2 CREATION OF A RECONSTRUCTION HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON BANKING AND CURRENCY Congres UNITED STATES SENATE A SEVENTY-SECOND CONGRESS FIRST SESSION ON S. 1 A BILL TO PROVIDE EMERGENCY FINANCING FACILITIES DECEMBER 18, 19, 21, 22, 1931 Printed for the use of the Committee on Banking and Currency 1559 808 CREATION OF A RECONSTRUCTION FINANCE CORPORATION FRIDAY, DECEMBER 18, 1931 UNITED STATES SENATE, SUBCOMMITTEE OF COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The subcommittee met, pursuant to call, at 3.30 o'clock p. m., in the committee room, Senator Walcott presiding. Present: Senators Walcott (chairman of subcommittee), Norbeck, Brookhart, Townsend, Fletcher, and Glass. Present also: Senators Moses, Watson, Robinson, and Blaine. Senator WALCOTT (presiding). The subcommittee will come to order. We have under consideration S. 1, a bill to provide emergency financing facilities for banks and other financial institutions, and other purposes. (The bill is as follows:) [S. 1, Seventy-second Congress, first session] A BILL To provide emergency financing facilities for banks and other financial institutions, and other purposes 66 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there be, and is hereby, created a body corporate with the name Reconstruction Finance Corporation (herein called the corporation). This act may be cited as the "reconstruction finance corporation act." SEC. 2. The corporation shall have capital stock of $500,000,000, all subscribed by the United States of America, payment for which shall be subject to call in whole or in part by the board of directors of the corporation, with the approval of the Secretary of the Treasury, at such time or times as may be deemed advisable. 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 and as 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 consisting of the Secretary of the Treasury, the governor of the Federal Reserve Board, and the farm loan commissioner, who shall be members ex officio, and two other persons appointed by the President of the United States, by and with the advice and consent of the Senate. Each director shall devote his time not otherwise required by the business of the United States principally to the business of the corporation. Before entering upon his duties each of the two directors so appointed and each officer of the corporation shall take an oath faithfully to discharge the duties of his office. Nothing contained in this or in any other act shall be construed to prevent the appointment and compensation as a director, officer, or employee of the corporation of any officer or employee of the United States in any board, commission, independent establishment, or executive department thereof. The terms of the two directors so appointed by the President of the United States shall be five years from |