Word: rfc
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TIME March 7: "Between 1932 and 1937 Congress directed Reconstruction Finance Corp. to make 'loans' totaling $2,500,000,000 to other Government agencies for relief and similar purposes. Unlike most of RFC's loans, made on a business basis to private industry, everyone knew these would never be paid back. Last week, the President signed a bill whereby, to simplify its bookkeeping, RFC was directed to write them off as 'unrecoverable...
Which is correct ? If the latter, you owe an apology to the RFC, which seems to be the only Government agency that has not played fast and loose with the taxpayers' money...
Thus last week wrote RFC Chairman Jesse Jones to inform the nation's banks that RFC's 32 offices (with about $1,500,000,000 in the kitty) are once more open for business. The riotous Little Businessmen's Conference in Washington last month called loudest for increased credit facilities. Last week Jesse Jones revealed that the day after Franklin Roosevelt untied RFC's purse strings, it received loan applications from 200 small businessmen. RFC now welcomes such applications no matter how small...
...bolster the stock market, the Government (1 asked the big banks to buy stocks as they did in the 1929 crash, 2 reduced margin requirements, 3 offered to lend RFC funds to speculators, 4 called in several issues of Federal bonds, 5 urged insurance companies to invest more funds in stocks...
When rising costs and falling revenues snipped the net operating income of Erie Railroad from $1,200,000 in December 1936 to $45,000 in December 1937, it could no longer meet its debt charges. When RFC refused Erie's request for a $6,006,000 loan because Erie's wealthy parent company, the Chesapeake & Ohio, would not guarantee the loan (TIME, Jan. 17). the jig was up. Last week, therefore, Erie wearily filed a petition to reorganize under section 77 of the Bankruptcy Act, its fourth reorganization in 100 years...