2d Session

No. 391

REPORT OF RECONSTRUCTION FINANCE CORPORATION, NOVEMBER 1935

LETTER FROM THE CHAIRMAN OF THE RECONSTRUCTION FINANCE CORPORATION TRANSMITTING A REPORT OF ITS ACTIVITIES AND EXPENDITURES FOR NOVEMBER 1935

January 15, 1936.-Referred to the Committee on Banking and Currency and ordered to be printed

RECONSTRUCTION FINANCE CORPORATION,

Washington, January 14, 1936.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

SIR: Pursuant to the provisions of section 201 (b), title II, of the Emergency Relief and Construction Act of 1932, as amended, the Reconstruction Finance Corporation submits this report of its activities and expenditures for November 1935. The report includes statements of authorizations made during that month, showing the name, amount, and rate of interest or dividend in each case.

Under section 5 of the Reconstruction Finance Corporation Act, as amended, the Corporation during November authorized 50 loans, aggregating $15,295,824.09, and authorized increases aggregating $105,068.47 in loans authorized prior to November 1, 1935, making a total of $15,400,892.56, as shown in table 1.

Of the $15,400,892.56 authorized under section 5, as amended, $13,488,705.50 was authorized to banks and trust companies (including $13,423,705.50 to aid in the reorganization or liquidation of closed banks and trust companies); $1,883,907.43 to mortgage loan companies; $20,779.63 to a joint-stock land bank; and $7,500 to borrowers engaged in the fishing industry.

Formal applications received at the Washington office of the Corporation during November under section 5 of the Reconstruction Finance Corporation Act, as amended, numbered 53, as follows: 48 from banks and trust companies (including 47 applications to aid in the reorganization or liquidation of closed banks and trust companies); 3 from mortgage loan companies; 1 from a joint-stock land bank; and 1 from a railroad.

Under section 5d of the Reconstruction Finance Corporation Act, as amended, relating to loans to industrial or commercial business, the corporation during November authorized 50 loans aggregating

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$3,471,284, together with increases in the amount of $17,160.44 in loans authorized prior to November 1, 1935; authorized 6 purchases of participations aggregating $567,500, together with increases in the amount of $12,000 in purchases of participations authorized prior to November 1, 1935; and authorized 4 agreements to purchase participations aggregating $516,000; all aggregating $4,583,944.44, as shown in table 2. Formal applications received under this section during November numbered 107.

Under Section 5e of the Reconstruction Finance Corporation Act, as amended, which empowers the Corporation to make loans upon, or purchase, the assets of closed banks, the Corporation during November made one authorization in the amount of $8,690, as shown in table 3. Formal applications received under this section during November numbered two.

Under section 201 (d), title II, of the Emergency Relief and Construction Act of 1932, as amended, relative to financing the carrying and orderly marketing of agricultural commodities, the Corporation during November authorized one loan in the amount of $100,000,000, together with an increase in the amount of $75,000 in a loan authorized prior to November 1, 1935, making a total of $100,075,000, as shown in table 4. Formal applications received under this section during November numbered four.

Under section 36 of the Emergency Farm Mortgage Act of 1933, as amended, relative to loans to drainage, levee, and irrigation districts, etc., the Corporation during November authorized 10 loans, aggregating $1,861,000, together with increases in the amount of $2,456.80 in loans authorized prior to November 1, 1935, making a total of $1,863,456.80, as shown in table 5. Formal applications received under this section during November numbered two.

Under section 304, title III, of the act approved March 9, 1933, as amended, the Corporation during November authorized subscriptions for preferred stock of seven banks and trust companies, aggregating $5,775,000, together with an increase in the amount of $50,000 in a subscription authorized prior to November 1, 1935, making a total of $5,825,000; and authorized the purchase of debentures of two banks, aggregating $70,000, as shown in table 6. Formal applications received under this section during November numbered 14.

Under the act approved April 13, 1934, as amended, the Corporation during November authorized one loan in the amount of $150,000, as

shown in table 7.

Under section 14 of the act approved June 19, 1934, as amended, relative to mining loans, etc., the Corporation during November authorized three loans aggregating $60,000, as shown in table 8.

In cases where authorizations made prior to November 1, 1935, were increased during the month of November, the amounts of such increases are listed in the attached tables as authorizations made during November. In cases of authorizations in November, the proceeds of the disbursements of which were to be used, in part, to retire outstanding balances of authorizations made in previous months, the amounts of the authorizations in excess of such outstanding balances are listed in the attached tables as authorizations in November.

Authorizations made prior to November 1, 1935, which were withdrawn or canceled in full during November 1935, no part of the pro

ceeds being disbursed, aggregated $9,129,700. These withdrawals or cancelations are listed in table 9, because the authorizations were included in previous monthly reports of the Corporation.

Authorizations made prior to November 1, 1935, which were withdrawn or canceled in part during November 1935, aggregated $91,641,507.85. These withdrawals or cancelations are listed in table 10, because the loans to which they relate were contained in previous monthly reports of the Corporation.

During November, the Corporation sold to institutions from which the Corporation purchased preferred stock, capital notes, or debentures $100,000 series H notes.

During November, the Corporation sold to the Secretary of the Treasury $305,000,000 series J-3 notes, and $35,000,000 series J-4 notes, aggregating $340,000,000.

During November, the Corporation redeemed and canceled $25,000,000 of its series J-4 notes, held by the Secretary of the Treasury.

As of November 30, 1935, there were outstanding $4,367,879,666.67 of the Corporation's notes, as follows:

Under section 84 of the Farm Credit Act of 1933, as amended, the Corporation, with the approval of the Governor of the Farm Credit Administration, authorized, during November, reductions in the capital of six regional agricultural credit corporations, as follows: The Regional Agricultural Credit Corporation of Fort Worth, Tex., from $3,290,000 to $3,100,000; of Minneapolis, Minn., from $14,915,000 to $14,180,000; of Salt Lake City, Utah, from $3,550,000 to $3,225,000; of Sioux City, Iowa, from $8,200,000 to $6,600,000; of Spokane, Wash., from $7,000,000 to $6,250,000; and of Wichita, Kans., from $6,500,000 to $5,600,000.

During September and October 1935 the Corporation, with the approval of the Governor of the Farm Credit Administration, authorized the following changes, which were not included in the reports for those months, in the capital of regional agricultural credit corporations: During September, reductions in capital, as follows: The Regional Agricultural Credit Corporation of Albany, N. Y., from $510,000 to $420,000; of Baltimore, Md., from $65,000 to $40,000; of Columbus, Ohio, from $65,000 to $25,000, of Raleigh, N. C., from $110,000 to $50,000; of Salt Lake City, Utah, from $4,500,000 to $4,250,000; and of Sioux City, Iowa, from $11,350,000 to $9,950,000. Increases in capital, as follows: The Regional Agricultural Credit Corporation of Minneapolis, Minn., from $11,650,000 to $12,515,000; and of Spokane, Wash., from $8,000,000 to $9,000,000 During October, reductions in capital, as follows: The Regional Agricultural Credit Corporation of Albany, N. Y., from $420,000 to $395,000; of Baltimore, Md., from $40,000 to $25,000; of Salt Lake City, Utah,

from $4,250,000 to $3,550,000; of Sioux City, Iowa, from $9,950,000 to $8,200,000; and of Spokane, Wash., from $9,000,000 to $7,000,000. Increases in capital, as follows: The Regional Agricultural Credit Corporation of Fort Worth, Tex., from $2,700,000 to $3,290,000; of Minneapolis, Minn., from $12,515,000 to $14,915,000; and of Wichita, Kans., from $5,500,000 to $6,500,000.

Under section 2 of the Reconstruction Finance Corporation Act, as amended by section 5 (f) of the Federal Home Loan Bank Act, and pursuant to the request of the Secretary of the Treasury, the Corporation during November paid $1,900,000 to the Secretary of the Treasury for the purpose of making payments upon stock of Federal home-loan banks subscribed for by him. This made a total of $90,695,700 so paid through November 30, 1935.

Under section 2 (a) and section 6 of the Federal Emergency Relief Act of 1933, the Corporation during November disbursed $784.80 to the Federal Emergency Relief Administrator for expenses necessary to carry out the provisions of the Federal Emergency Relief Act of 1933, and received refund of expenses previously disbursed amounting to $37.28, making a net total of $337,649.56 so disbursed through November 30, 1935.

Under the Emergency Appropriation Act, fiscal year, 1935, approved June 19, 1934, the Corporation during November agreed to purchase $49,935,721.92 face amount of marketable securities from the Federal Emergency Administration of Public Works to be held and collected or sold at a later date.

Under section 4, title I, of the National Housing Act approved June 27, 1934, the Corporation during November paid $5,000,000 to the Federal Housing Administrator. This made a total of $39,000,000 so paid through November 30, 1935.

The Emergency Relief Appropriation Act of 1935, approved April 8, 1935, affects the Corporation, as follows:

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That in order to provide relief, work relief, and to increase employment by providing for useful projects, there is hereby appropriated, not exceeding $500,000,000 in the aggregate of any savings or unexpended balances in funds of the Reconstruction Finance Corporation;

Under the above act, the Corporation during November paid $300,000,000 to the Secretary of the Treasury for the purposes shown above.

The following tables are attached as a part of this report:

TABLE 1.-Statement of loans authorized during November 1935, under section 5 of the Reconstruction Finance Corporation Act, as amended. TABLE 2.-Statement of loans, purchases of participations, and agreements to purchase participations, authorized during November 1935, under section 5d of the Reconstruction Finance Corporation Act, as amended.

TABLE 3.-Statement of an authorization during November 1935, under section 5e of the Reconstruction Finance Corporation Act, as amended.

TABLE 4-Statement of authorizations during November 1935, under section 201 (d), title II, of the Emergency Relief and Construction Act of 1932, as amended.

TABLE 5. Statement of loans authorized during November 1935, under section 36 of the Emergency Farm Mortgage Act of 1933, as amended. TABLE 6.-Statement of subscriptions for preferred stock and purchases of debentures, of banks and trust companies, authorized during November 1935. under section 304, title III, of the act approved March 9, 1933, as amended. TABLE 7.-Statement of a loan authorized during November 1935, under the act approved April 13, 1934, as amended.

TABLE 8.—Statement of loans authorized during November 1935, under section 14 of the act approved June 19, 1934, as amended.

TABLE 9.-Statement of authorizations made prior to November 1, 1935, which were withdrawn or canceled in full during November 1935, no part of the proceeds being disbursed.

TABLE 10. Statement of authorizations made prior to November 1, 1935, which were withdrawn or canceled in part during November 1935.

TABLE 11. Statement of cash receipts and expenditures of the Corporation during November 1935 (Corporation's accounts with Treasurer of United States).

TABLE 12.-Statement of condition of the corporation as of the close of business, November 30, 1935.

Respectfully,

JESSE H. JONES, Chairman.