The measures and policies which have procured this turn toward recovery
should be continued until the depression is passed, and then the emergency
agencies should be promptly liquidated. The expansion of credit facilities
by the Federal Reserve System and the Reconstruction Finance Corporation
has been of incalculable value. The loans of the latter for reproductive
works, and to railways for the creation of employment; its support of the
credit structure through loans to banks, insurance companies, railways,
building and loan associations, and to agriculture has protected the
savings and insurance policies of millions of our citizens and has relieved
millions of borrowers from duress; they have enabled industry and business
to function and expand. The assistance given to Farm Loan Banks, the
establishment of the Home Loan Banks and Agricultural Credit
Associations--all in their various ramifications have placed large sums of
money at the disposal of the people in protection and aid. Beyond this, the
extensive organization of the country in voluntary action has produced
profound results.
The following table indicates direct expenditures of the Federal Government
in aid to unemployment, agriculture, and financial relief over the past
four years. The sums applied to financial relief multiply themselves many
fold, being in considerable measure the initial capital supplied to the
Reconstruction Finance Corporation, Farm Loan Banks, etc., which will be
recovered to the Treasury.
- Public works (1) - Agricultural relief and financial loans