DISTRIBUTION OF EMPLOYMENT BY MAJOR TYPE OF PROJECT PWA-Public Works Administration, a unit of the Federal Works Agency-Commissioner of the Public Works Administration, M. E. Gilmore; Executive Officer, J. J. Madigan. Address, Washington, D. C. The Public Works Administration, formerly the Federal Emergency Administration of Public Works, was created under authority granted the President under Title II of the National Industrial Recovery Act, approved June 16, 1933, to bring about an expansion of Federal and non-Federal public construction that would increase employment, stimulate private industry, and promote economic recovery. PWA was consolidated into the Federal Works Agency July 1, 1939, under the President's first plan on government reorganization as authorized in the Reorganization Act of 1939. PWA programs embrace three major classes of projects: (1) projects for agencies of the Federal Government; (2) projects undertaken by State and local governments or other public bodies; and (3) railroad projects. (Loans, but no grants, were approved for privately-owned railroads.) As of July 1, 1941, the total of the allotments under all PWA programs was $4,108,291,962. Of this amount the allotments for Federal projects, all of which were 100 per cent grants, were $1,779,146,115, and those for non-Federal projects were $2,329,145,847. The non-Federal total was made up of $820,533,813 in loans and $1,508,612,034 in grants. The total cost of projects for both the Federal and non-Federal programs is estimated to be $5,999,747,078. No allotments were made to new projects during the last fiscal year. The Public Works Administration has been in the process of liquidation and completing its larger power and other projects throughout the country. As of July 1, 1941, there still remained to be completed only 200 of the 17,827 Federal and 43 of the 16,641 non-Federal projects built under all of the PWA programs. The life of the Public Works Administration was extended to June 30, 1942, by the Independent Offices Appropriation Act of 1941. Reconstruction Finance Corporation RFC-Reconstruction Finance Corporation--Charles B. Henderson, chairman; Carroll B. Merriam, Howard J. Klossner, Sam H. Husbands, and Henry A. Mulligan, directors. Address, Washington, D. C. Loan Agencies are maintained in Atlanta, Ga.; Birmingham, Ala.; Boston, Mass.; Charlotte, N. C.; Chicago, Ill.; Cleveland, Ohio; Dallas, Texas; Denver, Colo.; Detroit, Mich.; Helena, Mont.; Houston, Tex.; Jacksonville, Fla.; Kansas City, Mo.; Little Rock, Ark.; Los Angeles, Calif.; Louisville, Ky.; Minneapolis, Minn.; Nashville, Tenn.; New Orleans, La.; New York, N. Y.; Oklahoma City, Okla.; Omaha, Nebr.; Philadelphia, Pa.; Portland, Oreg.; Richmond, Va.; St. Louis, Mo.; San Antonio, Texas; San Francisco, Calif.; Seattle, Wash.; Spokane, Wash,; and Offices of Special Representatives at Salt Lake City, Utah; and San Juan, Puerto Rico. The Reconstruction Finance Corporation was created by Act of Congress, approved Jan. 22, 1932, and began operations Feb. 2, 1932. Its powers have been increased and the scope of its operations extended or otherwise affected by subsequent legislation. The Corporation may perform all of its functions to the close of business Jan. 22, 1947. unless the President authorizes the suspension of its activities prior to that time. The capital stock 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 Feb. 2, 1932. Pursuant to the provisions of section 2 of the RFC Act, as amended by Act approved June 25, 1940, the Corporation retired $175,000,000 of its capital stock at par. The functions of the Corporation include the making of loans: to business enterprises; public agencies; financial institutions; insurance companies; railroads, drainage, levee, irrigation, and similar districts; mining and fishing industries; public school districts or other public school authorities. It may subscribe to and lend upon nonassessable stocks of banks, trust companies, insurance companies, national mortgage associations, mortgage loan companies; purchase capital notes or debentures of such institutions; lend for the carrying and orderly marketing of agricultural commodities and livestock, and exportation of agricultural or other products; and purchase securities from Public Works Administration. also authorized to aid the Government of the United States in its National Defense program by the making of loans and the purchase of capital stock of corporations created by it. It is Total authorizations by the RFC through June 30, 1941, and tentative commitments outstanding at the end of the month were $17,635,321,089.43. This sum includes a total of $1,410,649,945.66 authorized for other Governmental Agencies and $1,800,000,000 for relief by direction of Congress. Of the $14.424,671,143.77 remaining after excluding authorizations for other Governmental Agencies and for relief, $2,770,093,856.44 was canceled or withdrawn, $2,905,049,180.51 remains available to borrowers and to banks in the purchase of preferred stock and debentures. Of disbursements for all purposes aggregating $11,857,558,803.45, only $2,573,006,051.88 remains unpaid. To assist open banks in meeting the demands of depositors and in continuing their operations, $1,334,805,161.08 in loans was authorized by the Corporation. $1,138,233,619.27 has been disbursed, $18,000 remains available to the borrowers and the balance has been canceled. In addition, loans aggregating $1,390,360.811.15 were authorized for distribution to depositors in 2,778 closed banks so that they would not have to wait for liquidation of assets of the banks. Of the $2,172,619,670.14 disbursed, there remains unpaid only $108,828,958.71. Only $5.904.471.84 is owed by open banks and that includes $5,322,410.75 from one Mortgage and Trust Company. Authorizations have been made for the purchase of preferred stock, capital notes and debentures of 6,803 banks and trust companies aggregating $1,466,740,663.24 (including Export-Import Bank, $176,500,000) and 1,123 loans have been authorized, in the amount of $52,811,025.76 to be secured by preferred stock, a total authorization for preferred stock, capital notes and debentures of 6,873 banks and trust companies of $1,519,551,689; $174,322.857.44 of this has been withdrawn and $822,500 remains available to the banks when conditions of authorizations have been met; $629,198,298.40 of such purchases and loans are unpaid. Loans have been authorized to refinance 657 drainage, levee and irrigation districts aggregating $147.137,308.39, of which $46,203,549.54 has been withdrawn: $4.001,849.44 remains available to the borrowers and $96,931,909.41 has been disbursed. The Corporation has authorized 7,776 loans for the benefits of industry aggregating $500,029,768.05. including loans to the fishing industry, to banks and to mortgage loan companies to assist business and industry. Of this amount $102,278,259.24 has been withdrawn and $127,675,236.72 remains available to the borrowers. In addition, the Corporation has authorized or has agreed to the purchase of participations aggregating $112,043,301.36 of 1,931 businesses, $59.461.530.46 of which has been withdrawn and $31,559,016.02 remains available. On Self-Liquidating Projects 405 loans have been authorized aggregating $776,637,133.28; $47.768.143.14 of this amount has been withdrawn and $172,201,375 remains available to the borrowers; $556,667,615.14 has been disbursed and $44,104.140.92 is unpaid. The Corporation has purchased from the Public Works Administration, Federal Works Agency (formerly Federal Emergency Administration of Public Works) 4,417 blocks (3,316 issues) of securities having par value of $694,236,258.90. Of this amount, securities having par value of $511,339,792.25 were sold at a premium of $14,184,899.59. Securities having a par value of $150,115,119.68 are still held. In addition, the Corporation has agreed to purchase, to be held and collected or sold at a later date, such part of securities having an aggregate par value of $3,737,000.00 as the Aministration is in a position to deliver from time to time. The Corporation created and owns the capital stock, in the amount of $17,000,000.00 of the Metals Reserve Company, Rubber Reserve Company. De-, fense Plant Corporation and Defense Supplies Corporation. All of these companies are actively engaged in the National Defense program in their respective fields. In addition to loans to these companies, aggregating $2,583,050,000, the Corporation has authorized 131 loans to 56 private manufacturers in the defense program, aggregating $150,703,608.78. Of the $2,733,753,608.78 authorized as loans for National Defense purposes $6,779,608.79 has been canceled and $332,254,473.87 disbursed. The Corporation also cooperates with banks in making loans for production, plant expansion or other National Defense purposes, by taking participations in any such loans. The lending authority of the RFC was increased by $1,500,000,000 (Oct. 1941) by Congress to aid in expanded defense operations in setting up new corporations. The Corporation has authorized participations to the extent of $5,392,359.67 in defense loans aggregating $8,255,793.00, practically all made by banks. RFC loans and investments outstanding on June 30, 1941 were: For benefit of agriculture. To banks and trust companies (in- For Self-Liquidating Projects To drainage, levee and irrigation To railroads (including receivers and trustees) For loans to and capital of mort- For loans to and capital of insur- To building and loan associations To mining, milling and smelting businesses For National Defense (including stock of companies organized for National Defense purposes). For PWA Securities (at cost). For other purposes. $ 178,406,883.74 108,828,958.71 753,939,298.40 44,104,140.92 151,870,109.99 78,621,665.60 469,634,011.01 202,888,092.71 23,688,392.36 4,355,507.30 3,897,629.50 306,243.255.51 122,071,448.38 1,959.083.21 $2,390,508,477.34 182,497,574.54 Total Loans and Investments...$2,573,006,051.88 DISASTER LOAN CORPORATION The Disaster Loan Corporation was created by Aot approved Feb. 11, 1937. Under the Act, as amended, its nonassessable capital stock shall not exceed $40,000,000, to be subscribed to and paid for by the Reconstruction Finance Corporation. It is managed by officers and agents appointed by RFC and will have succession until dissolved by Congress. Under the Act, as amended, the Disaster Loan Corporation is empowered to make such loans determined to be necessary or appropriate because of floods or other catastrophes occurring during the period between Jan. 1, 1936, and Jan. 22, 1947. As of June 30, 1941, it had authorized 23,671 loans. aggregating $31,472,398.63, of which $3,416.055.52 was withdrawn or canceled, and $28,020,001.42 disbursed. Of this latter amount $14,398,650 was disbursed to the Federal Surplus Commodities Corporation for the salvage of blown down timber in the New England hurricane district. Disbursements have been made to borrowers in 42 States. THE RFC MORTGAGE COMPANY The RFC Mortgage Company was organized March 14, 1935. under the laws of Maryland. The Reconstruction Finance Corporation supervises the operations of the Company and owns its outstanding capital stock of $25,000,000.00 Its purpose is to aid in the reestablishment of a normal market for sound mortgages on urban property and for other purposes; and it engages in the following major group activities: (1) When financing is necessary and cannot be obtained upon reasonable rates and terms, the Company considers applications for, loans, on a sound basis, secured by first mortgages on urban, income-producing properties, such as apartment houses, hotels, business and office buildings, if the net income from the property. after the payment of taxes, insurance, and operating expenses, is sufficient to pay interest charges and the required amortization of the loan. These loans are chiefly for refinancing and aiding in the reorganization of distressed real property. (2) The Company also gives consideration to applications for loans to finance new construction, provided there is an economic need for such construction, the mortgagor's investment in the completed project will be substantial in relation to the amount of the loan requested and his resources and experience are sufficient to indicate that the property can be operated on a sound basis. (3) The Company also considers application for loans to distressed holders of first mortgage real estate bonds and certificates upon the security of their notes secured by such bonds and certificates. provided sufficient information is available to the Company to enable it to determine that the income of the property securing the bonds or certificates is sufficient to warrant the loan. Loans will not be made to the holders of such bonds or certificates who acouired them for speculative purposes. (4) The Company also purchases, at par and accrued interest mortgages insured under Title II and Title VI of the National Housing Act, as amended, provided such mortgages meet the eligibility requirements of the Company. (5) The Company also purchases, for an amount equal to the unpaid principal thereof, plus accrued interest thereon, loans reported for insurance to the Federal Housing Administration, pursuant to the provisions of Title I of the National Housing Act. as amended, provided the proceeds of such loans were used to finance the erection of residential structures constructed after January 1. 1940, and provided further, such loans otherwise meet the Company's eligibility requirements. For the period March 14, 1935, the date of organization of the Company, through June 30, 1941, the Company approved loans and purchases aggregating $314,493,664.11 including conditional agreements, itemized as follows: Refinancing in cases of distress....$ 96,047,250.25 FEDERAL NATIONAL MORTGAGE ASSOCIATION In Feb., 1938, the Reconstruction Finance Corporation, with the approval of the President, organized The National Mortgage Association of Washington, the name of which was subsequently changed to Federal National Mortgage Association, under the provisions of Title III of the National Housing Act, as amended, with a capital of $10.000,000 and a surplus of $1,000,000. It is owned and operated by the Reconstruction Finance Corporation and deals exclusively with mortgages insured by the Federal Housing Administrator. The Association's principal objectives are: a. To establish a market for first mortgages, insured under the provisions of Title II of the National Housing Act, as amended. covering properties upon which are located newly constructed houses or housing projects; b. To facilitate the construction and financing of economically sound rental housing projects. apartment buildings which may be operated at a moderate scale of rentals, and groups of houses or multi-family dwellings for rent or sale, by making loans secured by first mortgages, insured under section 207, of the National Housing Act, as amended, covering such projects, apartment buildings, or groups of houses or multi-family dwellings; and c. To make available to individual and institutional investors notes, bonds or other obligations issued by the Association pusuant to the provisions of section 302 of Title III of the National Housing Act, as amended, and the regulations of the Federal Housing Administrator. The Association will purchase, without recourse. mortgages insured by the Administrator under the provisions of section 203 of the National Housing Act from institutions or organizations, other than loan correspondents, which have been approved as mortgagees by the Administrator and have a net worth satisfactory to the Association, at a price equal to the unpaid principal balance of such mortgages plus accrued interest to the date of purchase, provided such mortgages constitute first lens on property located within a radius of 200 miles from the principal home office or approved branch office of the approved mortgagee, bear interest at a rate of not less than 4.5 percent per annum. cover improvements constructed on or after January 1, 1936, which were insured by the Administrator on or after January 1, 1937, and otherwise meet the Association's requirements. 3.236.624.52 Approved mortgagees desiring to offer mortgages insured under section 203 of the National Housing Act to the Association for immediate purchase, or for purchase at a future date, are required to enter into a purchasing and servicing agreement with the Association. In instances in which commitments to purchase at a future date are made, the Association requires the approved mortgagee to deposit a commitment fee equal to 1 percent of the principal amount of the mortgage, which fee will be returned when the mortgage is delivered to the Association for purchase. Commitments are made for a period of 6 months. The Association will consider applications from approved mortgagees for commitments to purchase mortgages insured by the Administrator under the provisions of section 207 of the National Housing Act. Applications for such commitments must be submitted to the Association and the commitment of the Association be obtained prior to the beginning of the construction of the project to be covered by such mortgages. The Association will consider applications for loans secured by mortgages insured by the Administrator under the provisions of section 207 of the National Housing Act where the estimated income from the mortgaged property is sufficient to pay the operating expenses, taxes, insurance, interest on the indebtedness, and reasonable amortization. and provide a reasonable margin in excess of required reserves. Applications for such loans must be submitted to the Association prior to the beginning of construction of the project to be covered by the mortgage. Loans made by the Association secured by mortgages insured under section 207 of the National Housing Act will bear interest at the rate of 4 percent per annum. An initial service charge of 1.5 percent of the principal amount of the loan will be made by the Association if it is required to make disbursements during the period of construc tion. Through June 30, 1941, the Federal National Mortgage Association had bought 55.868 FHA Insured Mortgages, aggregating $222.363.893.19 and had commitments to buy 1,066 additional mortgages aggregating $4,441,324.36. In addition it had authorized 14 Large Scale Housing Loans aggregating $5,650,500.00, of which 2 in the amount of $304,000.00 have been cancelled. METALS RESERVE COMPANY Metals Reserve Company was created by the Reconstruction Finance Corporation June 28, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended by Public-No. 664-76th Congress, approved June 25, 1940, with a capital of $5,000,000. The purpose of the Company is to acquire and carry a reserve supply of critical and strategic materials, in connection with the National Defense program. To the close of business June 30, 1941, the Metals Reserve Company, with the approval of the RFC, had made commitments to acquire aluminum. antimony, asbestos, industrial diamonds, beryl ore, titanium ore, bauxite, ferro-nickel, zirconium, cadmium, chrome ore, copper, graphite, iridium, lead, lead ore, manganese ore, mica, quartz crystals, tin, tin ore, tungsten, zinc, and sine ore, at a cost approximating $807,000,000. RUBBER RESERVE COMPANY Rubber Reserve Company was created by the Reconstruction Finance Corporation June 28, 1940. pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended by the Act approved June 25, 1940, with a capital of $5,000,000. The purpose of the Company is to acquire and carry a reserve supply of rubber in all of its forms to aid in the National Defense program. To accelerate the accumulation of such reserve supply of rubber and to facilitate the distribution of rubber to the manufacturing industry both for de DEFENSE PLANT Defense Plant Corporation was created by the Reconstruction Finance Corporation August 22, 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with an authorized capital of $5,000,000. The purposes of the Corporation are (a) to buy, sell, acquire, store, carry, import, export, produce, process, manufacture, and market stragetic and critical materials as defined by the President of the United States; and to purchase, lease, construct or otherwise acquire, and to use, or arrange for the use by others of, such land, buildings, plants, machinery, equipment, and facilities as may be necessary or appropriate in connection therewith; (b) to purchase, lease or otherwise acquire real estate and interests in real estate, to purchase, lease or otherwise acquire and to build and expand plants and facilities, and to purchase, fense and for commercial requirements, the Company on June 23, 1941, became the sole buyer of rubber exported to the United States from the Far East. Acting in pursuance of this object and in by the Office of Production Management and the accordance with consumption programs established Office of Price Administration and Civilian Supply, the Company subsequently established a central distribution system to meet the current needs of the rubber industry. As of June 30, 1941, Rubber Reserve Company had made commitments approximating $200,000,000. CORPORATION lease, produce or otherwise acquire and to repair, rebuild and alter equipment, supplies and machinery, for the manufacture of arms, ammunition and implements of war: (c) to use, lease, liceense, or otherwise arrange for the use by others of such real estate, plants, facilities, equipment, supplies and machinery, for the manufacture of arms, ammunition and implements of war and the production of equipment, supplies and machinery usable in such manufacture; and (d) if the President of the United States finds that it is necessary for the Corporation to engage in the manufacture of arms. ammunition and implements of war, to engage in such manufacture itself. DEFENSE SUPPLIES Defense Supplies Corporation was created by the Reconstruction Finance Corporation August 29. 1940, pursuant to authority of section 5d of the Reconstruction Finance Corporation Act, as amended, with a capital of $5,000,000. The purpose of the Corporation is to produce, acquire, carry, sell, or otherwise deal in strategic and critical materials and supplies; to purchase and lease land; to engage in the manufacture of arms, ammunition, and implements of war; to DEFENSE HOMES Defense Homes Corporation was incorporated pursuant to the laws of the State of Maryland on October 23, 1940, with an authorized capital of $10,000,000 divided into 100.000 shares of the par value of $100 each. subscribed for and purchased by the Federal Loan Administrator with funds allocated by the President pursuant to a letter dated October 18, 1940, from the President to the Secretary of the Treasury. Such stock is not transferable. The Corporation will provide homes in areas of extensive defense activities including training As of June 30, 1941, Defense Plant Corporation has made commitments aggregating $1,622,498,508.87 for the acquisition of plant sites and the construction and equipment of buildings. CORPORATION produce, lease, purchase, or otherwise acquire railroad equipment and commercial aircraft, and to lease, sell, or otherwise dispose of same; to acquire facilities for the training of aviators, and to take such further action as the President and the Federal Loan Administrator deem necessary to expedite the National Defense program. As of June 30, 1941, commitments made by the Defense Supplies Corporation aggregated $137,466,544.16. CORPORATION bases for the Army and Navy, where such homes are necessary and, so far as can be determined. will constitute a permanent part of the communi ties. As of June 30, 1941, Defense Homes Corporation had issued commitments for the purchase of real estate and the construction of homes in amounts aggregating approximately $10,160,000.00. Such funds, in excess of its capital, as may be needed by Defense Homes Corporation for its operations will be borrowed upon the security of mortgages upon its projects. Rural Electrification Administration REA-Rural Electrification Administration. Harry Slattery, Administrator, Washington, D. C. The Rural Electrification Administration was created by executive order of President Roosevelt May 11, 1935, under the Emergency Relief Appropriation Act of 1935 with a one-year program, continued for 10 years by the Rural Electrification Act of 1936. Reorganization Plan II placed REA under the Department of Agriculture July 1, 1939. REA makes loans at low interest to cooperatives. municipalities, other public bodies and private utilities to finance the cost of constructing distribution systems to reach unserved persons in rural areas. Where power is not available at reasonable rates, REA may finance generating plants. It also makes loans with which its borrowers can finance wiring, plumbing and electrical equipment installations by their consumers. No loans are made to individuals. Electric cooperatives have received 97% of all loans. to over 775,000. On July 1, 1939, $227,340,899 had been allotted to 632 borrowers; by June 30, 1940, allotments totalled $369,027.621 to 823 borrowers for building an estimated 355,000 miles of line to serve 1,175,000 consumers in 45 States, Alaska and the Virgin Islands. $12,289,150 had been loaned for generating equipment. Since July 1, 1939, the number of miles of REAfinanced line has more than doubled, increasing from 115,000 to approximately 310,000; likewise the number of consumers increased from 268,000 For the fiscal year ending June 30, 1942. Congress appropriated an additional $100,000,000. This sum, subject to defense priorities, will build 75,000 miles of line serving approximately 225.000 consumers in addition to financing generating facilities where needed and providing for wiring, plumbing and other loans. During the period of REA's existence the percentage of American farms with central station electric service has increased from 10.9% to more than 30%. In June, 1940, a Defense Committee was formed to direct defense activities and has made available to the Army and Navy all REA facilities. REA is sponsoring establishment of rural nutrition centers under the Food-for-Defense program. Federal Home Loan Bank Board FHLBB-Federal Home Loan Bank Board-John H. Fahey, Chairman; T. D. Webb, Vice-Chairman; Fred W. Catlett, William H. Husband and Frank W. Hancock, Jr., members. Address: Washington, D. C. The Federal Home Loan Bank Board, a bi-partisan body, administers the following three agencies in the field of savings, home finance and housing: 1. The Federal Home Loan Bank System, including in its membership state-chartered home financing institutions and Federally-chartered savings and loan associations. 2. The Federal Savings and Loan Insurance Corporation, which protects against loss funds invested in institutions of the savings, building and loan type. 4. Home Owners' Loan Corporation, an emergency organization established to relieve mortgage distress by making loans to home owners. FEDERAL HOME LOAN BANK SYSTEM The Federal Home Loan Bank Act was passed by Congress in July, 1932. The purpose was to set up a central credit reserve system for institutions that joined as members, parallel in a degree to the Federal Reserve System in the field of commercial banking. The System is based on twelve district Federal Home Loan Banks. Institutions eligible for membership in the Federal Home Loan Bank System include thrift and home-financing organizations known variously throughout the country as savings and loan associations, building and loan associations, COoperative banks and homestead associations. Life insurance companies and mutual savings banks are also eligible for membership. All of these institutions may become members after they have met conditions laid down in the Act. One of the requirements is that the institution make longterm home loans. The net interest rate which the home owner may be charged must not exceed the legal rate of interest in the state where the property is located. Each Federal Home Loan Bank is authorized to make long-term advances to its members upon the security of home mortgages or obligations of the United States, or obligations fully guaranteed by the United States, subject to such regulations and limitations as the board may prescribe. Shortterm unsecured advances may also be made. The Banks are also authorized to make advances to non-member institutions approved under Title II of the National Housing Act on the security of mortgages insured under that Act. The twelve Federal Home Loan Banks began operations in October, 1932. At the end of that year the membership numbered 119 institutions having total assets of $217,000,000. Steady expansion followed as the System demonstrated its usefulness and potentialities, and as of June 30, 1941, the member institutions numbered 3,839 with total assets estimated at $5,300,000,000. The total borrowing capacity of the members reached more than $2,000,000,000 on that date. The Federal Home Loan Banks as of June 30, 1941, had advanced a total of $773,908,000 to member institutions in the form of short and longterm credit, and had received repayments totaling $604,011,000, leaving a balance outstanding of $167,897,000. No losses have been suffered and delinquencies are inconsequential. The Act author ized the U. S. Treasury to provide the Banks with initial capital, and as of June 30, 1943, the Treasury had paid in its total subscription of $124,741,000, while the member institutions owned paid-in stock amounting to $46,542,200, making a total paid-in capital of $171,283,200. The Act provided that, to qualify for membership, each institution must subscribe to stock in its regional bank in an amount equal to at least one per cent of the aggregate of the unpaid principal of the subscriber's home mortgage loans but not less than $500. In April, 1937, to meet the needs of its expansive program, the Bank System went into the security markets for its first public financing. To date, seven issues of consolidated debentures totaling $209,700,000 have been offered, all of which were heavily over-subscribed. As of July 1, 1941, two of these issues were outstanding in a total amount of $75,500,000. In 1933, Congress authorized the Federal Home Loan Bank Board to charter and supervise Federal savings and loan associations, which might be organized by local groups throughout the country. It also authorized the Board to convert to Federal charter such eligible state-chartered savings, building and loan associations as might desire it. Federal savings and loan associations are local, privately owned and managed, thrift and homefinancing institutions. The are required to be member institutions of the Federal Home Loan Bank System. In 1933, there were 1,554 of the 3,073 counties in the United States without local thrift and home-financing facilities. In other communities, as a consequence of the depression, many existing institutions of the savings and loan type were unable adequately to meet the needs of either investors or borrowers. Federally chartered savings and loan associations offered a means of remedying the lack quickly. They have so increased in number that now they are in a position to serve in whole or in part almost all of the Nation's counties. On June 30, 1940, there were 1,455 Federal associations in operation, of which 816 had been converted from state-chartered associations, and 639 had been newly organized. They are located in all states of the Union and in the District of Columbia, Hawaii and Alaska. This growth is shown in the following table: Assets No. 1,368 1,311,207,000 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION The Federal Savings and Loan Insurance Corporation is a permanent instrumentality of the Government created by Congress in 1934. It insures the safety of investments up to $5,000 per investor in each Federal Savings and Loan Association and in each state-chartered institution of the savings and loan type which applies and is approved for this protection. Standards of eligibility include sound financial condition, competent management, safe lending policies, ability to meet withdrawal demands, and satisfactory earning power. which 1,455 were Federal Savings and Loan Associations and 860 were state-chartered institutions. These associations are situated throughout the United States and its territories. Practically all of them are members of the Federal Home Loan Bank System. Congress provided $100,000,000 paid-in capital of the Corporation. Each insured association pays an annual premium based upon its total share and creditor liability. These premiums are used to build substantial reserves for the protection of insured investors, expenses of the Corporation being currently paid from interest on the reserve fund. On June 30, 1941, the Corporation had accumulated reserves amounting to nearly $30,000,000. HOME OWNERS' LOAN CORPORATION As of June 30, 1941, 2.315 associations having total assets of $3,160,000,000 were insured, of HOLC was created by Congress in 1933, to make loans directly to distressed home owners over a three-year period. It refinanced home owners by taking over their delinquent mortgages. Since 1936, when its lending operations ceased, the Corporation has been engaged in the collection of the funds it loaned and the sale and rental of the properties it has been forced to acquire. To qualify for the refinancing of his mortgage debt, a home owner had to be in involuntary default and unable to carry or refund the mortgagedebt. Only properties for not more than four families, used as a home or held as a homestead, were eligible. The loan could not exceed 80% of the appraised value of the land and buildings, or $14,000, whichever amount Was the |