The 12 district banks for cooperatives and the Central Bank for Cooperatives (Washington, D. C.) were organized to make credit available to farmers' cooperative associations on a business basis and were chartered by the Governor of the Farm Credit Administration pursuant to the provisions of the Farm Credit Act of 1933. The banks were organized and began to function in the year 1933. Their charters provide for continued existence until dissolved by law.

The initial capital of the banks was subscribed by the Governor of the Farm Credit Administration from funds available in the revolving fund authorized by the Agricultural Marketing Act.

the same time member associations had contributed $3,384,300 of paid-in capital. In conformity with the provisions of the Budget Message of the President for the fiscal year 1941 the banks will repay $60,000,000 to the revolving fund in the Treasury. Forty million dollars have already been paid in. The proceeds of such repayments will be held in the Treasury of the United States as a fund available for resubscription if necessary. The banks acquire funds by rediscounting certain of their paper with the intermediate credit banks. with the intermediate credit banks. The Central Bank for Cooperatives may issue debentures but has never availed itself of the authority.

The receipts, expenditures, and means of financing of these banks are shown in detail in the statement

901

The Commodity Credit Corporation, created under the laws of the State of Delaware pursuant to Executive Order No. 6340, dated October 16, 1933, was organized primarily to make loans to producers to finance the carrying and orderly marketing of agricultural commodities. The act of March 4, 1939, continued the Corporation as an agency of the United States to June 30, 1941, or such earlier date as may be determined by the President. However, Congress has directed the Corporation to continue to perform its functions beyond that date for certain specific purposes.

The Corporation was transferred to the Department of Agriculture by Reorganization Plan No. I, effective July 1, 1939.

The Corporation has a capital stock of $100,000,000, all of which is held by the United States, and it is authorized, with the approval of the Secretary of the Treasury, to have outstanding at any one time obligations guaranteed by the United States in an aggregate amount of $1,400,000,000.

In addition to its general discretionary powers to make loans, the Corporation is directed by section 302 of the Agricultural Adjustment Act of 1938, as amended, to make loans upon cotton, wheat, and corn where the market price drops below a certain minimum or the crop estimates exceed normal domestic consumption and exports. The Secretary of the Treasury is required to make an appraisal of all assets and liabilities of the Corporation as of the 31st of March in each year for the purpose of determining its net worth. In the event the net worth of the Corporation is determined to be less than $100,000,000, the Secretary of the Treasury, subject to appropriation of funds therefor, is required to restore such capital impairment. In the event the net worth exceeds $100,000,000, such excess shall be deposited by the Corporation in the Treasury of the United States to the credit of miscellaneous receipts.

The receipts, expenditures, and means of financing are shown in detail in the foregoing statement.

The Disaster Loan Corporation was created on February 11, 1937, in accordance with the authority provided in the act approved February 11, 1937, as amended. The Reconstruction Finance Corporation subscribed and paid for an original capital of $20,000,000. The act approved March 4, 1939, increased the capitalization of the Corporation to $40,000,000, which was subscribed for by the Reconstruction Finance Corporation. The Treasury has reimbursed the Reconstruction Finance Corporation for, and now owns, all the paid-in capital which at present amounts to $24,000,000.

In accordance with the act approved March 4, 1939, the Corporation is authorized to make loans as it may determine to be necessary or appropriate because of floods or other catastrophes which occurred during the calendar years 1936 through 1940, inclusive.

The Disaster Loan Corporation has succession until dissolved by act of Congress, although, as shown in the sentence above, its lending authority is limited.

The receipts, expenditures, and means of financing of the Corporation are shown in detail in the statement above.

The Electric Home and Farm Authority was incorporated under the laws of the District of Columbia August 1, 1935, with a capitalization of $850,000 to succeed the Electric Home and Farm Authority, Incorporated, a Delaware corporation. By Executive Order No. 7139, dated August 12, 1935, the Electric Home and Farm Authority was designated an agency of the United States. The act approved March 2, 1939, authorized its continuation to June 30, 1941. The capital stock of the Corporation was subscribed and paid for by the Treasury of the United States.

The principal purpose of the Authority is to make available to purchasers of electrical and gas appliances and equipment more reasonable terms of financing than can elsewhere be obtained. Following an established

pattern of operation, the financing plan is available to consumers and dealers only in areas served by utilities, that enter into agreement with the Authority for the collection of installment payments, which offer reasonably low rates. The successful operation of the Authority is attested to by the fact that as of June 30, 1940, there has been accumulated a surplus of approximately $225,000 after provision has been made for the meeting of all expenses and depreciation.

Since the Authority expires on June 30, 1941, no estimates of receipts and expenditures have been included for the fiscal year 1942.

The receipts, expenditures, and means of financing are shown in detail in the foregoing statement.