Word: rfc
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McLeod Bill (as amended) would order RFC to pay off in cash all deposits in closed banks up to $2,500 and to lend depositors up to 85% on any remaining unpaid balances. Jesse Jones, speaking to the House Banking & Currency Committee against the bill, said it would involve the Government in huge losses-up to $2,500,000,000 if balances in all closed banks were paid in full, a large portion of that amount under the $2,500 limitation. How the sum would be obtained the bill did not specify (probably by borrowing) but the fact that...
Reason No. 1 for this shortcoming is that the estimate of emergency outlay included $3,970,000,000 for RFC. Actually RFC has been paid back over 25% of the $5,000,000.000 it has lent in two years. A quarter-billion dollars has been repaid since Jan.1 and Jesse Jones intimated last week that repayments would take care of the additional amounts to be lent until next July. Consequently RFC's net drain on the Treasury is likely to fall one to one and a half billion below the President's estimate. Big repayers to RFC have...
Ever since he thus addressed the American Bankers Association last summer, RFC Chairman Jesse Jones has been hammering away at the idea that commercial banks must loosen up on industrial credit to finance recovery. By way of example this big breezy Texan scattered hundreds of millions of dollars in Federal loans up and down the country. If commercial bankers refused to follow his pace, he threatened again & again to put the RFC directly into the commercial banking field and take away the business of private sluggards...
...eight months deposits at the Jones bank jumped from $18,390,000 to $23,623,000, and through sale of preferred stock to the RFC capital had increased from $1,000,000 to $3,500,000. But the American Banker discovered that instead of lending more freely in the best Jones manner, the Jones bank had substantially increased its cash and Government bond holdings until it was more than 80% liquid. Loans & discounts had actually decreased. The Jones bank was rock-sound but apparently it had found good borrowers as scarce as any non-Jones bank in the land...
...obtain $60,000,000 in bank loans, he had been forced to ask the Prime Minister for a Government guarantee of principal & interest. Bond issues and old bank loans were coming due and the New York and London capital markets were closed to orthodox financing. Canada has no RFC because Canada has only two railroads (privately-owned Canadian Pacific and government-owned Canadian National*) and only eleven commercial banks. But solemn Rt. Hon. Richard Bedford Bennett has broad powers under The Emergency Relief Act. C. P. R.'s request was granted after it had pledged with the Government...