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ORO 12

ROBERT M. LA FOLLETTE, JR., Wisconsin, Chairman

ELLISON D. SMITH, South Carolina. 2312AESSE, IT. METCALF, Rhode Island. BURTON K. WHEELER, Montana.

H. D. HATFIELD, West Virginia.


W. WARREN BARBOUR, New Jersey. JOHN S. COHEN, Georgia.



EDWARD P. COSTIGAN, Colorado, Chairman
H. D. HATFIELD, West Virginia.






Washington, D. C. The subcommittee met, pursuant to call, in room 212, Senate Office Building, Senator Edward P. Costigan presiding.

Senator Costigan. The subcommittee will come to order. This meeting has been called for the purpose of holding a hearing on a bill to provide emergency financing facilities for unemployed workers, to relieve their distress, to increase their purchasing power and employment, and for other purposes. The bill is S. 4917, and will be placed in the report of this hearing at the outset.

(The bill S. 4947 is as follows:)

[S. 4947, Seventy-second Congress, first session]

A BILL To provide emergency financing facilities for unemployed workers; to relieve

their distress, to increase their purchasing power and employment, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States

America in Congress assembled, That there is hereby created a body corporate with the name of United States Exchange Corporation (herein called the corporation), whose prine'pal office shall be located in the District of Columbia but which may establish or designate agencies or branch offices in any location within the United States under regulations prescribed by the board of directors.

SEC. 2. The corporation shall have capital stock of $500,000,000 subscribed by the United States of America, payment for which shall be subject to call in whole or in part by the board of d'rectors. There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $500,000,000 for the purpose of making payments upon such subscription when called. Receipts for payments by the United States of America for or on account of such stock shall be issued by the corporation to the Secretary of the Treasury and shall be evidence of the stock ownership of the United States of America.

SEC. 3. The management of the corporation shall be vested in a board of directors cons st ng of the Secretary of the Treasury, the Secretary of Commerce, and the Sec•retary of Labor, who shall be members ex officio, and six other persons fairly representative of the interests of labor, management, and wwnership in the principal economic activities of the Nation, who shall be appointed by the President by and with tle advice and consent of the Sente. Of the nine members of the board of d reators not more than five shall be members of any one political party. Each director shall devote his time not otherwise required by the business of the United States principally to the business of the corporation. Defore entering upon his duties each of the directors so appointed and each officer of the corporation shall take an oath faithfully to d scharge the duties of his office. Nothing contained in th's or in any other act shall be construed to prevent the appointment and compensation as an employee of the corporation of any cfficer or employee of the United States in any board, commission, independent establishment, or executive department thereof. The terms of the directors appointed by the President of the United States shall be two years and run from the date of the enactment hereof and


until their successors are appointed and qualified. Whenever a vacancy shall occur among the directors so appointed, the person appointed to fill such vacancy shall hold office for the unexpired portion of the term of the director whose place he is selected to fill. The directors of the corporation appointed as hereinbefore provided shall receive salaries at the rate of $10,000 per annum each. No director, officer, attorney, agent, or employee of the corporation shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any quest.on affecting his personal interests, or the interests of any corporation, partnership, or association in which he is. directly or indirectly interested.

The corporation shall have succession for a period of ten years from the date of the enactment hereof, unless it is sooner dissolved by an act of Congress. It shall have power to adopt, alter, and use a corporate seal; to make contracts; to lease such real estate as may be necessary for the transaction of its business; to sue and be sued, to complain and to defend, in any court of competent jurisdiction, State or Federal; to select, employ, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the transaction of the business of the corporation, without regard to the provisions of other laws applicable to the employment and compensation of officers or employees of the United States; to define their authority and duties, require bonds of them and fix the penalties thereof, and to dismiss at pleasure such officers, employees, attorneys, and agents; and to prescribe, amend, and repeal, by its board of directors, by-laws, rules, and regulations governing the manner in which its general business may be conducted and the powers granted to it by law may be exercised and enjoyed, including the selection of its chairman and vice chairman, together with provision for such committees and the functions thereof as the board of directors may deem necessary for facilitating its business under this act. The board of directors of the corporation shall determine and prescribe the manner in which its obligations shall be incurred and its expenses allowed and paid. The corporation shall be entitled to the free use of the United States mails in the same manner as the executive departments of the Government. The corporation, with the consent of any board, commission, independent establishment, or executive department of the Government, including any field service thereof, may avail itself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this act.

SEC. 4. The policies and regulations of the corporation shall be determined: by the board of directors with the aid and advice of an advisory council consisting of at least eighteen and not more than twenty-seven persons appointed by the President from nominations made, in such manner as the President shall direct, by organizations generally recognized as representative of the respective interests of labor, management, and ownership in the principal economic activities of the Nation (such as agriculture, manufacturing, mining, marketing, banking, and transportation). Members of the advisory council shall serve. without compensation, but the expenses of the council and of its members in the transaction of its business shall be allowed and paid, on the approval of the board of directors of the corporation, under regulations prescribed by the board.

SEC. 5. It shall be the duty of the board of directors, with the aid and advice of the advisory council, immediately to make a survey, through existing public and private agencies of charitable relief, through State and municipal channels of information, and by means of its own delegated or established agencies, of the existing demands upon essential industries for the necessaries of life which are not being supplied because of the unemployment and lack of purchasing power of those persons responsible for self-support or for the support of dependents, and capable of such suport. The nature and quantity of the goodsand services thus in demand, but not supplied, shall be ascertained so far as possible, and classifications shall be made for the purpose of estimating

(a) The character and volume of purchases which would result from the creation of a purchasing power of $500 for each of said unemployed persons to meet their urgent needs during the succeeding six months.

(b) The approximate increases of present employment which would resuit from creating sufficient purchasing power to satisfy the said existing demand for the respective goods and services so classified as to character and volume.

SEC. 6. On the basis of this preliminary survey, which shall be completed so far as possible within thirty days after the organization of the board of directors and the advisory council, the corporation shall arrange through its local agencies to extend credits as hereinafter provided to unemployed adults

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