruction Finance Corporation Liquidation
Act which became effective September 28,1953. At that time, the RFC
held or administered assets and commitments totaling in excess of
$2 billion. Less than $100 million of this remained when the Corporation was abolished. The remaining assets were transferred by the
provisions of Reorganization Plan No. 1 of 1957 to other Government
agencies administering continuing programs of similar natures.
The RFC Liquidation Acf
The RFC Liquidation Act (Public Law 163, 83d Cong.) was
approved July 30, 1953. This act provided for liquidation of the
Corporation in accordance with sections 9 and 10 of the RFC Act, as
amended (47 Stat. 5). Under these provisions, the RFC continued as
an independent agency until June 30, 1954. Thereafter, for further
liquidation, the Secretary of the Treasury succeeded to all powers,
duties, and authorities previously exercised by the Administrator
of RFC.
The RFC Liquidation Act also provided for termination of the Corporation's authority to make loans, effective September 28, 1953, and
progress in the liquidation of the lending portfolio is measured from
that date.
Other provisions of the RFC Liquidation Act directed that the
following programs be transferred from the Corporation:
Lending under section 409, Federal Civil Defense Act of 1950, to the Secretary
of the Treasury, effective September 28,1953.
Lending under title III, Defense Production Act, as amended, as directed by
the President By Executive Order 10489, the President transfered this program
to the Secretary of the Treasury, effective September 29,1953.
The production programs conducted under the Rubber Act of 1948 (synthetic
rubber), 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 transferred
to the Federal Facilities Corporation, and the abaca fiber program was trans-
169
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
ferred to the General Services Administration. The Federal Facilities Corporation 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 held
or administered by the Reconstruction Finance Corporation totaled
$1,760,500,000. In addition, there were outstanding commitments to
make or participate in loans which amounted to $250,500,000. After
giving 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. This
investment in its main categories was as follows:
In millions of dollars
Gross
value of
assets
Production programs and other assets remaining from World War II.
Smaller War Plants Corporation.
Total
Net investment
ofU,S.
Government
TTndisbursed
commitments
726.9
136.6
1.9
801.7
3.5
672.4
130.9
1.8
452.2
2.7
110.3
136.4
3.8
1,760.5
1,260.0
250.5
Liquidation Policy
The RFC Liquidation Act directed that the liquidation of the
Corporation "be carried out as expeditiously as possible." I t was
the aim of the liquidation program to comply with that directive,
but also to achieve maximum recovery of the Government's investment of taxpayers' funds. At the same time, every possible consideration was given to the interests of those indebted to the Corporation
and the communities in which their business were located.
Reorganization Plan No. 2 of 1954
When the liquidation of RFC was undertaken, it was apparent that
the Corporation held certain assets in its lending program which
would require a protracted period to work out to the best advantage.
To retain such assets in RFC would have required continuation of the
Corporation far beyond the time when it could serve economically as
a liquidating agency. Therefore, Reorganization Plan No. 2 of 19&
170
LIQUIDATION OF RFC
was proposed and adopted, effective June 30,1954. Under this plan,
the functions of liquidating certain lending program assets were
transferred to agencies conducting continuing programs of similar
natures. 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 other
catastrophes.
3. To the Federal National Mortgage Association:
The mortgages held by RFC which were made or acquired
under the authorities of the RFC Mortgage Company or the
Defense Homes Corporation.
RFC Lending Program Assets
The assets held on September 28, 1953, in connection with RFC's
lending program were as follows:
Thousands
of dollars
Cash
Loans and securities
Accrued interest receivable
Acquired collateral
Other assets and receivables
Total
_
22,886
686,471
7,226
7
» 56*
~» ^
726,974
Reserves for losses amounting to $48,267,000 were carried in connection with the loans and securities.
In addition to the assets actually carried on the books, the Corporation had outstanding on September 28, 1953, commitments to
make loans amounting to $110,300,000; of these, $26,424,000 were
deferred commitments to purchase participations in loans made by
banks.
Included in the portfolio of loans, securities, and commitments
noted above are those which later were to be transferred from RFC
under the provisions of Reorganization Plan No. 2 of 1954. The
171
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
amounts of these, and the reductions made in the portfolio up until
the time of transfer, were as follows:
Dollar amounts In thousands
Outstanding Sept.
28,1053
Net reduction In
portfolio
Outstanding June
30, 1954
Number Amount Number Amount Number Amount
Transferred to Small Business Administration:
Disaster loans
Disaster loan commitments
Transferred to Federal National Mortgage
Association:
Direct, Insured, and partially guaranteed mortgages
Purchase money mortgages
Transferred to Export-Import Bank:
Loan to Republic of the Philippines...
Total
3,373
232
$16,143
2,226
143
223
$1,396
1,724
3,230
9
$14,747
502
15,594
656
5,266
785
6,000
15,038
1
69,484
42,304
48,000
1
64,218
41,519
42,000
19,204
178,157
922
15,171
18,282
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 commitments of $110,320,000, of which $26,424,000 were deferred. Excluding 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 could
best be accomplished by the Corporation itself. The composition of
this portfolio on September 28,1953, and the liquidation accomplished
to June 30,1957, are shown in the following tabulation:
Dollars amounts in thousands
Outstanding Sept.
28,1953
Net reduction In
portfolio
Number Amount Number Amount
Business enterprises:
Loans and securities
Commitments.
Railroads:
Loans and securities
Commitments
Securities offinancialinstitutions
Public agencies:
Securities
Commitments
Total
Commitments for deferred participation
in business loans made by banks
Grand total-
4,543 $352,327
85
43,205
Outstanding June
30,1957
Number
Amount
3,788
85
$300,828
42,444
765
*.£
83,915
717
45,490
5
1
33
75,348
717
40,711
8
8,667
35
2 "
4,779
268
29
28,808
37,748
199
29
24,172
36,248
69
4,636
1,600
4,974
592,210
4,140
520,468
834
71,742
1,676
26,424
1,590
19,857
86
6,567
920
78,305
13
6,650
618,634 _
5,730
540,325
Business Loans and Securities
Liquidation of the business loan portfolio was the most complex
task confronting the Corporation. On September 28,1953, there were
4,628 direct business loans and commitments outstanding which
amounted to $395,532,000. In addition, the Corporation was committed, on a deferred basis, to purchase participating shares in 1,676
172
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 administrative costs were incurred in servicing this large number of loans scattered throughout the Nation. The loans varied in size from a few
with outstanding balances of less than $100 to one loan of $48,400,000.
Fewer than 100 of the loans had balances exceeding $500,000. In
approximately 3,000 cases, the amount due RFC was less than $25,000.
Disposal of Smaller Business Loans
To dispose of the smaller business loans in its portfolio, the Corporation, with the cooperation of a committee of bankers appointed by the
American Bankers Association and the Association of Eeserve City
Bankers, developed a plan for the creation of what was termed the
"RFC Loan Pool." As of February 28,1954,2,848 loans were selected
for the pool. All but two of these had outstanding balances under
$500,000. The aggregate amounts of the unpaid balances and commitments was $73,381,000. Certificates of interest bearing interest at
the rate of 3y2 percent per annum, each representing an undivided
share of the pool loans, were sold to nearly 1,000 banks and private
investors. The certificates of interest totaled $47,165,000, and their
sale resulted in the immediate return of that amount to the
Government.
With the assistance of regional advisory committees composed of
leading bankers, 1,194 banks were enlisted to take over the servicing
of pool loans to borrowers in their own or nearby communities. This
step made it possible to close all of the RFC regional offices and
thereby relieved the Corporation of the major share of its administrative costs. I t also served to establish or reestablish a close relationship between RFC borrowers and private banks.
In establishing the loan pool, it was anticipated that this closer relationship would result in repayment or refinancing of the loans at dates
much earlier than otherwise would have occurred. This expectation
was borne out in actual experience.
The results to June 30,1957, of the operations of the RFC loan pool
are summarized in the table below:
Dollars In thousands
Pool loans outstanding
Number
Jeb.28,1954
June 30,1954..
June 30,1956
June 30,1956
June 30,1957
.
.„
.
2,848
2,403
M89
931
498
Amount
$73,381
59,144
32,333
18,723
7,669
Interest of participants
RFC
$26,216
26,216
19,035
18,056
7,669
Certificate
holders
$47,165
32,928
13,298
667
173
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
In the 40 months to June 30, 1957, more than 80 percent of the
loans placed in the pool had been retired and nearly 90 percent of the
original outstanding balances repaid. The certificates of interest
were completely retired on July 5,1956.
Disposal of Large Business Loans
The disposal of the larger business loans presented entirely different
problems than those involved in the smaller loans placed in the loan
pool. The size of the outstanding balances and the divergent provisions of the loan agreements made it necessary to undertake disposal
of these loans through individual negotiations with borrowers and
with banks, investment houses, and other financing institutions.
The program to dispose of the larger business loans through negotiations was successful in achieving a rapid reduction in the dollar
volume of the RFC business loan portfolio. From September 28,
1953, through June 30, 1957, 885 loans amounting to $125,154,000
were removed from the portfolio as the result of these negotiations,
and the proceeds returned to the Treasury much earlier than would
have been possible if the loans had been liquidated according to scheduled repayment terms.
Throughout the liquidation program, the Corporation maintained
a firm policy in the collection or sale of business loans of requiring
payment at full face value without compromise or discount.
The table below summarizes the results of the program for negotiated disposal of business loans.
Number
Bold outright or otherwise refinanced
Sold subject to deferred participation (repurchase agreement)
Prepaid 6 months or more in advance of maturity
Total
Amount (in
thousands)
421
99
365
li
885
125,1^
On September 28,1953, there were two instances in which EFC held
the securities of business enterprises. In both of these cases the
securities were disposed of in the market
Liquidation of Railroad Securities
On September 28, 1953, RFC had, in the portfolio of its lending
program, securities and notes of eight railroad companies with a par
or stated value of $88,537,052. In addition, there was one undisbursed
comnutment 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
174
LIQUIDATION OF RFC
indebted to RFC and which were carried on the Corporation's books at
an appraised value of $5,948,960.
The program for disposal of RFC's railroad obligations included
public sale offerings, negotiations with the railroads and private investment institutions, and direct sales in organized markets.
Disposal of Public Agency Securities
On September 28,1953, EFC held or was committed to purchase a
total of $66,556,000 in 297 issues of the obligations of political subdivisions of States and Territories.
Efforts to dispose of these holdings were at first concentrated on
advertised sale. Sealed bids were invited for 171 lots amounting to
$9,284,000. The offering was announced in financial publications with
nationwide circulations and was circularized to more than 1,900 municipal bond dealers, insurance companies, and other potential purchasers. The bids were opened on November 17,1953, and were far
below expectations. Bids were received on only 98 lots, and only
those 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 efforts
were made to dispose of the remaining securities through negotiated
sales. Revised lists of the public agency securities held by EFC were
widely circulated to investment dealers and other interested parties.
Negotiated sales resulting from this program produced prices greatly
in excess of the bids submitted at the sealed-bid sale. This program
was continued throughout the liquidation period and, up to June 30,
1957, resulted in the disposal of all but 69 issues, which had a carrying
value of $4,636,000. Those which remained were the residue of the
more than 6,200 issues purchased by RFC which had a value exceeding
$1,300 million. The marketable quality of those remaining was
generally very low and many of them were in default.
Two issues accounted for about three-fourths of the amount outstanding or committed at the start of the liquidation period. Sale of
the largest issue, amounting to $28,885,000 was made as the result of
intensive negotiations over an extended period of time and, finally,
competitive bidding. Since the 4-percent interest rate on these bonds
was below the rate carried by similar issues, it was obvious that the
bonds would have to be marketed at a discount. The $28,426,795
received when the sale was consummated exceeded expectations, representing 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 bonds
were issued, the securities were retired at par from the proceeds of a
refunding issue,
175
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Liquidation of Securities of Financial Institutions
The securities of the 35 financial institutions held by EFC on September 28,1953, amounted to $45,490,000 and consisted mainly of the
preferred stock and debentures of banks. These remained from the
$3.9 billion invested in approximately 9,000 banks and other financial
institutions by EFC during the early years of its existence. The program for liquidation of these holdings was to assist the institutions in
obtaining new capital or in the formulation of other plans which would
enable them to retire their obligations to the Government. Through
June 30,1957, these efforts resulted in the retirement of all securities
of 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 Corporation had engaged in a wide variety of construction, procurement,
and production activities during the national defense, war, and reconversion periods beginning in 1940. Following World War II, it
was apparent that the Corporation would be unable to recover from
these activities amounts sufficient to retire the borrowings from the
Treasury used to finance them. In the Government Corporations Appropriation Act of 1949, the Congress directed the Secretary of the
Treasury to cancel the notes of EFC in the amount of $9,313,736,531,
plus interest accrued thereon subsequent to June 30, 1947. This
amount represented the unrecovered costs to the Corporation as of
June 30,1947, of its national defense, war, and reconversion activities.
The Congress further directed that any amounts recovered from the
assets of these activities subsequent to June 30, 1947, should be paid
into the Treasury as miscellaneous receipts after the deduction of
related expenses.
The assets remaining from these programs at the time of the note
cancellation consisted primarily of industrial property, plants, equipment, and related facilities which either had been or were expected to
be declared surplus. In addition, there were significant amounts
represented by inventories of strategic materials, and a variety of
loans, advances, receivables, and securities.
Some of the industrial properties held by the Corporation were
continued in operation for the account of the Government after the
reconversion period. Continued operation of the synthetic-rubberproducing facilities was provided for by the Eubber Act of 1948 and
subsequent amendments; the A W Production Act of 1950 provided
for continuation of Government production of abaca fiber on its
Central American plantations; and the joint resolution approved June
176
LIQUIDATION OF RFC
28,1947, provided for continued production of tin by the Government
at the Texas City, Tex., smelter.
Except for the facilities related to the three production programs
noted above, the RFC carried on continuously from 1947 a program to
dispose of and liquidate the assets and liabilities remaining from its
national 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 World
War I I liquidation programs were concerned. However, in this report, the progress made in the disposal and liquidation of these assets
and liabilities is measured from September 28,1953, since the program
was conducted by the management and personnel engaged in the liquidation of RFC's lending program assets. At that time, the RFC was
accountable to the Treasury for $452,168,832 in the net assets of these
programs, distributed as follows:
In millions of dollars
Total
Synthetic
rubber
Tin
Abaca
Liquidation
program
Funds held by RFC.
126.3
Cash working funds
Loans, advances, and receivables
Inventories
Property, plant, and equipment (net)
Other assets
\
28
33.1
134 1
180.3
6.0
2.7
21.9
73.8
162.9
3.1
0.1
.7
58.0
8.2
.9
0.1
2.3
7.1
L9
10.4
Total assets
Liabilities
356.3
30.4
264.4
22.8
67.9
4.4
11.4
2.6
12.6
.6
Net Investment
325.9
241.6
63.5
8.8
12.0
Total accountability
452.2
2.1
.1
Synthetic Rubber
Disposal to private industry of the Government's synthetic-rubberproducing facilities was contemplated in the Eubber Act of 1948.
This act required the RFC to develop such a program and report to
the President and the Congress before March 1, 1953. On April 14,
1953, the President sent a message to the Congress in which he recommended legislation to implement the disposal program presented
in the RFC report. This resulted in the Rubber Producing Facilities
Disposal Act of 1953, approved August 7,1953.
The Disposal Act established the Rubber Producing Facilities Disposal Commission, which was formally organized on November 10,
1953. Through the Commission's efforts, all of the synthetic-rubberproducing facilities were sold to private industry, except an alcohol
butadiene plant at Louisville, Ky., which was under lease to a private
operator, and a small catalyst manufacturing facility in Baltimore,
177
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
Md. Full details of the Commission's disposal efforts and their results
are contained in the reports made to the Congress by the Commission.
While the Disposal Act was under consideration, the EFC Liquidation Act was adopted, and section 107 of this act directed that all
powers, duties, and authority of the EFC under the Rubber Act of
1948 be transferred from RFC not later than June 30, 1954. By
Executive Order 10539, effective June 30, 1954, the synthetic rubber
program was transferred from RFC to Federal Facilities Corporation, organized by the Secretary of the Treasury.
The synthetic rubber program assets and liabilities transferred from
RFC to Federal Facilities Corporation on June 30, 1954, were as
follows:
Cash
_
_
$11, 242, 893
Accounts receivable.
___
17, 371, 841
Inventories of synthetic rubber, raw materials, and supplies
72, 936,097
Production facilities
_
__
$530, 596, 888
Less depreciation
_
„
386, 030,165
144, 566, 723
Other assets
2, 347, 368
Total assets
Liabilities
1
248,464,922
15,190, 484
Net investment-
233, 274, 438
Federal Facilities Corporation continued to operate the synthetic
rubber plants for the Government's account until they were sold or
leased under the program of the Rubber Producing Facilities Disposal
Commission.
The proceeds from the program to dispose of the Government's
synthetic-rubber-producing facilities were as follows to June 30,1957:
Sales of fixed assets
Sales of in-process inventories, spare parts, tools, etc
Total
Less purchase-money mortgages outstanding June 30,1957
Cash proceeds realized
III-"—
$264,286,843
21,702,279
285,989,122
9,261,171
276,727,951
On June 30,1957, liquidation of the remnants of the synthetic rubber
program became the responsibility of the Administrator of General
Services, who succeeded the Secretary of the Treasury as the executive
head of Federal Facilities Corporation under the provisions of
Executive Order 10720.
The principal assets of the synthetic rubber program remaining on
June 30, 1957, were $9,261,171 in purchase-money mortgages and
$3,982,838 in unsold property, plant, and equipment, the bulk of which
178
LIQUIDATION OF RFC
was the alcohol butadiene plant at Louisville, Ky., under lease to a
private operator; the remainder consisted of catalyst manufacturing
equipment located in Baltimore, Md.
Tin
Because of the strategic importance of tin metal, operation of the
Government-owned tin smelter at Texas City, Tex., was continued
following World War I I . This smelter was constructed in 1941-42
as part of the Government tin program undertaken in 1940, and is the
only major tin smelter in the Western Hemisphere.
On September 28, 1953, when the RFC Liquidation Act became
effective, the net value of the properties, inventories, and other assets
making up the tin program was $63,500,000; of this more than $58
million 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 transferred
from RFC. In Executive Order 10539, the President transferred the
tin program to the Federal Facilities Corporation. The composition
of the Government's investment so transferred was as follows:
Cash
Receivables
Inventories
_
Production facilities
Accumulated depreciation
Other assets
_
Total assets
Liabilities
Net investment
._
$15,244,231
1, 648,228
15,119, 393
_
$13,183, 989
5, 697, 841
__
__._
7, 486,148
32, 570
39, 530,570
3, 890,268
35, 640, 302
Authority to operate the smelter and carry on the tin program
under the joint resolution approved June 28, 1949, extended until
June 30, 1956. In Senate Concurrent Resolution 26, 84th Congress,
the President was requested to have conducted a study and investigation as to the most feasible methods of maintaining a permanent
domestic tin-smelting industry and report his recommendations to
the Congress before March 31, 1956, As the result of this study,
Public Law 608, approved June 22, 1956, provided for operation of
the tin smelter until January 31,1957, and also directed Federal Facilities Corporation to take steps to sell or lease the tin-producing
facilities.
After exhaustive negotiations, an agreement for the sale of the
smelter was signed on January 3,1957, with the Wah Chang Corp.
The sale price was $1,350,000, with a 10-percent cash downpayment
179
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
and the balance in annual installments over a period of 10 years. The
purchaser also agreed to make additional payments up to $2 million
contingent upon the volume of tin metal, tin alloys, and tungsten
produced.
Effective June 30,1957, responsibility for liquidating the remnants
of the Government's tin program passed from the Secretary of the
Treasury to the Administrator of General Services in accord with the
provisions of Executive Order 10720. At that time, the remaining
assets of the tin program consisted primarily of the $1,215,000 due
on the purchase-money mortgage taken in the sale of the smelter.
Abaca
Beginning 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, cannot
be grown in the continental United States.
The Government plantations were established in Costa Rica, Guatemala, Honduras, and Panama. The Abaca Production Act of 1950
provided for continuation of the program until March 31,1960, unless
earlier termination should be directed by the President or the Congress.
In the EFC Liquidation Act, it was provided that the abaca program be transferred from RFC. General Services Administration
was named by the President to receive the abaca program in Executive
Order 10539, effective June 30,1954.
The composition of the Government's investment transferred from
RFC to General Services Administration by this order was as follows:
Cash
Receivables
InventoriesLess valuation reserve
$8,100,005
348,740
__
$4, 388,776
1,107, 936
3, 280, 840
Production facilities
Less accumulated depreciation
Other assets
..
12, 907, 719
5, 804,147
7,103,572
62,458
_
Total assets
Liabilities
Net investment
_
~~~"~~~"~"~"-_
18, 895, 615
1,530,052
17,365,563
Other Assets Remaining From World War II Activities
For funds expended under wartime programs other than synthetic
rubber, tin, and abaca, the RFC was accountable for a net investment
of $12,026,878 on September 28, 1953. The composition of that investment and the progress made in liquidation to June 30, 1957, are
summarized in the table below:
180
LIQUIDATION OF RFC
Sept. 28, 1953
Funds held by R F C
Working funds
Loans and securitiesLess reserves for losses..,
Accounts receivable:
U.S. Government agencies
Land-grant freight claims.
Other receivables
Less allowance for losses..
June 30,1957
$7,558,005
$3,180
3,660,220
1,753,500
6,900
1,806,720
6,900
7,743,790
2,066,456
15,264,333
"I6,"318,"l32
25,074,579
16,456,923
10,324,432
5,537,464
6,300
8,617,656
4,786,968
Property, plant, and equipment:
Underlease
_
Under use and occupancy permit..,
Held for disposal
„„
6,653,186
4,273,380
5,029,759
""297754
Less allowance for losses
15,956,325
13,808,975
5,059,525
2,147,350
91,759
1,327,284
12,666,665
639,787
13,679,158
166,119
12,026,878
13,513,039
Miscellaneous assets..
Total assets, n e t Liabilities
Net investment.
6,357,055
1
Funds held by R F C 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 the
category "Loans and securities" are $3 million face amount in the
capital stock of the Banco de Borracha (Amazon Credit Bank) and
$498,201 in a loan to the Newfoundland Railway, Under the provisions of Reorganization Plan No. 2 of 1954, both of these were
transferred to the Export-Import Bank of Washington for final
liquidation.
The accounts receivable from Government agencies on September
28, 1953, included $7,737,547 due RFC from the Navy Department
under a provisional arrangement for the transfer of an aircraft plant.
The Navy Department's conditional obligation to RFC was canceled
by Public Law 978, approved August 3,1956.
The amounts due under conditional sale contracts arose primarily
from the sale of steel-producing facilities following World War EL
The property shown as under a use and occupancy permit was a
magnesium forging plant used by the U.S. Air Force without rental.
This property was transferred to the Air Force without reimbursement in accordance with Public Law 388, approved August 12,1955.
Smaller War Plants Corporation
Under Executive Order 9665, dated December 27, 1945, the assets
of the Smaller War Plants Corporation were transferred to RFC
for collection or disposal. Public Law 132, 80th Congress, directed
RFC to continue this liquidation program.
181
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
At the time of transfer, the unliquidated assets of the Smaller War
Plants Corporation totaled approximately $40 million, and consisted
of loans, leases, industrial plants, and equipment. By September 28,
1953, these had been reduced to $2,198,965 and consisted primarily
of 21 loans with unpaid balances of $1,540,071* Liquidation of these
remaining assets was continued under the policies and procedures
followed in the liquidation of RFC's program. The liquidation accomplished from September 28,1953, to June 30,1957, is summarized
in the table below:
Outstanding Outstanding
Sept. 28,1963 June 30,1957
Reduction
$1,540,071
218,139
677,431
$845,950
1,204
558,657
$694,121
216,935
118,774
Property acquired in liquidation ofloans
1,080,779
440,765
1,252,423
288,497
29,791
261,254
792,282
410,964
991,169
Liabilities
2,773,957
82,972
2,600,985
679,542
1,716
2,194,415
81,256
577,826
2,113,159
Loans
r „_,, _ _ „ „ „ » -...„
Notes and accounts receivable. ~
Less allowances for losses
„„.
Oast
Total
..^ ,
.^
,
u..
^ ,.,,_
Payments to Treasury from RFC Liquidation Proceeds
There was returned to the U.S. Treasury from liquidation of the
assets 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 transferred to other Government agencies in connection with the abaca
fiber program and synthetic rubber research. The foregoing figures
do not include transactions related to the Defense Production Act or
civil defense lending programs which were transferred from KFC to
the Secretary of the Treasury at the time the RFC liquidation program began.
The composition of the amount returned to the Treasury from the
liquidation of RFC is as follows:
Payments in reduction of RFC borrowings from Treasury (net)Retirement of RFC capital stock
Payment of earnings and proceeds from liquidation of RFC lending program
Payment of earnings and proceeds from World War II assets
Payment of earnings and proceeds from liquidation of synthetic
rubber and tin programs-—FFO
Payment of earnings and proceeds from liquidation of assets of
Smaller War Plants Corporation
Increase in amount of cash on deposit with TreasuryllHIIIIII
Total
182
$9,867,697
65,000,000
285,267,276
208,346,199
460,000,000
2,075,000
2,543,445
1,033,099,617
LIQUIDATION OF RFC
The funds becoming available and used in the liquidation of RFC's
assets were as follows:
Realization of loans and investments
$507,470,637
Realization of World War II assets, other than production
programs
12,457,605
Income—lending programs
44,713,129
Income—World War II assets, other than production programs—
5,430,358
Gross profit on sale of commodities
245,525,977
Recoveries under land grant freight claims
5,434,894
Sale of production facilities
275, 538,123
Recovery of working capital
83,641,566
1,180,212,289
Payments to Treasury (as above)
1,033,099,617
Loans disbursed
76,754,668
Capital expenditures—production programs
11,957,823
Administrative expenses
10,844,269
Other expenses
37,228,912
Cash 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, the
assets held by EFO on June 30, 1957, were transferred for final
liquidation to other Government agencies administering similar continuing functions and the Reconstruction Finance Corporation was
abolished 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 liabilities relating to business loans with individual balances outstanding of less than $250,000.
2. To Housing and Home Finance Agency: Those assets and
liabilities relating to securities issued by and loans made to political subdivisions of States and Territories.
3. To General Services Administration: (a) The assets and
liabilities remaining from RFC's terminated World War I I activities, and (&) the assets and liabilities remaining in the liquidation of the former Smaller War Plants Corporation.
4. To The Secretary of the Treasury: (a) Those assets and
liabilities related to business loans and securities with individual
balances of $250,000 or more, (6) all securities of and loans made
to railroad companies, and (c) all securities of financial institutions.
B052&7— 69
13
183
FINAL REPORT ON THE RECONSTRUCTION FINANCE CORPORATION
The assets and liabilities remaining with RFC on June 30, 1957,
and their disposition among other Government agencies are summarized in the following table:
Transferred to—
Total
HHFA
I. Lending program
Cash
...
... . . $9,321,528
1,228,102
TCscrow funds
Business loans
...* .. 51,499,370
Railroad loans and securities
8,567,094
Public agency securities
4,635,591
Financial institutions securities
4,779,000
Acquired collateral __. ——
. - - 1,732,744
OtHer receivables.—
.„
..
2,581,350
Less reserves
15,200,000
$1,505,004
1,228,102
492
1,399,367
2,872,785
69,144,779
400,714
5,895,771
5,004
Equity of U.S. Government
68,744,065
5,890,767
Cash
Receivables
.
Property (net)——
7,558,005
4,793,870
1 327 283
$9,332
SBA
"
"
•
*
"
"
*
"
•
"
"
*
•
*
*
9,332
9,332
$5,483,139
14,612,019
36,887,351
8,567,094
1,695,258
594,144
1,984,971
4,779,000
36,994
587,839
10,342,244
17,240,503
145,897
45,999,173
240,481
17,094,606
45,758,692
7,558,005
4,793,870
1 327'283
Total
Liabilities
13,679,158
166,119
13,679,158
166,119
Equity of U.S. Government
13,513,039
13,513,039
261,254
879
845,950
29,791
558,332
261,254
879
845,950
29,791
558,332
579,542
1,716
579,542
1,716
677,826
577,826
m . Smaller War Plant* Corporation
Cash
Receivables
Loans
Acquired collateral
Less reserves
Total
Equity of U.S. Government
184
m
Secretary of
Treasury
$2,324,053
4,635,591
Total
Liabilities
U. World War II activities
GSA
-
APPENDIX A
RFC Lesislation
185
APPENDIX A
RFC LEGISLATION
Date of approval
Statute reference
Jan. 22, 1932
Jan. 27, 1932
July 21, 1932
47 Stat. 5-12
47 Stat. 14
47 Stat. 709-724
July 22, 1932
Feb. 4, 1933,.-.
Mar. 9, 1933
Mar. 23, 1933
Mar. 24, 1933
May 12, 1933
47 Stat.
47 Stat.
48 Stat.
48 Stat.
48 Stat.
48 Stat.
Do
May 27,
May 29,
June 10,
June 13,
June 14,
1933
1933
1933
1933
1933
June 16, 1933
Do!
Do
Do
Jan. 20, 1934
Jan. 31, 1934
Apr. 13, 1934
June 16, 1934
June 19, 1934
Do
June 21, 1934
June 27, 1934
Do
Jan. 31, 1935
728-729
795
6
20
21
31-54
- 48 Stat. 55
48 Stat.
48 Stat.
48 Stat.
- - - 48 Stat.
- 48 Stat.
95
99-100
119-122
129
141
- - - 48 Stat. 210
48 Stat. 216
48 Stat. 258-273
48 Stat. 308-309
_- 48 Stat. 318-319
48 Stat. 345
48 Stat. 589-590
. . - 48 Stat. 971
48 Stat. 1055-1056
48 Stat. 1108-1113
- 48 Stat. 1198
48 Stat. 1247
48 Stat. 1269
49 Stat. 1
Public law
Public Law 2—72d Cong
Public Res. 7—72d Cong
Public Law 302—72d Cong
Public
Public
— Public
Public
Public
Public
Law 304—72d Cong.Law 327—72d Cong
Law 1—73d Cong
Res. 2—73d Cong
Law 4—73d Cong
Law 10—73d Cong
Title or purpose
Reconstruction Finance Corporation Act.
Appropriation for capital stock of RFC.
Emergency Relief and Construction Act,
1QQO
Cong
Cong
Cong
Cong
Cong
Cong--.
Federal Home Loan Bank Act.
Advances to Secretary of Agriculture.
Emergency Bank Act.
_ — Disaster loans.
Preferred stock of banks.
Emergency Farm Mortgage Act (Agricultural 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-
Public Law 67—73d Cong
Public Law 68—73d Cong.-Public Law 75—73d Cong
Public Law 78—73d Cong
Public Law 84—73d Cong
- Public Law 88—73d Cong
Public Law 160—73d Cong
Public Law 362—73d Cong
Public Law 412—73d Cong
Public Law 417—73d Cong
Public Law 443—73d Cong
Public Law 479—73d Cong
Public Res. 53—73d Cong
Public Law 1—74th Cong_-_
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.
Public Law 15—73d
Public Law 22—73d
Public Law 26—73d
— Public Law 35—73d
Public Law 43—73d
_ Public Law 51—73d
APPENDIX A—Continued
00
00
RFC LEGISLATION-Continued
Date of approval
Apr. 18, 1935
July 26, 1935—
Aug. 24, 1935
Mar. 20, 1936
Apr. 10, 1936
Apr. 17, 1936
May 20, 1936
June 22, 1936
Do
Jan. 26, 1937
Feb. 11, 1937.,—
May 28, 1937
June 29, 1937
Aug. 19, 1937
Feb. 3, 1938Feb. 24, 1938
Mar. 3, 1938
Mar. 8, 1938
Apr. 13, 1938.
June 25, 1938
Statute reference
49 Stat. 115
Public Res. 11—74th Cong
49 Stat. 505
Public Law 224—74th Cong
49 Stat. 796-798
— Public Law 325—74th Cong
_ 49 Stat. 1185
Public Law 482—74th Cong
._ 49 Stat. 1191
Public Law 489.—74th Cong
49 Stat. 1232-1233
Public Law 525—74th Cong
49 Stat. 1364
Public Law 605—74th Cong
_ 49 Stat. 1609
Public Law 739—74th Cong
Public Law 752—74th Cong
49 Stat. 1818-1819
50 Stat. 5
Public Law 2—75th Cong
50 Stat. 19
Public Law 5—75th Cong
50 Stat. 211
Public Res. 34—75th Cong
50 Stat. 357
Public Res. 47—75th Cong
50 Stat. 703
Public Law 323—75th Cong
52 Stat. 23
Public Law 424r-75th Cong
52 Stat. 79-80
.— Public Law 432—75th Cong
52 Stat. 84
_
Public Law 438—75th Cong
52 Stat. 107
Public Law 442—75th Cong
52 Stat. 212-213._.__
Public Law 479—75th Cong
52 Stat. 1194
Public Law 735—75th Cong
Mar. 4, 1939
53 Stat.
Do
53 Stat.
Effective July 1, 1939.. 53 Stat.
June 25, 1940
54 Stat.
June 25, 1940
June 26, 1940
Sept. 5, 1940
Sept. 16, 1940
Sept. 26, 1940
Mar. 28, 1941
June 10, 1941
Public law
510-_.—
511
1429-1430
564-567
54 Stat. 572-574
54 Stat. 614
54 Stat. 871
54 Stat. 897
54 Stat. 961-962
55 Stat. 55-56
55 Stat. 248-250
Public Law 2—76th Cong...
- Public Law 3—76th Cong
Reorganization Plan 1 of 1939
_ Public Law 658—76th 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
Public Law 664—76th Cong
Public Law 88—76th Cong
Public Law 780—76th Cong_.._.__
— Public Law 784—76th Cong
__
Public Law 792—76th Cong
_
Public Law 24—77th Cong
Public Law 108—77th Cong
_
Ar»t nf 1Q4.1
National 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.
55 Stat. 439-442.
Oct. 23, 1941,.
Jan. 30, 1942..
Mar. 27, 1942.
June 5, 1942-.
June 11, 1942..
July 22, 1942..
55 Stat.
56 Stat.
56 Stat.
56 Stat.
56 Stat.
56 Stat.
July 1, 1943.,
July 12, 1943-
57 Stat. 348.
57 Stat. 423.
Public Law 108—78th Cong.
Public Law 129—78th Cong.
Dec. 23, 1943.
June 28, 1944.
57 Stat. 617
58 Stat. 457-458.
Public Law 216—78th Cong.
Public Law 367—78th Cong.
July 1, 1944—
Oct. 3, 1944...
Feb. 24, 1945_
May 5, 1945..
58
58
59
59
Stat.
Stat.
Stat.
Stat.
650
774
5-6
161-162.
Public
Public
Public
Public
Law 395—78th Cong.
Law 457—78th Cong.
Law 4—79th Cong....
Law 52—79th Cong..
June 23, 1945..
June 30, 1945..
Dec. 6, 1945...
Mar. 21, 1946..
May 22, 1946..
June 22, 1946..
59 Stat.
59 Stat.
59 Stat.
60 Stat.
60 Stat.
60 Stat.
260-262.
31O.-__..
597-602.
57
215
293-295.
Public
Public
Public
Public
Public
Public
Law 88—79th Cong..
Law 109—79th Cong.
Law 248—79th Cong_
Law 328—79th CongLaw 388—79th Cong.
Law 422—79th Cong.
July 23, 1946..
60 Stat. 599
July 25, 1946..
Aug. 7, 1946...
Mar. 29, 1947.
May 22, 1947..
May 31, 1947..
June 28, 1947.
June 30, 1947.
July 30, 1947..
60 Stat. 671
60 Stat. 901-902.
61 Stat. 24-26....
61 Stat. 104-105.
61 Stat. 125
61 Stat. 190
61 Stat. 202-209.
61 Stat. 545-546.
Public Law 520—79th CongPublic 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.
61 Stat. 579-584
Public Law 268—80th Cong.
Do.
744
23-37....
174-176326
352-356.
695-698.
,
Public Law 144r—77th CongPublic Law 278—77th Cong.
Public Law 421—77th Cong.
Public Law 506—77th Cong.
Public Law 592—77th CongPublic Law 603—77th Cong.
Public Law 674—77th Cong..
Department of Agriculture Appropriation
Act, 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—Continued
RFC LEGISLATION—Continued
Date of Approval
Aug. 5, 1947
Aug. 6, 1947
Dec. 17, 1947
Mar. 31, 1948
Apr. 3, 1948
May 25, 1948
June 28, 1948
Statute reference
61 Stat. 774-775
61 Stat. 789
_
61 Stat. 938-939
62 Stat. 101-109
62 Stat. 149
62 Stat. 261-266
. 62 Stat. 1064-1065
June 29, 1948
Do
_
June 30, 1948
62 Stat 1101
62 Stat. 1101
62 Stat. 1187
July 1, 1948
Aug. 10, 1948
Aug. 11, 1948.
Mar. 24, 1949
Apr. 19, 1949
Apr. 23, 1949
June 30. 1949
62 Stat. 1207-1210
62 Stat. 1275
62 Stat. 1289
63 Stat. 16
63 Stat. 5 3 . _
63 Stat. 58
63 Stat. 350
63 Stat. 354
63 Stat. 408
63 Stat. 409
63 Stat. 446
63 Stat. 719
63 Stat. 880
63 Stat. 906
64 Stat. 6
64 Stat. 81
64 Stat. 203
64 Stat. 256
64 Stat. 435-437
64 Stat. 468
64 Stat. 798-822
Do....
July 9, 1949.
July 13, 1949
July 19, 1949
Oct. 6, 1949
Oct. 15, 1949
Oct. 25, 1949
Feb. 14, 1950
Apr. 20, 1950
June 5, 1950
June 24, 1950.
Aug. 10, 1950
Aug. 21, 1950
Sept. 8, 1950
Title or purpose
Public law
Cong
Cong
Cong
Cong
Cong
Cong
Cong
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
Public Law 824—80th Cong
Public Law 825—80th Cong
Public Law 860—80th Cong
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.
Public Law 364—80th
Public Law 374r-80th
Public Law 389—80th
Publio Law 469—80th
Public Law 472—80th
Public Law 548—80th
Public Law 796—80th
Public Law 864—80th Cong
Public Law 901—80th Cong
Public Law 903—80th Cong
Public Law 25—81st Cong
Public Law 47—81st Cong
Publio Law 52—81st Cong
Public Law 148—81st Cong
Publio Law 149—81st Cong
Public Law 161—81st Cong
Public Law 163—81st Cong
Publio Law 176—81st Cong
Public Law 329—81st Cong
. - . Public Law 359—81st Cong
Public Law 387—81st Cong
Public Law 447—81st Cong
Public Law 475—81st Cong
Public Law 535—81st Cong
Public Law 575—81st Cong
Public Law 683—81st Cong
Public Law 723—81st Cong
Public Law 774—81st Cong
Jan. 12, 1951
64 Stat. 1257
Effective Sept. 7, 1950- 64 Stat. 1277-1278.
64 Stat. 1279-1280.
Do
Public Law 920—81st Cong
Reorganization Plan 22 of 1950—
Reorganization Plan 23 of 1950
Mar. 23, 1951_
June 15, 1951
July 31, 1951
Effective May 1, 1951-
65 Stat. 8
65 Stat. 70
65 Stat. 131-149-.
65 Stat. 357
Public Law 9—82d Cong
Public Law 48r—82d Cong
Public Law 9&—82d Cong
_
Reorganisation Plan No. 1 of 1951
Oct. 24, 1951
June 23, 1952
June 30, 1952
June 30, 1953
July 30, 1953
65 Stat.
66 Stat.
66 Stat.
67 Stat.
67 Stat.
Public
Public
Public
Public
Public
Aug. 7, 1953
June 29, 1954
Effective June 30,1954.
Effective June 30,1957-
67 Stat. 408-417. 68 Stat. 320
68 Stat. 1280-1282
71 Stat. 647-649--
616
154
296-308-12&-131™
230-240—
Law 202—82d Cong
_
Law 404—82d Cong
Law 429—82d Cong
Law 95—83d Cong
Law 163—83d C o n g . —
Public Law 205—83d Cong
Public Law 438—83d Cong
Reorganization Plan 2 of 1954
Reorganization 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 Liquidation Act.
Rubber Producing Facilities Disposal Act.
Liquidation of RFC.
Do.
Abolition of RFC.
APPENDIX B
Directors and Administrators
193
APPENDIX B
Directors and Administrators
There are listed below the names and terms of office of those who served as
members of RFC's Board of Directors and those who served as Administrator or
Deputy Administrator.
Eight persons served as Chairman during the time that RFC's affairs were
managed by a Board of Directors. One of these (Meyer) was an ex officio member
of the Board, while the others (Pomerene, Jones, Schram, Henderson, Goodloe,
Hise, and Harber) were appointed members. Jesse H. Jones was Chairman for
approximately 6 years. Charles B. Henderson also served as Chairman for
nearly 6 years, and had the longest uninterrupted term of office as a Director, a
period of more than 13 years.
Ten persons served ex officio as members of the Board of Directors. While
there was no provision of law regarding the political affiliations of ex officio members of the Board, such membership was equally divided. There were five Republicans (Mellon, Meyer, Bestor, Mills, and Ballantine) and five Democrats
(Woodin, Acheson, Cooh'dge, Morgenthau, and Magill). Six of the ex officio
members were from New York State (Meyer, Mills, Ballantine, Woodin, Morgenthau, 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 Democrats
and 12 Republicans. They represented 21 States and the District of Columbia.
Michigan was represented on four different occasions; Illinois, New York, Massachusetts, and Utah, twice. All Federal Reserve districts, except the 3d (Philadelphia) and the 6th (Atlanta), were included in such memberships; the 7th
(Chicago) six times, the 12th (San Francisco) four times, the 8th (St. Louis) and
5th (Richmond) three times, the 1st (Boston), the 2d (New York), the 4th (Cleveland), 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 previously
had served as employees of RFC, Charles T. Fisher, Jr., was the former Assistant
Manager and Manager of the Corporation's Detroit, Mich., Loan Agency. Sam
H. Husbands was employed as examiner, Assistant Chief, and Chief of the Examining Division of the Washington Office. John D. Goodloe served as executive
assistant to the Chairman, special assistant to the Board of Directors, and as
General Counsel. J. Howard Klossner was employed in the Washington Office as
examiner and Assistant Chief of the Examining Division. Henry A. Mulligan
was Assistant Treasurer and Treasurer. He assumed duties as a member of the
Board on July 31, 1941. From thence through February 3, 1947, he served both
as Director and Treasurer, thereafter as Director only. Emil Schram was Chief
of the Drainage, Levee, and Irrigation Division. William E. Willett was Assistant Chief of the Examining Division and Assistant Loan Manager, Office of Loans.
Harvey J. Gunderson served as counsel in the Minneapolis Loan Agency and as
Assistant General Counsel.
Four Administrators and three Deputy Administrators managed the affairs of
the 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 the
Secretary of the Treasury. W. Stuart Symington served as Administrator from
May 4, 1951, to the close of February 15, 1952. Peter I. Bukowski served as
Deputy Administrator from June 20 to the close of December 31, 1951. Harry A.
McDonald succeeded Mr. Symington as Administrator and assumed office February 26, 1952. He continued in office until May 1, 1953, when he was succeeded
by 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 to
April 26,1954; and as Administrator from that date to the end of June. Clarence
A. Beutel, Sr., was Deputy Administrator under Harry A. McDonald from September 10, 1952, to May 1, 1953, and from that time to June 1, 1953, as Deputy
under Mr. Cravens.
196
DIRECTORS OF THE RECONSTRUCTION FINANCE CORPORATION
Membership
terminated
Assumed office
Bestor, Paul (Republican)
Couch, Harvey C, (Arkansas—Democrat)
Dawes, Charles G. (Illinois—Republican)
Feb.
Jones, Jesse H. (Texas—Democrat)
McCarthy, Wilson (Utah—Democrat).
Mellon, Andrew W. (Republican)
July 16, 1939
.do
4, 1932
2, 1932
Feb.
Feb.
July 31, 1932
Aug. 29, 1934
June 15, 1932
Sept. 30, 1933
Feb. 12,1932
Meyer, Eugene (Republican) —
-do.
July 31,1932
Mills, Ogden L. (Republican)
.do-
Mar. 4, 1933
Ballantine, Arthur A. (Republican).
.do.
May 15,1933
Cowles, Gardner, Sr. (Iowa—Republican)
Miller, Charles A. (New York—Republican).
Pomerene, Atlee (Ohio—Democrat)
July 5, 1932
Aug. 1, 1932
do
_-
Apr. 8, 1933
Mar. 4, 1933
do
Mar. 4,1933
Dec. 31,1933
May 19,1933
Nov. 16, 1933
Merriam, Carroll B; (Kansas—Republican)-. June 15, 1933
June 17, 1933
Blaine, John J. (Wisconsin—Republican)
Dec. 9, 1941
Apr. 16, 1934
Woodin, William H. (Democrat)
Acheson, Dean H. (Democrat)
<>
2, 1932
do
do
Remarks
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 Loan
Administrator 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 to
July 31, 1932.
Member ex officio as Under Secretary of the Treasury
in the absence of the Secretary of the Treasury
Feb. 2 to Feb. 12, 1932. Member ex officio as
Secretary of the Treasury Feb. 13, 1932 to Mar. 4,
1933.
Member ex officio as Under Secretary of the Treasury
in 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
Taber, Frederio H, (Massachusetts—Republican).
Morgenthau, Henry, Jr. (Democrat)
June 21, 1933
Jan.
Nov. 11,1933
Feb. 23,1938
Henderson, Charlea B. (Nevada—Democrat). Feb.
Remarks
Membership
terminated
31, 1933
20,1934
July 15,1947
Retired Jan. 31, 1938.
Member ex officio as Under Secretary of the Treasury
and Acting Secretary of the Treasury Nov. 17, to
Dec. 31, 1933, and as Secretary of the Treasury
Jan. 1, 1934 to Feb. 23, 1938. Office terminated
by act approved Feb. 24, 1938.
Chairman of the Board June 30, 1941 to April 9,
1947. Resigned as Chairman April 9, 1947. Resigned as Board member July 15, 1947.
Member ex officio as Under Secretary of the Treasury
in the absence of the Secretary of the Treasury.
Resigned Feb. 15, 1936.
Resigned Feb. 29, 1936.
Coolidge, Thomas J. (Democrat)
May
2,1934
Feb. 15,1936
Stephens, Hubert T. (Mississippi—Democrat).
Fisher, Charles T., Jr. (Michigan—Republican).
Schram, Emil (Illinois—Democrat)
Mar. 14,1935
Feb. 29,1936
Mar. 25,1935
Dec. 31,1936
June 22, 1936
July 29,1941
Magill, Roswell (Democrat)-.
Jan.
29,1937
Feb. 23,1938
Elossner, Howard J. (Minnesota—Republican).
Husbands, Sam. H. (South Carolina—Democrat).
Mulligan, Henry A. (New York—Democrat)-_
Fisher, Charles T., Jr. (Michigan—Republican).
Gundereon, Harvey J. (South Dakota—Republican).
Bodman, Henry T. (Michigan—Republican) ~
Apr. 28,1937
July 31,1945
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 Treasury
in the absence of the Secretary of the Treasury.
Office terminated by act approved Feb. 24, 1938.
Resigned July 31, 1945.
Aug.
Jan.
Resigned Jan. 22, 1946.
2,1939
22,1946
July 30,1941
Jan. 15,1942
Apr. 30,1950
Jan. 21,1946
Oct. 17,1945
Oct. 12,1950
Feb.
Dec. 22,1948
14,1946
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.
Allen, George E. (District of Columbia—
Democrat).
Goodloe, John D, (Kentucky—Democrat)
Mar. 25,1946
Jan. 16,1947
Resigned Jan. 16, 1947.
s
Jan. 27,1947
Apr. 30,1943
Hise, Harley (California—Democrat)
July 16,1947
Oct.
9,1950
g
Willett, William E. (Maryland—-Democrat)-- June 29,1948
May
4,1951
I
£
Dunham, Walter L. (Michigan—Republican)- Mar. 21,1949
Howe, C. Edward (Massachusetts—-Demo- Oct. 3, I960
crat).
Harber, W. Elmer (Oklahoma—Democrat)—- Oct. 9,1950
....do
....do.......
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 his
successor was appointed and qualified.
Board of Directors succeeded by Administrator May
4, 1951.
Do.
Do.
Cosgriff, Walter E. (Utah—Republican).
Oct. 12,1950
do
do
Elected Chairman of the Board Oct. 11, 1950, pending
designation by the President pursuant to Public
Law 548—80th Cong. Action approved by the
President Oct. 12, 1950. Board of Directors succeeded by Administrator May 4, 1951.
Board of Directors succeeded by Administrator May
4, 1951.
ADMINISTRATORS AND DEPUTY ADMINISTRATORS
Assumed office
Terminated
ADMINISTRATORS
Symington, W. Stuart
McDonald, Harry A
Cravens, Kenton K
Bobbins, Laurence B
May 4,1951
Feb. 26,1952
May 1,1953
Apr. 26,1954
Feb.
Apr.
Mar.
June
15,1952
30,1953
31,1954
30,1954
June 20,1951
Sept. 10,1952
Dec. 10,1953
Dec. 31,1951
June 1, 1953
Apr. 25,1954
DEPUTY ADMINISTRATORS
Bukowski, Peter I
Beutel, Clarence A., Sr
Robbins, Laurence B
200
APPENDIX C
Statistical Tables
201
A Description of the Statistics
The statistics included in this appendix are a series of tables showing dollar
amounts authorized, canceled, or withdrawn, disbursed, repaid (or otherwise
removed from the portfolios), and outstanding balances for quarterly periods
from the inception of the Corporation to September 28,1953, when the liquidation
program began. These tables were designed to provide detailed and summary
information on RFC's activities which may be correlated with other financial
or economic statistics on either fiscal or calendar year bases.
Uniform terminology has been used throughout the tables for the various
types of transactions shown. As used herein, these terms are described as
follows:
Authorizations (or Amounts Authorized)
A loan, security purchase, advance, or allocation, was considered to be "authorized" when RFC's Board of Directors (later Administrator), acting directly
or through delegations of authority, agreed to disburse funds for specific purposes
under certain stated conditions and provided that the party designated to receive
the funds fulfilled stated requirements. The conditions and requirements
contained in the authorization documents themselves had to do with maturities,
interest rates, repayment schedules, collateral and other security, etc. In cases
where loans, advances, and allocations were made to other Government agencies
under legislative directives, authorization by RFC was perfunctory.
Canceled or Withdrawn
Authorizations which were not disbursed by RFC ultimately either were
canceled or withdrawn. Withdrawals occurred when applicants found that they
either did not need the funds requested or had been able to obtain the needed
financing elsewhere. In such cases, the applicants stated that they did not intend
to fulfill the requirements as set forth in the loan authorizations and asked that
their applications be considered as withdrawn. Cancellations occurred when
applicants for financial assistance either could not or did not fulfill the requirements
stated in the loan authorizations within a stated time period for disbursement.
Partial cancellations of authorizations occurred when, after some disbursements
had been made, it was found that the balance of the authorized amount was not
needed for the intended purpose. Special circumstances surround amounts
canceled in connection with loans made and disbursed by private financial institutions in which RFC had agreed to participate on a deferred basis. In
loans of this type, the RFC agreed to purchase a stated percentage of a loan
upon request of the disbursing institutions. As a borrower made repayments
upon a loan of this type, RFC's commitment to purchase a share of the loan
was proportionately reduced. In the basic statistical tables in this report, such
reductions are shown as cancellations of authorized amounts.
Disbursements
As 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
203
other investments authorized. Amounts disbursed for care or preservation of
collateral and other expenses are not included. Loans made by private financial
institutions under agreements for RFC to participate on a deferred basis are not
shown as disbursed unless the banks making the loans requested RFC to purchase
its agreed-upon shares of the loans.
Repayments and Other Reductions
Repayments 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 by
borrowers to banks on loans in which RFC had agreed to purchase a participation
on a deferred basis. However, for those cases in which RFC had disbursed
funds to purchase its agreed-upon shares of deferred participation loans, principal
payments made subsequent to such purchases are included. The "other reductions" grouped with repayments include cases where resort was had to foreclosure
or other forced liquidation processes to recover principal balances, as well as
principal balances charged off as losses. Instances in which the principal amounts
of loans and advances made by RFC were recovered by congressional action canceling the notes which RFC had issued to obtain the funds disbursed are shown
either under separate headings or indicated by footnotes.
The following explanation is pertinent to amounts included as "other reductions" : 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 were
being liquidated by foreclosure or other forced procedures. Any amounts
subsequently recovered from acquired collateral or other security were credited
as repayments, and the amounts originally recorded as "other reductions"
reduced accordingly. This process continued until all the collateral and security
taken over in liquidating a particular loan or investment had been disposed of
and it was determined that the possibility of further collections was nonexistent.
Subsequent to June 30, 1947, this practice was changed so that when it became
necessary to resort to forced liquidation processes to recover on a loan or investment, there was credited against the outstanding principal balance the current
appraised value of the collateral and other security. If the appraised value of the
collateral was less than the outstanding principal balance, the remainder was
immediately charged off, and any subsequent recoveries were credited to acquired
asset accounts and not as repayments on principal balances as previously had
been done.
Amount Outstanding
Amounts shown as outstanding are the unpaid principal balances on disbursements made by RFC. Accrued interest is not included. Amounts due to private
financial institutions on loans made by them under deferred participation agreements with RFC are also excluded.
The scheme of the series of tables in this appendix starts from the complete
summary of all activities shown on page 45 of the report, and this is successively
broken down, first into subgroupings and then into detail. This scheme is shown
below, with amounts authorized used to illustrate the components of summary
groupings:
204
Summary, Loans, Investments, Security Purchases, Allocations, and
Other Authorizations
_
$46, 468, 722, 698
S-l
SP-1
A-l
S-1
FI-1
BE-1
Ag-1
MS-1
R-l
PA-1
CM
G-2
Gr-3
F-l
F-2
D-l
D-2
D-3
CD-I
TS-1
SD-1
PD-1
SF-1
W-l
Summary of Loans, Investments, and Other Authorizations
38, 541,174, 998
Purchases of Securities From Federal Emergency
Administrator of Public Works__.
692, 299, 251
Allocations and Loans to Other Government Agencies
by Direction of the Congress
7, 235, 248, 449
Summary of Loans, Investments, and Other Authorizations
38, 541,174, 998
Loans to and Investments in Financial Institutions,
4, 815, 324, 697
Loans to Business Enterprises, Summary
5,153, 294, 815
Summary of Loans to Agricultural Financing Institutions
2, 454, 133, 430
RFC's Investment in Its Mortgage Loan Subsidiaries
_.
—
1, 831, 551, 598
Loans to Railroads
1, 059, 867, 787
Loans to and Investments in Political Subdivisions
of States and Territories (Exclusive of Purchases
from PWA)
—
1, 024, 203, 892
Loans to, and Subscriptions for Preferred Stock of,
Export-Import Banks
201, 500, 000
Loans to Defense Homes Corporation,__
65, 750, 000
Purchase of Capital Stock of Federal Home Loan
Banks
124, 741, 000
Loan for the Purpose of Providing Dollar Exchange
(British Loan)
425, 000, 000
Loan to the Republic of the Philippines.
70, 000, 000
Loans for Financing Repair of Damage by Earthquake, Fire, Tornado, or Cyclone, 1933
10,450,232
Loans To Finance Repair of Property Damaged by
Earthquake, etc., Under the Act Approved Apr.
13, 1934
—
5, 734, 289
Disaster Loans July 1, 1945-Sept. 28, 1953
36, 952, 402
Loans Under Sec. 409, Federal Civil Defense Act—
5, 568,000
Loans for Payment of Teachers' Salaries
22, 500, 000
Loans to Refinance Public School District Operations
3,189, 050
Loans to Processors or Distributors Subject to
26 0 8 9
Processing Taxes
»
Loans to State Funds for Securing Repayments of
Deposits of Public Moneys
!3, 087, 716
Financing of RFC's Wartime Subsidiaries
21, 218,300,001
205
FINANCIAL INSTITUTIONS
FI-1
Loans to and Investments In Financial Institutions
-
$4, 815, 324, 697
FI-2
FI-8
FI-9
FI-10
FI-13
Loans to and Investments in Banks and Trust Companies
Loans to Mortgage Loan Companies
Loans to Building and Loan Associations
Loans to and Investments in Insurance Companies. .
Loans to Credit Unions
-
3, 981, 365, 688
494, 636, 731
178, 989, 560
159, 689, 750
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..
Loans on the Assets of Closed Banks and Trust
Companies
Loans on Preferred Stock of Banks and Trust Companies
Subscriptions for the Preferred Stock of Banks and
Trust Companies
™——
Purchase of Capital Notes and Debentures of Banks
and Trust Companies
FI-4
FI-5
FI-6
FI-7
2f 516, 821,790
118, 332, 229
52, 746, 026
859, 592, 768
433,872,875
FI-10
Loans to and Investments In Insurance Companies
159, 689, 750
FI-11
FI-12
Loans to Insurance Companies
Loans on and Subscription for Preferred Stock of
Insurance Companies
104, 439,750
55, 250, 000
BUSINESS ENTERPRISES
BE-1
Loans to Business Enterprises—Summary
Loans to Business Enterprises, Exclusive of National
Defense—Summary (Through June 30, 1947)
BE-7
National Defense Loans to Business EnterprisesSummary (Through June 30, 1947)
BE-13
Direct Loans to Business Enterprises (July 1, 1947Sept. 28, 1953)-...
BE-14
Immediate Participation Loans to Business Enterprises (July 1, 1947-Sept. 28, 1953)
BE-15
Deferred Participation Loans to Business Enterprises
(July 1, 1947-Sept. 28, 1953)
Adjustment—Direct Mortgage Loans Made by R F C — M C —
5,153, 294, 815
BE-2
BE-2
BE-3
BE-4
Loans to Business Enterprises, Exclusive of National Defense—Summary (Throush June 30,1947)
Direct Loans to Business Enterprises Under Sec. 5d
of the RFC Act, Including Immediate Sales of
Participations
Purchases of Participations (Immediate) and Agreements to Purchase Participations (Deferred) in
Loans to Business Enterprises Under Sec. 5d of
the RFC Act
206
1, 502, 709, 005
1, 852,448, 766
1,142, 836, 250
216, 512, 534
265, 771, 750
173, 016, 510
1, 502,709, 005
797,072,135
684,167,370
BUSINESS ENTERPRISES—Continued
BE-5
BE-6
BE-7
BE-8
BE-9
BE-10
BE-11
BE-12
Loans to Borrowers Engaged in the Mining, Milling,
or Smelting of Ores, Under the Act Approved June
19, 1934.
Loans to the Fishing Industry Under Sec. 15 of the
Act Approved June 19, 1934.
__
Notional Defense Loans to Business Enterprises—Summary (Through June 30,1947)
Direct Loans to Business Enterprises Under the Act
Approved June 25, 1940
Purchases of Participations (Immediate) and Agreements to Purchase Participations (Deferred) in
Loans to Business Enterprises Under the Act Approved June 25, 1940
_
Loans on and Purchases of Rationed Articles and
Commodities Under Sec. 5d of the RFC Act
Security Purchases for Automobile Financing—
National Defense...
_
_„
Loans in Connection With Contract Settlement
Under the Act Approved July 1, 1944
$20, 659, 800
809, 700
1, 852,448,766
1, 261, 473, 769
382,071,384
75, 652,157
132,143,106
1,108, 350
AGRICULTURAL FINANCING INSTITUTIONS
Ag-1
Summary of Loans to Agricultural Financing Institutions. .
2, 454,133, 430
Ag-2
Ag-3
Ag-4
Ag-5
Ag-6
Ag-7
Ag-8
Loans to Federal Land Banks...
__
Loans to Joint Stock Land Banks
Loans to Federal Intermediate Credit Banks
Loans to Regional Agricultural Credit Corporations
Loans to other Agricultural Credit Corporations
Loans to Livestock Credit Corporations
Authorizations for Financing Exports of Agricultural
Surpluses
_
__
Loans for Financing Agricultural Commodites and
Livestock
Loans to Commodity Credit Corporations
Loans to Secretary of Agriculture To Acquire Cotton
399, 636, 000
33, 055, 359
9,250, 000
178, 840, 453
6,120, 867
14,511, 328
Ag-9
Ag-10
Ag-11
98,445,245
86,061, 513
1, 604, 712, 665
23,500, 000
RFC MORTGAGE SUBSIDIARIES
MS-1
RFC'i Investment in Its Mortgage Loan Subsidiaries
Loans to and Purchases of Capital Stock in RFC
Mortgage Company
MS-3
Loans to and Purchases of Capital Stock in Federal
National Mortgage Association
Adjustment—Undisbursed Authorizations Transferred From
RFC-MC to RFC
-
1,831, 551, 598
MS-2
388,368,261
1, 370,091, 869
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 States
and Territories (Exclusive of Purchases from P W A )
Loans on Self-Liquidating Projects Under Sec. 201 (a)
of the Emergency Relief and Construction Act of
1932
PA-3
Loans to Drainage, Levee, Irrigation, and Similar
Districts Under the Emergency Farm Mortgage
Act of 1933_
___
PA-4
Loans to Public Bodies To Aid in Financing Projects
Authorized Under Federal, State, or Municipal
Law Under Sec. 5d of the RFC Act (Through
Dec. 31, 1947
Loans to Public Bodies Authorized Subsequent to Dec. 31,
1947, Included as the Latter Part of Table PA-1
$1, 024, 203, 892
PA-2
398, 873, 884
150, 127, 449
381,392,174
93, 810, 385
GOVERNMENT AGENCIES
G-1
Loans to, and Subscriptions for Preferred Stock of, ExportImport Banks
Loans to Defense Homes Corporation
Purchase of Capital Stock of Federal Home Loan Banks.
201, 500, 000
65, 750, 000
124, 741, 000
r^-2
FOREIGN GOVERNMENTS
Loans for the Purpose of Providing Dollar Exchange Under
the Act Approved June 10,1941 (British Loan)
Loan to the Republic of the Philippines
425, 000, 000
70, 000, 000
D-1
Loans for Financing Repair of Damage by Earthquake,
G-2
G-3
F-1
DISASTER LOANS
D-2
D-3
CD-1
TS-1
cr <
Fire, Tornado, or Cyclone in 1933
Loans To Finance Repair of Property Damaged by Earthquake, etc., Under the Act Approved Apr. 1 3 , 1 9 3 4 Disaster Loans July 1,1945-Sept. 28,1953
5, 734, 289
35,439, 075
MISCELLANEOUS
Loans Under Sec. 409, Federal Civil Defense Act
Loans for Payment of Teachers1 Salaries
U a n S T Ref nance P u b l k S h
°
'
< °°l District Operations-__
Loans to Processors or Distributors Subject to Processing
,
5, 568, 000
22, 500, 000
3,189, 050
TaXC$
26
b W
Loanf
W-1
WARTIME SUBSIDIARIES
Summary—Financing of RFCs Wartime Subsidiaries
W-2
VV-6
W-4
w'I
w~7
we
w-5
W-9
208
10, 450, 232
St
*° °te Funds for Insuring Repayments of Deposits
of Public Moneys
Metals Reserve C o m p a n y . . . .
Rubber Reserve Company..
__
Defense Plant Corporation
defense Supplies Corporation
TTT ^ a m a g e Coloration
U.S. Commercial Company....
Kubber Development Corporation
Petroleum Reserves Corporation.^
_
_
13, 087, 716
21, 218, 300,001
___„
_
>089
2,
505, 000, 000
1 730, 000, 000
8 , 005, 000, 000
6, 518, 000, 000
100,000,000
2, 008,300,000
350,000, 001
2,000,000
PURCHASE OFlSECURITIES
SP-1
Purchases of Securities From Federal Emergency Administrator of Public Works
_„_._
$692, 299, 251
ALLOCATIONS
A-1
A-2
A-3
A-4
A-5
A-6
A-7
A-8
A-9
A-10
A-ll
A-12
A-13
A-14
A-15
A-16
A-17
Allocations and Loans tofOrher Government Agencies
by Direction of the Congress
7, 235, 248, 449
Secretary of Agriculture—Sec. 2, RFC Act
200, 000, 000
Secretary of Agriculture—Farm Rehabilitation- _ _ _ 630, 000,000
Secretary of Agriculture—Farm Tenants
277, 500, 000
Land Bank Commissioner—Joint Stock Land Banks.
100, 000, 000
Land Bank Commissioner—Loans to Farmers
200, 000, 000
Stock of Commodity Credit Corporation
97, 000, 000
Loans to Rural Electrification Administration
931, 500, 000
Federal Housing Administrator
-_
97, 861, 381
Secretary of the Treasury—Capital of the Federal
Home Loan Banks
124,741,000
Secretary of the Treasury—Capital of Home Owners'
Loan Corporation
200, 000, 000
Relief and Work Relief
300, 000,000
Direct Relief—Federal Emergency Relief Act, 1933—
499, 650, 000
Allocation for Direct Relief—Emergency Appropriation Act, 1934
500, 000, 000
Allocation for Direct Relief—Emergency Relief
Appropriation Act, 1935
500, 000, 000
Stock of Disaster Loan Corporation
24, 000, 000
Secretary of State—Foreign Economic Aid
2, 496, 000, 000
Administrative Expenses and Interest Costs (Appended to Table A-1).
56, 996, 068
For the period from the inception of the Corporation to March 31, 1939, the
basic source materials used were contained in a series of reports made to the
Congress by RFC, generally headed "A Report Covering the Operations of the
Reconstruction 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 the
Banking and Currency Committee of the House of Representatives. The data
in these reports were based upon statistical rather than accounting records.
However, the data had been reconciled to the cumulative totals shown by the
accounting records. Beginning with the report for the second quarter of 1939,
many of the data previously included were eliminated from these quarterly
reports and, due to wartime pressures, the report was not published after the
third quarter of 1942.
For periods between March 31, 1939, and June 30, 1947, the basic source materials used were contained in monthly statements prepared by RFC's Office of the
Treasurer. These statements were processed for limited distribution, and the
only 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 presented
only on a cumulative basis. Data for quarterly periods were derived by subtracting cumulative totals. Due to a type of transaction labeled "rescission," the
data so derived for amounts authorized may not be completely accurate for any
one quarterly period.
209
When RFC "rescinded" a loan or other authorization, the original authorization
was removed from the records as if it had never been granted. The usual reason
for a "rescission" was some technical defect in the original authorization, and
perfected 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 some
months after the "rescission." For this reason, the subtraction of cumulative
totals sometimes produced negative results for a period in which a large authorization was "rescinded." To avoid showing negative amounts authorized, analyses
were made to determine what large authorizations were "rescinded," and these
were removed from the periods in which they had originally appeared. This was
not done for the smaller "rescissions" which did not affect the trend of authorizations, and the data for any one period may be distorted to a small extent by these
smaller "rescissions." Since the data reconcile to the cumulative totals of the
accounting records, these small distortions are offset by similar distortions in
other quarterly periods.
The data used for periods prior to March 31, 1939, had been entirely adjusted
for "rescissions," and, since the numbers of "rescissions" which occurred in subsequent periods were relatively few, it is felt that the extent to which the data are
distorted is extremely limited.
In August 1946, RFC created the Office of Controller and assigned to this Office
the accounting functions previously performed under the direction of the Treasurer
and the statistical and reporting functions previously performed by the Statistical
and Economic Division. The Controller undertook to reorganize completely the
Corporation's accounting and statistical functions. After intensive study, the
accounting and statistical functions for most of the lending programs were decentralized to the Corporation's field offices in January 1948.
While reorganization of the Corporation's accounting and statistical functions
was under study, the previously existing procedures were continued. However,
after the reorganized procedures were instituted in January 1948, some months
elapsed before the new system began to operate as intended. In this intervening
period, accounting and statistical data prepared for release by RFC often were
conflicting. 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 the
General Accounting Office audits of RFC for that year. The bases for the
estimates include internal RFC accounting and statistical data, data submitted
to committees of the Congress in connection with hearings then being held, and
reports made by RFC under Budget-Treasury Regulation 3.
Beginning with July 1, 1948, and continuing to September 28, 1953, the data
in this report are based upon a series of "Consolidated Financial and Statistical
Reports" prepared by the Reports Division, Office of the Controller.
In all of the basic quarterly data presented in this report, the Reconstruction
Finance Corporation has been considered as a single financing institution without
regard to the activities of its subsidiaries. That is, RFC's loans to and investments
in 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 are
outlined and discussed in the text, with illustrative data regarding their financial
transactions, but these are not duplicated in the basic data*
None of the series included in this appendix extend beyond the third quarter
of 1953. Effective September 28,1953, the Corporation's authority to make new
loans was terminated, and liquidation of loans, investments, and commitments
then outstanding is considered to have begun at that time. Statistics on the
liquidation of RFC holdings will be found in the report beginning on page 169.
210
INDEX TO TABLES
Designation
Allocations
A-l
A-2
A-3
A-4
A 5
A-6
A-7
A-8
A-9
A-10
A-ll
A-12
A-13
A-14
A-15
A-16
A-17
Page
293
295
296
297
298
299
299
300
301
302
303
304
305
306
306
307
307
Agriculture
Ag-1
Ag-2
Ag-3Ag-4
Ag-5
Ag-6
Ag-7
Ag-8
Ag-9
Ag-10
Ag-11
.—
248
250
250
252
252
253
254
255
256
258
258
Business
BE-1
BE-2
BE-3
BE-4
BE-5
BE-6
BE-7
BE-8
BE-9
BE-10
BE-11
BE-12
BE-13
BE-14
BE-15
_._
-
234
236
237
238
239
240
241
242
243
244
244
245
245
246
247
Designation
Civil Defense
CD-I
Page
.-
280
Disaster
D-l
D-2
D-3
.-
277
278
279
Foreign
F-l
F-2_
275
276
Financial Instructions
FI-l-_
FI-2_
FI-3
FI-4
FI-5-_
FI-6-.
FI-7-.
FI-8
FI-9
FI-10
FI-ll—
FI-12
FI-13
_
-—
-
215
217
218
220
221
222
224
225
227
228
230
231
233
Government Agencies
G-l—
G-2
G-3
-
— -
272
273
274
Mortgage Subsidiaries
MS-1—
MS-2
MS-3
—
259
261
263
----
266
268
269
271
Public Agencies
PA-1
PA-2..._
PA-3
PA-4
—
Processors and Distributors
PD-1
282
Railroads
R-l
264
School Districts
SD-1
281
211
INDEX TO TABLES-Confinued
Designation
Page
Security Purchases
SP-1
SF
"1-
.-
W-l
282
W-4
213
W
212
283
"6
W-7_
288
289
W-8
290
s
=
286
W-5
Teachers Salaries
TS-1
Page
291
Summary
S-l
Designation
Wartime Subsidiaries
280
W-9
-_
—
287
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 other
Government agencies made by direction of the Congress]
Year and quarter
1st
2d .
3d .
4th.
1st
2d
3d
4th
1st
2d
3d,
4th
1st
2d
3d
4th... .
1st
2d
3d
4th
1st
2d
3d.
4th.
1st
2d . .
3d...:::
4th
1st
2d
Authorized
1932
1st.
2d
3d..::::
4th
1st.,.
2d
3d
4th
Repayments
and other
reductions
Outstanding
$174,400
10,047,604
34,387,786
25,117,894
$192,446,308
612,803,699
375,291,975
264,338,114
$8,892,728
72,134,708
114,751,307
104,169,706
$183,553,580
724,222,571
984,763,239
1,144,931,647
516,474,462
303,608,610
1,340,357.666
97,234,954
79,549,058
42,795,955
34,170,978
375,620,618
339,817,624
236,294,278
604,657,071
124,237,998
181,204,089
247,700,071
188,460,882
1.396,314,267
1,554,927,802
1,543,522,009
1,959,718,198
734,961,565
468,544,297
649,862,569
363,255,063
95,690,637
67,791,093
217,977,132
79,207,046
656,707,495
442.741,415
447.458,613
280,461.329
260,192,330
225,046,247
650,532,452
266,968,535
2,356,233,363
2,573,928,631
2,370,854,692
2,384,347,486
88,599,907
229,071,388
184,076,318
192,149,313
34,825,088
53,834,345
21,807,695
110,634.728
143,637,730
255,742,375
217,965,756
90,257,225
188.698.656
148,908.067
134,720,106
187,625,115
2,339,286,660
2,446,120,968
2,529,366,618
2,432,098,728
157,382.707
150.638,996
220,763,844
47,380,704
65,533,266
15,936,625
116,349,412
22,457,610
08,682,983
77,493,166
87,947,666
64,207,081
177,265.333
309.501,870
302,776,673
131,786,379
2,353,416,378
2,121,407,674
1,906,578,667
1,838,999,369
34,531,115
147,997,428
293,116,058
96,024,217
125,891,576
23,560,072
336,300,548
8,929,597
79,760,158
62.512,077
71,948,160
111,776,183
154,749,602
86,038,054
117,755,146
56,177,751
1.764,010,025
1,740,484,048
1,694,677,062
1,75a 275,494
102,272,533
180,539,524
198,864,311
178,441,002
8,935,293
23,879,856
310,768.594
15,988,869
84,189,839
80,026,367
97,331,407
176,446,383
63,996,068
179,306,398
107,639,276
75,278,484
1,770,469,265
1,671,189,234
1,660.881,365
1,762,049,264
115,631,667
72,147,351
64,945,033
94.502,109
23,466,870
10,420,260
27,010,849
15,659,549
68,644,285
78,596,828
79,970,446
66,836,764
92,253,036
200,606,733
49,475,362
93,380,245
1,728,440,513
1,606,430,608
1,636,925,692
1,610,382,211
120,736,900
157,718,049
327,372,923
617,680,008
19,781,411
15,930,299
25,422,608
9,440,097
105,512,488
109,044,844
95,874,886
145,184,611
90,694,380
98,980,093
108,538,383
55,157,286
1,625,200,319
1,635,265,070
1,622,601,573
1,712,628,898
325,483,472
1,312,009,247
1,098,343,744
712,078,420
12,246,734
14,062,940
40,634,063
114.078,680
359,575,788
365,523,987
420,714,078
651,768,127
60,399,098
163,098,827
68,829,759
279,695,863
2,011,805,588
2,214,320,748
2,566,116,067
2,938,187,331
1,181,630,212
681,530,871
1,245,705,949
1,167,164,678
17,056,468
29,913,055
62,321,418
168,652,995
721,848,858
987,902,985
1,173,861,196
1,426,732,262
298,283,865
264,574,090
630,629,216
773,322,040
3,361,762,324
4,085,081,219
4,628,313,199
6,281,723,421
2,142,495,269
1,288,770,758
1,613,344,085
1,823,038,681
63,286,609
59,906,896
126,634,722
31,841,084
1,571,471,604
1,708,227,536
1722,806,784
1656,616,061
771,322,999
949,643,145
781,859,277
868,919,743
6,081,872,026
6,840,456,417
7,781,403,924
8,469,101,142
1933
1934
1935
1936
1937
1938
1939
1940
3d.
4th
1st
2d
3d...:..
4th
.
Disbursed
$233,934,132
816,475,940
463,028,447
309,047,179
4th
1st
Canceled or
withdrawn
1941
1942
1943
213
TABLE S-1-Continued
Summary of Loans, Investments/ and Other Authorizations Feb. 2, 1932—Sept. 28,
1953—Continued
Year and quarter
Authorized
Canceled or
withdrawn
Disbursed
Kepayments
and other
reductions
Outstanding
$881,500,187
1,609,809,060
1,379,166,461
1,398,982,240
$39,266,207 $1,450,195,064
52,407,091 1,555,667,345
52.618,424 1,523,237,926
55,509,416 1,553,242,435
$868,200,003
1,168,756,525
1,251,486,021
1,398,060,389
$9,051,096,203
9,438,007,023
9,709,758,928
9,864,940,974
1,648,540,263
1,499,231,071
696,010,273
87,626,866
46,703,888
38,865,301
141,914,626
46,404,901
1,378,167,425
2,051,973,662
281,744,261
323,507,694
1,530,035,009
2.051,457,103
8,158,612,621
299,472,584
9,713,073,390
9,713,589,949
1,836,721,689
1,860,756,799
116,935,768
190,216,415
119,921,425
270,741,182
79,857,685
65,415,082
43,108,450
49,792,653
122,942,347
109,961,036
48,941,439
70,975,956
236,344,632
372,025,489
230,969,058
108,572,703
1,747,354,514
1,485,290,061
1,303,262,442
1,265,665,695
124,754,505
150,692,300
211,284,840
47,457,034
64,617,039
82,112,739
68,536,656
56,108,139
72,542,198
73,306.196
69,318,161
396,063,937
159,672,196
46,680,699
1,278,460,273
1,306,433,032
1,219,303,034
1,245,928,531
43,331,200
78,965,091
93,818,831
178,287,010
59,212,684
97,202,498
39,461,000
38,244,441
40,882,499
69,387,691
87,866,060
129,323,927
43,870,762
211,384,109
44,255,442
45,794,628
1,242,940,268
1,100,943,850
1,144,554,468
1,228,083,757
219,139.510
290,709,535
345,242,533
319,146,886
39,321,799
59,361,672
39,251,889
50,677,102
160,910,456
221,733.836
242.944,455
260,679,726
35,803,437
112,946,934
37,194,936
65,284,923
1,353,190,776
1461,977,678
1,667,727,197
1,863,122,000
273,749,143
180,386,123
153,943,145
72,900,682
53,546,004
68,681,476
58,464,016
44,646,458
223,551,600
149,801,965
151,853,706
46,487,396
56,798,004
110,887,162
1,200,429,045
161,560,221
875,596
2,
£ 068,790,399
1,020,215,060
905,142,235
"
::
134,622,812
52,493,673
41,600,704
23,142,010
60,308,914
79,586,158
50,839,673
22,042,160
49,949.350
62.019,435
33,486,494
25,676,470
58,765,924
72,612,849
72,969,242
60,758,906
896,325,661
885,732,247
846,249.499
811,167,063
1st . ™ .
36,405,815
71,591,313
29,226,557
24,552,786
16,802,600
13,815,809
21,034,814
16,581,352
15,600,463
33,938,308
54,406,846
65,692,541
77,499,871
35,148,733
42,819,167
762,055,874
700 156,471
698,946,046
710,533,725
26,503,080
12,268,313
4,335,739
13,279,830
18,890,738
11,630,972
29,829,769
30,141,778
18,030,641
42,787,942
42,233,536
35,328,390
697,575,542
685,483,784
668,186,035
5,118,038,745 33,312,817,040
32,644,631,005
668,186,035
i-BW_............
3d.""""""
4th
1st
2d
3d
4th
1945
M...JZ.
IEEE
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1947
723,933,347
1948
1949
I
» ™
2d
3d
4th
i*
2d
3d
4th
I
™
&::::::::::::
4th
»
«..
Total....
38,641,174,998
214
TABLE FI-1
Summary of Loons to and Investments in Financial Institutions
Year and quarter
1932
1st
2d
3d . .
4th
1st
2d
3d
4th
1933
„.
1934
1st
3d
4th
...
1935
1st
2d
3d
4th.
1936
1st
2d
3d
4th
1st.. .
2d.,»
3d
4th
1939
1st
2d
3d
4th
1st..
2d.__
3d
4th
.
1st
2d . . .
3d
4th...
1940
Repayments
and other
reductions
Outstanding
$135,860,561
516,691,687
274,743,184
174,429,478
$7,744,776
66,927,642
110,015,504
98,097,740
$123,115,735
577,879,830
742,607,510
813,939,248
361,922,710
256,830,150
201,970,434
803,675,210
96,313,749
21,034,185
34,949,301
21,258,488
257,466,235
213,062,536
168,456,632
373,442,626
99,645,643
164,333,234
152,637,701
129,161,051
976,759,840
1,025,434,192
1,041,353,123
1,235,634,698
606,543,459
245,812,661
225,529,629
155,778,211
51,514,423
61,982,754
61,774,226
54,333,489
430,617,968
352,395,707
168,785,460
195,021,320
211,548,139
182,265,181
200,033,496
125,645,799
1,504,704,527
1,674,835,053
1,643,587,017
1,712,962,638
60,006,148
60,166,934
47,772,422
47,905,167
27,006,672
42,792,142
14,374,640
18,316,170
92,102,872
56,923,534
50,683,231
41,507,667
163,156,151
123,640,707
111,397,941
123,068,595
1,641,909,269
1,576,192,086
1,514,477,376
1,432,916,443
28,798,454
25,096; 198
18,258,438
37,009,086
7,601,179
9,061,075
12,125,936
31,026,946
18,565,576
25,599,635
18,351,416
150,403,133
117,500,556
173,909,358
100,693,648
1,313,640,256
1,214,605,276
1,066,295,563
984,063,321
10,032,860
47,803,513
30,912,380
5,751,936
5,364,239
9,241,823
133,868,040
4,703,015
8,764,269
9,609,481
15,294,208
24,428,854
72,313,638
44,947,145
41,629,532
45,474,887
920,604,052
885,166,333
858,831,064
837,785,031
28,994,829
18,931,270
16,331,871
32,443,013
£,831,990
21,427,621
33,134,770
1,198,307
4,733,519
16,899,924
7,853,860
27,400,758
40,734,807
28,226,014
28,996,995
26,996,865
801,783,743
790,457,653
769,314,618
769,718,411
12,813,974
16,654,193
5,858,363
6,212,454
2,546,735
1,665,992
9,941,170
2,200,433
6,937,960
16,820,970
2,837,809
11,694,413
27,370,646
22,847,643
24,571,305
43,111,028
749,285,725
743,259,052
721,525,656
690,103,941
12,508,967
6,442; 064
44,217,770
1,227,643
2,708,027
895,718
1,534,692
3,662,903
36,472,855
4,155,917
42,340,071
35,665,345
21,251,484
22,079,858
24,152,776
658,105,999
673,327,370
665,403,429
673,590,724
3,319,225
1,853,095
2,423,006
3,184,300
762,140
2,658,653
361,883
465,746
3,172,701
2,619,036
951,480
1,478,229
36,145,274
22,943,376
36,155,620
21,449,710
640,618,161
620,193,811
684,989,771
665,018,290
1,659,975
5,476,009
1,745,413
949,186
286,749
8,272,323
5,359,766
1,843,280
16,169,702
19,854,893
33,929,666
16,840,672
16,192,506
9,054,737
536,448,390
621,451,098
521,423,294
632,228,460
3,746,456
1,245,504
6,913,045
357,000
1,217,000
2,136,200
2,023,000
2,015,480
20,204,836
15,270,106
21,338,491
14,697,695
513,240,614
600,106,708
480,791,217
468,209,002
5,987
2,932,513
163,000
615,000
260,000
15,870
30,972,532
34,701,980
19,544,173
17,469,120
437,496,470
402,810,360
383,266,187
365,797,067
...
1,488,000
1943
225,000
1,723,000
485,000
42,480
1944
630,870
8,000
19,130
Disbursed
$174,400
9,615,181
34,019,268
18,112,448
1941
505257—59
Canceled or
withdrawn
$171,853,186
656,487,137
271,045,907
126,985,097
1942
1st..
2d
3d!....;
4th
1st
2d.
3d
4th
1937
1938
1st
2d
3d
4th
1st
2d
3d
4th.
Authorized
15
215
TABLE FI-1—Continued
Summary of Loans to and Investments in Financial Institutions—Continued
Authorized
Year and quarter
1945
1st
2d
3d
4th
$100,000
6,378,305
Disbursed
$250,000
3,273,822
1946
1st
2d
3d
4th
86
.
1947
1st
2d
3d
4th
15,000
5,000,000
19,130
3,000,000
2,000,000
1948
1st .
2d 3d
4th
1st.
2d~
3d4th
$265,000
3,273,908
*
Canceled or
withdrawn
„
1st. ...
2d
3d
4th
1949
3,000,000
100,000
3,000,000
1950
.
Repayments
and other
reductions
$21,784,335
10,035,034
17,925,683
9,955,669
$344,262,732
334,227,698
319,575,837
309,620,168
44,487,767
8,980,736
38,814,333
5,307,712
265,132,401
256,151,665
217,337,327
212,029,615
18,901,031
32,740,382
6,964,042
5,640,825
193,147,714
163,407,332
156,443,290
152,802,465
12,239,163
3,114,086
4,620,413
3,955,137
140,563,302
137,449,216
132,828,803
128,873,666
3,709,826
2,347,276
3,872,235
7,552,830
125,163,840
122,816,564
121,944,329
114,391,499
2,612,337
1,809,911
4,555,960
2,828,959
111,779,162
109,969,251
105,413,291
102,584,332
4,388,322
4,140,358
2,166,914
7,519,393
98,196,010
94,055,652
91,888,738
84,369,345
10,880,668
18,722,040
1,961,264
6,004,991
73,488,677
64,766,637
52,805,373
46,800,382
597,738
996,883
612,262
46,202,644
45,205,761
44,593,499
3,861,608,182
44,693,499
1951
1st
2d
3d
4th
I
100,000
1952
1st
2d
4th
I.
1953
1st
2d
3d
Total
.„
4,815,324,697
216
909,123,016
3,906,201,681
Outstanding
TABLE FI-2
Summary of Loans to and Investments in Banks and Trust Companies
Year and quarter
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..,.
2d
3d
4th_.._
1st-.
d
3d..
4th.
1st..
2d...
3d.,,
4th.,
1st
Authorized
1932
lst..
2d..
3d..
4th.
1st....
2d
3d
4th
Disbursed
Repayments
and other
reductions
Outstanding
$153,376,435
483,983,463
214,993,392
95,733,710
$174,400
8,087,681
29,693,552
14,950,632
$125,417,141
209,093,645
143,981,878
$7,670,376
64,822,035
99,915,401
83,832,224
$117,746,765
423,980,723
533,158,967
297,881,999
190,280,139
178,330,771
675,572,616
93,279,709
19,663,252
30,397,048
17.056,466
194,555,858
153,024,030
153,687,158
337,741,902
87,418,839
141.178,461
130,584,485
102,327,268
700,445,640
712,291,209
735.393,882
970,808,516
564,213,716
211,675,962
207,451,521
116,290,475
37,831,609
66,304,560
54,478,375
48,186,796
420,387,626
296,610,612
148,025,415
178,849,161
163,903,867
135,700,933
141,234,472
1,227,292,275
1,388,201,954
1,394,992,897
1,474,179,397
52,400,526
55,701,494
39,834,375
44,362,609
24,287,612
19,087,702
9,624,853
14,292,507
82,659,945
52,964,909
46,533,218
39,147,121
134,306,917
108,351,562
89,039,041
100,775,258
1,422,532,425
1,367,145,772
1,324,639,949
1,263,011,812
28,404,225
12,354,694
9,928,744
34,103,781
6,784,604
6,507,906
11,531,910
29,501,886
13,117,399
12,513,226
11,643,557
141,131,134
105,560,099
166,177,918
84,797,602
1,151,382,564
1,058,939,864
905,275,172
832,121,127
8,301,107
44,780,353
29,171,740
3,867,348
4,645,338
7,207,980
61,368,397
4,507,482
8,479,973
15,044,051
22,332,803
61,576,792
33,496,665
32,642,098
776,506,961
751,490,269
733,692,222
718,332,434
28,002,028
15,682,818
4,292,871
26,645,513
20,712,130
32,868,445
1,151,816
2,917,490
13,378,532
5,900,619
24,305,403
32,292,599
21,365,358
22,485,047
688,957,325
680,970,499
662,885,058
664,705,414
8,119,133
15,918,021
4,098,137
6,173,398
1,631,021
1,204,028
4,714,543
1,050,007
4,635,709
14,527,400
1,999,906
11,571,777
20,842,239
18,972,690
19,935,026
38,949,379
648,498,884
644,053,594
626,118,474
598,740,872
7,391,600
34,662,351
5,176,695
42,088,316
522,171
2,725,546
691,917
1,485,272
2,831,661
35,368,316
3,397,384
39,931,634
29,088,311
16,306,575
17,634,002
16,170,751
572,484,222
591,545,963
577,309,345
601,070,223
1,923,499
934,595
1,173,295
826,500
755,390
2,595,396
173,383
437,005
2,245,605
1,500,709
900,480
31,235,379
19,144,740
31,831,868
16,492,920
572,030,454
554,436,423
523,505,035
507,838,711
477,975
3,590,809
24,741,683
341,000
70,413
331,666
286,749
8,272,323
1,005,766
505,500
3,091,702
18,265,102
28,523,464
13,408,562
11,081,622
6,327,561
480,321,013
467,417,951
459,428,031
471,365,572
225,000
406,000
155,000
42,480
3,391,747
830,503
32,000
357,000
300,000
56,000
55,000
42,480
16,007,178
9,634,273
15,976,615
455,658,394
446,080,121
430,158,506
417,677,000
615,870
6,987
2,875,513
8,000
500,000
28,995,669
33,138,322
18,322,411
14,899,528
388,681,331
355,558,879
337,236,468
322,336,040
1933
1934
1935
1936
1937
1938
1939
1940
1941
fcz
4th....,
1st..
2d._
3d-.
4th-
Canceled or
withdrawn
1942
1943
1944
8,000
19,130
15,870
217
TABLE FI-2-Continued
Summary of Loans to and Investments in Banks and Trust Companies—Continued
Authorized
Year and quarter
1945
1st
2d
$265,000
3,273,908
Canceled or
withdrawn
Disbursed
$250,000
$100,000
6,378,305
3,273,822
Sail—
IIII III4th
1946
1st
2d
3d
4th
-
.
86
1947
1st
-
2d
3d
4th
Total
3,981,365,688
Repayments
and other
reductions
Outstanding
$20,087,356
9,826,291
17,870,342
9,431,942
$301,599,584
291,773,293
277,176,773
267,744,831
44,440,436
8,055,595
8,538,340
5,190,240
223,304,395
214,348,800
205.810,460
200,620,220
15,000
19,130
18,719,610
22,863,840
6,962,919
5,564,201
181,919,740
159,055,900
152,092,981
146,528,780
715,014,957
3,265,450,731
3,118,021,951
146,523,780
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 financial
institutions shown in table FI-1.
TABLE FI-3
Loans to Banks and Trust Companies, Under See. 5 of the RFC A c t , as Amended
[Includes loans through banks to business enterprises]
Year and
quarter
893
3.616
1933
1st
2d
3d
4th..._
Amount
Disbursed
Repayments
and other
reductions
Outstanding
$153,376,435
483,983,463
214,993,392
95,733,710
$174,400
8,087,681
29,693,552
14,950,682
$125,417,141
371,055,993
209,093,645
143,981,878
$7,670,376
64,822,035
99,915,401
83,832,224
$117,746,765
423,980,723
633,158,967
593,308,621
285
613
282,949,499
157,894,639
155,676,771
248,983,616
93,279,709
19,663,252
28,349,048
14,981,466
181,805,858
122,306,030
134,048,658
136,502,185
87,418,839
141,173,776
130,584,435
102,186,028
687,695,640
668,827,894
672,292,117
706,608,274
1,081
527
302
306
141,723,345
96,732,442
133,584,871
54,288,728
20,408,406
29,183,730
32,002,076
34,043,769
103,656,136
73,341,771
57,337,274
124,697,053
163,524,383
134,058,670
79,817,699
85,277,645
646,740,027
686023,128
536,642,703
602,862,211
204
189
133
151
31,357,373
31,440,722
21,862,608
23,236,460
15,852,630
8,585,426
6,896,071
11,882,641
30,763,446
35,538,703
16,763,216
23,496,136
113,755,535
83,873,622
66,476,508
71,600,275
519,870,122
471,635,203
421,821,911
373,817,772
195
292
94
70
21,060,808
24,963,520
12,250,521
7,659,205
33,355,331
6,452,119
6,077,813
11,383,619
13,663,307
10,500,765
9,923,653
0,917,775
104,612,975
38,876,326
41,638,004
35,616,750
282,868,104
254,493,643
222i 778,092
197,080,117
77
45
15
10
7,022,543
30,352,305
4,441,520
2,083,965
4,588,514
7,032,041
2,629,696
4,132,363
3,887,052
1,093,292
14,221472
111593,135
26,000,443
15,998,320
16,164,899
17,955,406
174,066,726
160i961,698
159,018,271
162,656,000
1934
1935
1st
2d...__
3d
4th
1st..
2d
3d
4th
1st
2d
3d
4th
Number
Canceled or
withdrawn
1932
1st
2d
3d
4th
1st,
2d
3d
4th
Authorised
1936
,„..
1937
218
'TABLE ffI-3-0ontinued
Loans to Banks and Trust Companies, Under Sec. 5 of the RFC Act, as Amended—Con.
Year and
quarter
Authorized
Number
1st..
2d..
3d..
4th.
Amount
Disbursed
Repayments
and other
reductions
Outstanding
1938
$2,989,163
10,164,927
2,418,978
3,874,488
1939
1st..,
2d..,
3d...
4th..
1st..
2d..
3d..
4th.
Canceled or
withdrawn
447,168
4,267,446
972,012
1,069,424
$5,518,829
20,375,117
440,749
962,267
1,443,825
584,764
4,044,649
597,100
$1,492,420
2,928,886
1,903,525
3,431,276
$10,474,138
12,989,900
8,053,525
10,121,735
$143,674,282
133,613,268
127,468,263
120,777,809
461,225
1,340,264
798,530
4,938,595
7,366,438
10,340,802
4,483,711
6,118,359
113,872,596
104,872,058
101,186,877
100,007,113
93,127,835
87,760,897
83,897,917
115,027,632
1940
515,000
3,677,800
40,204,056
476,598
73,335
400,000
1,068,901
35,739,841
6,879,278
6,763,841
3,862,980
4,610,126
18,000
480,365
1,045,002
489,500
2,034,760
31,662
167,729
427,434
719,739
793,977
237,001
9,647,427
9,825,001
9,408,302
8,438,511
105,807,639
96,702,377
88,088,052
79,686,542
3,315,309
3,683
341,000
29,400
18,820
473,845
136,791
2,966,702
50,000
11,758,424
2,461,455
1,977,632
1,760,715
68,264,909
65,803,454
66,792,524
65,081,809
75,000
75,000
2,506,418
2,009,312
2,186,425
3,803,785
62,675,391
60,566,079
58,379,654
54,575,869
13,393,655
18,999,499
3,047,115
1,571,295
41,182,214
22,182,715
19,135,600
17,564,305
2,334,651
881,112
1,783,437
1,071,776
15,229,654
14,348,542
15,838,927
14,767,151
1,431,903
633,913
255,370
14,246,812
12,314,909
12il80,996
11,925,626
255,552
10,483,678
159,082
198,772
11,670,074
1,186,396
1,027,314
828,542
2,026,618,863
828,542
11,600
1941
1st..
d
3d,.
4th.
1942
1st..
3d..
4th.
1943
1st.
2d. _ .
3d...
4th..
1st..
2d._
3d..
4th.
1944
1945
1st..
2d...
3d...
4th..
1st
2d
3d
4th
1st..
d
3d..
4th.
3,273,908
6,378,305
3,273,822
1946
86
1947
Total
15,409
2,516,821,790
489,374,385
2,027,447,405
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 financial
institutions shown in table FI-i
2T9
TABLE FI-4
Loans on the Assets of Closed Banks and Trust Companies/ Under Sec. 5(e) of the RFC
A c t / as Amended
Year and quarter
3d...
4th. (
1st-.
2d...
3d...
4th..
1st..
2d_.
3d..
4th. (
1st.
2d..
3d..
h
1934
Authorized
Canceled or
withdrawn
$17,216,475
12,131,117
1935
1936
1937
Disbursed
Eepayments
and other
reductions
$17,216,395
7,022,579
$640,048
3,765,999
$16,576,347
19,832,927
375,103
11,424,122
350,567
40,785
$14,512
68,561
66,685
258,721
144,554
287,168
10,594,977
747,705
7,649,472
9,170,996
5,250,933
7,357,722
12,328,009
3,444,181
8,788,225
2,178,208
844,091
55,755
13,173
354,539
26,350
4.9S5
2,693
3,291
43,865
368,684
29,573
34,782
1,034,502
94,154
119,860
90,237
1,187,571
1,462,101
1,371,814
1,316,359
181,064
1,718,248
22,860,570
259,883
46,824
25,939
171,301
352,353
40,574
53,681
2,560,340
100,833
106,371
122,016
324,922
1,256,100
1,203,410
1,171,623
3,407,041
20,278,515
665,991
138,568
55,725
106,564
233,513
32,427,696
89,549
341,820
4,694,746
334,369
602,627
400,377
1,896,766
2,332,905
928,576
3,348,484
6,146,464
4 147,928
3,821,979
245,465
571,675
806,125
749,374
112,229
103,407
100,184
115,071
701,376
857,682
412,919
329,624
597,989
458,331
3,509,244
3,294,691
3,398,078
3,797,429
443,122
73,895
706,260
45,573
29,491
216,742
316,371
2,081
277,384
2,559
793,793
534,320
325,760
323,460
348,357
3,265,190
3,216,814
2 895,913
3,341,349
265,890
147,261
141,721
978,171
69,845
56,503
74,595
1,294,294
560,323
412, 741
1,041,683
3,025,226
2,534,748
2 178,510
1,211,422
18,200,102
443,531
120,429
122,135
1,121,406
767,891
647,462
525,327
17,604,023
3,306,747
615,503
32,000
7,000
2,892,024
2,931,606
4,106,095
2,304,015
14,711,999
11,780,393
7,674,298
5,370,283
5,987
2,852,013
2,072,067
2,955,009
154,202
24,972
3,298,216
343,207
189,005
164,033
23,671
33,708
12,761
21,036
140,362
106,654
6,343
8,526
1,332
3,374
66,514
57)988
90,229
1938
1st.
22d.
3d..
4th.
1st.
2d_.
d
3d..
4th.
1st....
2d___.
3d....
4th...
1st
2d
1st..
2d...
3d.-.
4th..
1st.
2d
3d.....
4th....
1st
2d
3d
4th
1st
2d
3d
4th
1st.....
2d
3d
4th....
1939
Outstanding
1940
1941
1,181,499
49,230
1942
24,448,000
47,204
220,266
267,929
7,798,478
1943
1944
1945
72,857
1946
220
TABLE FI-4—Continued
Loans on the Assets of Closed Banks and Trust Companies, Under Sec. 5(e) of the RFC
Acts, as Amended—Continued
Authorized
Year and quarter
Canceled or
withdrawn
Disbursed
1947
1st
2d
3d
4th
Repayments
and other
reductions
$17,590
$118,332,229
Total
$67,438,014
$50,894,215
Outstanding
16,465
$35,692
35,692
35,692
19,227
67,418,787
19,227
Details are not available to extend this series beyond 1947. There were no additional authorizations.
Other transactions subsequent to 1947 are included in the summary of loans to and investments in financial
institutions shown in table FI-1.
TABLE FI-5
Loans on Preferred Stock of Banks and Trust Companies Under the Act Approved Mar.
9,1933,0$ Amended
Authorized
Year and
quarter
1st
2d
3d
4th
1933
Number
_.
1
1st.. .™..
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
::
1935
Amount
Canceled or
withdrawn
Disbursed
$250,000
5,960,000
2,256,500
2,123,000
$1,548,000
$250,000
5,960,000
633,500
904,600
53,940
$250,000
6,205,315
6,838,765
7,689,425
517
279
67
34
6,432,671
2,648,400
1,121,175
781,380
365,000
1,810,395
839,194
280,456
1,626,800
3,376,546
1,387,350
891,600
234,484
181,263
267,614
338,923
9,081.741
12,277,024
13,396,760
13,949,437
24
24
38
7
526,550
179,150
214,700
55,000
105,600
126,700
22,500
1,280
1,496,555
483,000
185,350
113,000
323,454
493,703
477,757
418,655
15,122,538
15,111,835
14,819,428
14,513,773
1
85,000
26,900
120,200
79,000
573,578
381,489
359,546
224,743
14,060,395
13,757,906
13,398,360
13,173,617
1
100,000
778,360
466,385
1,047,554
444,693
12,395,257
1,928,872
10,981,318
10,536,625
317,301
222,621
283,878
2,485,409
10,219,324
9,996,703
9,712,825
7,227,416
353,565
156,774
240,562
112,898
6,873,851
6,717,077
6,476,515
6,363,617
2,517,135
338,783
310,449
252,542
3,846,482
30,984,499
30,674,050
30,421,508
::
4th
100,000
:
3d-..
1959
1st
2d_._
3d
"
4th_
1940
1st
2d
I."
3d
"
Outstanding
1
9
20
98
1936
1937
Repayments
and other
reductions
1
30,000,000
2,523,200
27,476,800
221
TABLE FI-5—Continued
Loans on Preferred Stock of Banks and Trust Companies Under the Act Approved Mar.
9,1933, as Amended—Continued
Authorized
Year and
quarter
1st
2d
3d
4th
1941
lst
2d
3d
4th
Canceled or
withdrawn
Disbursed
Number
1
$12,500
$12,500
1942
3d
4th
1944
1st
2d
3d .
1945
1st
2d
3d..
4th
1st
2d
3d
4th
1st
2d
Outstanding
Amount
1943
lst
Repayments
and other
reductions
1946
$3,829,426
351,076
200,367
168,957
$26,592,082
26,253,506
26,053,139
25,884,182
2,745,552
105,652
199,237
19,469
23,138,630
23,032,978
22,833,741
22,814,272
2,945,372
316,700
54,070
51,599
19,868,900
19,552,200
19,498,130
19,446,531
64,634
2,746,926
40,910
19,303
19,381,897
16,634,971
16,594,061
16,674,758
393,861
33,960
2,624,531
57,847
16,180,897
16,146,937
13,522,406
13,141,181
43,633
54,938
6,056
323,378
279,745
224,807
217.751
28,843
11,903
7,742
25,000
189,908
178005
170,263
145,263
44,951,538
145,263
1947
4th
Total—.
1,122
52,746,026
$7,649,225
45,096,801
The 1,122 authorizations were made to 274 individual banks and trust companies. 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 financial institutions shown in
TABLE PIHJ
Subscriptions for the Preferred Stock of Banks and Trust Companlet Under the Act
Approved Mar. 9,1933
[Does not include subscriptions for preferred stock of Export-Import Banks]
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
!!!! Mil
I N S ! liiii
4
35
73
923
$14,682,500
26,225,500
19.897,500
202,175,900
$500,000
2,040,000
$12,500,000
24,558,000
18,505,000
84,890,917
$87,300
$12,500,000
37 058,000
55563,000
140,366.617
1,495
667
392
307
263,569,800
95,550,120
35,095.000
44,232,250
11,413,203
17,835,935
14,302,605
8,923*071
210,061,890
145,433,295
49,982,396
39,584,929
75,000
250,000
2,860,611
3,844,733
350,353,507
495.536,802
542,658,587
578,398,783
222
TABLE FI-6—Continued
Subscriptions for the Preferred Stock of Banks and Trust Companies Under the Act
Approved Mar. 9,1933—Continued
Year and
quarter
Authorized
Number
1935
2d
3d
4th
1st
2d
Repayments
and other
reductions
1st
2d
3d
4th
177
74
73
26
$16,763,600
11,931,000
9,241,500
20,642,864
$7,182,870
5,749,015
2,514,597
1,669,865
$45,975,390
15,073,538
10,738,675
14,051,280
$2,982,217
3,062,950
6,301,959
16,615,701
$621,491,956
633,402,544
637,839,260
636,374,839
19
12
6
6
3,221,250
3,302,450
60,000
1,850,000
576,700
155,000
409,900
115,000
15,420,614
2,059,950
2,497,600
1,625,000
27,586,284
57,640,880
91,912,083
33,770,049
624,209,069
568,628,139
479,213,666
447,068,607
7
0
8
11
977,500
12,488,000
1,436,000
1,498,500
10,000
150,000
117,500
766
2,000,000
6,378,000
200,000
8,010,233
24,148,322
6,272,153
11,381,057
8,775,218
424,920,285
425,026,132
413,845,075
413,080,090
9
11
11
11
4,710,350
2,552,000
1,659,700
22,715,300
50,000
100,000
1667666"
1,078,250
5,120,000
1,855,600
20,262,500
17,463,275
3,395,940
8,415,801
6,493,742
396,695,066
398,419,125
391,858,924
405,627,682
,
,
13
15
10
10
7,376,500
11,009,600
2,320,000
4,304,600
2,000
607,035
600,000
349,600
4,024,300
13,052,665
450,000
5,725,500
7,883,731
6,654,786
10,794,097
29,198,467
401,768,251
409,166,130
308,822,033
375,349,066
10
6
2
7
7,380,000
3,704,229
1,380,000
1,138,000
99,520
75,175
100,000
2,829,680
7,217,229
3,364,825
3,398,000
11,969,041
6,371,600
9,486,296
8,123,641
366,209,606
367,056,234
360,933,763
366,208,122
3
4
1
650,000
405,000
15,000
826,500
413,375
810,000
698,625
5,000
615,000
11,279,837
5,813,954
17,006,391
4,803,622
345,738,286
340,622,956
323,621,665
319,332,943
477,975
275,500
290,000
20,000
82,000
868,975
605,600
125,000
15,000
9,605,249
8,982,867
5,744,268
2,688,964
302,119,312
296,600,044
293,926,080
150,000
406,000
155,000
42,480
10,000
215,000
300,000
56,000
55,000
42,480
5,396,062
2,354,468
5,639,487
5,140,818
288,830,018
286,531,560
281,047,073
275,948,736
15,870
8,000
19,130
23,500
8,000
500,000
10,633,521
7,120,546
12,916,836
10,812,277
266,415,214
258,310,538
245,393,702
234,581,425
265,000
100,000
250,000
15,339,869
7,119,861
11,288,511
6,642,308
219,491,556
212,371,695
201,083,184
194,440,876
27,984,604
6,183,617
5,211,562
3,467,219
166,466,272
160,272,655
155,061,103
151,593,884
14,482,731
9387,085
4,775,318
4,649,949
137,130,283
127,743,198
122,967,880
118,317,931
1940
1941
1S=
1942
1st
d :
3d
4th
1st
2d
3d
4th
1943
515,870
3d..
4th.
1std..
3d...
4th..
O utstandlng
1937
1938
1st..,
2d._
3d..
4th.
1st
2d
3d
4th
Disbursed
1936
4th
1st
2d
3d
4th
Amount
Canceled or
withdrawn
350,000
1945
1946
3d
4th
1st..!! 17 ..
2d...
4th....:::::
. Total
4,480 |
859,692,768
15,000
19,130
77,386,132
782,206,636
118,317,931
AKFA 6 4 ' S ° authorizations were made to 4,202 individual banks and trust companies. 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 financial institutions shown in
223
TABLE FI-7
Purchase of Capital Notes and Debentures of Banks and Trust Companies, Under the Act
Approved Mar. 9,1933
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
1933
2d..
3d4th_
1st..
2d..
3d4th.
1st..
2d_.
3d..
4th.
1934
$200,000
700,000
116,144,200
1
1
1275
$200,000
600,000
222,285,100
$35,000
$200,000
500,000
115,444,200
1278
157
117
76
152,487,900
16,745,000
20,434,000
4,857,000
5,645,000
7,474,500
7,334,500
4,939,500
105,042,800
74,459,000
22,102,000
6,753,000
$70,000
1,211,000
57,648,500
6,435,461
221,117,000
294,365,000
258,818,500
259,136,039
3,378,000
726,500
8,165,000
387,500
1,132,000
4,558,000
125,000
480,000
4,280,000
1,582,500
8,251,000
739,000
11,750,291
10,531,884
5,982,905
253,819,800
243,652,009
241,371,125
236,127,220
92,500
82,500
31,000
65,000
118,500
172,500
17,500
30,000
254,000
109,000
62,500
66,000
7,323,795
8,567,250
32,148,425
15,096,823
229,057,425
220,599,175
188,513,250
173,482,427
20,000
221,800
433,650
25,000
58,450,000
22,000
35,000
55,000
432,350
169,100
10,548,834
10,653,436
3,926,572
10,392,357
152,370,157
1481875,935
138,652,678
1935
1936
1st...
2d
3d
4th
1st
2d
3d
4th
Outstanding
1937
1938
1st..
3d..
4th_
24,000
2,299,900
75,625
12,000
3,500
5,000
634,900
1,802,125
9,000
3,637,508
2,860,131
4,899,951
2,455,585
135,020,170
132,794,939
-1677,113
50,000
69,400
61,500
50,000
19,400
50,000
50,000
4,825,586
2,490,704
3,818,667
3,061,324
122,474,942
120,003,638
116,234,971
113,223,647
7,188,537
3,506,591
3,650,817
2,836,085
106,035,110
102 628,519
98,907,702
96,071,617
5,184,395
2,594,386
4,804,067
2,040,147
90,917,222
88 322836
56,
! 523,622
3,970,708
1,738,169
3,038,350
837,007
77,552,914
76 814,745
72,776,395
71939,388
2,267,302
2,022,197
4,090,633
1,223,769
67 649,889
63,559,351
62,335,582
2,931,792
1,316,342
2,163,348
2,471,681
59,403,790
58 087,448
55 924', 100
63; 452,410
1939
1st
2d
3d
4th
1940
1st..
2d..,
3d..,
4th..
1941
1st-.
2d..,
3d..
4th.,
1942
1st..,
3d_.
4th.
1943
1st..-.
2d
3d...,
4th...
1944
1st..,
2d..
3d_.
4th.
224
45,000
40,000
30,000
61,500
30,000
"2O7666
•~45,*666"
TABLE FI-7—Continued
Purchase of Captial Notes and Debentures of Banks and Trust Companies/ Under the Act
Approved Mar. 9,1933—Continued
Authorized
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Number
Amount
Canceled or
withdrawn
Disbursed
1945
Repayments
and other
reductions
'
1946
1947
Total
3,144
$433,872,875
$90,611,000
$343,261,875
Outstanding
$2,895,304
1,757,650
2,161,102
1,638,975
$50,557,115
48,799,465
46,638,363
44,999,383
2,787,969
1,287,916
2,636,605
1,458,221
42,211,419
40,923,503
38,286.898
36,828,677
3,934,894
2,981,174
2,020,777
673,115
32,893,783
29,912,609
27,891,832
27,218,717
316,043,158
27,218,717
The 3,144 authorizations were made to 2,910 individual banks and trust companies. Details are not
available to extend this series beyond 1947. There were no additional authorizations. Other transactions
subsequent to 1047 are included in the summary of loans to and investments in financial institutions shown
in table FI-1.
TABLE FI-3
Loans to Mortgage Loan Companies Under Sec. 5 of the RFC Act, as Amended
Authorized
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
$
3d
4th
Number
1932
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
8
46
24
12
$6,517,000
68,178,000
9,171.000
11,200,903
$477,500
826,786
1,141,908
$1,277,000
66,275,414
14,028,584
8,154,424
$601,781
4.447,063
6,281,867
$1,277,000
66,950,633
76,531,254
78,403,811
:
42
41
32
68
43,878,434
66.113,227
20.663,842
117,858.518
632,486
21,110
3.854.499
4,055,182
42.799,653
49,035,763
9,862,160
28,375,912
4,169,698
5,575,188
8,051,015
8.019,753
117,043,766
160,504,341
162,315,486
182,671,645
"
I"
I
140
99
43
31
33.026.136
25.815,732
7,669,604
17.699,480
6 407,584
3,701,102
7,261,518
6,182,962
7,667,029
43,925,742
10,259.645
11,685,890
24,573,723
13,752,400
41.968,840
12,213,792
165,664,951
195.838,293
164,129,098
163,601,196
I'll
20
11
15
14
7,014,797
3.510.490
7,568,047
3,542,548
2,443,894
2,867,646
4,560,263
4,003,144
9,364,021
3 665.374
2,992,894
2,349,791
18,026,053
9,763,690
18,455,540
9,694,488
164,939,164
148.740,848
133,278,202
125,933.505
I"
10
10
8
15
3,179.805
8.364,994
8,704,604
8.173,604
2,859,684
611,575
2,399.169
694,026
1,460,131
5,431,177
9,086,409
6,671,859
6,934,034
9,700,546
6,273,309
10,106,182
120,459,602
116,190.233
119,003,333
115,569,010
5
3
7
2
1,410,735
1,500,809
1,740,640
1,484,588
718,823
2.000,993
72,498,143
190,533
2,645,720
686,363
246,586
1,662,720
8,751,015
10,373,618
8,226,078
6,717,935
109,463,715
99.776,460
9 t 796,968
86,641,763
:/::
1933
1934
1935
'
1st „_„ .
2d
3d...
4th...I
225
TABLE FI-a-Oontlnued
Loans to Mortgage Loan Companies Under Sec. 5 of the RFC Act, as Amended—Con.
Authorized
Year and
quarter
1938
1st
2d
3d
4th...
1st
2d
3d
4th
1939
$5,800
685,491
266,300
46,491
$1,420,498
2,328,693
1,928,405
2,995,355
$7,573,604
6,568,083
4,754,137
3,643,644
$80,488,647
76,249,257
731423,525
72,775,236
5
3
2,964,403
198,272
416,126
39,056
228,003
425,472
356,629
410,426
2,077,298
702,287
432,803
122,636
5,739,261
3 532,495
4,196,835
3,857,520
69,113,273
66,283,065
62,519,033
58,784,149
1,928,367
312,748
182,369
112,058
705,472
17,114
110,000
290,242
19,339
250,000
2,241,759
6,452,417
4,603.131
4,031,366
3,870,481
53,621,974
49,038,182
45,256,816
21,682
6,000
3,264,246
2,656,360
3,050,247
3,417,956
40,363,848
37,713,488
34 663,241
31,269,285
2,603,260
1,892,771
3,376,480
1,163,892
28.666,025
26^773,254
23,396,774
1,625,561
2,092,031
2,756,248
664.788
20,607,321
18 515,290
15 759,042
15,094,254
885,690
921,210
413,012
1,733,633
14,208,564
13 287,354
12^874,342
11,140,709
295,717
186,453
35,672
510,875
10,844,992
10,658,539
10,622,867
1O,U1,W2
47,331
25,141
315,548
117,472
10,039,520
2
13,500
75.000
3,711
1
1
1942
1st
2d
3d
4th
24,000
75,000
175,000
1943
6.647,745
"""
1944
1st.. —
2d_ .
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d.
4th
1945
1946
1947
Total
Outstanding
$793,034
1,614,060
11,544,000
552,500
1941
1st
M
3d
4th
Repayments
and other
reductions
2
1
7
3
2
1st
2d
3d
4th
Disbursed
Amount
Number
1940
1st
2d .
3d
4th
Canceled or
withdrawn
168,721
9,390,336
1,123
1,624
737
£94,636,731
h^1! H FVSStM? ^
226
140,487,155
be
y°nd
354,149,576
1947
354,110,880
JAana (voi
ftSS
»•«
40,320
38,696
38,696
- ^ e r e were no additional authorizations.
loans to and Investments In finan^
TABLE FI-9
Loans to Building and Loan Associations Under Sec. 5 of the RFC Act, as Amended
[Including loans to receivers and liquidating agents]
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1932
1st...
2d...
3d...
4th..
1933
1st-.
2d._
4th
30
394
363
198
$4,879,750
47,535,174
35,153,815
12,127,306
$50,000
1,963,608
1,399,949
$2,430,500
39,617,834
38,192,650
13,622,130
$1,004,361
4,020,068
4,592,010
$2,430,500
41,043,973
75,216,555
84,246,675
116
69
16
15
10,363,592
5,337,079
1,440,721
4,674,076
804,499
741,209
341,451
120,702
9,203,176
6,006,049
2,159,795
1,818,420
6,975,752
10,589,896
8,807,334
10,823,655
86,474,099
81,890,252
75,242,713
66,237,478
161,607
801,000
272,545
1,825,000
34,333
13,731
1,038,683
331,586
500,000
12,051,207
15,728,659
12,668,300
7,792,821
55,224,954
39,827,881
27,659,581
19,918,029
588,525
870,000
220,000
166
20,836,794
29,164
19,761
77,275
374,009
1,007,119
10,755
7,886,183
2,748,959
1,832,741
1,644,829
12,109,121
9,934,171
8,908,549
7,274,475
315,000
43,850
37,000
45,621
165,000
154,000
64,929
17,000
36,000
1,782,257
1,586,449
643,160
918,350
5,557,147
3,987,698
3,344,533
2,462,188
32,850
1,500
5,000
443,145
3,571
372,640
478,901
252,040
235,804
2,089,548
2,053,792
1,805,323
2,102,845
199,767
601,500
495,000
4,745,000
138,797
30,000
25
395,531
174,906
24,836
175,819
209,340
186,845
217,644
2,322,557
2,288,123
2,126,114
1,908,470
1,730,438
537,900
1,344,100
687,711
36,492
4,854,900
340,000
224,953
1,591,283
405,100
171,559
225,395
245,758
144,794
1,961,864
3,327,752
3,487,094
3,342,300
3,189,000
1,113,500
1,083,000
2,017,396
55,367
93,801
99,420
541,000
1,085,200
508,533
166,678
403,123
218,158
258,457
495,794
3,480,177
4,347,219
4,697,295
4,263,179
1,382,226
843,500
1,246,000
2,357,800
6,750
41,575
188,500
28,741
927,096
1,012,327
51,000
627,633
826,887
1,025,208
1,036,524
837,059
4,355,507
3,369,983
3,160,557
1,182,000
1,885,200
2,658,300
1,147,000
1,600,000
442,520
4,354,000
1,337,780
578,000
1,589,791
1,722,636
1499,323
1,634,490
1,492,400
5,791,921
5,630,378
4,573,888
4,671,279
354,709
415,001
233,300
917,000
2,080,200
1,793,000
1,973,000
1,753,223
2,672,827
2,432,046
1,376,562
3,835,056
3,242,429
2,603,383
3,199,821
260,000
939,714
503,072
701,453
853,950
2,620,107
2,017,035
1,315,582
480,073
425,262
22,290
19,669
12,852
54,811
32,521
12,852
1st.*
2d
3d
4th
20,852,069
1935
1st
2d
3d..
4th
1936
1
1st
3d.... "
4th
1937
1st
2d
I
3d
4th
2d
3d
4th..
321,018
1,522,351
400,000
11939
1st
2d
3d
4th.
1st.™.
::
4th
1st
2d
3d
4th
1941
2d.._
3d
4th
I
:
1943
1,317,000
155,000
1944
1st...,
2d._
3d..
4th.
1945
1st..
2d
3d..
4th.
Total—
115,000
57,000
155,000
115,000
1,468
140,158,068
38,831,492
178,989,560
Tlie 1,468 authorizations were made to 1,183 Individual associations.
140,158,068
227
TABLE FI-10
Loans to and Investments in Insurance Companies
Authorized
Year and
quarter
lst-
1932
2dd . . .
3d...
4th__
Number
18
Repayments
and other
reductions
$7,080,000
•66,335,500
11,727,700
7,855,732
$1,000,000
1,503,674
619,209
$6,735,920
39 374,719
13,422,680
8,604,300
$74,400
496,072
1,629,912
3,388,354
$6,661,520
45,540,167
67,332,935
62; 548,881
9,779,130
4,984,706
1,525,100
5,566,000
1,697,055
599,110
356,041
26,133
10,897,993
4,881,248
2,737,781
5,502,392
1,087,034
7,041,899
72,359,840
70 199,189
67,845,101
65,404,561
9,142,000
7,518,000
10,408,504
1,036,187
7,002,685
152,092
1,624,630
11,525,800
10,000,400
4,435,000
10,999,858
17,016,834
4,121,458
5,973,783
2,300
65,000
150,000
275,000
1,631
2,888,134
2,756,665
2,064,939
10,951,765
1934
1st
2d
3d
4th
1935
1936
1st...
2d...
3d..
4th_.
4,000,000
156,000
1937
1st...
2._
2d
3d..
4th.
40,000
78
155,923
1,032,892
1,017,793
500,000
1667665
1939
1st...
2 .
2d
3d..
4th.
i942,932
539,078
642,677
4,000,000
1938
1st...
2d..
3d..
4th.
15,098
400,000
1940
1st..,
2d..
3d..
4th.
1st..
2d..
3d..
4th.
Outstanding
Amount
1933
1st—
2d._
3d._
4th.
1st
2d
3d
4th
Disbursed
Canceled or
withdrawn
4,765,659
51,991,855
49 235,290
47320,351
35 186,831
38,377,002
33,611,343
1,549,390
552,841
480,091
626,427
32,217,876
685,066
61,298
29,873,451
567,026
83,297
193,615
158,901
29,661,890
31184 944
30,558,617
30! 767,343
30; 228,916
* Eft 88
29,226; 077
807,687
117,068
236,881
701,775
2^749)737
1,080,306
39,916
99,914
70,884
21,669,431
21629,515
34^029,601
33,958,717
1942
1st..
2d.
3d
4th
Ml 878,458
721,574
123,159
155,654
3,612,642
1941
1st..
2d..
3d..
4th.
56 417,241
12,500,000
12,500,000
175,000
175,000
1943
228
818,874
870,975
173,582
32,359
§,268,86
32,237,927
TABLE FI-10-Contlnued
Loans to and Investments in Insurance Companies—Continued
Authorized
Year and
quarter
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1944
1st
2d
3d.
4th
1st
2d
3d
4th_
$151,459
139,376
107,297
450
$32,086,468
31,947.092
31,839,795
31,839,345
76,000
31,763,345
31,763,345
31.763,345
31,763,345
1945
:
1946
1st
2d
3d
4th._
1947
1st....
2d
3d
4th
1st
2d
3d
4th
29,960,450
"
2
$5,000,000
$3,000,000
12,700
480,206
2,000,000
75,000
1948
925,000
"'
1949
1st
2d
3d__
4th
2d
3d
4th
1
1
3,000,000
100,000
1951
1st
2d
3d....__
4th
:;~:
1952
1st....
2d
*
8,309,989
8,255,000
8,255,000
8,255,000
22,000
8,255,000
8,233,000
8,233,000
8,182.000
23.000
7,949,000
4th
1st
2d
1953
8,159,000
210,000
210,000
210,000
•
46,002
210,000
163,998
163,998
145,679,212
163,998
9 A
Total
5 309 989
5,309! 989
5,309,989
5,309.989
54,989
51,000
$100,000
1,790,195
4,309,989
4,309,989
6.234,989
5.309.989
5.309.989
8,309,989
8,309,989
3,000,000
."
31,763,345
31,763,345
1,802,895
1,802,895
228
159,689,750
13,846,540
145,843,210
229
TABLE FI-11
Loans to Insurance Companies Under See. 5 of the RFC Act, os Amended
Authorized
Year and
quarter
Number
Disbursed
Canceled or
withdrawn
Repayments
and other
reductions
Outstanding
Amount
$7,080,000
56,385,600
11,727,700
7,855,732
$1,000,000
1,503,674
619,209
$6,635,920
39,374,719
13,422,680
8,604,300
$74,400
496,072
1,629,912
3,388,354
$6,561,620
45,440,167
57,232,935
62,448,881
4th.
9,779,130
4,984,705
1,525,100
1,191,000
1,597,055
599,110
356,041
26,138
10,897,993
4,881,248
2,737,781
1,127,392
1,087,034
7,041,899
5,091,869
7,942,932
72,259,840
70,099,189
67,745,101
60,929,561
1934
1st...
2d..
3d4th.
1,642,000
18,000
308,504
286,187
7,002,685
152,092
1,624,630
25,800
400
185,000
10,999,858
17,016,834
4,031,458
5,971,783
51,554,333
34,563,299
30,532,241
24,745,458
2,300
65,000
275,000
1,631
2,788,134
2,756,665
2,064,939
10,951,765
21,958,955
19,202,290
17,137,351
6,185,586
438,578
640,792
684,829
414,666
6,747,008
5,106,216
4,421,387
4,006,721
300,140
160,013
323,848
587,821
3,862,504
3,702,491
3,378,643
2,790,822
230,584
47,877
49,229
488,427
2,560,238
3 530,154
3,480,925
2l 992,498
91,652
2,900,846
2 831,514
1932
1st,..,
2d..
3d4th.
1933
1st—
1935
1st...
2d3d..
4th.
1936
1st...
2d..
3d..
4th.
40,000
156,000
1937
1st..
2d...
3d...
4th..
1938
1st..
2d..
3d..
4th.
1939
1st..
2d_.
3d..
4th.
1st..
2d_.
3d..
4th.
1940
1941
1st...
2d..
3d..
4th.
78
155,923
1,017,793
1,032,892
400,000
15,098
400,000
179,893
145,728
72,907
101,659
155,554
177,744
2,432,986
256,306
72,949
136,881
701,775
1,741,723
1668,774
1 631,893
'830,118
104,626
39,916
85,914
70,884
725,492
685,576
9,979
518,799
485,429
461,847
1942
3d...
4th..
1st..
2d._
3d..
4th.
1st
2d
3d
4th
1943
23,582
32,359
1944
230
1,459
65,376
107,297
450
E;K
1,998,029
528,778
428,029
TABLE FI-11—Continued
Loan to Insurance Companies Under Sec. 5 of the RFC Act, as Amended—Continued
Authorized
Year and
quarter
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
1945
1st
2d
3d . ....
4th
1st
2d
3d
1st
2d
$254,906
254,906
254,906
254,906
1946
Ith"
Outstanding
254,906
254,906
254,906
254,906
„::
1947
$254,906
Total
209
$104,439,750
90,693,210
$90,693,210
$13,746,540
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 of
the Act Approved June 10,1933, as Amended
Authorized
Year and
quarter
4th
1st
2d
3d
4th
Number
1933
1934
'
Amount
Canceled or
withdrawn
Disbursed
3
$4,375,000
$4,375,000
1
2
2
1
7,500,000
7,500,000
10,100,000
750,000
11,500,000
10,100,000
4,250,000
Repayments
and other
reductions
$4,375,000
$90,000
2,000
100,000
30,033,000
30,033,000
30,183,000
30,183,000
100,500
1,885
125,000
4,350,993
30,082,500
30,080,615
33,955,615
29,604,622
""
1,249,250
392,828
156,243
38,606
28,355,372
27,962,544
27,806,301
27,767,695
""
I"
454,482
13,421
13,374
150,000
27,313,213
27,299,792
27,286,418
27,236,418
475,374
13,965
13,722
13,173
26,761,044
26,747,079
26,733,357
26,720,184
ii
648,667
21,500
26,071,517
26,050,017
26,050,017
22,615,119
2d
—"w
4th
1st
2
150,000
150,000
1
4,000,000
4,000,000
1936
3d
4th..._
"'
'"
1937
*}
4th-.._
m. 1 M 8
2d...
3d
4th
i
100,000
100,000
1st
2d
4th
1st
2d
4,375,000
15,875,000
25,885,000
33,133,000
i!
1st. 1 ' 35
1st
Outstanding
""
1940
""
4th..™ii:
505257
3,434,898
231
TABLE FI-12-Conttnued
Loans on and Subscription for Preferred Stock of Insurance Companies Under Sec. 1 of
the A c t Approved June 1 0 , 1933, as Amended—Continued
Authorized
Year and
quarter
umber
Amount
Canceled or
withdrawn
Disbursed
1941
»•
3d
4th
"
1942
1
$12,500,000
1
175,000
175,000
32,621,044
31,783,439
31,808,439
31,808,439
150,000
74,000
31,658,439
31684,439
31,584,439
3i; 584,439
76,000
31,608,439
31,808,439
31,508,439
31,608,439
1945
1946
1st
2d,..:.
3d..:
1947
2
3,000,000
2,000,000
12,700
225,300
75,000
1948
925,000
1949
1st
2d
4th
1st2d
3d
4th
1st
2d-.
4th
1st
2d
5,000,000
31,508,439
31,608,439
1 547,989
I! 647,989
1,535,289
<309,989
X 309,989
1234,989
5,309,989
5,309,989
5,309,989
i 309,989
5,309,989
3,000,000
100,000
8,309,989
§J 309,989
3,000,000
1950
54,989
1951
;j j|
1 !i
1st
2d
3d
4th.
29,960,450
II 1 1
1st
2d
3d
4th
20,943,939
20,943,939
33,429,939
33,429,939
808,895
837,605
150,000
1944
1st
3d
3d
4th
975,680
$12,500,000
1st
2d
3d
4th
1st
2d
3d
4th
$22,063,738
22,019,619
21,919,619
21,919,619
14,000
1943
1st
2d
3d
4th
Outstanding
$551,381
44,119
100 000
,
$100,000
1952
PJ i j
1st
2d
3d.
4th
Repayments
and other
reductions
8,309,989
8,255,000
£255,000
?255,000
$,255,000
gmooo
8,233,000
51,000
|l82,000
23,000
7,949,000
8,159,000
210,000
210,000
210,000
1953
210,000
46,00
163, Wo
Totals
1
65,250,000
100,000
65,150,000
The 19 authorizations were made to 12 individual insurance companies.
232
54,986,002
TABLE PI-13
Loans to Credit Unions Under See. 5, RFC Act, as Amended
Year and
quarter
1st
2d
3d
4th
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1932
3
$405,000
1
67,446
$31,648
700
$367,727
5.625
66,746
$3,393
2,160
3,285
$364,334
367,799
431,260
1
1
1
1
19,555
115,000
10,000
4,000
9,504
262
0,555
115,496
9,738
4,000
4.320
2,790
2,993
47,443
436,495
549,201
655,941
612,498
1934
1st 2d
3d-- —
4th
1
1,967
1,967
19,484
66,355
40.426
2,742
493,014
428,626
388.200
335,458
1935
1st
2d
3d
4th .
1
20,000
19,242
48,864
19,831
6,680
2,255
336,594
336 005
330,325
328,070
1st
2d.
3d
4th. „
16,635
10,785
6,142
5,855
311,435
300,650
295.508
289,653
1937
1st „
2d .
3d"::::::::
4th... .
63,701
45.120
29,225
2,125
225,952
180,832
151,607
149,482
7,710
21.935
7,350
12.103
141,763
119,828
112,478
100,375
50,561
33,766
71
434
49,814
16,048
15.977
15.543
420
461
479
3,108
15,123
U>2
14,183
11.075
1st
2d
3d
4th
1933
758
1936
1938
1st
.
2d— 3d
1st
2d
4th1st
2d3d
4th
1939
.
1940
1941
1st
Total
11,075
10
642,968
42,872
600,096
600.096
The 10 authorizations were made to 7 Individual credit unions.
233
TABLE BE-1
Summary of Loans to Business Enterprises
Year and
quarter
1934
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
4
182
412
$924,500
11,425,175
17,134,860
$776,500
1,752,525
$1,916,178
4,851.602
$116,679
274
309
214
14,900,422
26,329,259
25,301,447
13,492,987
4,260,216
4.741,498
6,769,721
4,248,465
6,301,862
9,822,490
11,737,934
9,338,819
665,447
1,070,045
12,790,842
22,010,512
33,091,999
41,359,873
106
170
121
100
12,693,884
10,842,781
12,693,409
8,683,776
3,895,132
5,857,293
5,541,101
6,596,439
10,123,633
6,252,634
7,646,015
9,237,101
1,694,726
2,227,856
2,064,430
3,370,002
49,788,780
53.813,558
59,395,143
65,262,242
07
103
76
34
7,893,343
4,877,764
4,833,050
3,177,350
3,081,718
9,734,991
1,856,420
2,988,469
4,094,924
9,992.983
5,456,820
6,092,195
4,001,788
2,421,073
2.611,234
3,661,061
65,355,378
72,927,288
75,772,874
77,204,008
72
1,633
1,887
816
4,590,308
35,683,068
63,712,427
31,420,333
1,436,932
1,400,332
6,545,649
1,751,702
7,065,773
20,390,130
24,332,587
3,359,55S
3,345,429
4,427,650
9,083,144
75.606.152
79,316,406
95 270.076
110,523,510
524
488
371
215
30,643,694
32,843,757
29,419,754
14,369,675
8.332.616
7,194,739
14,709,935
9,938,795
10,452,625
13,054,590
19,233,548
9,372,847
6,793,600
8,157,446
10,488,839
115,182,544
120,079,688
128 820,397
132,980,008
257
179
10,901,780
13,548,450
27,381,859
29,609,749
7,316,035
12,470,485
5.783,841
5,513,209
12,956,437
7,914,926
10,690,263
8.786,167
12,038,517
7,532,477
10,222,978
11,281,912
133,897,028
134,280,377
134,747,662
132,251,017
150
167
188
155
26,797.523
70,913,377
52,629,730
49,011,644
10.717,412
5,401,354
12,367,797
13,148,944
13.646,129
60,796,062
26.125,691
61,379,905
10,612,708
16.621,016
14,445,383
23,269,827
170.660.204
101,240,602
219,350,680
1942
1st2d
3d
4th......
487
1,553
2,887
1,760
316,419,237
150,217.362
193,191,436
129,104,978
10,789,099
22,772.034
61,579,122
150,175,421
62,343,123
55,459,528
93,666,921
93,967,457
30,270,896
33,903,878
46,814,003
48,173,182
232,422,007
253 888,557
300 741,475
346:535,750
id4th3 :::::::
1,194
050
740
462
115,695,768
166,878,758
76,109,085
72,969,951
59,533,925
06,218,186
65,335,691
64,032,529
54,816,915
75,357,659
50.960,313
66.666,641
45,479,713
367,396,277
372,771,655
109,363,264
31,244,239
406
444
369
314
105,799,667
84,805,060
77,262,961
72,846,110
39,052,180
48,187,078
62,317,389
54,643,107
45,410,349
59,040,683
61,331,884
34,643,561
50,290,604
37,617,123
43,727,714
51,318,708
288
461
683
1,005
92,748,836
170,877,553
61,692,266
44,948,200
27,607,412
29,751,589
46,392,770
35,194,283
39,177,620
112,396,019
49,788,724
94,353,191
63,131,203
136,002,253
2d
3d
4th
1st.
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
,
1936
.
162,121
$1,016,178
6,651,101
1937
193S
2d._
3d..
4th..
1939
1st-..
2d
3d
4th
1940
1st
2d
1st
2d
3d
4th
,
1941
;
1944
fcr
3d
4th
1st
2d
3d
4th
1945
234
337,535,741
313,582,158
280,075,024
TABLE BE-1-Contlnued
Summary of Loans to Business Enterprises—Continued
Authorised
Year and
quarter
Number
1946
s&
1st
2d
1947
Adjustment,
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st..
2d
3d
1947
Amount
Repayments
and other
reductions
Outstanding
$91,382,618
139,852,415
94,569,425
117,112,432
$79,747,042
65,259,911
30,229,173
49,281,611
$6,107,976
13,050,374
14,932,521
21,072,109
$11,724,296
50,548,045
28,911,478
23,093,069
$284,359,604
246,861,933
232,882,976
230,662,016
2,351
2,037
4,182
110,954,505
152,998,050
51,601,054
89,699,240
18,885,206
40,673,027
15,774,975
12,952,607
233,972,247
261,692,667
173,016,510
67,903,472
99,394,772
92,313,208
7,081,564
1,456
1,209
68,159,668
65,096,661
47,357,689
57,320,769
26,546,959
43,716,237
15,387,001
17,908,474
279,934,189
305,741,952
1,050
1,010
748
678
42,900,000
54,213,019
56,879,000
74,169,000
61,948,061
79,339,814
39,000,000
37,700,000
20,360,000
21,869,459
35,838,537
29,138,917
20,732,328
23,339,463
21,697,959
20,617,882
305,369,624
303,899,615
318,040,193
326,561,228
904
1,179
1,273
1,263
88,360.592
129,517,096
177,597,502
133,695,440
38,697,397
41,424,646
38,608,089
50,492,229
45,428,684
64,415,997
72,585,836
78,163,364
26,307,912
25,752,448
23,336,447
30,892,481
345,682,000
384,345,549
433,594,933
460,865,821
1,478
1,492
949
630
110,158,578
112,76a 503
57,852,217
71,749,242
50,827,355
58,212,207
58,313,190
36,882,205
67,771,306
83,402,601
54,986,075
45,606,833
33,012,807
80,676,058
55,332,640
128,047,491
515,624,320
618,350,863
518,004,298
435,563,640
626
505
143
114
131,886,274
51,944,543
23,135,604
15,799,930
59,103,819
78,529,870
15,404,891
21,372,595
49,553,192
61,270,601
30,736,494
17,320,208
38,072,457
44,927,494
52,226,636
39,883,303
447,044,375
463,387,482
441,897,340
419,334,245
123
223
222
232
17,296,646
67,823,780
27,399,539
22,759,696
27,561,553
15,045,331
12,943,725
20,032,270
12,151,385
13,701,052
32,247,463
46,681,403
41,176,994
38,357,811
30,322,686
31,397,438
390,308,636
365,651,877
367,576,654
382,860,619
258
190
20
21,684,770
11,384,564
996,770
12,533,767
18,459,386
7,772,285
27,969,471
26,446,355
12,914,575
30,417,466
37,945,153
27,132,622
380,412,624
368,913,826
354,695,779
1950
:
Disbursed
2,159
4,250
2,717
3,484
1948
1949
Canceled or
withdrawn
1951
1952
1953
Total i
59,335
4,980,278,305
2,378,433,345
2,537,934,918
2,190,320,703
347,614,215
Total *_„_
63,517
5,153,294,815
2,446,336,617
2,637,329,690
2,282,633,911
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 mortgage loans were redasslfled lntothe business loan portfolio and subsequently treated p o t h e r business
and $10,642,684 of outstanding loans so transferred are Included with repayments and other reductions.
235
TABLE BE-2
Summary of Loans to Business Enterprises—Exclusive of National Defense
Authorized
Year and
quarter
Number
1934
2d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Amount
,
,
Disbursed
Repayments
and other
reductions
Outstanding
4
182
412
$924,500
11,425,175
17,134,860
$776,500
1,752,525
$1,916,178
4,851,602
$116,679
274
309
214
14,900,422
26,329,259
25,301,447
13,492,987
4,260,216
4,741,498
6,769,721
4,248,465
6,301,862
9,822,490
11,737,934
9,338,819
665,447
1,070,945
12,790,842
22,019,612
33,091,999
41,359,873
196
170
121
100
12,693,884
10,842,781
12,693,409
8,683,776
3,895,132
5,857,293
5,541,101
10,123,633
6,252,634
7,646,015
9,237,101
1,694,726
2,227,856
2,064,430
3,370,002
49,788,780
63,813,558
59,395,143
65,262,242
97
103
76
34
7,893,343
4,877,764
4,833,050
3,177,350
3,081,718
9,734,991
1,856,420
4,094,924
9,992,983
5,456,820
5,092,195
4,001,788
2,421,073
2,611,234
3,661,061
66,355,378
72,927,288
75,772,874
77,204,008
72
1,633
1,887
816
4,590,308
35,683,068
63,712,427
31,420,333
1,436,932
1,400,332
6,300,898
6,545,649
1,751,702
7,065,773
20,390,130
24,332,587
3,359,558
3,345,429
4,427,550
9,088,144
75,596,152
79,316,496
95,279,076
110,523,519
524
488
371
215
30,643,594
32,843,757
29,419,754
14,369,675
8,332,616
7,194,739
14,709,935
9,938,795
10,452,625
13,054,690
19,238,548
9,372,847
5,793,600
8,167,446
10,488,839
5,222,236
115,182,544
120,079,688
128,829,397
132,980,008
257
288
272
132
10,901,780
13,548,450
10,046,409
6,346,290
7,316,035
12,470,485
5,629,341
5,238,591
12,956,437
7,914,926
8,185,602
4,086,822
12,038,517
7,532,477
10,167,648
11,016,445
133,897,928
134,280,377
132,298,331
125,368,708
117
128
133
91
5,949,356
49,467,084
11,036,865
15,908,796
4,459,721
4,554,028
8,264,881
5,078,353
3,479,645
47,901,457
5,620,6*58
19,510,467
9,429,215
11,779,028
10,024,122
14,553,410
119,419,138
155 641,567
151,138,133
156,095,170
175
847
155
127
6,712,887
23,187,907
4,663,503
3,145,931
5,938,663
8,081,015
5,909,621
8,984,942
2,943,136
10,333,975
6,724,255
4,705,046
12,462,667
17,005,211
10,905,977
11,007,599
146,575,639
139,904,403
135,722,681
129,420,128
61
44
66
28
2,298,996
4,871,201
2,580,990
719,020
6,665,547
3,291,028
2,393,514
3,218,793
2,046,620
1,690,452
4,060,855
1,364,310
14,922,865
8,905,302
6,890,428
10,667,716
116,543,883
109 329,033
106,499,460
32
68
85
02
855,819
2,458,026
6,536,460
13,560,757
1,318,609
1,653,423
1,360,747
1,751,419
409,810
530,689
1,697,130
850,196
18,038,676
6,796,979
2,812,679
3,416,345
79,667,188
73,400,898
72,285,349
69,720,200
107
304
21,499,026
18,887,608
144,388,943
55,870,966
1,857,532
3,545,759
4,242,128
12,130,479
9,028,968
992,555
16,192,476
107,799,876
6,685,641
6,101,022
6,056,254
2,96t»,278
72,063,527
66,955,060
77 091,282
181,924,880
2,144
4,238
2,711
3,482
87,814,580
137,741715
94,4011658
117.085,604
12,635,392
43,161,111
28,852,068
47,732,683
5,502,026
12,623,364
14,771,242
20,942,668
3,620,615
45,230,992
24,133,678
10,794,675
183,806,291
151,198,663
141,836,227
161,984,220
2,334
2,025
78,887,605
143,448,050
44,599,655
85,889,249
18,194,427
37,840,612
6,086,941
8,929,652
164,091,706
193,002,666
1935
1936
Canceled or
withdrawn
162,121
$1,916,178
6,651,101
1937
1st...
2d_,
3d..
4th..
1938
1st „
2d;::
4th
1st.
2d
3d
4th
1st
I
1939
1940
it
4th..:...,
1st
1941
4th
1st
2d
3d
4th
1942
,
,
1943
1st
2d..__.
3d
4th
1944
1st
2d
3d
4th
1945
1st
2d
3d
4th
,
1946
1st
2d
3d
4th
1st
24
,
1947
Total__.
30,775
1,502,709,005
506,085,096
193,002,666
598,424,704
405,422,038
Data on business loan activity subsequent to June 30,1947, are shown according to t;ype of loan to tables
BE-13, BE-14, and BE-15. A summary of business loan activity subsequent to Ji"one 30,1947, is shown in
236
TABLE BE-3
Direct Loans to Business Enterprises Under Sec. 5d of the RFC A c t , as Amended,
Includins Immediate Sales of Participations, and Including Loans to Veterans
Year and
quarter
2d
3d
4th
1st
2d
3d
4th
Authorized
Number
1934
1935
1936
1st...
2d—
3d—
4th..
Amount
Canceled or
withdrawn
174
351
$924,500
10,997,250
13,530,600
$776,500
1,633,700
290
213
238
174
12,080,172
19,832,326
21,673,280
10,581,654
4,311,098
6,522,929
3,075,730
140
127
90
85
10,234,141
7,960,312
10,670.799
7,139,776
74
63
30
Disbursed
$1,916,178
4,399,102
Repayments
and other
reductions
Outstanding
$116,679
$1,916,178
6,198,601
5,301,979
8,631,623
155,211
547,227
638,171
971,987
11,345,369
19,429,665
29,181,017
36,102,016
3,417,571
4,897,269
3,094,150
4,106,840
9,099,461
5,633,254
6.749,648
8,145,754
1,320,333
1,637,822
1,823,841
2,636,696
43,881,144
47,876.576
52,802,383
68,311,441
6,546,860
3,490,164
3,836,500
2,622,650
2,616,181
5,529.541
1,377,121
2,377,032
3,456,049
8,981,658
4,815,317
4,681,901
3,645,732
2,092,983
2,358,357
3,062,056
58,221,763
65,110,433
67,566,893
69,186,738
571
2,617,708
24,842,850
33 421 943
20,070,239
610,014
953,981
3,765,423
4,108,856
1,364,402
Si 658,639
18,632,094
21,
2,945,554
2,781,818
3,834,945
7,898,944
67,605,686
70,482,307
85,279,456
99,263,911
371
330
247
129
21,723,866
21,712,799
24,618,878
5,993,623
5,921,840
3,597,282
10,398,017
3,136,172
8,902r002
10,849,239
18,102,760
8,267,416
5,216,960
6,504.850
9,718,310
4,273,044
102,948,953
107,293,342
115,677,792
119,672,164
184
184
198
78
8,875,023
10,679,217
7,050,795
3,959,741
3,041,447
2,571,160
2,672,124
1,620,996
12,279,684
6,308,739
7,305,364
3,303.981
11,204,324
6,779,549
9,009,726
9,571,711
120,747,624
120,276,714
118,572,352
112,304,622
81
62
4,669,521
48,206,854
7,495,659
13,688,979
1,382,131
1,476,895
6,019,879
1,649,604
3,165,516
47,422.633
5,534,365
19,374,013
8,697,473
11,083,447
9,352,823
13,597,152
106,772,665
143,111,851
139,293.393
145,070,254
115
467
63
30
4,605,077
14,516,221
2,327,920
1,313,514
1,351,300
2,674,682
1,646,707
2,222,798
2,849,147
9,846,403
6,129,917
11,155,370
16,196,546
10,201,850
10,721,067
136,764,031
130,413,883
126,341,955
119,388,981
26
32
33
18
809,811
4,414,064
1,642,069
895,821
365,665
499,515
560,748
1,411,891
1,699,702
4,027,359
1,356,483
12,872,633
8,465,052
6,263,987
10,089,316
107,923,239
101,062,889
98,826,261
90,093,433
16
29
36
37
270,648
910,558
3,433,659
6,562,332
184,703
317,845
141,237
256,009
283,277
498,616
1,471,880
846,235
17,634,804
6,109,846
2,650,536
3,297,726
72,741,906
67,130,676
65,952,020
63,600,529
48
101
153
275
18,083,561
8,905,542
124,462,852
7,905,561
82,987
307,216
838,445
678,020
8,999,444
986,827
16,192,476
107,766,535
6,366,944
5,976,467
5,919,988
2,678,244
66,133,029
61,143,389
71,415,877
176,504,168
772
1,273
867
26,582,898
28 874,103
18,483,713
16,902,264
1,620.065
5,793,842
4,750,531
5,752,920
5,241,576
12 222,914
13,905,715
17,481,314
3,409,799
44,964,848
23,885,376
9,938,965
178,335,945
145,694,011
135,614,350
143,166,699
563
754
13,206,456
90,729,853
12,154,840
15,354,209
33,819,772
5,511,924
7,414,191
162,998,984
179,404,565
14,041
797,072,135
144,669,625
654,508,269
375,103,704
179,404,565
1937
1st—
2d—
3d—
4th._.
1st2d._.
3d...
4th_.
1939
1st-,
2d
3d
4th
1940
1st
2d
3d
4th
57
1,411
1,444
1941
1st...
2d..
3d—
4th..
1942
1st..
2d._
3d-.
4th.
1943
1st...
2d..
3d..
4th.
3d
4th
1st
2d
3d
4th
1945
«=:
3d
4th....;:
i t W47
1st..
2 d : :
Total
t
Tbe 14,041 authorizations were made to 11,684 individual business firms, Date on business loan activity
47, are shown according to type of loan In tables BE-13. BE-14, d B E 1 5 A
subsequent to Jane 30.1947,
summary of business loan activity subsequent to June 30,1947, is shown in table BE-1.
237
TABLE BE-4
Purchases of Participations (Immediate) and Agreements to Purchase
(Deferred) in Loans to Business Enterprises Under Sec. 5d of the
Amended
.
Repayments
Authorized
Disbursed
Canceled
or
and other
Year and
withdrawn
reductions
quarter
umber
Amount
1934
3d..
4th.
1935
1st...
2d..
3d..
4th.
1936
1st—
2d...
3d...
4th..
1937
2d__
3d..
4th.
1938
1st...
2d...
3d...
4th..
$427,925
3,484,760
4th
1st
2d
3d
4th
$427,500
$427,500
1,392,973
$6,910
46,593
24,776
694 760
430,400
1,246,792
756,935
972.383
1,688.743
1,859,969
1,697,910
1,232,500
457.661
934,024
2,183,351
821,599
861.922
514,600
355,167
891,847
287.560
214,204
212,328
608,867
4,342,849
4,643,145
4,785,984
5,068,964
20
21
13
2
870.600
311,250
284,500
366,537
529,450
126,299
154,437
423,000
440,325
201,294
334,862
237.696
169,300
234,873
5,157,102
5,359,731
5,456,634
i 373,055
13
216
439
243
1,952,300
9,968,218
20,105,484
11,070,094
907,918
351,351
2,475,475
2,349,668
46,300
1,123,934
394,712
527,951
5,024,643
5620,626
6,715,653
8,177,182
149
154
120
83
8,851,728
9,879,958
4,627,276
7,671,052
2,282,776
3.696,457
4,280,918
6,782,623
1,377,623
2,038,351
821,831
456,190
1,351,015
529,505
632,172
72
101
72
61
2,016,757
2,619,233
2,675,614
1,316,549
4,274,588
8,989,325
2,957,217
3,619,795
289,114
1,110,217
606,238
637,841
697,047
611,432
957,367
1,394,071
34
37
40
24
1,252,335
1,220,230
3,541,206
2,136,817
3,077,690
3,021,133
2,245,002
3,321,858
244,129
145,824
77,803
112,454
562,247
581,506
570,015
925,413
60
350
1,785,810
8,138.686
1,653,583
l,173,9r
4,587,363
6.386,333
4,224,914
6,712,144
41,989
185,572
133,338
234,453
1,176,011
17
884,967
837,411
808,463
900,659
2d
3d
4th
1st
2d
3d
4th
3,768,487
9,093,615
9 785,951
10,455,245
8,929.768
8 494,086
& 001,874
7, 188,915
1942
669! 012
232,410
1943
1st
2d
3d
4th
Outstanding
2,187,750
2,012,933
1,948,767
2,810,833
1939
1st—
2d_.
3d..
4th.
1940
1st
2d
3d
4th
1941
1st
2d
$118,825
ct, as
3,194,758
2^832,866
% 407,706
% 9611513
28
12
23
1
1,379,185
457,137
938 921
338,44C
ie
39
49
55
585,171
1,547,468
3,102,801
6,998,425
1,133,906
1,314,578
1,219,510
1,495,411
126,533
32,073
225,250
3,961
223,393
689,419
106,810
69,978
1,864,653
1307; 307
1425 747
i; 359,730
3,415,465
9,982,066
19,926,091
46,767,405
1,774,545
3,238,543
3,403 683
11,552,459
29,524
296,994
110,113
105,228
286,044
1 092,260
203
435
70
61,182,682
108,852,612
178,229
8,250
1944
1945
1946
1st..
3d..
4th.
1947
1st...
Total..
iUfltS
\ 921,363
1,370
2,784
100,153,14c
75,mt34l
75m34
10,916,327
37,367,269
24,091,537
41,979.663
1,767
1,265
65,449,041
62,718,18
41,010,365
73,726,409
i1,S42
4 728
33,341
161,167
196,253
166,780
783,247
2,831.018
3,397,840
544,304
860,564
'987,875
SSS
674,227
749,424
l t 208,171
3^778
; 768
8.647,768
351,277.765
24,430,883
33,078,651
1
™ } ^ 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
16,355
238
684,167,370
TABLE BE-fi
Loans to Borrowers Engaged In the Mining, Milling/ or Smelting of Ores, Under the Act
Approved June 19/1934
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1935
1st
2d
3d
4th
,
1936
lst_.
2d._
3d..
4th.
$600,000
3,081,000
1,643,000
83,000
$400,000
$280,000
495,000
157,000
$15,000
$280,000
775,000
917,000
871,000
995,600
423,500
311,600
20,000
25,000
250,000
1,666,000
138,000
91,000
520,000
191,500
80,000
376,000
25,000
40,000
975,000
691,000
1,186,000
1,337,500
895,000
602,000
683,000
270,000
196,000
3,676,000
353,000
455,000
204,000
521,000
360,000
209,000
102,694
80,000
75,000
211,382
1,438,806
1,879,806
2,164,806
2,162,424
20,000
872,000
185,000
280,000
19,000
95,000
60,000
87,000
341,000
283,000
269,200
87,000
13,176
35,000
160,000
204,000
2,490,248
2,738,248
2,847,448
2,730,448
68,000
1,251,000
173,600
805,000
123,000
1,000
31,000
20,000
173,000
167,000
317,600
120,000
291,136
240,700
317,000
2,783,448
2,659,312
2,736,112
2,702,712
10,000
250,000
320,000
1,070,000
910,000
97,800
387,639
495,970
274,000
245,000
86,000
17,609
175,000
50,000
3,004,361
3,482,712
3,581,712
3,776,712
83,000
56,000
1,000,000
106,891
70,000
333,000
8,600
24,000
169,000
113,082
101,000
30,000
3,677,712
3,897,630
3,805,130
3,799,130
322,000
533,000
682,000
658,600
20,000}
38,000
50,000
52,000*
302,0001
461, OOOl
702,500
130,000
21,000
33,000
51,973
3,721,130
4,002,130
4,430,130
6,080,657
456,500
82,500
143,234
44,013
167,642
31,242
5,393,923
5,432,410
5,264,768
5,240,526
179,897
97,714
55,333
47,641
5,060,629
4,962,915
4,907,582
4,869,941
21,703
14,442
31,038
1,990
4,823,796
4,792,758
4,790,768
1937
1st..
2d_
3d..
4th_
1938
3d..
4th.
1st..
2d...
3d..,
4th..
1st..
2d
3d
4th.
1939
1940
27,600
40,000
d
3d
4th
1st
1942
3d..
4th.
1st.
2d_
3d.
4th.
1st.
3d.
3d.
4th
1943
110,0001
50,000
40,000
65,000
103,000
7,000
1944
21,000
1945
3d.
4th
a?
3d..
4th...:
1,208,000
49,000
15,000
106,500
s d : :
30,200
232,000
20,659,800
Total
352
55,000
129,000
250,000
62,600
91,522
72,463
4,796,119
4,866,228
5,013,706
6,003,743
8,000
9,200
623,000
30,713
654,897
4,982,230
4,950,333
10,047,691
10,118,109
5,167,776
4,960,333
10,000JI
49,649
tnTSfv ? authorizations were made t o 279 individual mining concerns. Beginning on July 1.1947, authority
P T S T A r 0 3 ^ 3 *° mining concerns w a s Included with the general business loan authority i n the rewritten
OH*? A c *- Subsequent to June 30,1947, data on loans to mining concerns are Included w i t h other business
loans i n tables B E - 1 3 , B E - 1 4 , and B E - 1 5 , and the summary table, B E - 1 .
239
TABLE BE-6
Loans to the Fishing Industry Under Sec. 15 of the Act Approved June 1 9 , 1 9 3 4
Authorized
Year and
quarter
1934
4th
1935
1st
2d
3d
4th
Canceled or
withdrawn
1937
3d
4th
1938
1st..
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
1st
$25,000
$2,500
15,800
27,500
26,000
16,000
480,370
52,500
78,500
92,000
572,370.
27,000
1,200
1,000
13,600
2,000
24,250
13,880
21,200
8,000
6,833
830
3,261
84,439
589,787
602,837
620,776
544,337
1
1
2
55,000
15,000
2,300
3,000
11,875
50,000
15,300
18,500
10.394
8,077
102,750
537,712
577,318
584,541
481,791
1
300
300
6,116
660
38,796
84,541
475,675
475,315
436,519
351,978
450
10,445
324
20
351,528
341,083
340,759
340,739
151,146
123,887
189,593
65,706
40 151
39,488
495
993
234
845
38,993
38,000
371716
36,871
1,286
2,194
2,115
2,149
35,585
33,391
31,276
29,127
2,164
26,095
143
143
26,963
868
725
582
$119,500
6
2
5
2
32,500
503,000
36,400
17,500
$42,500
2
1
2,000
10,000
125
—
1940
1941
1942
1943
1944
Total—
Outstanding
$25,000
4
1939
1st
2d
3d
4th.
Repayments
and other
reductions
Amount
Number
1936
1st
2d
3d
4th
Disbursed
582
27
809,700
90,025
719,675
The 27 authorizations were made to 22 individual fishing concerns.
240
719,675
TABLE BE-7
Summary of National Defense Loans to Business Enterprises
Year and
quarter
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
1940
1941
1942
1943
1944
1945
1946
Authorized
Number
Amount
Disbursed
Repayments
and other
reductions
Outstanding
31
47
$17,335,450
23,263,459
$154,500
274,618
$2,504,661
4,699,345
$55,330
265,467
$2,449,331
6,833,209
38
39
55
64
20,848,167
21,446,293
41,592,865
3% 102,848
6,257,691
847,326
4,102,916
8,070,591
10,166,484
12,894,605
20,505,023
31,869,438
1,083,583
4,841,988
4,421,261
8,716,417
15,966,110
24,018,727
40,102,489
63,255,510
312
706
2,732
1,633
309,706,350
127,029,455
188,527.933
125,959,047
4,850,436
14,691,019
55,669,501
141,190,479
49,399,987
45,125,553
86,942,666
89,262,411
26,808,229
16,988,667
35,908,026
37,165,583
85,847,268
113,984,154
165,018,794
217,115,622
1,133
906
684
434
113,396.772
162,007,557
73,528,095
72,250,931
52,868,378
55,354,864
106,969,750
28,025,446
94,171,566
63.645,239
59,971,674
53,452,605
60,434,794
51,055,011
49,776,213
34,911,997
250,852,394
263,442,622
273,633,033
292,178,691
374
376
284
222
104,943,848
82,347,034
70,726.501
59,285,353
37,733,571
46,533,655
50,956,642
52,891,683
45.000,539
58,509,894
59,634,754
33,793,365
32,251,918
30,820,144
40,915,035
47,903,453
304,927,312
332,617,062
351,336,781
337,226,693
181
157
90
23
51,589.237
73,861,228
26,488,610
5,721,300
43,090.668
24,061,653
25,509,461
34,262,291
30,507.512
34,201,728
22,985,144
4,696,143
43,103,083
88,252,169
57,074,949
133,035,975
324,631,122
270,580,681
236,490,876
108,051,044
15
12
6
2
3,568,038
2,110,700
167,867
26,828
67,211,650
22,098,800
1,377,105
1.549,028
605,950
427,010
161,279
129,441
8,103,681
6,317,053
4,777,800
12,298,394
100,553,313
95,663,270
91,046,749
78,877,796
17
12
10,585
32.067,000
9,550,000
7,001,390
3,809,991
690,779
2,832,415
9,638,034
4,022,955
69,830,541
68,690,001
1.852,448,766
897,415,117
918,687,210
849,997,209
68,690,001
1947
Total
Canceled or
withdrawn
The authority under which BFO made national defense loans expired June 30,1947. Transactions on
national defense loans subsequent to June 30,1947, are Included in tables BE-13, BE-14, and BE-15, according 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 A c t Approved
June £ 5 , 1 9 4 0 , Including Immediate Sales of Participations and Subsidy Loans
Year and
quarter
3d
4th
1st
2d
3d
4th
1st
2d
1940
1941
1942
9;
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4tb
1st
2d
3d
4th
1st
2d
1943
Authorized
Amount
Number
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
24
32
$16,836,200
21,015,616
$139,500
134,500
$2,504,661
4,463,659
$56,330
241,744
$2,449,331
6,671,246
32
35
42
64
19,703,000
19,946,293
40,700,865
31,584,098
6,098,904
406,705
937,445
7,745,138
9,999,170
12,894,605
20,505,023
31,869,438
979,340
4,762,648
4,302,477
8,641,354
16,691,076
23,823,033
40,025,579
63,253,663
150
413
6S4
457
174,170,607
102,053,463
104,411,553
80,431,437
3,770,772
6,907,329
41,816,632
12,638,041
49,272,637
44,479,909
63,467,229
66,712,093
26,801,308
16,888,221
34,251,236
33,460,919
85,724,892
113,316,680
142,532,573
175,783,747
479
441
343
238
66,279,307
116,262,023
35,424,389
56,385,454
19,181,823
23,150,152
82,613,828
3,005,970
81,727,407
68,635,657
66,659,077
49,862,172
63,938,487
33,805,462
36,545,710
24,121,716
203,672,667
228,302,762
248,416,129
274,156,685
199
174
141
111
86,944,702
46,326,679
63,942,730
37,631,745
9,651,817
16,175,195
30,618,793
12,662,476
42,317,215
67,373,359
56,591,053
33,042,039
24,847,164
25,630,888
35,694,367
44,291,619
291,626,636
323,369,107
344,265,793
333,016,313
96
109
57
17
30,041,369
63,800,614
14,164,346
1,304,883
12,580,085
2,343,982
3,170,012
20,265,488
30,367,249
34,180,313
22,958,150
4,536,401
39,928,555
87,855,461
66,788,528
132,885,682
323,455,007
269,779,859
235,949,481
107,600,200
14
12
6
2
229,430
132,066
124,000
10,000
57,220,202
6,219,657
408,447
681,828
605,950
366,616
161,279
84,441
8,011,649
5,132,690
4,738,060
12,284,314
100,194,601
95,428,527
90,851,746
78,651,873
17
12
32,067,000
9,550,000
3,254,661
3,414,173
690,779
2,832,415
9,681,625
3,927,076
69,661,027
68,566,367
4,391
1,261,473,769
387,103,655
839,059,796
770,493,429
68,566,367
1944
1945
194G
1947
Total
All of the subsidy loans were disbursed and
242
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 A c t A p proved June 2 5 , 1 9 4 0
Year and
Quarter
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1940
Authorized
Number
Amount
Canceled or
withdrawn
7
15
$499,250
2,247,943
$15,000
140,118
6
4
13
10
1,145,167
1,500,000
892,000
1,518,750
47
212
376
271
Disbursed
Repayments
and other
reductions
Outstanding
$235,686
$23,723
$211,963
158,787
440,621
3,165,471
325,453
167,314
104,243
79,340
118,784
75,063
275,034
195,694
76,910
1,847
7,470,497
19,801,485
44,807,763
27,020,073
1,075,533
5,759,333
8,242,337
15,198,798
127,450
477,294
463,668
680,243
6,921
100,446
239,915
151,309
122,376
499,224
722,977
1,251,911
237
261
172
122
40,596,461
44,099,707
35,273,583
14,210,039
22,512,453
23,502,292
23,479,469
23,907,710
4,203,575
2,201,408
1,890,138
1,988,714
460,171
5,646,534
2,080,618
2,092,868
4,995,315
1,550,119
1,359,709
1,255,555
111
148
97
92
16,875,134
34,798,563
15,948,884
20,935,846
27,459,559
29,833,695
20,092,229
39,579,256
1,946,417
187,530
2,357,896
323,730
1,794,039
846,206
1,841,854
876,642
1,407,933
749,257
1,265,299
712,387
83
45
30
3
21,494,419
10,024,922
12,263,995
3,372,098
30,048,224
21,683,551
22,215,334
13,931,671
17,090
14,543
9,801
24,704
270,540
42,128
68,720
57,025
458,937
431,352
372,433
340,112
3,316,612
1,897,498
43,867
16,828
8,988,944
15,778,516
968,658
967,200
60,394
53,716
112,047
39,740
14,080
286,396
234,743
195,003
225,923
6,409
95,880
219,514
123,634
17,298,961
123,634
1941
1942
1943
1944
1945
1946
1947
1st . .
2d
Total
45,000
3,746,738
395,818
2,362
382,071,384
365,612,768
17,422,595
The authority under which RFC made national defense loans expired June 30,1947. Transactions on
national defense loans subsequent to June 30,1947, are included in tables BE-13, BE-14, and BE-15, accordIng to type of loan, and are included In the summary of business loans shown In table BE-1.
243
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
Authorized
Year and
quarter
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
Number
1942
1943
—
1944
1945
Total.
Disbursed
Repayments
and other
reductions
Outstanding
Amount
45
1,670
905
$1,096,751
39,308,513
18,507,537
$1,821,481
4,287,131
$168,350
23,011,769
21,870,075
$1,416,875
3,553,355
$168,350
21,763,244
40,079,964
417
204
169
74
6,521,004
1,645,827
2,830,123
1,655,438
2,186,716
677,476
770,684
1,085,442
8,240,584
2,908,274
1,422,459
1,601,719
6,036,136
11,603,015
11,149,885
8,697,413
42,284,412
33,589,671
23,862,245
16,766,551
64
54
46
19
1,124,012
1,221,792
834,887
717,762
524,395
524,765
245,620
649,956
736,907
949,005
685,805
427,596
5,610,715
4,343,050
3,378,814
2,735,292
11,892,743
8,498,698
5,805,689
3,497,993
2
2
53,449
9,442
8,169
14,319
445,524
34,120
124,115
12,882
123,173
6,872
1,093
5,038
2,903,988
354,580
217,701
79,230
717,178
369,470
152,862
78,670
1
21,996
81,136
2,504
100,627
38,316
40,354
40,354
3,673
76,652,157
13,493,438
1
1946
Canceled or
withdrawn
62,158,719
62,158,719
TABLE BE-11
Security Purchases for Automobile Financing, National Defense
Authorized
Year and
quarter
1st
2d
3d
4th
1st
2d
Number
1942
115
36
2
Amount
$128,065,246
4,077,756
104
Disbursed
$4,131
2,024,357
3,789,051
109,066,509
1943
8,937,386
8,024,944
105,769
26,324
4th
1st
2d
Canceled or
withdrawn
1944
„
97,800
-.
4th
1st
1945
Total,—
16,835
153
132,143,106
132,143,106
The 153 authorizations were made to 121 individual concerns.
244
Repayments
and other
reductions
Outstanding
TABLE BE-12
Loans in Connection With Contract Settlements, Under the Contract Settlement A c t of
1944, Approved July 1 , 1 9 4 4
Authorized
Year and
quarter
2d
3d
4th
Number
1945
Amount
1
3
2
$26,250
62,100
1,030,000
1946
1st
2d
.
Disbursed
$16,100
30,000
$62,250
1,000,000
.
Total
Canceled or
withdrawn
6
1,108,350
Eepayments
and other
reductions
$14,038
32,062
46,100
1,062,250
Outstanding
$16,100
32,062
32,062
46,100
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 the
deferred participation loans.
TABLE BE-13
Direct Loans to Business Enterprises
Year and
quarter
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
Number
Amount
1947
Repayments
and other
reductions
Outstanding
$10,602,893
12,970,245
$22,700,243
39,899,041
$13,763,658
15,663,658
$259,837,959
284,073,342
450
572
452
449
16,300,000
24,794,103
40,797,953
48,531,000
12,000,000
41,779,406
6,000,000
7,000,000
16,600,000
15,433,333
26,451,876
23,689,940
18,275,146
20,263,659
18,716,343
18,216,343
282,398,196
277,567,870
285,303,403
290,777,000
572
775
869
890
62,874,440
106,533,339
120,613,878
106,184,893
9,323,554
14,214,719
14,453,855
21,937,930
36,933,520
55,081,452
61,170,206
71,022,826
18,949,106
20,457,834
18,594,173
26,170,635
308,761,414
343,385,032
385,961,065
430,813,256
1,032
1,089
661
448
84,647,806
91,046,629
40,041,486
66,469,005
21,957,297
28,116,868
33,721,452
18,525,752
59,045,387
60,616,684
43,846,623
39,200,550
25,026,489
67,867,444
45,806,629
122,559,411
464,832,154
457,581,394
455,621,388
372,262,527
486
390
102
82
122,669,444
41,522,882
18,696,746
12,464,498
43,661,076
63,903,945
5,597,759
9,417,098
42,370,834
55,254,804
26,492,974
14,836,292
30,548,872
38,629,786
44,608,684
34,007,810
384,084,489
400,709,507
382,593,797
363,422,279
92
163
162
169
12,789,623
17,384,614
17,959,885
16,009,166
15,814,610
5,484,311
7,512,417
12,341,220
9,283,792
9,984,006
13,409,244
27,232,198
34,916,329
33,248,561
22,984,423
25,065,508
337,789,742
314,525,187
304,950,008
307,116,698
174
133
9
14,708,201
7,393,196
497,276
3,877,678
3,734,467
4,112,507
20,274,734
19,495,404
9,219,222
23,032,001
31,491,095
22,947,696
304,359,431
292,363,740
278,635,266
11,333
1,142,836,250
428,061,059
819,545,185
791,811,293
278,635,266
1950
1952
1953
Total
Disbursed
$33,987,944
28,118,338
1949
I"
"
"
Canceled or
withdrawn
603
609
1948
1951
1st
2d._. ..
3d.
"'
4th
1st
2d
3d
4th
Authorized
245
TABLE BE-14
Immediate Participation Loans to Business Enterprises
Authorized
Year and
quarter
1947
3d
4th..:
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Number
:
1948
1949
1950
1951
1952
1st
2d
3d
4th..
...
1st
2d
3d
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
^LlIlOtXQv
6
6
$600,000
510,392
$250,000
250,000
$500,000
500,000
$812,181
812,181
$9,224,837
8,912,666
10
25
30
40
1,000,000
5,081,194
5,026,042
18,000,000
245,000
244,796
3,500,000
3,600,000
700,000
2,889,545
3,858,433
2,826,475
812,182
812,183
790,346
790,347
8,800,474
10,877,836
13,945,923
15,982,051
30
76
95
86
12,000,000
2,586,600
30,607,893
13,736,642
4,097,479
4,320,465
202,928
2,614,646
4,406,582
5,844,151
6,824,143
5,267,696
4,257,047
1,890,000
2,875,751
2,719,849
16,131,586
20,086,737
24,034,129
26,581,976
106
98
79
57
11,552,302
7,931,406
10,026,487,
8,424,248
5,209,395
3,708,783
6,841,883
1,877,764
7,479,339
20,690,786
9,498,142
6,079,131
4,298,253
9,694,857
7,241,682
3; 665,514
29,763,062
40,658,991
42,915,551
44,329,168
43
42
15
13
4,694,350
7,929,920
2,546,868
1,767,847
1,940,233
649,167
376,000
874,829
6,341,895
4,604,086
3,668,297
2,063,417
5,244,631
4,159,166
6,211,696
4,594,175
45,426,532
45,871,452
43,328,153
40,797,395
14
32
31
43
2)688,000
49,257,290
8,303,644
6,082,130
1,936,685
711,421
1,472,188
1,067,372
2,337,766
3,483,125
18,661,376
19,040,687
4,610,783
3,856,748
6,767,270
4,726,668
38,524,378
3 1 W , 755
60,944,861
66l 258,880
45
23
3
4,755,099
1,289,400
114,880
2,495,842
6,092,459
850,517
7,074,429
6,833,775
3,618,352
6,023,105
6,204,318
3,649,046
66,310,204
66 939,661
66)908,967
1,047
216,512,534
55,327,842
152,891,628
95,519,579
66,908,967
1953
Total
quarter or 1950 as canceled or withdrawn, and repayments and other reductions, respectively.
246
TABLE BE-15
Deferred Participation Loans to Business Enterprises (Including Those M a d e Under BPA
or SLP Programs)
Year and
quarter
3d
4th
1st
2d
3d
4th
1947
1948
1949
1st
2d
3d
4th._
1st
2d
3d
4th
Authorized
Canceled or
withdrawn
Amount
Number
Disbursed
Repayments
and other
reductions
Outstanding
847
695
$33,571,724
26,467,931
$36,504,796
44,100,524
$3,346,716
3,317,196
$811,162
1,432,635
$10,871,393
12,755,954
590
413
266
189
25,600,000
24,337,722
11,055,000
7,638,000
39,703,051
37,315,612
29,500,000
27,200,000
3,060,000
3,546,581
5,528,228
2,622,502
1,645,000
2,263,626
2,191,270
1,611,192
14,170,954
15,453,909
18,790,867
19,802,177
302
328
309
287
13,486,152
20,397,157
26,475,731
13,673,905
25,276,364
22,889,461
23,951,306
25,939,653
4,088,582
3,490,394
4,591,487
1,872,842
3,101,759
3,404,614
1,866,523
2,001,997
20,789,000
20,874,780
23,599,744
23,470,589
340
305
209
125
14,058,470
13,782,468
7,784,244
6,855,989
23,660,663
26,386,556
17,749,855
16,478,699
1,246,580
2,195,131
1,641,310
1,327,152
3,688,065
3,113,757
2,284,429
1,822,566
21,029,104
20,110,478
19,467,359
18,971,945
97
73
26
19
4,622,480
2,491,741
1,891,990
1,567,585
13,502,510
13,976,758
9,432,132
11,080,668
840,463
1,411,711
575,223
420,499
2,279,054
2,138,542
1,406,356
1,281,318
17,533,354
16,806,523
15,975,390
15,114,571
17
28
29
20
1,819,123
1,181,876
1,136,110
668,300
9,811,258
8,849,599
3,959,120
6,673,678
529,827
233,921
276,843
408,618
1,649,882
1,252,502
1,570,993
1,605,362
13,994,516
12,975,935
11,681,785
10,485,041
39
34
S
2,221,470
2,701,968
384,614
6,160,247
8,632,460
2,809,261
620,308
1,117,176
77,001
1,362,360
1,249,740
535,880
9,742,989
9,610,425
9,151,546
5,595
265,771,750
491,544,231
48,386,291
47,570,584
9,151,646
1950
1951
1st
2d
3d
4th
1st
2d
3d
4th
1952
ut 1 9 5 3
2d
3d
::
Total
As of June 30,1947, R F C ' s share of deferred participation loans which had previously been authorized to
business enterprises under aU authorities and which had not been purchased by R F C amounted to
$300,582,582. On the same date, the outstanding balances of all deferred participation loans to business
enterprises 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 and
quarter
1st
2d
3d
4th
Authorized
Number
1932
Amount
$1,293,190
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
$471,990
6,855,880
23,745,720
37,783,690
88,393,331
17,643,991
$432,423
278,518
6,640,706
$471,990
6,572,228
18,160,759
17,911,938
$188,338
1,260,919
3,873,968
76,289,105
65,913,189
97,776,176
622,986,336
248,421
50,590,078
2,379,453
8,934,990
66.320,766
68,732,390
46,794,047
196,156,225
16,153,743
11,382,879
70,274,622
52,743,671
87,950,713
145,300,224
121,819.649
4th.-
264
475
340
221
1934
lst—
2d.
205
78
98,835,497
197,548,518
262,031,929
133,421,301
39,940,329
4,468,165
151,257,800
21,959,129
184,699.773
62,951,259
228,263,903
29,373,742
43,121,155
37,926,709
435,534,001
114,072,409
406.810,821
431,835,371
224,565,273
139,866,606
1,980,175
68,035,051
100,253,866
102,269,117
1.412,200
3,956,620
387,445
85,772,393
21,090,287
119,792,410
122,873,963
9,620,793
22,719,741
22,358,881
16,567,834
12,996,071
138,237,152
235,670,681
341,976,810
338,601,532
9,640,671
151,880.762
11,955,000
22,702,732
657,412
412,371
4,080
15,860,367
5,702,740
3,710,072
13,436,694
173,034,184
76.304.608
7,347,472
357,403,837
200,220.020
130,618,252
126,980.852
806,727
2,133,696
235,205,000
84,994,000
108,715,783
86,459
199,090,899
435,705
37,422,426
1,206.860
17,786,974
60,666,162
66,640,582
33,557,188
63,055.498
3,025,838
97,762,696
65 412.368
20,143,844
77; 784,168
26,179,238
50.575.000
30,210,412
1,403,365
53.063
270,317,357
37,159.122
10,366,356
10,67a 260
7,449,545
105,351,456
5,161,774
649,160
107,493,745
11 131,882
16,336,464
261357,564
30,707
679,703
5,060,000
2,048,000
750,000
121,986
2,362,214
3,641,138
3,937,208
19,940,110
29,055,350
27,562,212
24.375,004
4,556,880
10,115,592
14,113
71,360
619,182
826,497
071,805
700,372
206,141
325,278
4,204,257
50,000
1,948
695,713
292,787
898,876
201,909
3,103,250
2 812,411
1913,535
I! 711,626
265,153
190,459
18,346
1,446,473
1256,014
1,237,668
11394,791
1st
2d
65
162
85
1933
4th
1st
2d
3d
4th
33
1935
1936
1st...
2d...
3d_.
4th_.
1st
2d
3d
4th
1937
.
,
1st...
2dd._
3d...
4th..
1939
1st..
2d..
3d..
4th.
1940
lst_2d
d..
4th..
413,374
800,000
5,424,180
10,408,110
800,000
3,000,000
1941
1st....
3d..
4th.
1st
2d
3d
4th
1st..
2d.
3d
4th.
4! 124,241
Si 798; 963
1942
4,998,052
210,000
196,136
1943
248
1,452,000
13,865
120,045
*i,~33i,"954
195,662
291,187
123,514
768,253
1,904,545
1 613,358
1 489,844
TABLE Ag-1-Continued
Summary of Loans to Agricultural Financing Institutions—Continued
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th.
1st
2d
3d
1st
2d
3d
4th
1st
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1944
1945
1946
$1,079,075
11,360
17,600
11,500
$410,769
399,409
381,809
370,309
33,880
58,550
5,350
7,055
336,429
277,879
272,629
265,474
59,475
26,310
124,614
205,999
179,689
55,075
65,075
1947
55,075
65,075
55,075
55,075
1948
7,950
1949
3,525
1950
47,125
47,125
47,125
43,600
43,600
43,600
43,600
43,600
1951
43,600
43,600
43,600
43,600
4th
Total
47,125
47,125
47,125
47,125
2,083 $2,464,133,430 $1,001,631,323 $1,452,502,107
1,452,502,107
249
TABLE Ag-2
Loans to Federal Land Banks Under Sec. 5 of the RFC Act, as Amended
Authorized
Year and
quarter
1st.
2d
3d
4th
Number
Disbursed
Repayments
and other
reductions
Outstanding
1932
1933
1st....
2d
3d
4th
1934
1st
2d
3d
4th. . .
1st
2d
3d
4th
Amount
Canceled or
withdrawn
1935
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
9
$29,000,000
$5,500,000
$11,450,000
7,050,000
$11,450,000
18,500,000
300,000
3,000,000
7,000,000
113,318,000
18,800,000
21,800,000
28,800,000
142,118,000
1
1,600,000
3
30
5,000,000
139,018,000
2,200,000
2
12
31,500,000
193,618,000
4,700,000
$271,281,299
37,499,302
193,618,000
193,618,000
115,954,701
78,456,399
6,192,420
12,389,770
3,597,615
11,444,677
72,262,979
59 873,209
56,275,594
44,830,917
10,179,915
1,202,253
2,693,194
6,087,156
34,651,002
33 448,749
30,755,555
2< 668,399
10,200,965
759,559
555,564
1,584,346
14,467,434
13,707,875
13 152:311
11,667,965
4,058,046
2,600,809
5,009,110
7,509,919
5,009,110
51,500,000
193,618,000
_
1936
1937
1933
TotaL...
57
399,636,000
12,400,000
387,236,000
387,236,000
The 57 authorizations were made to the 12 Federal land banks. The $193 618,000 shown as authorized
in the 2d quarter of 1932, and like amounts included as disbursed and repaid in the 3d quarter of 1932, represent refinancing of loans previously made and disbursed for different individual amounts but in the same
aggregate amount.
TABLE Ag-3
Loans to Joint Stock Land Banks Under Sec. 5 of the RFC Act, as Amended
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1932
1933
2
3
6
11
$775,000
495,000
781,000
4,246,000
$319,955
$864,217
431,593
1,232,037
$24,021
7,940
30,583
$840,196
1,263,849
2,465;303
13
10
4
1
4,995,823
6,300,850
3,034,600
475,000
30,053
234,085
1,473,756
293.451
2,795,128
2,621,624
2,855,652
4,147.869
17,184
115,830
188,057
423,466
5,243,247
i 749; 041
10,416,636
!4,'l4i;039
511,242
1,674,994
1?, 784
248,428
3,269,608
1,979,956
1.829,046
1,287,175
11,119,859
9 139,903
7,608,076
1934
250
one too
197,219
265,605
A 4Rfl fiO6
TABLE Ag-3-Continued
Loans to Joint Stock Land Banks Under Sec. 5 of the RFC A c t , as Amended—Continued
Year and
quarter
Authorized
Number
1935
1st..
2d..
3d..
4th.
Amount
Canceled or
withdrawn
Disbursed
$52,400
Repayments
and other
reductions
$150,000
664,796
285,048
$4,029,264
3,038,664
2,373,868
2,238,820
300,000
688,500
335,392
480,579
331,265
257,910
1,903.428
1,422 849
1,391,584
1,722,174
111.500
86,459
48,644
19,148
343,088
864,897
13,764
60,000
105,313
251,606
249,707
379,290
1,959,949
2,573,240
2,337,297
2,018,007
63,063
2,051,230
1,388,038
366,356
617,260
170,625
194,710
149,446
3,898,612
5,091,940
5,308,850
5,530,451
21,000
750,000
121,986
343,586
1.971,020
315,625
168,390
5,186,865
3,236,845
3,671,320
3,624,916
833,954
447,606
200,737
248,680
3,335,864
3,714,745
3,514,008
3,265,328
695,713
286.389
852,212
153,013
2,669,615
2,283,226
1.431,014
1,278,001
235,003
139,059
16,246
29,183
1,042,998
903,939
404,638
135,492
291,187
123,514
651,008
1,847,470
1,556,283
1,432,769
1,078,075
17,600
11,600
354,694
344,334
326,734
315,234
58,550
5,350
7,055
281,354
222,804
217,454
210,399
$2,457,242
£2,400
"160*000"
Outstanding
"sso'ooo"
1936
1st..
2d..
3d,.
4th.
300,000
1,760,000
1st..
2d..
3d..
4th.
1st..
2d__
3d..
4th.
1st..
d _,
3d..
4th.
1937
376,000
480,000
1938
3,675.000
575,000
210,412
353,374
1939
800,000
408,000
30,707
679,703
1940
1st..
2d...
3d...
4th..
360,000
800.000
115,592
14,113
71,350
544,892
826,497
1941
3d..
4th.
1st..
2d_
3d..
4th.
1942
196,136
210,000
1943
1st..
2d...
3d...
4th..
1,462,000
1,331,954
13,865
120,045
1944
1st..
2d_.
3d...
4th.
1st2d..
3d
1st.
1945
1946
59,475
26,310
124,614
3dii"i:::"
Total
72
33,055,359
26,194,970
1,055,646
150,924
124,614
26,194,970
The 72 authorizations were made to 28 Individual joint-stock land banks.
251
TABLE Ag-4
Loans to Federal Intermediate Credit Banks Under Sec. 5, RFC A c t , as Amended
Year and
quarter
1st.
1933
Total
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Kepayments
and other
reductions
8
$9,250,000
$9,250,000
$9,250,000
8
9,250,000
9,250,000
9,250,000
Outstanding
The 8 authorizations were made to 8 Individual Federal Intermediate credit banks. All transactions toot
place during March 1933.
TABLE Ag-5
Loans to Regional Agricultural Credit Corporations Under Sec. 5, RFC A c t , as Amended
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1932
1933
$5,372,063
$655
$5,371,408
$7,800
64,868
256,314
2,660,485
53,242,566
60,291,518
28,540,731
7,707,336
3,233,595
9,135,649
67,376,707
45,522,549
55,380,379
106,536,248
67,700,272
29,885,149
14,154,603
2,335,518
1,327,114
350,992
287,204
1,737,770
189,816
392,555
14,439,888
1,380,418
1,691,647
577,474
22,244,482
16,830,098
4,575,520
4,324,476
22,080,555
6 630,875
3,747,002
178,840,453
5,596,812
173,243,641
173,243,641
8
$7,285,973
222
415
261
126
57,811,624
58,296,704
30,015,863
7,262,062
181
54
55
21
1,343
1934
Total
The 1,343 authorizations were made to the 12 regional agricultural credit corporations.
252
TABLE Ag-6
Loans to Agricultura I Credit Corporations (Other) Under Sec. 5, RFC A c t , as Amended
Authorized
Year and
quarter
Number
1932
1st
24
3d
4th
1933
1st
2d
3d..__
4th
1934
1st
2d
3d
4th
l m
1st
Disbursed
Repayments
and others
reductions
Outstanding
2
19
70
31
$21,200
301,240
1,740,935
1,556,476
$13,840
29,036
$1,000
285,366
1,473,848
1,696,413
$2,787
84,712
994,811
$1,000
283,579
1,672,715
% 374,317
7
37
50
26
784,156
384,925
470,520
320,033
4,500
89,425
166,720
13,100
403,323
464,346
608,258
253,084
550,330
570,004
523,106
768,588
2,227,310
2,121,652
2,206,804
1,691,300
2
1
2
83,894
50,000
300,000
135,623
25,492
50,000
582,641
383,802
11,294
200,683
1,134,151
800,349
789,055
863,372
1
26,761
2,633
14,000
9,975
103,588
860,739
873,500
863,525
759,937
78,637
202,000
331,511
759,937
681,300
479,300
147,789
2d
3d
4th..
1st
2d
3d
4th
Amount
Canceled or
withdrawn
25,000
275,000
26,761
1936
1937
1st....
2d._
3d
4th
I
50,000
1
30,727
103,516
12,369
15,791
44,273
125, COO
112,631
96,840
"
11,528
325
131
296
85,312
84,987
84,856
84,560
1939
1st...
2d
3d
4th
I"
3,399
500
4,332
84,560
81,161
80,661
76,329
1938
1st
2d
3d...
4th._.
80,727
1940
1st
2d.__
2,000
30,415
4th
1st
2d
3d
1941
"
Total
43,664
250
6,120,867
447,249
5,643,618
74,329
43,914
43,664
43,664
43,664
43,664
5,643,618
The 250 authorizations were made to 20 individual agricultural credit corporations.
253
TABLE Ag-7
Loans to Livestock Credit Corporations Under Sec. 5# RFC A c t , as Amended
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1932
1933
Number
2
43
74
25
$496,990
6,097,596
5,371,396
1,179,621
5
3
1
1
167,700
228,600
400,000
75,000
1931
100,000
60,000
25,559
25,000
1st.
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
Amount
Canceled or
withdrawn
Disbursed
$432,423
264,678
481,603
$470,990
5,422,645
4,795,318
1,121,451
206,065
1,600
118,127
227,000
313,202
126,416
26,941
100,000
68,441
50,559
1935
120,000
163,866
.„.
120,000
163,866
Repayments
and other
reductions
$161,530
1,168,267
2,732,462
$470,990
5,732,105
9,359,156
7,748,145
2,771,027
1,069,959
1,210,314
1,030,245
5,095,245
4,252,286
3,041,972
2,324,929
711,494
174,395
105,767
349,153
1,713,435
1,607,481
1,501,714
1,203,120
64,519
70,092
265,670
202,028
1,138,601
1,188,509
922,839
884,677
26,001
39,885
95,263
434,200
858,676
818,791
723,628
289,328
69,493
19,171
45 697
154,967
219,835
200,664
154,967
193$
1937
1st
2d
3d
4th
Total....
154
14,511,328
1,539,729
12,971,599
Outstanding
12,971,599
t 1 ^ wthonzztioTzsweje made to 19 Individual livestock credit corpoiations. Included In the data
1 2 3 ? k l a£th<*rlzatlon for $400,000 made for the purpose of assisting in the liquidation of a closed national
Dank. Disbursements on this authorization amounted to $321,643, all of which was repaid.
ftwf
254
TABLE Ag-8
Authorizations for Financing Exports of Agricultural Surpluses Under Sec. 201 (c), Title II,
Emergency Relief and Construction A c t , 1932
Authorized
Year and
quarter
Number
1933
3d
4th
5
Canceled or
withdrawn
Amount
$52,880,543
Repayments
and other
reductions
Disbursed
Outstanding
$3,742,664
3,400,064
$55,857
191,677
$3,686,807
6,895,194
4,376,325
3,076,935
4,429,395
1,173,860
220,138
181,608
3,422,533
951,631
11,051,381
13,946,708
14,963,570
15,175,799
16,200
9,H4
238,643
430,906
231,529
273,104
14,953,356
14,531,594
14,300,065
14,026,961
442,677
13,637,388
13,584,284
46 896
46,896
46,896
1934
$30,000,000
77,098
1st
2d
3d
4th
1
1st
2d
3d,.
4th
490,412
1935
3,069,270
.
1936
„
1st
2d
3d
4th
1937
1st
2d
3d... .
4th
46,896
46,896
46,896
46,696
1938
1st.
2d
3d
4th.
1
.
1939
1st
2d
3d...
4th
1st
2d
4th
46,896
46,896
10,046,896
20,046,896
10,000,000
10,000,000
30,000,000
2,000,000
1,566,444
3,609,568
19,765,888
23,046,896
23,480,452
19,870,894
74,290
132,400
46,896
46,896
46,896
46,896
1,948
1,948
5,000,000
2,000,000
1
5,016,180
3,000,000
2
10,058,110
10,000,000
1940
:
1941
1st
2d
3d
4th
1st
2d
"
"
losiooe
46,896
46,896
46,896
46,896
1942
A. OQS Ci^O
Total
10
98,445,245
51,144,420
47,300,825
47,300,825
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
Others...........
.
4,498,052
4?9
* & K ? 3,119,201
251,754
_
3,370,955
was a revolving credit of $5 million which was increasedto $5,074,290
banks under an RFC guaranty.
255
TABLE Ag-9
201(d)
Loans for Financing of Agricultural Commodities and Livestock, Under Sec. 201
Title I I , Emergency Relief and Construction A c t of 1 9 3 2 (Excludes Loans to CCC)
Repayments
and other
reductions
Canceled or
withdrawn
Number
Amount
$51,500,000
3,275,921
779,802
702,110
2,474,750
5,172,051
1934
1st.
2d
3d
4th
50,200,100
482,663
3,567,954
4,997,000
1,485,000
4,379,256
3,219,087
211,622
2,127,902
746,742
1,344,740
331,607
491,437
920,581
411,465
1,204,532
2,840,997
2 667,158
3,600,433
1.401,692
883,174
1,585,756
1,551,859
721,553
1,630,370
1,438,368
912,450
4,280,572
3,533,376
3 680,764
4,320,173
1,901,014
915,051
90,000
2,119,117
1,372,902
834,950
387,445
210,467
1,460,201
2,863,255
793,339
136,410
339,741
319,695
275,974
318,804
1,065,702
485,000
145,000
396,808
657,412
412,371
4,080
978,977
1,007,912
312,267
930,437
7,853,838
421,588
236,210
8,367,713
1521,787
1 412,466
1385,325
363,716
61,330
4,546
412,401
23,177
400,621
43,838
1,336,640
1374,793
978,718
50,852
5,079
3,087
253,205
18,628
275
11,625
1,500
3,451
222,351
5,154
76,598
30,150
51,400
3,100
9,830
747,178
524,827
519,673
443,075
403,475
352,075
348,975
117,245
57! 075
57,075
67,075
55,075
256
TABLE Ag-9-Continued
Loans for Financing of Agricultural Commodities and Livestock, Under Sec. 201 (d)
Title I I , Emergency Relief and Construction A c t of 1932 (Excludes Loans to CCC)—Con.
Authorized
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1945
$55,075
55,075
55,075
55,075
1946
55,075
55,075
55,075
55,075
_.
1947
55,075
55,075
55,075
55,075
1943
$7,950
1949
"
3,525
1950
47,125
47,125
47,125
47,125
47,125
47,125
47,125
43,600
1st
2d_
3d
4th_
43,600
43,600
43,600
43,600
1951
1st
2d
::
3d.______
4th
43,600
43,600
43,600
Total
43,600
159
$86,061,513
$66,417,021
$19,644,492
19,644,492
The 159 authorizations were made to 105 Individual concerns.
257
TABLE Ag-10
Loans to Commodity Credit Corporation for Financing of Agricultural Commodities and
Livestock, Under Sec. 201 (d), Title I I , Emergency Relief and Construction A c t of 1932
Authorized
Year and
quarter
1933
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
Amount
Number
2
$370,664,190
$65,671,930
$1,095,771
$64,576,159
1
48,000,000
2
2
256,000,000
109,335,810
112,607,948
57,492,291
26,741,886
25,479,385
15,371,239
16,746,480
152,870,174
68,547,539
161,812,868
202,558,679
76,430,391
33,362,237
1st
2d
3d
4th
2
1
1
57,000,000
100,000,000
100,000,000
19,613,886
116,773,250
122,080,624
9,170,508
13,424.543
8,143,818
11,522,275
368,822
39,551,580
148,181,012
258,739,361
267,541,047
1936
1st „
_.
2d
3d
4th
1
1
1
8,474,169
151,095,762
10,000,000
22,305,924
31,260,022
14,842,455
5,090,473
2,912,503
1,522,272
149,841,604
71,561,198
485
297,278,797
162,279,648
95 808,923
98,720,941
2,133,696
235,140,000
84,514,000
107,013,463
3
6
199,039,409
36,715,622
199,906
17,768,664
60,606,162
55,748,894
32,503,675
61,791,540
847,606
79,687,669
47,383,900
3,361,024
63,119,580
3
1
22,354,238
50,000,000
1,403,365
35,087,892
7,601,555
3,158,494
102,650,533
95,048,978
28
1,604,712,665
4th
1934
1st
2d
3d
4th
$151,004,259
1935
1937
1st
2d
3d
4th
1938
1st
2d
3d...
Total....
85,011,926
270,317,357
836,995,703
767,716,962
767,716,962
TABLE Ag-11
Loans to Secretary of Agriculture to Acquire Cotton Under Sec. 5, Title I, Agricultural
Adjustment A c t of 1 9 3 3 , as Amended
Year and
quarter
3d"33
4th
1934
1st
2d...
3d. ..
4th
Total
Authorized
Number
1
Amount
Canceled or
withdrawn
$3,500,000
$200,000
1
2
258
20,000,000
20,000,000
23,500,000
20,200,000
Disbursed
$3,300,000
3,300,000
Repayments
and other
reductions
Outstanding
$3,300,000
$3,300,000
TABLE MS-I
Summary of RFC's Investment in Its Mortgage Loan Subsidiaries
Year and quarter
1st
2d
3d
4th
1st
2d_._ _
3d
4th
Authorized
$10,000,000
1,844,500
2,954,029
$812
76,734
$10,000,000
11,843,688
14,720,983
7,303,338
15,000,000
5,000,000
2,383,372
2,868,582
14,172,649
7,747,030
379,717
427,884
1,136,360
2,542,392
16,724,638
19,165,336
32,201,625
37,406,263
6,907,178
20,367,121
15,002,266
12,200,702
7,833,895
13,642,789
11.909,267
5,838,408
3,316,214
4,442,448
2,987,498
43.768,557
48,286,238
57,486,579
66,408,348
26 000,000
6,300,488
35,000,000
35,000,000
19,143,719
8,470,623
18,237,003
40,088,753
3,200,459
32,811,631
10,467,327
2,000,534
82,351,608
58,010,600
65,780,276
103,868,495
60,000,000
7,780 501
566,484
10,000,000
22,612,476
20,779,168
14,097,496
18,132,297
49,007,367
3,163,162
8,039,036
3,450,034
77,473,604
95,089,610
101,148,070
116,830,333
33,962 793
10 000 000
14,866,456
8,855,576
11,251,636
16,247,686
2,882,474
3,757,222
1,964,757
957,139
127,814,315
132,912,669
142,199,548
157,490,095
11,942,602
8,691,237
10,273,780
10,280,008
1,344,304
1,914,078
1,015,971
3,189,847
168,088,393
174,865,552
184,123,361
191,213,522
12,469,177
8,432,138
9,60S, 031
10,101,868
2,355,377
1,607,141
5,420,086
6,986,078
201,327,322
208,152,319
212,340,264
215,456,054
42,444,044
3,526,558
54,644,409
7,697,537
38,346,416
106,987,362
8,182,610
8,574,614
219,553,682
116,092,878
162,554,677
161,677,600
18,898,508
7,103,498
5,793,115
4,777,768
4,672,426
7,414,273
19,207,201
5,503,192
175,903,682
175,592,907
162,178,821
161,453,397
7,420,761
1,305,534
507,828
420,129
30,023,755
59,410,954
11,043,530
9,104,921
138,850,403
80,744,983
70,209,281
61,524,489
173,970
295,300
176,506
2,014,878
14,755,998
6,431,682
3,051,735
1,381,395
46,942,461
40,806,079
37,930,850
38,564,333
1936
1938
1st 2d
3d
4th. „
1939
1st..
2d
3d.
4th
1940
1st.
2d
3d
4th
10,000,000
1MI
4,871,445
10,000,000
35,000,000
1942
30 000,000
1st .
2d.
3d
4th.._
6,975,000
1943
1st
2d
3d. . .
4th
95,000,000
25,000,000
l m
25,000,000
1945
1st
2d
3d
4th
1st
2d.
3d
4th
Outstanding
$10,000,000
7,000,000
229,983
1,910,902
1937
1st..
2d
3d
4th
Repayments
and other
reductions
1935
1st. . .
2d .
3d
4th.™
1st.
2d
3d
4th
Disbursed
—
-
-
1946
:::::::.::::
56,606,666
259
TABLE MS-l—Continued
Summary of RFC's Investment in Its Mortsage Loan Subsidiaries—Continued
Authorized
Year and quarter
1947
1st
2d
3d
4th
$57,072,071
79,922,020
118,414,402
136,774,402
34,868,556
09,050,010
10,000,000
38,702,248
49,197,513
99,097,010
1,830,000
1,993,366
1,821,000
1,660,000
144,944,402
181,653,284
229,029,797
326,466,807
107,795,652
156,248,086
166,340,820
181,968,161
107,795,552
156,248,086
166,340,820
181,968,161
1,908,000
2,269,032
2,343,789
2,407,141
432,354,359
586,333,413
750,330,444
929,891,464
155,332,188
65,662,985
95,329,773
155,332,138
65,662,985
95,329,773
6,833,384
14,924,817
1,127,925,212
4,623,750
1,078,390,218
1,129,128,386
96,532,947
91,909,197
3,195,405
7,148,218
1,559,262
1,559,264
88,713,792
81,565,574
80,006,312
78,447,048
1,870,104
1,683,316
1,435,022
1,538,724
76,576,944
74,893,628
73,458,606
71,919,882
1,670,574
1,720,331
1,413,692
70,249,308
68,528,977
67,115,285
1,710,978,072
67,115,285
—
-—
1949
1st
2d
3d
4th
1950
1st
2d
3d
4th
..
.
,
1951
1st
2d
3d
4th
:
„
1952
1st
2d
3d
1st
2d
3d...—...
1953
„_...
Total
260
Outstanding
$278,382
11,430,851
1,520,881
1,640,000
1948
.
„...
Repayments
and other
reductions
$18,786,120
34,280,800
40,013,263
20,000,000
$163,778,018
1st
2d
3d
4th
Disbursed
__.
1,831,551,598
1,778,093,357
TABLE MS-2
Loans to and Purchases of Capital Slock in RFC Mortgage Company
Year and quarter
1935
1st-.
2d
3d
h
1st....
2d
3d
4th..._
1st
2d
3d
4th..._.
1st..
2d
3d..
4th,
1st,.
2d...
3d...
4th..
1st
2d..
3d..
1st..
2d._.
3d...
4th..
1st.
2d
d ._
3d..
4th
1st..
2d...
3d_
4th.
1st-.
2d._.
3d__
4th..
1st..
2d..
1939
Disbursed
1
$10,000,000
11,843,688
14,720,983
2,383,372
2,868,582
»14,172r649
7,747,030
379,717
427,884
1,136,360
2,542,392
16,724,638
19,165,336
32,201,625
37,406,263
»6,907,178
20,367,121
15,002,266
»12,200,702
7,833,895
13,642,789
11,909,267
5,838,408
3,316,214
4,442,448
2,987,498
43,768,557
48,286,238
57,486,579
66,408,348
15,000,000
6,300,488
10,000,000
10,000,000
8,143,719
8,470,623
6,051,745
13,563,947
3,200,459
32,811,631
10,467,327
2,000,534
71,351,608
47,010,600
42,595,018
54,158,431
10,000,000
7,780,501
566,484
10,000,000
9,273,129
6,998,411
5,574,150
5,902,733
10,173,129
3,163,162
53,258,431
57,093,680
54,628,794
57,081,493
10,000,000
3,608,995
4,075,069
6,907,305
2,882,474
3,757,222
1,964,757
957,139
59,198,048
59,049,821
61,160,133
67,110,299
3,645,913
5,237,630
5,751,532
4,701,227
1,344,304
1,914,078
1,015,971
3,189,847
69,411,908'
72,735,460
77,471,021
78,982,401
5,850,437
7,264,118
9,058,417
8,431,433
2,355,377
832,141
1,970,086
2,036,078
82,477,461
88,909,438
95,997,769
102,393,124
5,303,617
3,526,558
6,592,168
7,595,967
2,480,989
3,649,432
4,682,610
5,849,614
105,215,752
105,092,878
107,102,436
108,848,789
8,867,924
7,078,277
5,787,093
4,710,213
1,547,426
4,464,273
12,832,201
4,703,192
116,169,287
118,783,291
111, 738,183
111,745,204
6,420,761
1,305,534
507,828
420,129
27,148,755
22,577,761
11,043,530
9,104,921
91,017,210
69,744,983
59,209,281
50,524,489
50,000,000
173,970
295,300
176,506.
2,014,878
14,755,998
6,431,682
3,051,735
1,381,395
35,942,461
29,806,079
26,930,850
27,564,333
18,786,120
34,280,800
278,382
50,ooo;6oo
46,072,071
80,352,871
334,910,020
254,557.149
80,352,871
'I6,"ooo,"66o"
1941
10,000,000
~i6,"66o,~6oo
30,000,000
1943
10,000,000
25,000,000
1944
25,000,000
1945
1946
1947
Subtotal, RFC-MO
Outstanding
$812
76,734
1940
1942
Repayments
$10,000,000
1,844,500
2,954,029
115,0001000
5,000,000
1938
1st.
2d_
3d..
4th.
i $10,000,000
7,000,000
229,983
1,910,902
1936
1937
1st..
2d
2d«.
3d...
4th_.
Authorized
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
Authorized
Year and quarter
1947
2d
3d
4th
$73,091,468
1943
1st
2d
3d
4th
.
-
.
Disbursed
$11,430,851
1,520,881
1,640,000
$68,922,020
107,414* 402
125,774,402
10,000,000
2,627,691
403,514
47,000
1,830,000
1,993,366
1,821,000
1,660,000
133,944,402
134,578,727
133,161,241
131.548,241
1,908,000
2,269,032.
2,343,789
2,407,141
129,640,241
127,371.209
125,027,420
122,620,279
6,833,384
14,924,817
4,329,131
4,623,750
115,786,895
100,862,078
96,532,947
91,909,197
3,195.405
7,148,218
1,559,262
1,559,264
88,713,792
81,565,574
80,006,312
78,447,048
1,870,104
1,683,316
1,435,022
1,538,724
76,576,944
74,893,628
73,458,606
71,919,882
1,670,574
1,720,331
1,413,692
70,249,308
68,528,977
67,115,285
67,115,285
1949
1950
.._
_
1951
1st
2d
3d
4th
1952
1st
2d
3d
4th
1953
1st
2d
3d
:
Total
1
"
:::
461,459,729
Outstanding
$40,013,263
20,000,000
1st
2d
3d
4th
1st
2d
3d.
4th
Repayments
408,001,488
340,886,203
Includes $10 million of c )ital stock.
* Includes $5 million of ca Ltal stock.
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 morta r are shown as representing RFC's Investment In R F C - M C for periods
after t4m
[ed undisbursed commitments for VA and FHA mortgages amounting to
canceled prior to disbursement. The remaining $73,091,468 were
-'
^FC'sundls-
262
TABLE MS-3
Loans to and Purchases of Capital Stock in Federal National Mortgage Association
Year and quarter
Authorized
Disbursed
Repayments
1933
1st
2d
3d
4th
.__..:::"
W39
1st
2d
3d
4th
1940
1st
2d
3d....
4th .
'
» $11,000,000
i $11,000,000
25,000,000
25.000,000
12,185,258
26,524,806
50,000,000
13,339,347
13,780,757
3,523,346
12,229,564
33,962,793
9.867,427
5,246,581
7,176,567
9,340,381
68,616,267
73,862.848
81,039,415
90,379,796
4,871,445
25,000,000
8,296,689
3 453,607
4,522,248
5.578,781
98,676,485
102.130,092
106,652,340
112,231,121
6,975,000
6,618,740
1,168,020
549,614
1,670.435
"
1941
1st
2d
3d
4th
1942
2d._.
3d
4th
1943
1st
2d
3d
4th...
liU
1945
1st
2d__
3d
4th
"
$11,000,000
11,000.000
23,185,258
49,710,064
$33,834,238
118,349,861
119,242,881
116,342,495
113,062,930
48,052,241
101,570
35,865,427
103,337,930
3 600 000
% 725,000
114,337,930
11,000,000
55,452,241
52,828,811
10,030,584
25,221
6,022
67,555
3,125,000
2,950,000
6,375,000
800,000
59,734.395
56,809,616
50,440,638
49,708,193
1,000,000
2,875.000
36,833,193
47,833,193
11,000.000
11,000.000
11.000,000
1M6
1st
2d
11 000,000
11,000,000
11,000,000
11,000,000
4th___.
1947
11,000,000
11,000,000
11,000,000
11,000,000
40.686,550
:::::
::"
1st..
2d_«.
3d
4th
1948
1st
2d...
3d
4th
194
;::::::":
1st-..
2d
3d
24,215,173
37,995,930
46,519.276
58,748,840
775.000
3,450,000
4,950,000
37.140,427
85,000,000
1st
2d
3d
4th
1st
2d
3d
4th
Outstanding
34,863,556
* 99,050,010
36,074,557
48,793,999
* 99,050,010
11,000,000
47,074,557
95,868,556
194,918,566
107,795,552
156 248.086
166,340,820
181,968,161
107,795,552
156,243,086
166,340,820
131.968,161
302,714 118
458,962,204
625,303,024
807,271.185
:::
155,332,138
65,662,985
95,329.773
155.332,138
65,662,985
95,329,773
M,123,596,081
Total
1,370,091,869
1,370,091,869
1,370.091,869
*
1950
962,603,323
1,028,266,308
Ia Capital stock and paid-in surplus.
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 and
quarter
1932
1st—
2d..
3d..
4th.
Authorized
Number
19
Amount
310,919,714
354,059,351
331,813,028
337,166,125
8,296,263
9,255,323
2,250,687
33,386,741
139,311
941,172
12,292,975
87,813
345,323,077
353,637,228
343,594,940
376,893,868
3,511,000
36,036,900
291,400
94,252
206,112
1,891,193
1,733,080
16,747,174
380,198,756
414,344,463
412,902,783
396,249,861
1,600,000
9,063,748
9,202,667
10,043,000
8,610,365
9,871,190
48,375,989
13,325,749
389,239,496
388,432,054
349,258,732
345,975,983
5,000,000
10,000,000
5,000,000
15,000,000
5,000,000
5,610,606
1,047,370
3,043,700
382,607
340,365,377
354,318,007
356,274,307
355>i;700
13,533,000
34,371,500
31,473,000
22,974,922
13,533,000
27,521,500
26,497,000
20,422,922
993,328
2,254,161
831,334
3,693,312
368,431,372
393,698,711
419,364,377
436,093,987
500,000
8,701,000
15,149,800
1,255,000
14,904,000
5,234,702
15,510,630
1,619,808
4,846,308
439,560,285
439,199,455
438,834,647
448,892,339
15,039,000
35,964,000
44,364,500
19,036,000
72,200
65,000
4,500,000
158,000
24,870,000
41,580,603
48,311,958
6,731,783
5,875,250
33,611,486
54,129,124
2,889,681
467,887,089
475,856,206
470 039,040
473,881,142
$11,136,870
1,768,500
5,692,000
17,610,000
$64,000
5,030,156
$20,111,870
3,608,500
$486,876,528
35,000
17,842,000
$7,116,484
20,851,027
8,721,161
16.258,595
368,000
166,000
4,630,000
2,340,000
1,200,000
2,284,277
5,100,006
818,305
11.970,897
464,841,968
462,087,962
462,469,657
450,498,760
3,900,000
100,000
8,700,000
972,000
19,750,519
18,487,114
11,796,111
26,099,314
434,648,241
416,261,127
413,165.016
388,037,702
744,252
219,000
161,772
1,700,000
6,000
53,600
1936
104,422,400
16,255,667
8,326,000
140,000
1938
1st.2d..
3d..
4tht..
2d_.
3d..
4th.
99,425,400
1939
10,042,000
7,820,000
607,000
37,680,000
1940
1st..
2d_.
3d..
4th.
1st
2d
3d
4th
8,438,612
5,390.876
24,844,023
6,415,060
36,519,648
1937
1st..
2d..
3d..
4th_.
1st
2d
3d
4th
46,886,617
48,530,513
2,597,700
11,768,157
600,000
8,254,252
1,000,000
36,156,150
3d..
4th.
1st
2d
3d
4th
56,259,698
2,783,091
35,701
1,000,000
1935
1st...
2d__.
3d....
4th..
Outstanding
$54,965,805
139,486,861
218,410,009
272,471,709
27,747,750
42,056,583
3,862,000
744,252
4th.
Repayments
and other
reductions
$1,147,952
5,018,728
3,474,884
2,197.998
$90,000
174,740
1934
1st
2d . . .
Disbursed
$56,113,757
89,539,784
$60,787,757
153,094,967
50,484,209
73,068,160
1933
1st..
2d..
3d..
4th.
1st..
Canceled or
withdrawn
1941
460,912,840
462:496.245
1942
2,280,000
4,000,000
1943
;
264
430,000
108,000
TABLE R-l—Continued
Loans to Railroads (Including Receivers and Trustees) Under Sec. 5, RFC A c t , as Amended—Continued
Year and
quarter
1st
2d
3d
4th
1st
2d
Outstanding
$5,442,634
10,844,310
19,051,007
41,513,144
$382,595,168
371,750,858
352,699,851
312,261,707
1.695,000
60,971,196
39,285,264
12,333,168
3,762,412
251,290,511
213,700,247
201,367.079
197,604,667
1
$1,075,000
1
1
36.000
1,695,000
1
1
250,000
3,073,000
250,000
26.038,091
681,164
23,940.046
573,357
171,666,576
170,885,412
147,195,366
146,622,009
1
80,000,000
80,000,000
1
250,000
250,000
2,514,581
80,255,221
1,819,017
712,280
144,107,428
143,852,207
142,033,190
141,570,910
754,000
650,000
1,271,038
4,000,000
140,816,910
141,241,910
141,495,872
137,495,872
158,000
540,000
138,000
5,264,000
138,569,872
138.029,872
137,891,872
132,627,872
1,579,000
212,000
387,000
3,113,000
131.210,572
131,048,872
131,773,572
128,660,572
2,086,000
3,115,260
574,000
10,487,300
126,574,672
123,459,312
122,885,312
112,398,012
7,734,556
12,394,675
151,000
2,237,000
104,663,456
92,268,781
92,117,781
89,880,781
5,773,285
221,849
86,000
84,107,496
83,885,647
83,799 647
854,641,228
83,799,647
$1,075,000
$408,000
36,000
1948
159,000
::
2
968,000
1,075,000
1,625,000
1949
1,232,000
4th
1st
2d
3d
4th
Repayments
and other
reductions
1947
4th
1st
2d
Amount
Disbursed
1946
3d
4th
1st
2d
3d
4th
Number
Canceled or
withdrawn
1944
1945
1st..
2d
3d
1st
Authorized
50,000
1950
1
2
2,500.000
1,323,700
373,700
950,000
2,500,000
2d
3d
4th...
::
::
1952
1st
2d._.
4th
2d
3d
Total.
1
717,000
248
1,059,867,787
120,709,912
938,440,875
t The 248 authorizations were made to 98 individual railroads. The data above Include $5,350,000 authorized to guaranty advances made by financial Institutions and $670,000 authorized to guaranty railroad
securities sold by R F C . No disbursements were made by RFC on these guaranties, and the authorizations subsequently were canceled. The data above do not include transactions on railroad securities
purchased by R F C from PWA.
265
TABLE PA-1
Loans to and Investments In Political Subdivisions of States and Territories (Exclusive of
Purchases From P W A )
Authorized
Year and
quarter
3d_
4th.
1st2d._
3d..
4th.
Number
1932
$63,105,000
91,449,931
1933
1st
2d
3d
4th
1st.,
2d..
2d
3d..
4th.
51,614,897
23,020,006
1934
,
Repayments
and other
reductions
Outstanding
$15,737,000
$190,000
$15,737,000
672,784
6,141,704
5,431,600
2,977,500
4,947,000
8,813,240
17,208,421
16,660,400
$40,000
7,000
13,500
20,684,000
29,457,240
46,658,661
63,195,561
3,624,167
692,604
880,293
3,385,282
74,750,229
89,565,204
112,406,095
126,749,921
55
7,042,418
130
84
91
64
16,478,821
12,903,799
25,825,836
20,764,641
3,484,233
1,292,726
3,349,244
950,000
15,178,835
15,507,479
23,721,184
17,729,108
1,713,162
38,620,446
1,418,600
26,421,150
446,000
2,365,000
275.789
2,244,100
20,533,438
20,745,376
29,631,128
26,718,817
1,918,904
106,416
1,080,063
32,724,054
145,364,455
166,003,415
194,454 480
188,449,243
7,973,517
66,990,326
6,571,010
2,906,415
1,707,826
1,158,252
2,946,245
18,871,058
17,347,063
22,003,876
14,697,957
2,048,551
5,798,598
332,450
205,271,750
216,820,215
238 491,641
250,600,929
3,678,782
62,675,765
2,141,982
2,088,331
8,366,815
4,376,870
492,362
200,841
594,185
503,136
516,924
267,478,433
285,631,974
703,064
17,078,345
18,647,726
14,563,969
9,582,925
2,961,168
9,677,135
32,136,601
56,189,360
263,006
974,340
727,569
8,009,413
7,866,177
11,078,954
13,975,058
28,627,603
8,025,771
6,867,776
54,574,301
32,771,070
308,499,214
312,710,392
272,111,149
267,867,682
2,052,099
6,999,400
27,693,432
20,815,800
12,403,812
1,857,744
155,321
4,880,224
10,744,300
41,791,593
12,481,721
1,851,096
147,334,806
756,607
16,753,073
270,896,811
134 306,305
175 341,291
171,069,939
8,365,500
59,207,000
2,184.500
781,289
1,049,941
682,674
13,937,199
2,184,196
19,537,510
13,108,712
10,070,057
12,970,667
33,012,383
32,068,785
19,876,737
15,477,472
157,695,066
138,634,993
128,829,313
126; 322,408
131,820,557
12,948,500
514,511
337,800
703,182
812,777
27,904,383
186,990
3,689,437
96,913,266
48,075,451
2,007,220
4,509,931
99,689,373
5,608,218
35,715,419
125,501,914
122,725,807
165,293,040
131,684,841
83,000
837,500
4,355,956
1,193,783
420,547
205,251
4,105,138
2,963,590
3,175,183
2,031,351
1,389.811
1,899,601
2,711,129
2,667,696
134,300,16?
135,364,157
135,828,211
135,201,866
668,300
790,741
609,173
1,905,394
18,113,329
6,809,362
14,786,667
3,063,214
117,656,837
112,638,216
26,260
6,228
14,500
9,914,548
11,800
69,660
4,000
145,600
42,000
208,040
1,287,600
138,036
251,309
240,850
470,350
210,000
959,640
3,172,196
7,534,447
3,484,795
6,059,478
94,281,656
87,217,569
83,942,764
78,842,926
1936
1st
2d
3d
4th
1st..
1937
,
1938
3d..
4th.
1st
2d
3d
4th
Disbursed
1935
1st
2d
3d
4th
1st
2d
3d
4th
Amount
Canceled or
withdrawn
1939
1940
1941
1st...
2d...
3d...
4th..
1942
1st...
2d
_
3d..
4th.
1943
1st...
2d...
3d..,
4th_.
10,334,630
386,700
122,500
164,000
2,050,000
97;213,002
1944
1st.
2d._.
3d...
4th. .
266
TABLE PA-1—Continued
Loans to and Investments in Political Subdivisions of States 'and Territories (Exclusive of
Purchases from PWA)—Continued
Year and
quarter
Authorized
Number
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
Amount
1945
3,081
$488,964
205,000
45,000
382,000
$7,922,482
5,552,114
2,206,978
1,300,393
$71,409,408
66,062,294
63,900,316
62,981,923
647,500
358,000
99,500
515,000
49,800
137,163
10,000
506,706
2,516.500
5,020,000
2,259,581
3,000,000
7,185,695
4,861,464
7,358,132
469,101
58,312,728
58,471,264
53,372,713
55,903,612
13,800,000
501,000
126,500
62,996
195,000
70,027
7,237,000
6,032,500
4,027,000
4,112,500
4,250,100
379,547
2,300,972
1,382,566
61,556,565
62,347,177
64,158,705
67,026,239
81,200
24,300,000
1,171,275
3.000.000
7,000,000
6,845,000
303,000
404,000
6,000,000
7,329,200
605,000
288,000
876,197
700,000
1,
283,002
72,150,042
78,779,242
77,831,980
77,836,978
22,600,000
510,000
542,000
3.261,000
424,402
17,769,500
459,600
6,143,900
168,500
217,000
115,000
757,693
64,059,301
220,060
678,385
83,223,185
19,332,384
19,329.324
18,765,939
1950
1st...
2d...
3d_..
4th..
5,610,000
601,000
431,500
897,000
2,662,605
442,500
126,000
5,044,135
250,000
215.000
441,365
718,000
2,384,468
1,754,207
897,782
1,730,749
16,631.471
15,092,264
14,635,847
13,623,098
1951
1st-.
2d3d. ,
4th_
l t 185,000
289,510
7,300,000
269,000
970,375
295.000
123,000
194,000
750,000
842,000
709,601
739,671
674,310
628,120
13,036,497
12,490,826
12,566,516
12,780,396
97,500
1,908,572
87,217
412,054
13,842,896
12,097,324
12,101,107
18,442,053
lst_.
2d_3d__
4th.
1st..
2d_.
3d..
4th.
1st2d_
3d-_
4tb1st
2d
3d
4th
1st2d.3d_.
4th-
1st.
d
3d..
4th1st
2d
$151,000
60,000
1946
1947
1948
,
1949
1952
16,999,500
709,000
768,000
771,000
"4O3,"6I6"
1,160,000
163.000
91,000
6,753,000
265,000
40,000
2,209,400
215,400
70,000
509,000
2,962,600
3,860.500
161,411
98,331
54,000
18,789,642
21,653,911
25,460,411
1,024,203,892
192,855,376
793,600,115
768,139,704
25,460,411
1953
Total...,.
1,878
$324,613
3,000
751,000
267
TABLE PA-2
Loans on Self-LfquidatinS Projects Under Sec. 201 (a) of the Emergency Relief and
Construction Act of 1932, as Amended
Authorized
Year and
quarter
3d._
Number
Canceled or
withdrawn
•Disbursed
Eepayments
and other
reductions
Outstanding
Amount
1932
47
$53,105,000
91,449,931
77
51,514,897
23,020,006
"$15,~737,000
$190,000
$15,737,000
3,304
672,784
5,141,704
5,431,500
2,977,500
4,947,000
8,813,240
17,208,421
14,136,445
$40,000
7,000
13,500
20,684,000
29,457,240
46,658,661
60,781,606
125
485
15,315,000
10,017,704
3,419,744
607,900
2,559,694
950,000
15,067,892
13,395,985
18,878,738
14,909,722
3,624,167
'692; 504
880,249
3,385,282
72,225,331
84,928,812
102,927,301
114;451741
30,053,000
7,000
1,540,000
66,500
1,200,000
11,538,849
14,413,389
22,927,456
10,843,658
1,917,904
78,416
1,056,135
32,698,178
124,072,686
138,407,659
160,278,980
138,424,360
5,432
57,500,000
508,000
3,000
77,500
1,580,777
15,422,161
14,591,575
16,232,447
11,910,883
1,995,001
5,733,093
207,594
2,328,970
151,851,520
160,710,002
176,734,855
186,316,768
5,000
60,000,000
969,140
2,792,500
225,000
351,000
13,546,897
13,556,704
9,482,144
9,000,000
91,550
193,531
195,298
188,990
199,772,115
213,135,288
222,422,134
23i;233144
7,200,000
8,812,126
5,860,126
7,440,760
6,639,909
54,182,607
13,724,203
230,992,384
233,309,358
187,938,877
180,074,800
1,576,000
2,297,000
2,268,000
1,887,000
823,748
143,856,867
143,500
6,210,800
180,827,052
39 267,185
41,391,685
38,067,885
2,268,000
1,512,000
10,334,000
384,120
20,219,500
157; 388
12,081,631
37,683,765
19,732,265
21,086,877
864,437
148,468
401,306
506,905
18,474,809
18,326,341
17,925,035
17,418,130
123,055
138,750
153,143
191,787
17,295,075
17 156,325
17,003,182
16,811,395
1st
3 d.
131,147
116,927
126,737
16 563,321
16 436,584
16; 237,701
1944
1st.2d
3d..,..
4th-...
703,200
67,831
196,086
372,226
15,534,501
-\ 466,670
1st..
2d3d~
4th.
1933
1934
1st
2d
3d
4th
1st.
2d
3d-
1
1935
4th
1936
1st..
2d3d4th_
1937
1st..
2d._
3d.4th.
1st
2d
3d
4th
1938
750,000
~125,*66o
1939
1st..
2d..
3d..
4th-
238,000
15,000
1940
2d..
3d..
4th.
7,000
1941
2,000
2d3d..
4th.
27,816,000
1942
1st...
2d.__
3d...
4th_.
1943
4th-..,
268
TABLE PA-2— Continued
Loans on Self-Liquidating Projects Under Sec. 201 (a) of the Emergency Relief and
Construction A c t of 1 9 3 2 , as Amended—Continued
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
1945
1st
2d. ..
3d
4th
Repayments
and other
reductions
$5,622,300
12,000
36,921
1946
1st
2d.
3d
4th. „
9,227,137
9,225,137
4,032,137
4,032,137
$2,000
678,079
5,000
37,921
4,032,137
3,356,068
3,351,058
3,313,137
339,533,641
336,220,504
3,313,137
.
1st.
2d
3d
4th
192
$398,873,884
$59,340,243
$9,276,058
9,264,058
9,264,058
9,227,137
2,000
5,193,000
1947
Total
Outstanding
The 192 authorizations were made to 176 individual borrowers. Data are not available to extend this
series beyond 1947. Transactions for periods subsequent to 1947 are included in the summary of loans to
and investments in political subdivisions of States and Territories, table PA-L
TABLE PA-3
Loans to Drainage, Levee, Irrigation, and Similar Districts Under Sec. 3 6 , Title II,
Emergency Farm Mortgage A c t of 1 9 3 3 , as Amended
Year and
quarter
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1933
Number
1935
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
$2,413,955
$2,413,955
$64,489
684,826
789,550
110,943
2,111,494
4,842,446
2,819,386
$44
2,624,898
4,636,392
9,478,794
12,298,180
1,713,162
2,567,446
1,411,600
26,421,160
446,000
825,000
209,289
1,044,100
8,994,589
6,331,987
6,603,672
15,875,259
1,000
28,000
23,928
25,876
21,291,769
27,595,756
34,175,600
50,024,883
96
42
17
15
7,968,085
9,490,326
6,571,010
2,906,415
427,689
1,704,826
1,080,752
1,365,468
3,448,897
2,755,488
i 771,429
2,787,074
53,550
65,505
124,856
259,699
53,420,230
66,110,213
61,756,786
64,284,161
36
79
21
21
3,673,782
2,675,765
2,141,982
2,038,331
7,397,675
1,584,370
267,362
352,054
3,631,448
5,091,022
5,081,825
'682,925
109,291
400,654
307,838
327,934
67,706,318
72,396,686
77,170,673
77,425,664
28
35
35
25
2,211,158
3,349,643
2,390,601
1,451,724
263,006
974,340
152,669
786,413
666,177
2,122,071
574,940
1,594,415
585,011
227, P67
391,694
187,305
77,506,830
79,401,034
79,584,280
80,991,390
55
$7,039,114
130
84
89
61
16,478,696
12,903,314
10,510,836
10,746,837
48
62
40
27
1934
1936
2d
3d
4th
1st
2d
3d
4th
Authorized
1938
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 and
quarter
Authorized
Number
1939
lst._
2d...
3d...
4th_.
1st..
2d_.
3d..
4th.
1940
19
10
1941
1st..
2d_.
3d..
4th.
1st
2d
3d
4th
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
$1,479,799
423,500
645,932
644,800
$11,033,712
230,726
108,949
108,321
$2,117,724
925,600
728,614
845,621
$352,347
572,947
335,607
350,094
$82,756,767
83,109,420
83,502,427
83,997,954
342,500
309,000
96,500
208,800
149,950
13,449,455
175,407
602,701
281,093
524,301
713,267
634,813
650,875
760,475
613,341
83,966,842
83,596,060
83,359,886
83,459,812
185,600
6,090,000
337,711
272,800
309,782
124,177
51,883
175,490
1,046,837
6,034,709
1,184,851
94,220
1,345,744
9,573,948
2,844,412
4,242,714
83,160,905
78,621,666
76,962,105
72,813,611
33,000
498,000
334,530
48,700
74,956
163,783
10,147
25,251
273,638
242,590
910,183
31,351
1,228,456
1,742,351
2,193,186
2,442,109
69,076,029
66,665,271
122,600
139,000
50,000
26,250
6,228
14,500
121,148
190,741
184,173
3,420,082
2,954,411
2,285,896
2,745,231
63,366,337
60,602,667
58,500,944
55,961,107
61,650
4,000
145,500
37,500
134,040
387,600
138,035
251,309
27,850
170,350
60,000
159,640
1,454,250
7,317,198
3,286,739
5,666,922
64,534,707
47 387,859
44,151,120
146,000
324,613
3,000
170,964
3,081
45,000
77,600
2,103,232
3,448,738
1,190, 792
1,252,660
32,117,040
3a 941,980
46,000
57,163
16,500
20,000
259,681
5,965,758
4,735,764
2,139,564
402,060
24,992,722
20,276,958
18,396,975
17; 994; 915
1942
1st.
2d._
3d..
4th.
1943
1944
1st..
2d..
3d..
4th.
1945
1st..
2d_.
3d..
4th.
50,000
1946
1st..
2d._,
3d..
4th..
1st..
2d__
3d..
4th.
Outstanding
275,000
62,500
220,000
6,706
71,858,793
36,711,570
1947
Total
1,318
65,000
70,500
62,996
20,000
1,527
32,500
25,000
112,500
260,100
358,922
648,127
332,273
1,338,915
17,668,493
17,145,366
16,925,593
15 836,778
150,127,449
48,161,758
101,787,683
85,950,905
15,836,778
m
270
? d e t 0 ? 7 i m d i v i d ™ l borrowers. Data are not available to extend this
l 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, or
Municipal Law Under Sec. 5(6), of the RFC Act, as Amended
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Hepayments
and other
reductions
Outstanding
1938
2d
3d
4th
1939
1st
2d
3d
4th._
1st..
2d
3d
4th
1940
11
68
5
$6,327,492
29,621,000
54,737,636
$337,000
7,223,000
$4,587,992
21,073,062
$13,859,562
$4,537,992
6,801,492
15
12
13
572,300
6,575,900
27,047,500
20,171,000
1,370,100
572,100
1,733,795
47,000
1,186,600
7,521,700
38,794,979
9,749,100
675,000
2,904,992
277,500
11,192,179
7,312,992
11,929,700
60,447,179
49,004,100
14
23
12
16
8,023,000
58,898,000
2,088,000
572,489
899,991
489,331
487,744
2,001,789
18,934,809
10,559,619
8,033,756
1,923,300
31,993,450
11,198,410
18,957,874
2,782,600
35,945,459
35,306,668
24,332,550
23,523,350
9
8
3
2
131,633,057
6,858,500
176,800
65,000
393,400
688,600
36,500
11,500
2,642,600
91,878,557
46,890,600
1,913,000
2,299,750
89,966,957
2,262,500
30,965,800
23,866,200
25,777,800
70,405,900
41,353,100
1
3
1
2
50,000
339,500
10,000,000
338,000
4,281,000
1,030,000
410,400
180,000
3,831,500
2,721,000
2,265,000
2,000,000
38,300
18,500
364,800
23,800
45,146,300
47,843,800
49,749,000
51,725,200
1
1
15,000
2,000,000
9,914,548
11,800
447,152
600,000
325,000
1,700,000
14,562,100
2,738,024
12,373,934
109,100
37,610,252
35,472,223
23,423,294
25,014,194
1
18,000
1
4.500
213,000
300,000
160,000
800,000
1,014,746
149,418
1,970
20,330
24,212,443
24,363,030
24,521,030
25,300,730
1
5,000
318,000
205,000
304,600
196,950
2,091,376
1,016,186
10,912
25,421,780
23,535,404
22,519,218
22,812,806
3,800
80,000
10,000
500,000
2,600,000
5,000,000
2,000,000
3,000,000
1,219,937
123,700
25,568
67,041
24,092,869
28,969,169
30,943,601
33,876,560
175,000
68,500
7,237,000
6,000,000
4,000,000
4,000,000
4,000,000
20,625
2,010,182
1,950,200
6,730
39,855,935
41,845,763
43,895,553
47,889,823
41,167,948
312,379,720
264,489,903
47,889,823
1941
1st
2d
3d
4th
1942
1st
2d__.
3d
4th
1943
1st
2d
3d
4th
1st
2n_.
3d
4th
1944
"
74,000
900,000
1945
1st
2d._.
3d..
4th_.
1946
1st
2d._.
"""
3d
:""'
4th...
1st
2d.
3d
4th
Disbursed
3
647,500
83,000
37,000
295,000
2
5
1
13,800,000
436,000
56,000
237
381,392,174
3
2
1947
Total
I""
::"
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 cannot
be 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 summary
1 subdivisions of States and Territories, table PA-1.
271
TABLE G-l
Loans to and Subscriptions for Preferred Stock of Export-Import Banks
Authorized
Year and
quarter
1934
1st
2d
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
2
$12,500,000
$12,500,000
12,500,000
12,500,000
12,500,000
$12,500,000
4th
1935
1st
2d
3d
4th
1
1st
2d
3d
4th.
$2,500,000
10,000,000
1936
1938
1st 2d
3d
4th':::::::::
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
20,000,000
20,000,000
20,000,000
20,000,000
1
20,000,000
20,000,000
20,000,000
45,000,000
25,000,000
25,000,000
1939
1940
45,000,000
45,000,000
45,000,000
45,000,000
1
29,000,000
29,000,000
25,000,000
25,000,000
100,000,000
100,000,000
74,000,000
74,000,000
74,000,000
99,000,000
1941
1
25,000,000
1942
1943
174,000,000
174,000,000
174,000,000
174,000,000
4th
1st
1944
174,000,000
174,000,000
174,000,000
174,000,000
2d
4th
1st
2d
1945
174,000,000
174,000,000
174,000,000
Total—
272
199,000,000
199,000,000
199,000,000
174,000,000
174,000,000
174,000,000
174,000,000
174,000,000
4th
1st
2d
12,500,000
12,500,000
10,000,000
10,000,000
10,000,000
17,000,000
20,000,000
20,000,000
7,000,000
3,000,000
1937
1st
2d
3d
4th
Outstanding
Amount
umber
201,500,000
201,500.000
201,500,000
TABLE G-2
Loans to Defense Homes Corporation Under the A c t Approved June 2 5 , 1 9 4 0
Year and
quarter
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1941
3d
4th
1
1
$5,000,000
45,000,000
1
14,000,000
$3,448,585
$3,448,585
2,060,442
5,385,120
9,997,401
9,000,000
$54,831
5,609,027
10,894,147
20,891,548
29,836,717
6.600,000
8,000,000
8,500,000
5,108,452
78,807
97,947
293,693
492,010
36,257,910
44,159, 963
3,050,000
2,047,000
1,175,000
600,000
377,326
800,046
3,881,485
710,991
59,655,381
60,902,335
58,195,a50
57,984,859
325,000
295,000
75.000
125,000
455,373
1.215,787
1.543.893
1,560,241
57,854,486
66,933,699
55,464,806
54,029,665
50,000
2,398,534
2,265,025
1,882,919
2,427,947
51,681,031
49,416,006
47,653,087
45,135,140
1,008,932
1,315,792
44,146,208
42,830.416
42.383,341
42,383,341
1942
1st
2d
3d
4th
1st
2d
3d._
4th
1943
66,982,707
1944
1st
3d.
4th
1
1,760,000
1945
1st
2d
3d
::;:
4th
,
1946
Iss...
2d
"
34th
d...
on nno
10,000
m." 4 7
g4th
20,000
AAl
""
iYTK
1948
1st
2d
3d.,.
4th... ."""
1st."
2d
4th
1,512,930
7,160,125
239,329
$58,000
49
""
42,383,341
40,870,411
33,710,286
33,470,967
191,167
206,147
190,003
285.523
33,279,790
33,073,643
32,397,334
32,133,188
31.922,358
31.660,503
QO CO3 AAfl
32,598,117
2d
I""
4th
""
200,783
264,146
210,830
261,855
""
214,386
289,501
215,165
216,165
31,446,117
31,156,616
30,941,451
30,726,286
""
214,100
273,227
343,731
395,523
30,612,186
30,328,959
29,895,223
29,499.705
317,426
423,610
707
29,182,279
28,758,669
28.378 872
37,313,128
28,378,872
2d
4th
2d
4th._
I9SS
lst..
2d.__
Total
070
4
65,760,000
58,000
65,692,000
Effective in July 1948, all assets and liabilities of DHO were transferred to KFO without reimbursement.
At that time, the ou^andmgbalanoe 0? theloans made by R F C to DHO was $40,870,411. Subsequent
reaUgtions on the S T S v e d ^ E F O in theteansfer we>e applied to reduce RFCl's equity in the assets
273
TABLE G-3
Purchase of Capital Stock of Federal Home Loan Banks
Authorized
Year and
quarter
1st
2d
3d..
4th
1st
2d3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
dumber
1941
1
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
$124,741,000
124,741,000
124,741,000
124,741,000
$124,741,000
$124,741,000
1942
124,741,000
124,741,000
124,741,000
124,741,000
1943
124,741,000
124,741,000
124,741,000
124,741,000
::
1944
124,741,000
124,741,000
124,741,000
124,741,000
1945
$231,100
124,609,900
124,609,900
124.609,900
124,509,900
858,700
123,651,200
123,661,200
123,651,200
123,651,200
979,000
122,672,200
122,672,200
1946
4th
1st
2d
Outstanding
1947
122,672,200
Total....
1
124,741,000
-
124,741,000
124,741,000
r e s e n t s t h e re u
n r e pVei
P rchase by RFC of the stock of the FHL banks reported as an
™ ™pa
5Dt bJirDt
^encies" beginning in the 4th quarter of 1932. The original amount adou h a n
X, c J?t i l?
£
<>te cancellation in the 1st quarter of 1938. The transaction above
0 n l
t
J £* powess* and has been treated
as a security purchase. Of the total
a
" S t t t S
vanSd K?nVn
W ™ t vLrff S
TmoSSt Z t , t
SSS?tt£S^^
274
* W
«>*• canceUation, effective July 1, 1947,
TABLE F-l
Loan for the Purpose of Providing Dollar Exchange Under Sec. 4 , Public Law 108
Approved June 1 0 , 1 9 4 1 (British Loan)
Year and
quarter
1941
3d
4th
Authorized
Number
1
Amount
Canceled or
withdrawn
$425,000,000
Disbursed
$125,000,000
225,000,000
Repayments
and other
reductions
Outstanding
$4,844,381
$125,000,000
345,155,619
262,759
9,158,339
995,979
15,001,147
384,892,860
375,734,521
374,738,542
359,737,395
354,754
8,480,310
2,227,194
20,009,878
359,382,641
350,902,331
348,675,137
328,665,259
1,362,760
20,190,260
1,444,656
18,435,620
327,302,499
307,112,239
305,667,583
287,231,963
5,771,058
9,573,435
2,126,316
18,547,968
281,460,905
271,887,470
269,761,154
251,213,186
6,839,052
10,970,110
5,209,337
14,180,183
244,374,134
233,404,024
228,194,687
214,014,504
8,687,811
10,844,139
4,290,701
12,568,664
205,326,693
194,482,554
190,191,853
177,623,189
7,356,124
15,105,065
5,975,994
14,891,560
170,267,065
155,162,000
149,186,006
134,294,446
2d
3d...
4th
2,701,804
17,591,568
6,859,019
17,949,821
131,692,642
114,001,074
107,142,055
89,192,234
1950
1st
2d
""
3d
4th.... " '
9,881,151
10,965,756
10,672,160
20,665,668
79,311,083
68,345,327
57,673,177
37,007,509
9,847,173
11,988,347
15,171,989
27,160,336
15,171,989
1942
1st
2d
40,000,000
4th
1943
1st
2d
3d
4th
1st
1944
„
2d
3d
4th
1st
2d
3d..
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1945
1946
1947
1948
2d
3d
Total
""
$35 000 000
1
425,000,000
35,000,000
390,000,000
390,000,000
275
TABLE F-2
Loan to the Republic of the Philippines, Under Sec. 3 of the Joint Resolution Approved
Aug. 7,1946
Authorized
Year and
quarter
1946
4th
Amount
Number
1
$25,000,000
1
45,000,000
Canceled or
withdrawn
1947
1st
2d
3d
4th
Disbursed
$25,000,000
45,000.000
Repayments
and other
reductions
$10,000,000
1948
1st
1949
60,000,000
60! 000,000
60,000,000
60,000,000
1950
li il
mm
il ii
2d.
3d
4th
1953
Total....
60,000,000
60,000,000
60,000.000
60,000,000
II II
is... 1 * 1
2d
4th
„.
1st
2d
60,000,000
60.000,000
60,000,000
60,000,000
II !
1! 1!
1st
2d
4th
$25,000,000
60,000,000
60,000,000
60,000,000
60,000.000
60,000,000
60.000,000
60.000,000
3d
4th
1st
2d
3d
4th
Outstanding
2
276
70,000,000
70,000,000
3,000,000
3,000,000
57,000,000
54000,000
54,000.000
64,000,000
3,000,000
51,000,000
51000,000
3,000,000
48,000,WW
22,000,000
48,000,000
in /vYi rtfYt
TABLE D-l
Loans for Financing Repair of Damage by Earthquake, Fire, Tornado, or Cyclone in 1933,
Under Sec. 2 0 1 ( 0 X 6 ) , Title II, of the Emergency Relief and Construction A c t of 1932,
as Amended
Year and
quarter
Authorized
Number
Canceled or
withdrawn
Amount
Disbursed
Repayments
and other
reductions
Outstanding
1933
1st.
2d
3d
4th
$678,895
1,237,478
844,613
$2,100
36,725
52,850
$676,796
1,877,648
2,669,311
5,407,839
131,647
104,594
64,426
107,862
26,711
45,323
104,943
7,969,288
8,074,224
8,133,495
8,082,978
33,371
29,750
3,600
1,463
65,875
51,071
64,897
101,257
8,060,474
8,039,163
7,977,856
7,878,062
900
62,358
52,183
84,563
760,093
7,816,604
7,764,421
7,679,868
6,930,065
95,024
71,678
2,375,343
50,239
6,835,041
6,763,595
4,388,262
4,338,013
168,870
399,605
2,960,502
22|l69
4,169,143
3,769,638
809,036
786,867
686,405
4,058
2,562
4,134
200,462
196,404
193,842
189,708
3,450
3,479
7,977
2,649
186,258
182,779
174,802
172,163
""
3,232
5,280
3,606
396
168,921
163,641
160,035
159,639
:"
2,433
3,319
3,821
ll644
157,206
153,887
160,066
148,422
4,450
5,168
13,529
30,299
143,972
138,814
125,286
94,086
38,749
66,237
56,237
13
$10,450,000
1934
1st
2d._
3d
4th
$43,660
179
131
1935
1st
2d
3d...
4th
1936
1st
2d
3d...
4th
990,627
300
1937
1st
2d
3d...
4th
232
232
886,527
i m
M
2d
3d...
4th
""
*"
2d.
3d
'"
4th...,.
1940
J*
;.;;•
3d
1M1
»
4th
1st
2d
1942
4th
ft—
&
1st19"
2d._
Total
13
10,450,232
1,921,124
8T629~10S
8,529,108
The 13 authorizations were made to 6 individual borrowers.
277
TABLE D-2
Loans To Finance the Repair of Property Damaged by Earthquake, etc., Under Public
Law 160 Approved Apr. 13,1934, as Amended
Authorized
Year and
quarter
1934
2d
3d
1st
2d
3d
4th
j
umber
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
Amount
1
3
$600,000 _
1,650,000
1935
1
193<i
150,000
$400,000
64,900
15,000
1,000,000
21,385
38,075
1st
1
50,000 .
545,196
112,915
2d..2,623,644
471
620,084
603,713
375,045
3d
169
420,205
749,610
226,075
4th
29
1937
146,072
68,521
43,725
12
1st
198,400
99,429
68,400
9
2d
130,900
63,800
6
20,800
3d
95,200
99,354
1
12,600
4th
1938
2,600
14,000
2
1st
21,000
2d
12,000
3d
3,500
4th
1939
1st
40,000
2,000
3d
4th
1940
1st
2d
3d
4th . .
1941
1st
2d
3d
4th
1942
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
1st
2d
3d
Total...
705
5,734,288
2,260,342
3,473,947
The 705 authorizations were made to 669 individual borrowers.
278
$116,040
160,430
$116,040 4M90 .
$175
5,820
250
6,120
225,155
234,335
1,234,085
1,249,350
8,147
47,009
988,062
39,978
1,279,278
1,777,465
1,409,487
1,789,714
48,715
83,201
94,255
78,697
1,887,071
2,002,270
2,038,915
2,055,418
63,730
50,326
218,993
57,230
1,994,288
1,943,962
1,736,969
1,683,239
45,507
47,850
58,497
53,322
1,637,732
1,589,882
1,531,385
1,478,063
240,656
64,288
51,811
69,379
1,237,407
1,183,119
1,131,308
1,061,929
63,663
54,495
47,391
28,900
998,266
943,771
896,380
867,480
26,155
15,038
22,829
15,390
841,325
826,287
803,458
788,068
172,539
19,633
20,699
14,671
615,529
595,896
575,197
560,526
11,056
18,618
9,582
12,636
649,470
630,852
521,270
608,634
139,230
62,992
33,966
83,185
369,404
306,412
272,446
189,261
127,323
4,066
1,488
1,612
61,938
57,872
56,384
54,771
3,512
30,857
20,402
51,259
20,402
3,473,947
TABLE D-3
Disaster Loans
July 1,1945—Sept. 28,1953
Authorized
Year and
quarter
Number
Amount
Transferred
from
DLO.
3d.
4th.
Canceled or
withdrawn
$1,613,327
Disbursed
Eepayments
and other
reductions
$1,415,321
Outstanding
$1,415,321
1945
18
1946
1st..
2d__
3d..
4th-.
82,720
34,600
$1,380
9,050
5,650
6,000
2,500
40,750
60,843
18,008
800
4,150
$107,277
114,232
1,370,313
1,274,671
16,650
7,841
2,930
33,079
110,338
160,417
96,228
1,180,983
1,028,407
935,109
885,342
1947
1st..
2d._,
3d-..
4th..
79
68
179
250,488
761,478
13,250
28,887
29,318
59,270
18,072
246,368
253,650
62,154
57,226
41,729
64,592
823,188
784,034
988,673
1,177,731
1948
1st..
2d._
3d..
4th.
43
56
130
153
350,000
452,072
900,000
1,100,000
105,633
105,634
100,000
140,441
411,783
411,784
700,000
800,000
75,000
85,251
156,651
147,718
1,514,514
1,841,047
3,036,678
1,434,353
662,211
322,285
200,000
167,627
184,300
134,873
310,320
901,253
800,799
433,201
69,035
181,162
235,383
251,217
3,277,963
3,998,054
4,563,470
4,745,454
95
140
148,427
37,935
329,655
254,440
56,044
26,769
24,826
120,118
198,156
147,679
146,493
162,663
294,074
280,267
447,471
288,749
4,649,536
4,516,948
4,215,970
4,089,784
287
38
1,366
1,012
1,551,538
259,620
11,165,100
7,073,080
234,720
761,288
334,782
669,565
273,158
554,834
2,000,000
7,614,262
252,580
264,000
422,761
4,110,362
4,401,196
6,020,230
13,111,731
232
445
214
71
1,
2,058,533
1,059,018
647,190
765,430
1,006,269
872,084
549,534
3,269,967
1,736,416
1,599,845
972,443
718,619
1,160,230
847,813
833,437
15,663,079
16,239,265
16,991,297
17,130,303
18
134
254
393,310
843,749
1,129,569
746,063
215,952
96,721
656,351
360,114
647,178
848,717
824,415
778,272
16,837,937
16,373,636
16,142,542
5,579
36,952,402
7,843,529
10,740,827
16,142,542
1st-.
1949
54
3d..
4th1st..
2d._
3d__
4th.
131
44
1950
31
1951
1st...
2d_.
3d.4th.
1st.
2d._
3d..
4th..
1953
1st..
2d.
3d.
Total
When Disaster Loan Corporation was merged with RFO there were transferred to RFO$1,415,321 in outstanding loans and $98,006 of undisbursed commitments. These were reauthorized by RFO as 1/ they had
been new authorizations. Of the undlsbursed commitments so transferred, $47,238 subsequently was
aisbursed by RFO and $23,768 was canceled.
505257—59
19
279
TABLE OD-1
Loans Under Sec. 409, Federal Civil Defense Act
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
1952
1953
Total
Authorized
Number
Amount
1
1
$750,000
1,000,000
1
375,000
4
3,443,000
7
5.568,000
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
$3,691,966
$794,937
372,709
708,388
$1,325
2,964
1,871,745
3,691,966
1,876,034
1,876,034
Outstanding
$793,612
1,163,357
The $3,691,966 shown as canceled in the 3d quarter of 1953 represents undisbursed loan commitments
transferred to the Settetaryof the Treasury. Also transferred was $1,868,909 in outstanding loan balances
„
~
.
,
auctions.
m
TABLE TS-1
Loan to a Public School Authority for Payment of Teachers' Salaries Due Prior to June
1,1934, Under Sec. 16 of the Act Approved June 19,1934
Year and
quarter
3d
4th
Authorized
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1934
Total
1
1
280
$22,500,000
22,600,000
$200,000
200,000
$22,300,000
22,300,000
$22,300,000
$22,300,000
22,300,000
TABLE SD-1
Loans to or for the Benefit of Tax-Supported Public School Districts or Other Similar
Public School Authorities in Charge or Public Schools, Under the A c t Approved A u g .
2 4 , 1 9 3 5 (Loans To Refinance Public School District Operations)
Authorized
Year and
quarter
1st
2d
3d
4th
1st
2d
3d
4th
Number
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Disbursed
Repayments
and other
reductions
Outstanding
1936
5
6
8
$463,800
269,500
821,420
211,000
$147,500
35,300
2
2
1
168,500
70,937
680
294,600
20,500
42,500
1
1,063
3,500
288,000
235,600
$500
80,000
49,500
163,000
37,000
1,600
1937
1938
1st
2d
3d....
4th
1st.
2d
3d
4th
Amount
Canceled or
withdrawn
1939
....
1
1
365,000
$63,420
22,500
72,600
1,580
129,500
$53,420
76,920
148,420
160,000
1,600
150,000
150,000
149,600
149,500
148,000
148,000
146,500
276,000
1940
2
1
550,760
110,000
234,500
285,675
1,000
272,000
557,175
557,175
556,175
1,500
80,000
1,400
2,000
931,675
851,675
850,275
848,275
4,500
1,000
843,775
842,775
842,775
842,775
2,000
5,000
1,600
377,000
840,776
835,775
834,275
457,275
52,000
2,000
94,500
405,275
418,275
323,775
323,775
287,176
19,100
36,600
17,500
17,500
4,000
600
1941
1
377,000
:
110,000
377,000
242,000
1942
::
1943
1
15,000
I"
15,000
3d.
tst.™
2d
3d
4th
Total
23,075
"
17,600
i
35
3,189,050
2,231,875
957,175
957,175
The 35 authorliattons were made to 31 Individual borrowers.
281
TABLE PD-1
Loans to Processors or Distributors Subject to Processing Taxes, Under Sec. 5, RFC A c t , as
Amended
Year and
quarter
Authorized
Amount
Number
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1933
3d
4th
1934
1st
2d
3d.
4th
5
$21,734
1
1
3,788
667
-
6,817
$7,400
3,788
183
667
1935
1st
2d
3d
4th
$7,334
$7,334
$1,000
4,428
6,817
1,006
13,161
8,723
2,473
1,467
900
667
667
667
667
Total
7
26,089
14,718
11,371
14,718
The 7 authorizations were made to 7 individual borrowers.
TABLE SF-1
Loans to State Funds Created for the Purpose of Insuring Repayment of Deposits of Public
Moneys, Under Sec. 5, RFC A c t , as Amended
Year and
quarter
4th
1st
2d
1933
Authorized
Number
1
Amount
Canceled or
withdrawn
Disbursed
1st
Outstanding
$5,887,716
$5,887,716
$74,760
$5,812,966
2,600,000
2,500,000
1,660,696
3,189,542
1,739,547
1,254,604
4,162,270
3,472,728
1733,181
478,577
2,376,915
478,577
260,159
709,782
733,698
2,Il6,756
1,406,974
1934
4th
1st
2d
3d
Repayments
and other
reductions
1935
1
2,400,000
1
2,300,000
3
13,087,716
$23,085
1936
2,300,000
621,637
542,410
580,953
1,228,376
13,064,631
13,064,631
3d
Total
23,085
The 3 authorizations were made to 1 borrower (Wisconsin).
282
2,351,739
1 809,329
1228,376
TABLE W-l
Summary of Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under
the A c t Approved June 2 5 , 1 9 4 0
Year and
quarter
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Authorized
1st
2d
3d
4th
Recovered in
cash
Recovered
through note Outstanding
cancellation
$2,000,000
247,000,000
389,035,200
$11,395,055
33,108,337
309,014,800
228.000,000
820,750,000
948,200,000
81,895,049
192,993,938
210,287,676
340,332,180
$6,199
647,395
2,032,233
149,734,879
126,392,242
318,738,785
526,994,228
717,591,529
819,000,000
525,000,000
1,000,000,000
1,025,000,000
600,881,212
911,473,329
1,040,043,958
1,291,580,557
218,492,838
195,764,737
557,632,212
679,367,425
1,099,979,903
1,815,688,495
2,298,100,241
2,910,313,373
2,025,000,001
1,025,000,000
1,501,000,000
1,750,000,000
1,420,624,074
1,627,006,392
1,584,397,673
1,484,101,183
598,311,152
734,325,178
666,241,050
750,067,821
3,732,626,295
4,625,307,509
5,543,464,132
6,277,497,494
775,000,000
1,425,000,000
1,275,000,000
1,325,000,000
1,382,335,357
1,486,975,044
1,454,727,927
1,511,286,466
770,728,755
1,049,565,871
1,141,023,308
1,257,025,910
6,889,104,096
7,320,513,269
7,640,217,888
7,894,478,444
900,000
4,876,584
112,125,657
1,330,146,220
2,011,863,524
238,602,722
210,165,956
1,352,626,701
1,831,890,682
223,456,857 $7,650,698,300
119,016,755
7,871,997,963
8,051,970,805
416,418,370
507,567,571
25,000,000
50,000,000
25,000,000 ""l2,"8687477~
75,000,000
114,077,251
91,587,521
31,299,901
44,845,890
121,759,363
287,096,470
63,363,078
61,055,480
13,369,783
117,643,025
1,623,108
2,836,209
20,728,236
140,887,266
4,208,176
6,763,298
$11,395,055
44,603,392
1941
1942
_
$100,000,000
1943
__..
1945
1,575,000,000
1,400,000,000
525,000,000
26,000,000
1946
2d_
3d..
4th
1st
2d.
Disbursed
1940
1944
1st
2d
3d
4th__ ..
1st
2d
3d
4th
Canceled or
withdrawn
::
103,300,000
99,000,000
1943
Total
"
"
in Qi9 n*m
21,218,300,001
340,682,768
4,110,716
20,877,617,233
58,215,665
499,885,459
304,376,510
214,097,668
197,888,078
190,629,625
167,285,384
164,700,316
160,773,227
164,883,943
164,883,943
13,003,819,325 7,873,797,908
The notes representing R F C ' s unrecovered investment in its wartime subsidiaries were.actually
celed on June 30,1948. However, at the time the wartime subsidiaries were merged with R F C , the C<orporation, in effect, wrote off its unrecovered investments.
283
TABLE W-2
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the A c t
Approved June 2 5 , 1 9 4 0
METALS RESERVE COMPANY
Year and
quarter
m o
*
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
Amount
Number
1
1
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
i $5,000,000
10,643,202
$5,000,000
15,643,202
160,014,800
223,000,000
381,950,000
50,000,000
29,584,130
71,301,917
41,903,265
60,468,818
$120,499,290
45,227,332
116,529,249
158,432,614
98l 402,042
75,936,591
150,444,927
124,185,087
134,989,471
56,834,075
46,150,627
76,226,066
94,666,620
117,504,858
221,798,858
269,757,879
310,080,730
160,109,229
179,495,317
179,771,347
190,110,967
109,509,188
122,067,010
115,971,331
119,423,507
360,680,771
418,109,078
481909,094
552,596,554
175,055,199
139,919,394
96,834,862
76,315,626
89,376,392
142,730,715
163,369,607
126,970,333
638,275,361
635,464,040
568,929,395
518; 274,688
96,686,020
424,482,152
200,051,692
173,729,648
665,661,520
414,909,016
665,661,520
2,423,237,521
2,423,237,621
1942
1943
960,000,000
1944
1945
Total....
150,000,000
350,000,000
$81,762,479
2
Outstanding
i $1,000,000
«104,000,000
135,035,200
1941
1st
2d
3d
4th..
1st
2d
3d
Authorized
2,505,000,000
81,762,479
> 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
$5 million
mill
of capital stock were treated as "other reductions" at the time of the merger with R F C (July 1,1945).
284
TABLE W-3
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the Act
Approved June 2 5 / 1 9 4 0
RUBBER RESERVE COMPANY
Authorized
Year and
quarter
2d
3d
4th
1st
Number
1940
Amount
1
1
Canceled or
withdrawn
i $1,000,000
* 141,000,000
1941
45,000,000
2d
3d
4th
13,000,000
640,000,000
1942
1st
2d
3d...
4th
.
2d
3d
4th..::::..::
2d
3d...
4th
150,000,000
300,000,000
160,000,000
"
2
Repayments
and other
reductions
Outstanding
'$4,395,055
18,089,906
$4,395,055
22,484,961
15,828,526
12,739,911
«45,012,719
77,647,080
$23,197,660
38,313,487
51,053,398
96,066,117
150 515,637
106,309,726
31,792,336
31,183,050
49,443,468
53,658,976
42,432,229
43,841,212
37,980,528
203.166,387
192,526,494
179,868,332
191,331,272
46,391,491
67,501,130
93,081,478
66,669,718
68,739,745
84,466,627
59,831,196
133,885,270
178,983,018
162,027,521
195,277,803
128,062,251
67,913,319
229,819,620
173,143,342
248,033,278
154,966,434
137,727,330
137,345,788
136,661,596
41,009,136
133.101,326
168,898,880
280,270,562
236.065,438
299,689,956
160,000,000
150,000,000
$4,876,684
116,767,296
223,361,067
160,972,420
159,736,549
299,689,956
1,730,000,000
4,876,684
1,725,123,416
1,725,123,416
a
Total
Disbursed
'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)*
285
TABLE W-4
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the Act
Approved June 25,1940
DEFENSE PLANT CORPORATION
Year
and
quarter
3d
4th
1940
Authorized
Number
1
1
Amount
Canceled
or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
$1,000,000
5,375,229
* $1,000,000
3 254,000,000
i $1,000,000
a 4,375,229
1
250,000,000
32,482,393
108,952,110
109,222,797
151,039,172
$6,199
647,395
1,955,833
4,493,014
37,851,423
146,156,138
253,423,102
399,969,260
2
1
2
2
500,000,000
500,000,000
1,000,000,000
1,000,000,000
346,629,685
609,984,071
763,987,669
891,950,356
86,850,794
55,320,762
404,841,610
501,372,671
659,748,151
1,214,411,460
1,573,557,519
1,964,135,204
2
2
1
1
1,000,000,000
1,000,000,000
500,000,000
500,000,000
972,616,220
982,743,248
829,702,435
584,294,754
217,963,764
332,275,681
166,336,460
191,114,504
2,718,787,670
3,369,255,237
4,032,621,212
4; 425; 801,462
1944
1st
2d .
3d
4th
1
1
2
2
500,000,000
250,000,000
250,000,000
200,000,000
434,590,934
307,939,507
276,200,931
209,525,830
155,149,984
150,628,674
190,764,572
156,220,572
4,705,242,412
4 862,553,245
4,947,989,604
5,001,294,862
1945
1st
2d .
3d
2
1
200,000,000
100,000,000
194,080,310
186,973,196
140,539,396
153,457,672
5,088,351,300
5,054,835,776
5,088,351,300
Total
26
8,005,000,000
7,998,290,847
7,998,290,847
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1941
1942
1943
$6,709,153
6,709,153
1 Capital stock
ck
* Includes $4
$ million of capital stock.
Of the total disbursed, $2,909,939,547
..,,,.
was repaid from operations; $5,083,351,300 of loans and $5,000,000 of
capital stock were treatedd as
as ''other reductions" at the time of the merger with R F C (July 1,1946).
286
TABLE W-5
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the A c t
Approved June 2 5 , 1 9 4 0
DEFENSE SUPPLIES CORPORATION
Year
and
quarter
3d
4th
1st.
2d
3d
4th
1st
2d
3d
4th
1st
Authorized
Number
Amount
1940
1
1
Canceled
or
withdrawn
$1,000,000
i $1,000,000
1
1
4
4
U04,000,000
5,000,000
185,800,000
168,200,000
* 4,000,000
3
Repayments
and other
reductions
Outstanding
$1,000,000
1,000,000
1941
„.
14,148,895
51,177,110
$76,400
1,545,015
5,000,000
6,000,000
19,072,495
68,704,590
314,000,000
72,005,210
114,251,995
109,732,560
188,216,955
21,148,993
51,861,119
32,704,781
44,906,867
119,560,807
181,951,683
258,979,462
402,289,550
1
1,000,000,000
1
1,000,000,000
222,883,323
367,879,600
448,304,458
547,720,322
204,791,847
185,677,967
313,377,781
297,994,495
420,381,026
602,582,659
737,509,336
987,235,163
1
3
2
3
260,000,000
750,000,000
500,000,000
750,000,000
583,874,873
641,970,610
680,596,933
741,253,038
325,125,941
545,893,242
518,979,279
721,933,772
1,245,984,095
1,342,061,463
1,503,679,117
1,522,998,383
3
3
750,000,000
750,000,000
706,221,395
899,108,698
704,473,054
826,859,898
1,596,995,524
1,524,746,724
1,596,995,524
31
6,518,000,000
6,394,345,975
6,394,345,975
$100,000,000
1942
1943
2d
3d
4th
1944
1st
2d
;
3d
4th....... '
1st
2d
3d
Disbursed
1945
Total
23,654,025
123,654,025
1
Capital stock.
Includes $4 million of capital stock.
Of the total disbursed, $4,797,350,451 was repaid from opera»tions- $1,591,995,524 of loans and $5 million of
le of the merger with RFC (July 1,1945).
capital stock were treated as "other reductions" at the time
3
287
TABLE W-6
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the Act
Approved June 25,1940
WAR DAMAGE CORPORATION
Year
and
quarter
4th
1st
1941
Authorized
Number
1
Amount
Canceled
or
withdrawn
1st
2d
3d
4th
1st
ad
3d
4th
Outstanding
$100,000,000
$1,000,000
1,000,000
$1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1944
1,000,000
1,000,000
1,000,000
1,000,000
1945
1,000,000
1,000,000
1,000,000
1,000,000
1946
1947
Total—.
1,000,000
1,000,000
1,000,000
1,000,000
II l !
1st
2d
3d
4th
Repayments
and other
reductions
1942
3d
4th
.
1943
1st
2d
3d
4th
1st
2d
3d
4th
Disbursed
1,000,000
1,000,000
£1 000 000
$09,000,000
1
288
100,000,000
99,000,000
1,000,000
1,000,000
TABLE W-7
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the A c t
Approved June 2 5 , 1 9 4 0
U.S. COMMERCIAL CO.
Year and
quarter
Authorized
Number
1942
1st
2d
3d
4th"__._ ' „ .
1st
2d
3d
4th
1st
2d
3d
4th
1943
1
1
*$5,000,000
25,000,000
Disbursed
Repayments
and other
reductions
Outstanding
25,000,000
i $5,000,000
9.955,592
26,980,307
$18,543
440,739
$5,000,000
14,937,049
41,476,617
2
1
1
2
25,000,000
25,000,000
60,000,000
175,000,000
18,623,810
29,387,097
33,437,955
39,256,018
7,306,618
9,847,893
10,724,282
7,680,085
62,793,809
72,333,013
95,046,686
126,722,619
2
1
275,000,000
200,000,000
200,000,000
102,185,075
148,020,253
208,870,488
218,870,619
39,763,647
60,161,977
90,647,085
97,353,867
189,144,047
277,012,323
395 335,726
516,852,488
191,931,710
220,081,662
216,902,868
190,009,171
116,546,888
489,663,606
199,760,410
105,475,187
592,237,310
322,665,356
339,817,814
424,361,798
88,907,801
33,239,002
31,299,901
44,846,890
100,806,925
200,530,831
63,363 078
61,056,480
412,452,674
245^ 160,845
213 097,668
196,888,078
13,369,783
117,643,025
1,623,108
2,836,209
20,728,236
140,887,266
3,208,176
t, 763,298
189,529,625
166,285,384
164,700,316
160,773,227
1944
ut 1 9 4 8
2d
3d
4th
1946
1st
2d
3d
4th____ „
1947
1st
2d
:
3d
4th
M
^
2d.._.
Total
1
Amount
Canceled or
withdrawn
1
300,000,000
1
600,000,000
i
I
25,000,000
76,000,000
i
103.300,000
$10,912,060
17
2,008,300,000
10,912,060
4,110,716
1,997,387,950
164 883,943
164,883,043
1,997,387,950
Capital stock.
289
TABLE W-8
Purchases of Capital Stock in and Loans to RFC Wartime Subsidiaries Under the A c t
Approved June 2 5 , 1 9 4 0
RUBBER DEVELOPMENT CORPORATION
Year and
quarter
1943
1st
2d
3d
4th
1944
1st
2d
3d
4th
1st
2d
3d
4th
1945
1916
1st
2d
3d
Total
Authorized
Number
Canceled or
withdrawn
Amount
Disbursed
Repayments
and other
reductions
Outstanding
$1
1
$1
$1
2
75,000,000
56,049,404
$69,960
1
55,979,445
1
25,000,000
1
1
25,000,000
25,000,000
18,715,957
19,305,760
19,081,371
17,288,075
6,346,357
12,433,933
40,017,077
17,885,780
68,349,045
75,220,872
54,285,166
63,687,461
1
1
1
1
25,000,000
50,000,000
25,000,000
25,000,000
24,459,489
57,856,859
21,699,854
20,156,785
30,043,251
28, 453, 409
23,706,447
13,541,568
48,103,699
77.507,149
75,500,556
82,115,773
1
2
25,000,000
50,000,000
24,169,450
58,348,519
20,952,438
85,465,639
58, 215,665
85.332,785
68,215,665
13
350,000,001
337,131,624
337,131,524
$12,868,477
12,868,477
TABLE W-9
Purchases of Capita! Stock in and Loans to RFC Wartime Subsidiaries Under the Act
Approved June 2 5 , 1 9 4 0
PETROLEUM RESERVES CORPORATION
Year and
quarter
3d
4th
1st
2d
3d
4th
Number
Amount
Canceled or
withdrawn
Disbursed
Repayments
and other
reductions
Outstanding
1943
1
$1,000,000
$100,000
100,000
$100,000
1944
100,000
100,000
100,000
100,000
1945
1st
2d
3d
4th":
1st
2d
Authorized
100,000
100,000
100,000
100,000
$900,000
I"
1,000,000
1916
Total
1,100,000
1,000,000
2
290
2,000,000
900,000
1,100,000
1,100,000
TABLE SP-1
Purchases of Securities From Federal Emergency Administrator of Public Works (Public
Works Administration)
Year and quarter
1st....
2d
3d..
4th.
1st.,
2d._
1st..
2d__
3d..
4th.,
1st2d._
3d..
4th_
lst.
2d._
3d..
4th.
1st.
2d__
$75,450,05C
15,689,00
127,567,251
75,862,722
1st.
2d._
3d._
4th.
1st
2d..__.
3d.....
$10,00C
1st...
2d...
3d...
4th..
Repayments
and other
reductions
Outstanding
$74,095,050
15,589,000
127,342,450
75,827,423
$56,605,050
16,912,000
38,284,05C
27,051,801
$17,490,000
16,167,000
105,225,400
154,001,022
141,020,94*
34,488,012
44,803,00C
20,359,237
92,987,200
33,454,311
30,846,900
22,560,237
95,395,022
50,877,511
24,539,350
44,116,147
151,593,200
134,170,000
140,477,650
118,921,640
15,494,850
9,980,300
3,351,700
50,226,495
12,794,250
11,493,300
37,839,575
3,283,917
121,622,240
120,109,240
85,621,365
132,563,943
17,887,140
8,415,004
4,220,061
10,292,600
9,454,546
4,263,093
11,671,913
7,795,159
140,996,637
145,148,448
137,696,596
140,194,037
5,925,000
5,600,000
5,764,500
12,899,000
5,346,720
14,703,873
20,278,144
5,000,006
9,014,428
124,475,514
120,807,806
3,206,000
1,694,700
37,500
13,583,917
1,961,000
8,436,167
3,039,158
8,432,276
2,477,939
114,066,339
111,064,681
116,216,322
115,699,383
800
11,507,040
502,352
2,547,511
2,588,264
5,700,714
2,503,723
113,152,672
122,071,448
116,873,086
114,369,363
3,886,211
2,456,519
2,082,938
1,804,342
110,483,152
108,026,633
105,943,695
104,139,353
2,094,206
12,181,332
2,756,606
3,537,104
102,045,147
89,863,815
87,107,209
83,570,105
1,333,245
1,152,554
781,716
l,757f563
82,240,194
81,087,640
80,305,924
78,548,361
2,122,363
907,211
2,302,423
906,508
76,425,998
75,518,787
73,216,364
72,309,856
2,444,961
4,400,548
1,095,601
158,135
69,864,895
65,464,347
64,368,846
64,210,711
970,00G
1,000,000
1937
10, 520,35C
10,623,80C
31,780.70C
71,745,540
3,726,000
1938
749,310
65,53?
1,481,266
1939
825,000
5,558,500
4,105,000
416,720
22,794,000
131,090,164
1940
1,624,700
2,142,500
4,612,584
10,982,840
1941
800
18,200
2,352
1942
3,000,000
130,000
1943
1944
3,334
3,334
66,667
1st..
2d._
3d..
4th-
Disbursed
1936
4th_
1st..
2d._
3d..
4th.
Canceled or
withdrawn
1935
4th.
1st-.
2d._
3d..
4th_,
Authorized
1945
1946
291
TABLE 8P-1—Continued
Purchases of Securities From Federal Emersency Administrator of Public Works (Public
Works Administration)—Continued
Authorized
Year and quarter
Canceled or
withdrawn
Disbursed
1947
1st
2d
4th
1948
1st
2d
3d
4th
1949
2d
3d
4th
1950
1st
2d
3d
4th
1951
1st
2d
3d
4th
:.:
Eepayments
and other
reductions
$215,771
3,261,951
663,936
393,446
$63,994,940
60,732,989
60,069,053
59,675,607
334,657
452,607
85,655
102,247
59,340,950
58,888,343
58,802,688
58,700,441
606,402
44,196,292
199,656
252,249
58,094,039
13 897 747
13,698,091
13l 445,842
400,554
195,369
351,465
667,699
13,045,288
12,849,919
12 498,454
11,930,755
1,873,017
57,485
620,000
616,698
10,057,738
10 000,253
9,380,253
8,763,555
177,238
1,699,096
20,350
75,865
8,586,317
6 887 221
6,866,871
61791,006
319,143
49,387
128,404
6,471,863
6,422,476
6,294,07*
645,177,512
6,294,072
1952
1st
2d
3d.
4th
--*-.*
.
1953
1st
2d
Total
292
$692,299,251
$40,827,667
$651,471,584
Outstanding
TABLE A-l
Summary of Allocations and Loans to Other Government Agencies by Direction of the
Congress
Year and.
quarter
Authorized
Recovered
by note
cancellation
Repaid
Outstanding
$50,000,000
35,000,000
60,455,171
100,857,702
$50,000,000
25,000,000
14,159,584
93,627,458
290,194,666
1,087,883,461
168,207.140
191,125,809
152,055,192
298,116,457
$466,145
503,940
350,994,182
541,653,846
693,205,098
991,321,555
335,625,612
101,426,351
63,939,011
485,000.000
23,070
449,388
533,050
235,816
1,326,924,097
1,427,901,060
1,491,307,021
1,976,071,205
9.200,000
3,600,000
314,150,000
63,032
21,550
590,010
472,350
2,006,406>258
2,015,584,708
2,018,594,698
2,332,272,348
3,000,000
204,146,300
102,800,000
5,200,000
15,427,400
190,177
22,760
419,000
412,000
2,536,228,471
2,639,005,711
2,643,786,711
2,658,802,111
6,000,000
CO. 621,075
7,600,000
2,000,000
8,634,700
9,030,975
12,925,000
18,402,000
6,354,500
6,148,070
178,425
78,374
2,661,082,311
2,663,965,216
2,676,711,791
2,695,035,417
$50,000,000
76,000,000
89,159,584
182,787,042
1933
1st..
2d..
3d..
4th.
1934
1st..
2d__
3d..
10,000,000
515,000,000
4h
1st...
2d...
3d...
4th_.
9,000,000
505,000,000
1936
1st,.
2d..
3d..
4th..
$15,001
102,000,000
1937
1st..
2d...
3d.,.
4th..
97,400,000
1938
1st..
2d..,
3
4th.
1st..,
2d...
3d...
4th..
I
$2,675,337,842
3,000,000
4,500,000
3,000,000
31,754,575
46,497,575
46,497,575
46,497,575
4,125,000
8,400,000
5,000,000
3,000,000
53,947,575
146,497,675
146,497,675
146^497,575
5,640,306
150,497,575
146,497,575
157,497,575
174,497,575
23,329,292
1,676,236
34,122.750
1,000,000
5,000,000
1,000,000
3,000,000
224,268,283
298,092,047
304,759,297
347,682,297
98,187.000
48,200,000
20,450,000
32,55a 000
48,381,789
3,432,702
62,073,830
1,000,000
396,487,508
441,254,806
408,630,976
441,180,976
74,040,000
14,335,000
19,895,000
35,405,000
46,509,796
7,053,604
87,237,109
1,900,000
3,000,000
34,500,000
33,000,000
12,057,000
17,743,000
4,500,000
3,000,000
44,125,000
8,400,000
5,000,000
3,000,000
11,575,000
100,950,000
5,000,000
3,000,000
4,000,000
176,640,306
101,000.000
1,000,000
4,000,000
1,640.306
11,000,000
19,000,000
1,000,000
5,000,000
272,000,000
2,000,000
74,100,000
80,500,000
41 790,000
45,923,000
1,000,000
1940
2d
3d
4th
1941
ist.....
3fcr
131,000,000
10,000,000
4th
1st..
2d..
3d..
4th.
Disbursed
1932
1st
2d.._
3d...
4th..
1st..
2d
3d..,
4th..
Canceled
1943
2.000,000
500,000
90,000,000
1
*i,"o65,"boo"
2,000,000
500,000
466,711,180
473,492,576
406,150,467
441,555,467
293
TABLE A-l—Continued
Summary of Allocations and Loans to Other Government Asencies by Direction of the
Congress—Contin ued
Year and
quarter
1st
2d
3d
4th
1st
2d
3d.
4th
1st
2d
3d
4th
1944
Authorized
Canceled
Disbursed
Repaid
Recovered
by note
cancellation
$37,365,000
17,358,000
26,055,000
53,480,000
$73,318,285
15,238,037
72,996,840
142,500,000
80,000,000
120,000,000
22,440,000
17,500,000
30,160,000
49,415,000
73,914,881
32,907,369
6,508,213
362,610,424
347,203,055
370,854,842
420,269,842
43,250,000
55,875,000
76,850,000
87,650,000
75,474,967
40.326,194
7,627,265
388,044,875
403,593,681
472,816,416
560,466,416
62,950,000
287.225,000
82,588,774
101,835,922
175,000,000
540,827,642
726,216.720
$175,000
1946
1st
2d
3d
4th
1st
2d
3d
4th
$405,602,182
407,547,145
360,605,305
414,085,305
$7,500,000
175,000
82,500,000
1945
1st
2d_.
3d
4th
Outstanding
15,000,000
120,000,000
100,000,000
$7,737,000
1947
250,000,000
175,000,000
393,490,000
551,216,720
1948
1,100,000.000
25,000,000
145,000,000 1,165,666,666 1,105,000,000
25,000,000
1949
13::::::::::::::
8,000,000
1,000,000,000
1,008,000.000
30,000,000
8,000,000
30,000,000
8,000,000
4th
Total loans and
allocations.- 7,178,252,38
Expenses
56,996,068
Grand total... 7,235,248,44
294
25,000,000
8,000,000
1,000,000,000
30,000,000
643,642,001 6,534,610,380 3,254,715,512 3,279,894,868
934
56,995,134
56,995,134
643,642,935 6,591,605,514 3,254,715,512 3,336,890,002
25,000, OW
25; 000,000
25,000,000
1,008,000,000
1 000 000,000
30,000,000
8000,000
8000,000
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 the
Emergency Relief and Construction Act of 1932, and sec, 5(a)(l) of the Farm Credit Act of 1933
Year and
quarter
Authorized
Canceled
Disbursed
Repaid
Recovered
by note
cancellation
Outstanding
1932
lst._
2d_.
3d
4th
'
.„.
$50,000,000
36,000,000
25,000,000
23,000,000
$50,000,000
25,000,000
39,000,000
28,000,000
17,000,000
40,500,000
$50,000,000
75,000,000
75,000,000
102,000,000
27,000,000
1933
1st
2d
3d
4th
"
"
_ _ ^_
_
_
_
„
_
_
_
._
^._.
40,500,000
119,000,000
159,500,000
159,500,000
200,000,000
1934
1st
2d
3d
4th.
200,000,000
200,000,000
200,000,000
200,000,000
" "
„_„_""
2d
3d
4th
200,000,000
200,000,000
200,000,000
200,000,000
" " "
" "
1936
1st
2d
3d
4th
"
200,000,000
200,000,000
200,000,000
200,000,000
"
"
1937
1st
2d
3d... . _
4th .
1st—.
200,000,000
200,000,000
200,000,000
200,000,000
1938
Total
$200,000,000
200,000,000
200,000,000
200,000,000
Sec. 2 of the original R F C Act, as amended, made available to the Secretary of Agriculture 10 percent of
RFC's capital (including amounts borrowed from Treasury) up to a maximum of $200 million. Of this
amount, $135 million was paid to the Secretary of Agriculture, and $20 million of this was returned by him
to R F C . Of the $85 million then available, $44,500,000 was reallocated and disbursed as capital of the
w vi i,ue ^uiergency Relief and Construction
farm 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 Appropriation
Act, fiscal year 1041
Year and
quarter
2d
3d
4th
1940
1st
Authorized
$125,000,000
Repaid
$23,329,292
120,000,000
68,337,000
25,750,000
7,700,000
20,160,000
39,799,746
97,600,000
64,100,000
5,365,000
9,675,000
23,575,000
40,079,314
60,000,000
27,165,000
8,133,000
13,680,000
42,006,000
64,716,790
11,864,000
5,000,000
15,360,000
24,640,000
65,532,657
10,047,705
22,500,000
15,200,000
23,000,000
35.000,000
67,500,000
15,200,000
7,000,000
70,000,000
621,113,000
621,113,000
34,122,750
48,720,303
1943
79,740,351
1944
£&:::::::::::::'1st
2d
3d...
1st
1st
2d
3d
62,324,092
1945
67,600,000
Outstanding
45,170,708
87,920,708
62,487,958
83,460,958
111,998.212
137,748,212
96,727,909
116,877,909
140,898,595
146,263,595
76,198,244
99,773,244
62,221,454
70,354,454
21 710,362
63,716,362
10,047,705
6,000,000
20,360,000
45,000,000
1946
15,000,000
70,000,000
Sr
4th
7,600,000
67,500,000
Recovered
by note
cancellation
$10,000,000
25,000,000
43,500,000
42,760,000
8,690,000
20,973,000
1942
4th
1st2d_
&
Disbursed
$10,000,000
15,000,000
1941
2d
3d
4th
1st
2d.
3d
Canceled
$7,737,000
1947
.
63,000,000
1.160,000
Total
630,000,000
296
8,887,000
""287666*000
TABLE A-4
Allocations and Loans to Other Government Agencies by Direction of the Congress
Loans to the Secretary of Agriculture for farm tenants under the Department of Agriculture Appropriation
Acts, 1941-48
Year and
quarter
Authorized
H..J?.
3d
:;/
.
;;;••
4th
4th
"
$3,000,000
Outstanding
$3,000,000
11,600,000
14,760,000
11,100,000
10,950,000
$1,676,236
14,600,000
27,673,764
38,773,764
49,723,764
16,860,000
12,450,000
7,760,000
6,400,000
3,432,702
66,573,764
75,691,062
83,341,062
89,741,062
6,940,000
5,970,000
7,220,000
5,830,000
7,053,604
06,681,062
95,697,458
102,817,458
108,647,463
15,000,000
6,700,000
4,550,000
3,375,000
6,474,000
15,238,037
115,347,458
104,669,421
108,034,421
114,608,421
60,000,000
1,576,000
2,300,000
1,800,000
3,775,000
22,869,664
116,064,421
95,524,757
97,324,757
101,099,757
5,750,000
7,675,000
8,350,000
12,650,000
25,126,194
106,849,757
89,398,563
98,248,663
110,898,563
10,950,000
17,225,000
98,705,747
214,460,000
174,092,184
B6,OO6,6OO
"
32,500,000
1943
1st
2d
4th
" "
30,000,000
1944
._
::
"
1945
""""
Ist.....^..
2d
4th
1st
2d
3d...
Recovered
by note
cancellation
1942
1st.
2d
1st
2d
3d
4th
Repaid
1941
3d
1st
2d
3d
4th
Disbursed
$50,000,000
4th
1st
2d
Canceled
-
: / " * - 60,000,000
1947
$63 040,000
Total
277,600,000
63,040,000
121,848,563
40,367,816
$40,367,816
40,367,816
?? d er the provisions of the Department of Agriculture Appropriations Act, 1948, the RFC turned over
the
hef Secretary of the Treasury $40,367,816
$40,367,816 in notes for loans made by the Secretary ^
of^Agriculture,
c u l t u r e , and
C s notes payable to the Secretary of the Treasury were canceled in like amount, eflective as of July 1,
297
TABLE A-5
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocation 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 and
quarter
1933
Authorized
Canceled
Repaid
Recovered
by note
cancellation
1934
2,600,000
2,600,000
2,600,000
2,600,000
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
1935
2,600,000
2,600,000
2,600,000
2,600,000
1936
2,600,000
2,600,000
2,600,000
% 600,000
:::::::
1937
4th
1st
2,600,000
2,600,000
2,600,000
2,600,000
$97,400,000
1938
$2,600,000
Total
Outstanding
$200,000
600,000
2,600,000
$200,000
400,000
2,000,000
$100,000,000
2d
3d
4th
Disbursed
100,000,000
298
97,400,000
2,600,000
2,600,000
TABLE A-6
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocation to the Land Bank Commissioner for direct loans to farmers, under sec. 32 of the Emergency
Farm Mortgage Act of 1933
Year and
quarter
Canceled
Disbursed
Repaid
Recovered
by note
cancellation
$200,000,000
$2,000,000
8,000,000
70,000,000
$2,000,000
10,000,000
80,000,000
120,000,000
200,000,000
200,000,000
200,000,000
200,000,000
1934
_
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d.
3d
4th
Outstanding
1933
2d
3d
4th
1st
2d
Authorized
1935
200,000,000
200,000,000
200,000,000
200,000,000
_. . .
1936
200,000,000
200,000,000
200,000,000
200,000,000
"
1937
$200,000,000
Total
200,000,000
200,000,000
200,000,000
200,000,000
200,000,000
200,000,000
During the 1st quarter of 1934, the undisbursed portion ($55 million) of the allocation was transferred and
disbursed to the Federal Farm Mortgage Corporation in accordance with sec. 3 of the Federal Farm Mortgage Corporation Act, approved Jan. 31,1934.
TABLE A-7
Allocations and Loans to Other Government Agencies by Direction of the Congress
Purchase of stock of Commodity Credit Corporation under the act approved Apr. 10,1936
Year and
quarter
*L.
Authorized
m6
$97,000,000
Canceled
Disbursed
Repaid
Recovered
by note
cancellation
$97,000,000
97,000,000
97,000,000
$97,000,000
3d... .:
4th
1937
1st
2d
"
3 d . . . „_
4th..::::
1st
97,000,000
97,000,000
97,000,000
97,000,000
"
1938
Total
Outstanding
$97,000,000
97,000,000
97,000,000
97,000,000
299
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 and
quarter
4th
1st
2d
3d
4th
1st
2d
3d
4th
1936
Authorized
Canceled
Disbursed
$1,000,000
$100,000
45,500,000
498,000
3,402,000
4,425,000
13,175,000
1937
Repaid
Recovered
by note
cancellation
$100,000
598,000
4,000,000
8,422,575
21,697,575
$2,425
1933
30,000,000
30,000,000
10,167,000
14,743,000
31,754,575
46,497,575
46,497,575
46,497,575
7 450 000
92!550|000
63,947,575
146,497,575
146,497,575
146,497,575
1939
&:::::::::::::::
3d
4th
1st
1st
2d
146,497,575
146,497,575
146,497,575
146,497,575
100,000,000
1941
3d
4th
1st
2d
3d
4th
............
1940
3d
4th
1st
40,000,000
164,497,575
182,497,675
202,497,575
214,497,575
18,000,000
18,000,000
20,000,000
12,000,000
100,000,000
1942
10,000,000
12,000,000
10,000,000
4,000,000
6,000,000
8,682,043
1,000,000
2,500,000
3,000,000
6,000,000
6,430,482
3,500,000
4,500,000
9,000,000
6,000,000
8,601,495
217,915,532
227,915,532
228,562,005
234,562,005
3,353,527
1943
4th
229,131,523
231,631,523
227,134,765
233,134,765
7,496,758
1944
&::::::::::::::
3d
4th."".""IIII"
1st
2d
3d
4th
1st
2d
3d
4th
Outstanding
228,033,270
232,533,270
230,860, W2
235,860,522
10,672,748
1945
25,000,000
80,000,000
120,000,000
9,000,000
10,200,000
13,000,000
21,000,000
8,382,224
7,974,067
100,000,000
16,000,000
33,000,000
40,000,000
40,000,000
45,000,000
95,000,000
12,688,774
3,130,175
602,200,000
91,351,096
236 478 298
2461678,298
253 170,085
274,170,085
6,508,213
1946
260,000,000
$329,300,000
Total
931,500,00
300
329,300,000
281,195,118
314 195,118
346,567,853
386;667,853
7,627,266
418,979,079
510,848,004
«ftin 040 Q04
510,848,904
TABLE A-9
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocations to the Federal Housing Administrator under sec. 4, title I, of the National Housing Act,
approved June 27,1934
Year and
quarter
1st
2d
3d
4th .
I.
"
"
"
::
I"
8
1st..... .* ....
2d
3d
4th
""*
1939
1st
3d
;:;•"
4th
Recovered
by note
cancellation
$10,000,000
15,000,000
$10,000,000
15,000,000
9,000,000
9,000,000
5,000,000
5,000,000
5 000 000
5 000 000
2,000,000
2,000,000
4,000,000
1,121,075
5,600,000
4,000,000
1,121,075
5,600,000
1,900,000
3,000,000
4,500,000
1,000,000
1,900,000
3,000,000
4,500,000
1,000,000
$58,521,075
3.000.000
4,600,000
1,000,000
2,125,000
4,400,000
3,000,000
1,000,000
2,125,000
4,400,000
3,000,000
1,000,000
2,125,000
4,400,000
3,000,000
1,000,000
Outstanding
2,000,000
1,640,306
1,000,000
1,000,000
2,000,000
1,640,306
1,000,000
1,000,000
3,640,306
1,000,000
5,000,000
2,000,000
2,000,000
1,000,000
6,000,000
2,000,000
2,000,000
1,000,000
5,000,000
1,000,000
3,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
500,000
2,000,000
600,000
2,000,000
600,000
$10,000,000
25,000,000
25,000,000
34,000,000
34,000,000
39,000,000
39,000,000
44,000,000
44,000,000
46,000,000
60,000,000
51,121,076
56,621,075
66,621,076
1940
;;•—
" "
1941
fcz
Sfcr~~
1942
M:::::::::::.::;
4th
1st..... 1943
2d
3d
4th
iff
Kepaid
1936
1
1st
2d
Disbursed
1935
2d
3d
4th
1st.
2d
3d
4th
Canceled
1934
3d
4th
1st
2d
3d
4th
Authorized
""""
2,000,000
2,000,000
1,000,000
1,000,000
::::::
Total
175,000
97,861,381
1 7 1 Oftfl
97,861,381
175,666"
97,861,381
The total allocation was not limited to any specific amount; for statistical purposes, the amount disbursed
was considered to be the amount authorized.
301
TABLE A-10
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocation to the Secretary of the Treasury to pay for capital of the Federal home loan banks, under sec. 2
of the RFC Act was amended by the Federal Home Loan Bank Act
Year and
quarter
4th
1932
1933
1st
2d . . .
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
Authorized
Disbursed
Repaid
Recovered
by note
cancellation
Outstanding
$820,000
$820,000
$820,000
123,621,000
29,800,000
12,350,000
14,400,000
18,375,700
30,620,000
42,970,000
57,370,000
75,745,700
3,900,000
79,645,700
79,645,700
81,445,700
81,445,700
1934
1,800,000
1935
200,000
3,600,000
9,160,000
81,445,700
81,645,700
85,245,700
94,395,700
4,146,300
800,000
5 200 000
13,327,400
98.542,000
99,342,000
104,542,000
117,869,400
2,136,700
607,900
1,000,000
3,227,000
120,006,100
120,514,000
121,514,000
124,741,000
1936
1937
4th
1st
Canceled
1938
$124,741,000
Total
124,741,000
124,741,000
124,741,000
that "in order to enable the Secretary of the Treasury to make payments
me loanl banks
bantft subscribed
s n t v i H h i tfor H ht
j
n u n i\ n accordance
w ii+v
t n +tV
n e T ? ^ 1 "FfvmA Loan
SSSf t«Si vJi m a^d BoVf f,a1?,b111*t1111
?.11' o r s o m u c n thereof as
as may
m a y be
b e necessary
necessary for
for such
s u c h purpose, is hereby
S ^ S ? ^??
? S S ^i 0 ^iSecretary of the Treasury out of the capitall off the
h Corporation and/or
t h e proceeds of notes, debentures bonds a n d 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-
302
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, under
sec. 4(b) of the Home Owners^ Loan Act of 1933, approved June 13,1933
Year and
quarter
Authorized
Canceled
Disbursed
Eepald
Recovered
by note
cancellation
Outstanding
1933
$200,000,000
2d
3d
4th
_
1934
1st
2d
3d
$1,000,000
1,000,000
17,000,000
$1,000,000
2,000,000
19,000,000
40,000,000
95,000,000
46,000,000
59,000,000
154,000,000
200,000,000
1935
1st
2d_.
3d
4th
200,000,000
200,000,000
200,000,000
200,000,000
" "
1936
1st
2d . . „
3d
4 t h _ .. ..
200,000,000
200,000,000
200,000,000
200,000,000
1937
1st.—
2d
3d
4th. „
200,000,000
200,000,000
200,000,000
200,000,000
""
1938
$200,000,000
1st..
Total
200,000,000
200,000,000
200,000,000
303
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 and
quarter
3d
4th
1932
1933
1st
2d — —
3d
4th
1st
2d
3d
4th
1st
2d
3d
4th
1st
2d
Authorized
Canceled
Disbursed
$35,455,171
77,037,702
$14,159,584
65,807,458
127,273,666
60,233,461
121,407,140
97,165,667
1,445,150
1934
1935
$15,001
$466,145
503,940
201,374,182
298,073,704
299,014,914
299,014,914
23,070
449,383
533,050
235,816
298,991,844
298,542,456
298,009,406
297,773,590
63,032
21,550
590,010
472,350
297,710,558
297,689,008
297,098,998
296,626,648
190,177
22,760
419,000
412,000
296,436,471
296413,711
295994,711
295,582,711
6,354,500
6,148,070
176,000
78,374
289,228,211
283,080,141
282 9041141
282,825,767
1938
$282,825,767
Total
300,000,000
304
15,001
299,984,099
Outstanding
$14,159,684
79,967,042
1937
4th
1st
Recovered
by note
cancellation
1936
4th
1st
2d
Repaid
17,159,232
282,825,767
TABLE A-13
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocations for direct relief under the Federal Emergency Relief Act of 1833, approved May 12,1933
Year and
quarter
Authorized
$499,650,000 ___.„
1st
2d
3d
4th
Repaid
Recovered
by note
cancellation
Outstanding
$37,910,142
164,720,184
314,960,941
171,725,612
6,426,351
6,139,011
486,686,553
493,112,904
499,251,915
499,251,915
398,085
"
499,650,000
499,650,000
499,650,000
499,650,000
::
499,650,000
499,650,000
499,650,000
499,650,000
.„.,..,
1934
2d
3d
4th
1st
2d
3d
4th
Disbursed
$37,910,142
126,810,042
150,240,757
3d
4th
1st
Canceled
1935
1936
1st..... 1 . 937
2d
3d
4th
499,650,000
499,650,000
499,650,000
499,650,000
"
$499,650,000
Total
499,650,000
499,650,000
499,650,000
The act cited authorized and directed the RFC to make available from RFC funds not to exceed $500
million for expenditure upon the certification of the Federal Emergency Relief Administrator. Of the
total.
$499,650,000 was
was earmarKeu
earmarked iur
for tuw
the
wpvtut <frx<79,udu,uvAf
was earmarked
euruiariteu for
mr grants
grouts to
w States,
own-ca, and
ouu the
w o remaining
*cmtmnn^ $350,000
»3oU,UW was
administrative expenses of the Federal Emergency Relief Administration. There was disbursed as grants
to States $499,650,000, as show]
shown above. Of the $350,000 earmarked
was
* ""for administrative expenses, $349,066
"'"
disbursed and $934 canceled.
305
TABLE A-14
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocation for direct relief, under the Emergency Appropriation Act, fiscal year 1935, approved June 19,193
Year and
quarter
4th
1934
Authorized
Canceled
$500,000,000
1935
1st
2d
3d
4th
1st
2d
Disbursed
Repaid
Recovered
by note
cancellation
$470,000,000
$470,000,000
30,000,000
600,000.000
500,000,000
600,000,000
600.000,000
1936
500,000,000
500,000,000
500 000,000
600;000,000
1937
500,000,000
600,000,000
600,000.000
500,000,000
4th
1st
2d
3d
4th
1938
1st
Outstanding
Total
$600,000,000
500,000,000
500,000,000
500,000,000
TABLE A-15
Allocations and Loans to Other Government Agencies by Direction of the Congress
Allocation for direct relief under the Emergency Relief Appropriation Act of 1935, approved Apr. 18,1935
Year and
quarter
4th
1st
2d
Authorized
Canceled
Disbursed
Repaid
Recovered
by note
cancellation
1935
$500,000,000
$300,000,000
$300,000,000
200,000,000
500,000,000
500,000,000
600 000,000
600,000,000
1936
4th
1st
2d
1937
600,000,000
600 000,000
600 000,000
600,000,000
4th
1st
193S
$500,000,000
Total
Outstanding
600,000,000
306
600,000,000
500,000,000
TABLE A-16
Allocations and Loans to Other Government Agencies by Direction of the Congress
Purchase of stock of Disaster Loan Corporation, under the act approved Feb. 11,1937
Year and
quarter
1937
1st
2d
3d
4th:::..::::::::::
1st
2d
3d
4th
Authorized
Canceled
$2,000,000
4,000,000
2,000,000
2,000,000
Disbursed
Repaid
Recovered
by note
cancellation
Outstanding
$2,000,000
4,000,000
$2,000,000
6,000,000
8,000,000
10,000,000
2,000,000
1938
$10,000,000
2,000,000
2,000,000
2,000,000
2,000,000
4,000,000
2,000,000
2,000,000
2,000,000
4,000,000
2,000,000
2,000,000
2,000,000
4,000,000
2,000,000
2,000,000
2,000,000
2,000,000
24,000,000
24,000,000
1939
1st
2d. 3d
4th . „
1st
2d
1940
Total
2,000,000
2,000,000
24,000,000
Under the act cited, the RFC was authorized and directed to subscribe for the capital stock of Disaster
Loan Corporation from time to time, as needed, out of the unexpended balance of the $50 million which
RFC was authorized to lend for catastrophe relief by sec. 1 of the act of April 17,1936. The limiting amount
or such stock purchases was originally $20 million and this was later raised to $40 million. In the absence
of a specific allocation, the amount disbursed for such capital stock was considered to be the amount authorized.
TABLE A-17
Allocations and Loans to Other Government Agencies by Direction of the Congress
Advances to the Secretary of State and Economic Cooperation Administration
Year and
quarter
Authorized
Canceled
Disbursed
Repaid
ad....! 9 1 7 .
$175,000,000
$175,000,000
$175,000,000
3d
\ _ " " 150,000,000
4th
_
1948
1st
2d
: 1,166,666,666 $145,000,000 1,165,666,666 1,165,666,666
25,000,000
25,000,000
3d
4th
1949
1st,—.
8,000,000
25,000,000
1,008,000,000
2d1,000,000,000
8,000,000
3d
1,000,000,000
1st
2d
3d
1950
30,000,000
8,000,000
30,000,000
8,000,000
30,000,000
a nno 000
At-Yi
Total
2,496,000,000
Recovered
by note
cancellation
Outstanding
$175,000,000
25,000,000
25,000,000
25,000,000
1,008,000,000
1,000,000,000
30,000,000
8,000,000
8,000,000
145,000,000 2,351,000,000 2,351,000,000
307
APPENDIX D
SELECTED REFERENCES
309
APPENDIX D
SELECTED REFERENCES
There are listed in this appendix a number of books, reports, and other materials dealing with one phase or another of RFC's operations. It has been
found impractical to list the many hundreds of articles on RFC's activities
which appeared in newspapers and periodicals during the Corporation's existence, as well as the routine financial reports prepared by RFC for internal use
or to fulfill legislative requirements. Also omitted from the list are the hearings
held before congressional committees on appropriations in connection with the
Corporation's budget requests.
The most comprehensive reference materials available on the operations of
the Reconstruction Finance Corporation are contained in congressional publications and documents. Noteworthy among these are the hearings held before
Senate Committees on Banking and Currency in connection with S. Res. 132,
80th Congress, 2d session (the Buck committee), and those in connection with
S. Res. 219, 81st Congress, 2d session (the Fulbright committee). Also very
informative are the audits made of the RFC by the General Accounting Office
and published as House of Representatives documents. The audit for the fiscal
year ended June 30, 1945, was very extensive and reviewed the activities of the
Corporation and its subsidiaries up to that date in much detail.
I. BOOKS, ETC
The 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 Trends
Growing Out of the "Battle With Depression." New York: American Institute of Banking, 1933.
Reconstruction Finance Corporation Loans to the Railroads, 1932-1937, by Herbert 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 Publishing 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 of
Economic Research, by R. J. Saulnier, Harold G. Halcrow, and Niel H. Jacoby. Princeton: Princeton University Press, 1958.
II. CONGRESSIONAL PUBLICATIONS
A . House of Representatives
DOCUMENT ROOM
Reconstruction Finance Corporation Act With Amendments. Compiled by
Gilman G. Udell, Superintendent, Washington: U.S. Government Printing
Office, 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. Government
Printing Office, 1946.
80th Congress, 1st Session:
Document No. 316. Report on Audit of Reconstruction Finance and Affiliated 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 for
the Fiscal Year Ended June 30, 1945. Vol. 5. Washington: U.S. Government Printing Office, 1948.
Document No. 4*7$. Report on Audit of Defense Plant Corporation for the
Fiscal Year Ended June 30, 1945. Vol. 4. Washington: U.S. Government 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 Corporation, the RFC Mortgage Company, and Federal National Mortgage Association 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 the
Fiscal Year Ended June 30, 1945. Vol. 3. Washington: U.S. Government Printing Office, 1948.
Document No. 622. Report on Audit of Petroleum Reserves Corporation
for 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 the
Fiscal Year Ended June 30, 1945. Vol. 10. Washington: U.S. Government Printing Office, 1948.
Document No. 713. Report of Audit of U.S. Commercial Company for the
Fiscal Year Ended June 30, 1945. Vol. 8. Washington: U.S. Government Printing Office, 1948.
Document No. 758. Report on Audit of Metals Reserve Company for the
Fiscal Year Ended June 30, 1945. Vol. 6. Washington: U.S. Government 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 Corporation
and Federal National Mortgage Asociation for the Fiscal Years Ended
June 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 Ended
June 30, 1950. Washington: U.S. Government Printing Office, 1951.
82d Congress, 2d Session:
Document No. 867. Report on Audit of Reconstruction Finance Corporation
312
for the Fiscal Year Ended June 30, 1951. Washington: U.S. Government
Printing Office, 1952.
83d Congress, 1st Session:
Document No. 104* Report on Audit of Reconstruction Finance Corporation
for the Fiscal Year Ended June 30, 1952. Washington: U.S. Government
Printing Office, 1953.
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. Government
Printing Office, 1954.
84th Congress, 1st Session:
Document No* 143. Report on Audit of Reconstruction Finance Corporation
for the Fiscal Year Ended June 30, 1954. Washington: U.S. Government
Printing Office, 1955.
84th Congress, 2d Session:
Document No. 885. Report on Audit of Reconstruction Finance Corporation
(In Liquidation) and Defense Lending Division, Office of Production and
Defense Lending, Department of the Treasury, for the Fiscal Year Ended
June 30,1955. Washington: U.S. Government Printing Office, 1956.
Document No. 886. Report on Audit of Federal Facilities Corporation, Office
of Production and Defense Lending, Department of the Treasury, for the
Fiscal Year Ended June 30,1955. Washington: U.S. Government Printing
Office, 1956.
REPORTS
Committee on Banking and Currency:
74th Congress, 1st Session:
Report No. 84. Report on Extension of the Functions of the Reconstruction 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 Accompany H.R. 3910. Washington: U.S. Government Printing Office, 1947.
80th Congress, 2d Session:
Report No. 1886. Reconstruction Finance Corporation Act To Accompany 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 Resolution
Creating a Select Committee To Conduct a Study and Investigation of
the Problems of Small Business. Washington: U.S. Government
Printing Office, 1957.
HEARINGS
Committee on Expenditures in the Executive Departments:
79th Congress, 2d Session:
On House Document No. 674. Audit of the Reconstruction Finance
by 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 Reconstruction
Finance Corporation. Feb. 13, 14, 15, 19, 20, 2% 26, 27, 28; Mar. 7,
313
15, 19, 22, and 27, 1934. Washington: U.S. Government Printing
Office, 1934.
74th Congress, 1st Session:
On H.R. 4240 (8. 1175), a bill to extend the functions of the Reconstruction 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 loans
for 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 Reconstruction Finance Corporation to assist in the national defense program. 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 War
Insurance 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 Reconstruction Finance Corporation Act by adding a new title thereto relating
to 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 created
pursuant to section 5d(3) of the Reconstruction Finance Corporation
Act, as amended. Apr. 24, 25, and 26, 1945. Washington: U.S. Government Printing Office, 1945.
On 8.J. Res. 65, to transfer to the Reconstruction Finance Corporation
the 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 Printing 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 Administration and to preserve small business institutions and free, competitive
314
enterprise. May 14,15, and 18, 1953. Washington: U.S. Government
Printing Office, 1953.
Committee on Armed Services:
81st Congress, 2d Session:
Before a special subcommittee, On the President's Recommendations
Concerning 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 other
purposes. 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 Governmentowned 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 Program 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-Stricken
Areas. Sept. 19, 20, 21, 25, and 26, 1951. Washington: U.S. Government Printing Office, 1951.
B. Senate
REPORTS
Committee on Expenditures in the Executive Departments:
82d Congress, 2d Session:
Report No. 1142. Interim Report made by the Senate Permanent Subcommittee on Investigation on American Lithofold Corp., William
M. 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 Reconstruction Finance Corporation. Mar. 10,1948. Washington: U.S.
Government Printing Office, 1948.
81st Congress, 2d Session:
Report No. 1689. Study of Reconstruction Finance Corporation, Pursuant 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 Corporation, Pursuant to S. Res. 219 (81st Cong.). Lustron Corp.—Transportation contract. Aug. 11, 1950. Washington: U.S. Government
Printing Office, 1950.
315
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, Pursuant 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. To
Accompany S. 515 and To Serve as a Final Report Pursuant to S. Res.
219 (81st Cong.). Aug. 20, 1951. Washington: U.S. Government
Printing Office, 1951.
83d Congress, 1st Session:
Report No. 604. To Accompany S. 1523, a Bill to Dissolve the Reconstruction Finance Corporation, to Establish the Small Business
Administration, 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 (Reorganization 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 Corporation
Funds to Small Business, June 14, 1950. Washington: U.S. Government Printing Office, 1950.
Committee on Armed Services:
81st Congress, 2d Session:
Before a Subcommittee, On HJt. 7519 and 8. 8294, Extension of the
Rubber 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 Printing
Office, 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 Printing
Office, 1933.
316
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 Beconstruction Finance Corporation Act, as amended, and for other
purposes. May 14, 1040. Washington: U.S. Government Printing
Office, 1040.
79th Congress, 2d Session:
On 8. 2198, a bill to provide for the financing of War Insurance Corporation, to amend the Reconstruction Finance Corporation Act, as
amended, and for other purposes. Jan. 27, 28, and 29,1942. Washington : 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 Corporation
and 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 Corporation 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 personnel
of the Corporation by organizations receiving loans or other financial
assistance therefrom. June 16,1949. Washington: U.S. Government
Printing Office, 1949.
Before a Subcommittee, On a Review of the Loan Policy of the Reconstruction Finance Corporation. June 22, 23, and 30, 1949. Washington : U;S. Government Printing Office, 1949.
Before a Subcommittee, On 8. 2844, a bill to amend the Reconstruction
Finance 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 Reconstruction Finance Corporation Pursuant to 8. Res. 219, 81st Congress. 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 Reconstruction 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 Reconstruction Finance Corporation Pursuant to 8. Res. 219, 81st Congress.
Lending Policy. June 8, 9, 13, 15; July 3, 5, and 10, 1950. Washington: U.S. Government Printing Office, 1950.
On 8. 529, 8. 2948, 8..2947, 8. 2975, 8. 3886, and 8. 8625, bills to make
capital and credit more readily available for financing small business.
June 22, 23, 27, and 28,1950. Washington: U.S. Government Printing
Office, 1950.
Before a Subcommittee, On a Study of the Operations of the Reconstruction Finance Corporation Pursuant to 8. Res. 219, 81st Congress.
Lustron Corp.—Transportation Contract June 26, 27, 28, 29, and
317
30, 1950. Washington: U«S. Government Printing Office, 1950.
Before a Subcommittee, On a Study of the Operations of the Reconstruction 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 Reconstruction 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 Reconstruction 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 the
Reconstruction 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, bills
to 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 Corporation. 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 Corporation and transfer its functions and to create a small-business
lending 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 provide for the sale of Government-owned rubber-producing facilities,
and for other purposes. June 24, 25, 26, 29, and July 1, 1953. Washington : U.S. Government Printing Office, 1953.
On 8. 892 and other bills, to dissolve the Reconstruction Finance Corporation and transfer its functions and to create a small-business lending
agency. Part 2. July 13 and 14, 1953. Washington: U.S. Government Printing Office, 1953.
83d Congress, 2d Session:
On the Progress of Liquidation of the Reconstruction Finance Corporation. Mar. 26, 1954. Washington: U.S. Government Printing Office, 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 Facilities 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 Government-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 the
fiscal year ending June 30,1952, and for other purposes. Reconstruction Finance Corporation. Sept 11, 1951. Washington: UJ3. Government Printing Office, 1951.
Ill- PUBLICATIONS OF EXECUTIVE DEPARTMENTS AND AGENCIES
CIVILIAN PRODUCTION ADMINISTRATION
Evolution of Premium Price Policy for Copper, Lead and Zinc. January 1945 to
November 1943. Historical Reports on War Administration: War Production
Board: 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: War
Production Board: Special Study No. 8. Washington, 1946.
Policies Governing Private Financing of Emergency Facilities. May 1940 to
June 1942. Historical Reports on War Administration: War Production
Board: Special Study No. 12. Washington, 1946.
Alcohol Policies* of the War Production Board and Predecessor Agencies. May
1940 to January 1945. Historical Reports on War Administration: War Production Board: Special Study No. 16. Washington, 1946.
The Facilities and Construction Program of the War Production Board and
Predecessor Agencies. May 1940 to May 1945. Historical Reports on War
Administration: War Production Board: Special Study No. 19. Washington,
1946.
Aluminum Policies of the War Production Board and Predecessor Agencies. May
1940 to November 1945. Historical Reports on War Administration: War
Production Board: Special Study No. 22. Washington, 1946.
Rubber Policies of the National Defense Advisory Commission and the Office of
Production Management. May 1940 to December 1941. Historical Reports
on War Administration: War Production Board: Special Study No. 28. Washington, 1947.
Copper Policies of the War Production Board and Predecessor Agencies. May
1940 to November 1945. Historical Reports on War Administration: War
Production Board: Special Study No. 29. Washington, 1947.
FEDERAL FACILITIES CORPORATION
Report to the Congress on Tin Operations, June 30,1955, Pursuant to Public Law
125,80th Congress. Washington, 1955.
United States Government Tin Program Conducted by Reconstruction Finance
Corporation and Federal Facilities Corporation During Period 1940-1957.
Washington, 1957.
Report to the Congress on Synthetic Rubber Operations, June 30,1955, Pursuant
to the Rubber Act of 1948, as amended. Washington, 1955.
The Government's Rubber Projects (Vol. I I ) , A History of the U.S. Government's
Natural and Synthetic Rubber Programs, 1941-55. Washington, 1955. (VoL
I I of the history covers the synthetic rubber program. It was originally prepared in 1948 by Brendan J. O'Callaghan in the Division of Information, Reconstruction Finance Corporation. It was revised and brought up to date in
1954 by Dorothy Rigdon, Office of the Secretary, Reconstruction Finance Corporation, and again revised and brought up to date in 1955 under the super
319
vision of Bertram H. Wimer, Office of Synthetic Kubber, Federal Facilities
Corporation. Vol. I of the history covers natural rubber, but was never reproduced and is available only in the National Archives.)
RUBBER PRODUCING FACILITIES DISPOSAL COMMISSION
Report to Congress Recommending Disposal of Government-Owned Synthetic
Rubber Facilities (Public Law 205—83d Cong.). Washington, Jan. 24,1955.
Report to Congress Recommending Disposal of the Government-Owned Synthetic
Rubier Plant at Baytown, Texas (Public Law 19—84th Cong.). Washington,
June 10,1955.
Report to Congress Recommending Disposal of the Government-Owned Synthetio
Rubier 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 Printing
Office, 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. Government Printing Office, 1949.
Program for Disposal to Private Industry of Government-Owned Rubier Producing Facilities. Eeport to the President and the Congress. Mar. 1, 1953.
Review of Lending Activities January lt 1950-March 31, 1953. Office of the
Controller, 1953.
Program of Liquidation. What the RFC Holds—How It Is Liquidating. November, 1953.
The Government's Abaca Project. An Account of the Establishment and Operation of Central American Plantations for the Production of Abaca (Manila
hemp), an Essential Material in the Manufacture of Marine Cordage. February, 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 Rubber
Act of 1948, as amended. June 30,1954.
Report to the Congress on Tin Operations, Pursuant to Public Law 125, 80th
Congress. 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 National
Archives.)
320
Rubber in World War II. A History of the U.S. Government's Natural and
Synthetic Bubber Programs in World War II. (Prepared in the Division of
Information, Reconstruction Finance Corporation, by Brendan J. O'Callaghan.
Not reproduced. Available in typescript in the National Archives.)
TREASURY DEPARTMENT
Report to the Congress. Liquidation of Reconstruction Finance Corporation.
June 30, 1957. Washington, U.S. Government Printing Office, 1958.
o
321
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