Page images
PDF
EPUB

TO BUSINESS

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON BANKING AND CURRENCY
UNITED STATES SENATE

SEVENTY-SIXTH CONGRESS

FIRST SESSION

ON

S. 1482

A BILL TO PROVIDE FOR THE INSURANCE BY THE RECON-
STRUCTION FINANCE CORPORATION OF LOANS MADE BY
BANKS TO BUSINESS ENTERPRISES FOR THE PURPOSE

OF ENABLING SUCH ENTERPRISES TO INCREASE

THEIR PRODUCTIONS, EXTEND THEIR OPER-
ATIONS, AND MODERNIZE THEIR PLANTS,
AND FOR OTHER PURPOSES

AND

S. 2343

A BILL TO PROVIDE FOR THE INSURANCE OF LOANS TO
BUSINESS, AND FOR OTHER PURPOSES

MAY 31, JUNE 1, 2, 5, 13, 15, 20, 21, 22, and 29, 1939

Printed for the use of the Committee on Banking and Currency

[blocks in formation]
[blocks in formation]

CONTENTS

Elliott, Edward, vice president of the Security First National Bank,
Los Angeles, Calif.

183

Ellman, Samuel H., New York, N. Y.-

Emery, DeWitt M., president, National Small Businesss Men's Asso-
ciation, and president Monroe Letterhead Corporation, Akron, Ohio_

Feyl, Albert J., chairman, small-loans committee, Atlantic County

League, Atlantic City, N. J_

Frank, Hon. Jerome N., Chairman, Securities and Exchange Commis-
sion, Washington, D. C---.

Gottlieb, George A., secretary, Smaller Business Men's Association for
New York, New Jersey, and Connecticut, New York, N. Y__

Hanes, Robert M., first vice president of the American Bankers Asso-

ciation; president of the Wachovia Bank & Trust Co., Winston-

Salem, N. C‒‒‒‒‒‒

307TM

331

51:

235

Huck, Wallace, representing the Canteen Co., Nutley, N. J__
Jeffries, Hon. Walter S., Representative in Congress from the Second
District of New Jersey--.

346

26

Jones, Hon. Jesse H., Chairman, Reconstruction Finance Corporation,
Washington, D. C____.

405

Jones, Roland, representative, National Association of Retail Drug-
gists, Washington, D. C__

221

130

Perkins, James H., chairman of the board, the National City Bank of
New York, N. Y..........

174

Shuman, William I., New York State division, American Federation
of Little Business, New York, N. Y..

310

Smith, Walter, president of the Federal Advisory Council, president
of the First National Bank, St. Louis, Mo----

Stoddard, W. L., Boston, Mass.-.

150

Voorhis, Hon. H. Jerry, Representative in Congress from the Twelfth

District of California_

Westbrook, James, president of the Bridgeport unit of the National
Association of Small Business Men's Association, Bridgeport, Conn-
Wiggins, A. L. M., chairman of the committee on Federal legislation,
American Bankers' Association, president, Bank of Hartsville,
Hartsville, S. C_

Woodward, Donald, Moody's Investors Service, New York, N. Y

EXHIBITS

353

155

360

TO PROVIDE FOR THE INSURANCE OF LOANS TO

BUSINESS

WEDNESDAY, MAY 31, 1939

UNITED STATES SENATE,

SUBCOMMITTEE OF COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C. The subcommittee met, pursuant to call, at 10:30 a. m., in room 301 Senate Office Building, Senator Robert F. Wagner presiding.

Present: Senators Wagner (chairman of the subcommittee), Adams, Radcliffe, Hughes, Smathers, Clark of Idaho, Townsend, and Frazier.

Present also, Senator Mead, of New York; Representatives Allen, of Pennsylvania, and Jeffries, of New Jersey.

Senator WAGNER. The subcommittee will come to order. This subcommittee meets for the purpose of considering two bills introduced by Senator Mead, S. 1482 and S. 2343. The bills will be made a part of the record.

(The bills S. 1482 and S. 2343 are here printed in full, as follows:)

[S. 1482, 76th Cong., 1st sess.]

A BILL To provide for the insurance by the Reconstruction Finance Corporation of loans made by banks to business enterprises for the purpose of enabling such enterprises to increase their productions, extend their operations, and modernize their plants, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That for the purpose of maintaining and increasing the employment of labor, the Reconstruction Finance Corporation (hereinafter referred to as the "Corporation") is authorized and empowered, under such terms and conditions not inconsistent with the provisions of this Act as it may prescribe, to insure national banks, and banks and trust companies incorporated under the laws of any State, Territory, possession, or the District of Columbia (hereinafter in this Act referred to separately as "bank") against losses which they may sustain as a result of loans and advances of credit made by them on and after July 1, 1939, and prior to July 1, 1941, to any industrial or commercial business, now or hereafter established, for the purpose of enabling such business to increase its production, extend its operations, or modernize its plant and equipment.

SEC. 2. No insurance shall be granted under this Act to any such financial institution with respect to any obligation representing any such loan or advance of credit unless such loan or advance of credit (1) is not in exceess of $200,000, (2) is amortized in such manner as to provide for payment of principal and interest by periodic payments over a period of not in excess of seven years, (3) bears interest (exclusive of premium charge for insurance and service charge) of not in excess of 4 per centum on the amount of the principal obligation outstanding at any time, (4) does not provide for any service charge in excess of 1 per centum per annum of the original amount of such loan or advance of credit, and (5) is secured by a first mortgage upon real estate, or by a chattel mortgage upon personal property, determined by the Corporation to have a value

1

« PreviousContinue »