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Show gtional defense effort, which could be handled by other regularly-established departments and agencies agen-cies if the need developed. In addition Mr. Gay pointed out that, as revealed by recent investigations, inves-tigations, a government bank, op-perating op-perating in a political atmosphere with "everybody's money," is susceptible sus-ceptible to making business loans which are not in the public interest. in-terest. As a lending institution outside the supervision of the Federal Reserve Re-serve Board, the RFC also becomes an uncontrolled machine for inflation, infla-tion, Mr. Gay emphasized. WASHINGTON SNAPSHOTS The Reconstruction Finance Corporation Cor-poration was a depression agency which is not needed in the present period of national prosperity, the National Association of Manufacturers Manufact-urers declared in testimony before the Senate Banking and Currency Committee. Roger E. Gay, president of The Bristol Brass Corporation, Bristol, Conn., and chairman of the association's assoc-iation's Industrial Problems Committee, Com-mittee, testified that the RFC's record does not show the need of it as "the savior of small business." Of $349,000,000 loaned by the RFC in 1949, he said, only $17,000,000 could be classified as small loans intended for small business financing. financ-ing. An NAM survey, Mr. Gay continued, con-tinued, revealed that only 7 of 3,221 of the association's smaller-firm smaller-firm members who answered a questionnaire had failed to obtain needed loans through normal banking bank-ing channels in the past 10 years. He added that the RFC is not essential es-sential to the financing of the na- |