REPORT OF RECONSTRUCTION FINANCE CORPORATION, JANUARY 1936

LETTER FROM THE CHAIRMAN OF THE RECONSTRUCTION FINANCE CORPORATION, TRANSMITTING A REPORT OF ITS ACTIVITIES AND EXPENDITURES FOR JANUARY 1936, INCLUDING STATEMENTS OF AUTHORIZATIONS MADE DURING THAT MONTH, SHOWING THE NAME, AMOUNT, AND RATE OF INTEREST OR DIVIDEND IN EACH CASE

MARCH 2, 1936.-Referred to the Committee on Banking and Currency and ordered to be printed

RECONSTRUCTION FINANCE CORPORATION,

Washington, March 2, 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 January 1936. 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 January authorized 35 loans, aggregating $37,872,948.58, and authorized increases, aggregating $489,014.69, in loans authorized prior to January 1, 1936, making a total of $38,361,963.27, as shown in table 1.

Of the $38,361,963.27 authorized under section 5, as amended, $30,106,714.40 was authorized to aid in the reorganization or liquidation of closed banks and trust companies; $165,000 to a receiver of a building and loan association; $790,248.87 to mortgage loan companies; $5,000,000 to a railroad; and $2,300,000 to a State fund created for the purpose of insuring repayments of deposits of public moneys. Formal applications received at the Washington office of the Corporation during January under section 5 of the Reconstruction Finance Corporation Act, as amended, no. 29, as follows: 21 from banks and trust companies (including 20 applications to aid in the reorganization or liquidation of closed banks and trust companies); 1 from a liquidating agent of a building and loan association; 1 from an insurance company; 4 from mortgage loan companies; 1 from a railroad; and 1 from a State for an insurance fund.

Under section 5d of the Reconstruction Finance Corporation Act, as amended, relating to loans to industrial or commercial business, the Corporation during January authorized 56 loans, aggregating $4,744,800, together with increases in the amount of $90,000 in loans authorized prior to January 1, 1936; authorized 11 purchases of participations, aggregating $305,050, together with an increase in the amount of $5,000 in a purchase of a participation authorized prior to January 1, 1936; and authorized 2 agreements to purchase participations, aggregating $44,000; all aggregating $5,188,850, as shown in table 2. These figures and the list of authorizations, contained in table 2, do not include amounts authorized during January and canceled during the same month. Formal applications received under this section during January numbered 115.

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 January made four authorizations aggregating $305,365.56, as shown in table 3. One formal application was received under this section during January.

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 January authorized one loan in the amount of $100,000 as shown in table 4.

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 January authorized three loans, aggregating $525,500, together with increases in the amount of $1,575.97 in loans authorized prior to January 1, 1936, making a total of $527,075.97, as shown in table 5. Formal applications received under this section during January numbered 10.

Under section 304, title III, of the act approved March 9, 1933, as amended, the Corporation during January authorized subscriptions for preferred stock of 9 banks, aggregating $531,250; and authorized the purchase of debentures of four banks and trust companies, aggregating $45,000, together with an increase in the amount of $10,000 in a purchase of debentures authorized prior to January 1, 1936, making a total of $55,000, as shown in table 6. These figures and the list of authorizations, contained in table 6, do not include an amount authorized during January, and canceled during the same month. Formal applications received under this section during January numbered 10.

Under the act approved April 13, 1934, as amended, the Corporation during January authorized one loan in the amount of $50,000, as shown in table 7. Formal applications received under this act during January numbered 2.

Under section 14 of the act approved June 19, 1934, as amended, relative to mining loans, etc., the Corporation during January authorized six loans aggregating $355,000, as shown in table 8.

The act approved August 24, 1935, empowers the Corporation to make loans, not exceeding $10,000,000 in the aggregate, to or for the benefit of tax-supported public-school districts or other similar publicschool authorities in charge of public schools, to enable such authorities to reduce or refinance outstanding indebtedness incurred prior to the

enactment of this act, for the purpose of financing the construction, operation, and/or maintenance of public-school facilities.

Under this act the Corporation during January authorized two loans, aggregating $383,000, as shown in table 9. Formal applications received under this act during January numbered 11.

In cases where authorizations made prior to January 1, 1936, were increased during the month of January, the amounts of such increases are listed in the attached tables as authorizations made during January. In cases of authorizations in January, 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 January.

Authorizations during January which were withdrawn or canceled in full during January, no part of the proceeds being disbursed, were as follows: Loans to industrial or commercial business, aggregating $17,609.36; and a subscription for preferred stock of a trust company in the amount of $75,000. These authorizations are not included in the attached tables.

Authorizations made prior to January 1, 1936, which were withdrawn or canceled in full during January 1936, no part of the proceeds being disbursed, aggregated $12,499,032.02. These withdrawals or cancelations are listed in table 10, because the authorizations were included in previous monthly reports of the Corporation.

Authorizations made prior to January 1, 1936, which were withdrawn or canceled in part during January 1936, aggregated $42,232,600.72. These withdrawals or cancelations are listed in table 11, because the loans to which they relate were contained in previous monthly reports of the Corporation.

During January the Corporation sold to institutions from which the Corporation purchased preferred stock, capital notes, or debentures $45,000 series H notes.

During January the Corporation sold to the Secretary of the Treasury $100,000,000 series J-3 notes and $40,000,000 series J-4 notes.

During January the Corporation redeemed and canceled $75,000,000 of its series J-4 notes, held by the Secretary of the Treasury.

As of January 31, 1936, there were outstanding $4,412,504,666.67 of the Corporation's notes, as follows:

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 January paid $3,000,000 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 $97,395,700 so paid through January 31, 1936.

Under section 2 (a) and section 6 of the Federal Emergency Relief Act of 1933, the Corporation during January disbursed $1,410.97 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 $100, making a net total of $339,514.56 so disbursed through January 31, 1936.

Under the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934, the Corporation during January agreed to purchase $53,333,100 face amount of marketable securities from the Federal Emergency Administration of Public Works to be held and collected or sold at a later date, and canceled $3,373,000 face amount of commitments previously made.

Under the Emergency Relief Appropriation Act of 1935, approved April 8, 1935, the Corporation during January paid $100,000,000 to the Secretary of the Treasury. This made a total of $400,000,000 so paid through January 31, 1936.

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

TABLE 1. Statement of loans authorized during January 1936 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 January 1936 under section 5d of the Reconstruction Finance Corporation Act, as amended (exclusive of amounts authorized during January 1936 but canceled during that month). TABLE 3. Statement of authorizations during January 1936 under section 5e of the Reconstruction Finance Corporation Act, as amended.

TABLE 4. Statement of an authorization during January 1936 under section 201 (d), title II, of the Emergency Relief and Construction Act of 1932, as amended. TABLE 5. Statement of loans authorized during January 1936 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 January 1936 under section 304, title III, of the act approved March 9, 1933, as amended (exclusive of an amount authorized during January 1936 but canceled during that month). TABLE 7. Statement of a loan authorized during January 1936 under the act approved April 13, 1934, as amended.

TABLE 8. Statement of loans authorized during January 1936 under section 14 of the act approved June 19, 1934, as amended.

TABLE 9. Statement of loans authorized during January 1936 under the act approved August 24, 1935.

TABLE 10. Statement of authorizations made prior to January 1, 1936, which were withdrawn or canceled in full during January 1936, no part of the proceeds being disbursed.

TABLE 11. Statement of authorizations made prior to January 1, 1936, which were withdrawn or canceled in part during January 1936.

TABLE 12. Statement of cash receipts and expenditures of the corporation during January 1936 (Corporation's accounts with Treasurer of United States). TABLE 13. Statement of condition of the corporation as of the close of business January 31, 1936.

Respectfully,

JESSE H. JONES, Chairman.