Show U Ut u. S GOVERNMENT N GREATEST BANKER Runs Runa two Fifty or Financing acing Institutions Institutions With Investment of Two Billion Dollars Dollars Thir Thir- Thir ty-nine ty Agricultural MERICA'S biggest banker today Is II AMERICAS AMERICA'S A the Federal Government which is la isnow isnow now operating two fifty financing institutions says Pr Professor f llor Jol John llo Columbia Colombia University in the tb American Bankers Dankers Association Journal Forty of these the are owned entirely by the Government be ht says 1 In twelve more the Government Government has hal already al at- ready a two thirds Interest t. t Thirty Thirty- seven anen are ar Intended to be permanent Twenty of the permanent ones and fourteen of the temporary ones onu are agricultural The capital stock held by the United States In these banks has a par value lit It The Th Governments Government's total Investment is II nearly Resources of these Institutions exceed exceed ex ex- In Ice addition the Government has detailed supervision over one fifty mortgage banks operating ing lug under Federal charter The Government also supervises local agricultural loan associations associations with Federal charters All this takes no account of the relations of the Government to the tb twelve Federal Reserve Reserve Reserve Re Re- serve banks banka nor of the authority recently recently recently re re- given to the Reconstruction Finance Corporation to buy preferred stock in national and state commercial banks baDka The President has haa ordered the conn consolidation con of the agricultural ural credit agencies Into the new Farm Credit Administration Administration Ad Ad- ministration says Professor Protessor Hanna Fianna lie He expresses the opinion that before the consolidation of or the agricultural financing agencies too much machinery had been created to administer the financing Institutions which the Government Government Gov Gov- either ow owns as or supervises Existing Institutions represent a considerable of function function function tion and any consolidations should be preceded by a careful survey of the actual actual ac ac- activities of the various he be continues The only consolidation con con- the Administration has haa announced announced announced an an- Is that of the agricultural credit agencies In the Farm Credit Ad Ad- ministration As a permanent solution this arrangement I 1 too closely bound up with politics polities A better scheme would be to create a finance corporation under Federal charter to take over either the agricultural tural finance activities of the Government Government Govern Govern- ment or all its Ha lending agencies The Tho Governments Government's financing and banking activities should be kept severely apart from subsidy and other schemes for raising the prices of farm products One Is I. business bula the other Is II major political policy The Th advantages of the lb corporation over bureau control lor t the business ful functions are real and nt |