or for improvements, additions, extensions, or equipment which are necessary or desirable for the proper functioning of any such project, or which will materially increase the assurance that the borrower will be able to repay the entire investment of the corporation in such project, including such improvements, additions, extensions, or equipment.

LOANS FOR THE EXPORTATION OF AGRICULTURAL OR OTHER PRODUCTS

Under section 5a of the Reconstruction Finance Corporation Act, as amended, the corporation is authorized, subject to specified limitations, to accept drafts and bills of exchange drawn upon it, which grow out of transactions involving the exportation of agricultural or other products actually sold or transported for sale subsequent to the enactment of the law, and in process of shipment to buyers in foreign countries.

Under section 201 (c) of the Emergency Relief and Construction Act of 1932, the corporation is authorized to make loans for the purpose of financing sales of surpluses of agricultural products in the markets of foreign countries in which such sales cannot be financed in the normal course of commerce, in order that such surpluses may not have a depressing effect upon current prices of such products; but it is stipulated that no such sales shall be financed by the corporation if, in its judgment, such sales will affect adversely the world markets for such products, and that no such loan may be made to finance the sale in the markets of foreign countries of cotton owned by the Federal Farm Board or the Cotton Stabilization Corporation.

OTHER LOANS AND ADVANCES

Under SectTION 5 OF THE RECONSTRUCTION FINANCE CORPORATION ACT, AS AMENDED

The corporation is authorized to make loans under section 5 of the Reconstruction Finance Corporation Act, as amended, upon full and adequate security to any State insurance fund established or created by the laws of any State (including Alaska, Hawaii, and Puerto Rico), for the purpose of paying or insuring payment of compensation to injured workmen and those disabled as a result of disease contracted in the course of their employment, or to their dependents; to any fund created by any State (including Alaska, Hawaii, and Puerto Rico), for the purpose of insuring the repayment of deposits of public moneys of such State, or any of its political subdivisions, in banks or depositories qualified under the law of such State to receive such deposits; to parties to any marketing agreement entered into by the Secretary of Agriculture with processors, producers, associations or producers, and others engaged in the handling, in the current of interstate or foreign commerce, of any agricultural commodity or product thereof, for the purpose of carrying out any such agreement, as authorized by section 8 of the Agricultural Adjustment Act, as amended; processors or distributors of agricultural commodities for the payment of processing and compensating taxes and taxes on floor stocks levied pursuant to the provisions of title I of the Agricultural Adjustment Act, as amended, as authorized by section 19 (c) thereof.

LOANS AND ADVANCES TO THE SECRETARY OF AGRICULTURE

Under the provisions of section 5 of the Agricultural Adjustment Act, as amended, the corporation is authorized and directed to advance money and to make loans to the Secretary of Agriculture to acquire (a) all cotton owned by the Federal Farm Board and all departments or other agencies of the Government, not including the Federal intermediate credit banks, and (b) all cotton on which money has been loaned or advanced by any department or agency of the United States, including futures contracts for cotton, or which is held as collateral for loans or advances.

LOANSTO RECEIVERS APPOINTED UNDER SECTION 29 OF THE FEDERAL FARM LOAN ACT, AS AMENDED, OR BY A UNITED STATES DISTRICT COURT

Section 27 of the Emergency Farm Mortgage Act of 1933, as amended, authorizes the Reconstruction Finance Corporation, with the approval of the Land Bank Commissioner, to make loans to any receiver appointed pursuant to section 29 of the Federal Farm Loan Act, as amended, or to any receiver appointed by a district court of the United States for the purpose of paying taxes on farm real estate owned by the bank or securing the mortgages held by it.

LOANS TO THE CORPORATION OF FOREIGN SECURITY HOLDERS

The Corporation of Foreign Bondholders Act, 1933, which is not to take effect until the President finds that such action is in the public interest and by proclamation so declares, creates a body corporate with the name "Corporation of Foreign Security Holders" for the purpose of protecting, conserving, and advancing the interests of the holders of foreign securities in default. The Reconstruction Finance Corporation is authorized to loan not to exceed $75,000 for the use of the Corporation of Foreign Security Holders.

ADVANCES TO THE RECLAMATION FUND

Section 37 of the Emergency Farm Mortgage Act of 1933 authorizes the corporation, upon request of the Secretary of the Interior, to advance funds to the reclamation fund created by the act of June 17, 1902, not exceeding $5,000,000 for the completion of projects or divisions of projects now under construction, or projects approved and authorized.

PURCHASE OF MARKETABLE SECURITIES FROM THE FEDERAL

ADMINISTRATION OF PUBLIC WORKS

EMERGENCY

The corporation is authorized, pursuant to the provisions of title II of the Emergency Appropriation Act, fiscal year 1935, to purchase marketable securities, satisfactory to the corporation, acquired or to be acquired by the Federal Emergency Administration of Public Works. The amount that the corporation may have invested at any one time in such securities shall not exceed $250,000,000.

PURCHASE OF DEBENTURES OR OBLIGATIONS OF THE FEDERAL DEPOSIT INSURANCE

CORPORATION

Section 5e (b) of the Reconstruction Finance Corporation Act, as amended, authorizes the corporation to purchase at par value such debentures or other obligations of the Federal Deposit Insurance Corporation as are authorized to be issued under subsection (o) of section 12B of the Federal Reserve Act, as amended, upon the request of the board of directors of the Federal Deposit Insurance Corporation, whenever in the judgment of said board additional funds are required for insurance purposes. The corporation may not purchase or hold at any time said debentures or other obligations in excess of $250,000,000 par value.

FUNDS OF RECONSTRUCTION FINANCE CORPORATION ALLOCATED AND MADE AVAILABLE TO OTHER GOVERNMENTAL AGENCIES

SECRETARY OF AGRICULTURE AND FARM CREDIT ADMINISTRATION

Under section 2 of the Reconstruction Finance Corporation Act, the corporation was authorized to allocate and make available to the Secretary of Agriculture a certain part of its funds in order to enable the Secretary to make loans to farmers for crop production purposes during 1932. Pursuant to the provisions of section 201 (e) of the Emergency Relief and Construction Act of 1932, the corporation paid for the capital stock of the regional agricultural credit corporations, created by it under such section 201 (e), out of the unexpended balance of the amounts allocated and made available to the Secretary of Agriculture under section 2 of the Reconstruction Finance Corporation Act. By the act approved February 4, 1933, the authority of the Secretary of Agriculture was extended with respect to the use of funds allocated and made available to him by the Reconstruction Finance Corporation so as to enable him to make loans, within certain limitations, to farmers during 1933.

The funds made available and allocated under the foregoing provisions of law were transferred to and vested in the Farm Credit Administration by the Executive order of March 27, 1933, and to the Governor of the Farm Credit Administration by section 5 of the Farm Credit Act of 1933, as amended.

LAND BANK COMMISSIONER

The corporation is authorized, under section 30 (a) of the Emergency Farm Mortgage Act of 1933, to make available to the Land Bank Commissioner the sum of $100,000,000, to be used for a period not exceeding 2 years from the date of the enactment of such act, i. e., May 12, 1933, for the purpose of making loans to joint-stock land banks.

Under section 32 of the same act, the corporation is authorized also to allocate and make available to the Land Bank Commissioner the sum of $200,000,000, or so much thereof as may be necessary, to be used for the purpose of making loans to farmers.

FEDERAL EMERGENCY RELIEF ADMINISTRATOR

Section 2 (a) of the Federal Emergency Relief Act of 1933 authorized the corporation to make available not to exceed $500,000,000, for expenditure in accordance with the terms stated in the act, upon certification by the Federal Emergency Relief Administrator, for the purpose of furnishing relief to needy and distressed people.

FEDERAL HOUSING ADMINISTRATOR

Section 4 of the National Housing Act provides that the corporation shall make available to the Federal Housing Administrator such funds as he may deem necessary for the purposes of carrying out the provisions of Titles I, II, and III of such act.

SECRETARY OF THE TREASURY

Section 6 (f) of the Federal Home Loan Bank Act amended the Reconstruction Finance Corporation Act to provide that $125,000,000, or as much thereof as may be necessary for the purpose, be allocated and made available by the corporation to the Secretary of the Treasury in order to enable him to pay for the capital stock of Federal Home Loan Banks subscribed for by the United States. Section 4 (b) of the Home Owners' Loan Act of 1933 authorizes and directs the Reconstruction Finance Corporation to allocate and make available to the Secretary of the Treasury the sum of $200,000,000, or so much thereof as may be necessary, in order to enable him to make payments for subscriptions for the capital stock of the Home Owners' Loan Corporation, created by such act.

FUNDS OF THE RECONSTRUCTION FINANCE CORPORATION

CAPITAL STOCK

The capital stock of the corporation was fixed by section 2 of the Reconstruction Finance Corporation Act at $500,000,000, all of which was subscribed by the Secretary of the Treasury on behalf of the Government of the United States on February 2, 1932. The entire capital stock has been paid in by the Secretary of the Treasury and is held by the United States.

ISSUE OF NOTES, DEBENTURES, BONDS, OR OTHER SUCH OBLIGATIONS

The Reconstruction Finance Corporation Act, as amended by the Emergency Relief and Construction Act of 1932, authorizes the corporation, with the approval of the Secretary of the Treasury, to issue, and to have outstanding at any one time, its notes, debentures, bonds, or other such obligations in an amount aggregating not more than six and three-fifths times its subscribed capital stock.

However, the National Industrial Recovery Act, which terminated the power of the Reconstruction Finance Corporation to make loans or contracts to finance self-liquidating projects, etc., under the provisions of section 201 (a) of the Emergency Relief and Construction Act of 1932, as amended, provides that the amount of notes, debentures, bonds, or other such obligations which the Reconstruction Finance Corporation is authorized to have outstanding at any one time is decreased $400,000,000. On the other hand, the amount of notes, debentures, bonds, or other such obligations which the corporation is authorized to issue and have outstanding at any one time is increased by the provisions of other laws, as follows:

(a) By an amount not to exceed $125,000,000, in order to enable the Secretary of the Treasury to make payments for subscriptions for capital stock of the Federal Home Loan Banks, as provided in section 6 (f) of the Federal Home Loan Bank Act.

(b) By such amount as may be necessary

(1) To enable the corporation to subscribe for preferred stock of National or State banks or trust companies, to make loans secured by such stock as collateral, and to purchase capital notes or debentures of State banks or trust companies, as provided by section 304 of an act approved March 9, 1933, as amended.

(2) To enable the corporation to make loans to the Secretary of Agriculture upon cotton in his possession or control, as provided by section 5 of the Agricultural Adjustment Act, as amended.

(3) To provide funds for the Federal Housing Administrator to enable him to carry out the provisions of titles I, II, and III of the National Housing Act, as provided by section 4 of said act.

(c) By an amount not to exceed $50,000,000 to enable the corporation to subscribe for preferred stock, to purchase capital notes of insurance companies, and to make loans secured by such stock or notes as collateral, as provided by the act approved June 10, 1933, as amended.

(d) By $500,000,000 to enable the Federal Emergency Relief Administrator to make grants to States and Territories (including Alaska, Hawaii, the Virgin Islands, and Puerto Rico) and the District of Columbia to aid in meeting the costs of furnishing relief and work relief and in relieving the hardship and suffering caused by unemployment, as provided by the Federal Emergency Relief Act of 1933; and to make such expenditures, not to exceed $350,000, as are necessary to carry out the provisions thereof.

(e) By $300,000,000 in order to provide funds for allocation to the Land Bank Commissioner for the purpose of making loans to joint-stock land banks and to farmers, as provided by the Emergency Farm Mortgage Act of 1933, as amended.

(f) By an amount not to exceed $200,000,000 in order to provide funds for allocation to the Secretary of the Treasury for the purpose of making payments for subscriptions for the capital stock of the Home Owners' Loan Corporation, as provided by section 4 (b) of the Home Owners' Loan Act of 1933.

(g) By $850,000,000, as provided by section 3 of the act approved January 20, 1934.

(h) By an amount not to exceed $250,000,000 at any one time for the purchase at par value of debentures and other obligations of the Federal Deposit Insurance Corporation, as provided by section 5e (b) of the Reconstruction Finance Corporation Act, as amended.

(i) By an amount not to exceed $250,000,000 at any one time for the purchase of marketable securities acquired or to be acquired by the Federal Emergency Administration of Public Works, as provided by title II of the Emergency Appropriation Act, fiscal year 1935.

Notes, debentures, bonds, or other such obligations issued by the corporation, with the approval of the Secretary of the Treasury, are to mature not more than 5 years from their respective dates of issue, to be redeemable at the option of the corporation before maturity in such manner as may be stipulated in such obligations, and to bear such rate or rates of interest as may be determined by the corporation. The corporation, with the approval of the Secretary of the Treasury, also may sell on a discount basis short-term obligations payable at maturity without interest. The law provides that the notes, debentures, bonds, or other such obligations of the corporation shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof. The Secretary of the Treasury, in his discretion, is authorized to purchase any obligations of the corporation which may be issued pursuant to the provisions of the law, and may, at any time, sell any of the obligations of the corporation acquired by him. He is further authorized, at the request of the Reconstruction Finance Corporation, to market for the coroporation its notes, debentures, bonds, and other such obligations, using therefor all the facilities of the Treasury Department authorized by law for the marketing of obligations of the United States. The Reconstruction Finance Corporation Act, as amended, also provides that any and all notes, debentures, bonds, or other such obligations issued by the corporation shall be exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) at any time imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority.

REGIONAL AGRICULTURAL CREDIT CORPORATIONS

An Executive order issued on March 27, 1933, effective on May 27, 1933, transferred the management and functions, records, equipment, and personnel of the Regional Agricultural Credit Corporations from the Reconstruction Finance Corporation to the jurisdiction and control of the Farm Credit Administration. The Reconstruction Finance Corporation will continue to pay all expenses incurred in connection with the operations of these corporations, and to rediscount paper for them, as provided in section 201 (e) of the Emergency Relief and Construction Act of 1932.

FUNDS FOR RELIEF OF DESTITUTION

The power of the corporation to make funds available to States and Territories under section 1 of the Emergency Relief and Construction Act of 1932 for the relief of destitution was terminated at the close of June 1, 1933, pursuant to section 2 (c) of the Federal Emergency Relief Act of 1933, which created the Federal Emergency Relief Administration.

REPORTS

QUARTERLY REPORTS

Section 15 of the Reconstruction Finance Corporation Act provides that the corporation shall make and publish a report quarterly of its operations to the Congress stating the aggregate loans made to each of the classes of borrowers provided for and the number of borrowers by States (including the District of Columbia, Alaska, Hawaii, and Puerto Rico) in each class. The law further provides that the statement shall show the assets and liabilities of the corporation and the names and compensation of all persons employed by the corporation whose compensation exceeds $400 per month.

MONTHLY REPORTS

Under section 201 (b) of the Emergency Relief and Construction Act of 1932, the corporation is required to submit monthly to the President and to the Senate and the House of Representatives (or the Secretary of the Senate and the Clerk of the House of Representatives, if those bodies are not in session) a report of its activities and expenditures under the Reconstruction Finance Corporation Act and under section 201 of the Emergency Relief and Construction Act of 1932, together with a statement showing the names of the borrowers to whom loans and advances were made, and the amount and rate of interest involved in each

case.

FARM CREDIT ADMINISTRATION

By Executive order promulgated by the President and submitted to Congress on March 27, 1933, the following Government agencies and functions were consolidated into a single agency known as the Farm Credit Administration: Federal Farm Board,

Federal Farm Loan Bureau,

Regional Agricultural Credit Corporations of the Reconstruction Finance
Corporation,

Crop Production Loan Office, and

Seed Loan Office of the Department of Agriculture,

and also the functions of the Secretary of Agriculture under all provisions of law relating to the making of advances or loans to agricultural producers. The order became effective May 27, 1933.

In the Farm Credit Administration the operations of the Federal land banks, the national farm loan associations, and the joint stock land banks (including the joint stock land banks in receivership), are under the supervision of the Land Bank Commissioner, while the Federal intermediate credit banks are under the supervision of the Intermediate Credit Commissioner. The Farm Credit Administration is authorized to make such rules and regulations, not inconsistent with law, and to exercise such incidental powers as it deems necessary or requisite to fulfill its duties and carry out the purposes of the Federal Farm Loan Act and the applicable provisions of the Agricultural Credits Act of 1923, the Emergency Farm Mortgage Act of 1933, and the Farm Credit Act of 1933.

The Farm Credit Act of 1933 authorized the formation of production credit corporations and associations, and of banks for cooperatives. The production credit corporations and associations are under supervision of the Production Credit Commissioner, and the banks for cooperatives are under the supervision of the Cooperative Bank Commissioner. The actions of all the commissioners are under the jurisdiction and control of the Farm Credit Administration.

Under the President's Executive order of March 27, 1933, the administration of emergency crop loans was transferred from the Department of Agriculture to the Farm Credit Administration. The act of Congress approved February 23, 1934, authorized the sum of $40,000,000 to be appropriated for use in making such loans during 1934. The Production Credit Commissioner has been given the responsibility of supervising this fund. Emergency crop loans will be made