example, in making wheat available under the agreement the Corporation could use wheat acquired by it under its price-support program, could procure the commodities upon the open market under its charter authority, or could make subsidy payments to exporters who would make sales to designated countries under the terms of the agreement. In this connection, the bill requires the Corporation to utilize the usual and customary channels of trade and commerce to the maximum extent practicable in making wheat available under the agreement.

Provisions are also included which would affect the pricing of wheat or wheat flour supplied by CCC to meet ECA needs. Under the existing legislation, CCC must be fully reimbursed for commodities it procures for ECA supply. Present legislation also sets the levels of payment ECA must make to CCC when it receives wheat from stocks which the Corporation has acquired under price-support operations. For such stocks, ECA must pay either the cost of the commodities to CCC or the domestic market price, whichever is lower. The wheat agreement price, of course, would be lower than either of these levels under present conditions. Under this section these pricing provisions of present legislation would not apply to domestic wheat and wheat flour supplied to agreement countries and credited to their guaranteed agreement purchases on and after August 1, 1949. CCC would be authorized to assume the difference between agreement prices, at which the wheat would move, and market prices or CCC costs, at which it was procured. ECA would save this amount on its operations; CCC costs would be increased proportionately.

The first committee amendment would authorize either advance or subsequent appropriations for the purpose of making payments to Commodity Credit Corporation to cover its estimated or actual net costs in carrying out its functions under section 2. The provision contemplates that until such payments are received by Commodity Credit Corporation, the net cost of the Corporation in implementing the wheat agreement would be reflected on its books as a receivable. In order that the implementation of the wheat agreement may not be impeded by delays in the making of appropriations or by the insufficiency of any appropriation made or of the payments therefrom, Commodity Credit Corporation is expressly authorized to proceed in advance of such appropriations or payments and to utilize its capital funds and other assets in so doing. The net cost to Commodity Credit Corporation would include, among other proper charges, the following:

(1) For wheat acquired by the Corporation under the price-support program and sold pursuant to the wheat agreement, the amount by which the domestic market price exceeds the sales price for such wheat. The Corporation would not include as part of its net cost under the wheat agreement the amount by which its cost of wheat acquired under the price-support program exceeds domestic market price.

(2) For wheat or wheat flour acquired by the Corporation under its supply program and sold pursuant to the wheat agreement, the amount by which the cost to the Corporation exceeds the sales price for such wheat or wheat flour.

(3) Payments made by the Corporation to exporters for wheat or wheat flour purchased on the open market and sold pursuant to the international wheat agreement.

(4) Administrative expenses incurred by the Corporation in implementing the wheat agreement.

SECTION 3

Subsection (a) would empower the President to regulate exports and imports of wheat and wheat flour and to issue such rules and regulations as he may deem necessary to accomplish the purposes of the legislation. The authority to impose import controls would be applied to prevent the reentering into the United States of wheat exported with the benefit of subsidy under the agreement. The authority to impose import controls is needed only to the extent necessary to insure that the United States will be able to furnish its guaranteed quantity to the importing countries when called upon to do so under the terms of the agreement.

Subsection (b) would provide that any person exporting or importing wheat or wheat flour shall keep such records and make such reports as the President finds are necessary to enable him to carry out the purposes of the act. For the purpose of ascertaining the correctness of any report made or record kept or of obtaining information required to be furnished but not furnished, the President would be authorized to examine such records as he has reason to believe are relevant and are within the control of any person. The second committee amendment would limit the examination of such records to those which are relevant to transactions eligible for recording under the international wheat agreement.

Subsection (c) would provide the penalty for failure to keep records and make reports required under the act. Upon conviction such violators would be subject to a fine of not more than $1,000 for each violation.

Subsection (d) would provide that if any person knowingly exports wheat or wheat flour from the United States, or knowingly imports wheat or wheat flour in the United States for consumption therein, in excess of the quantity of the wheat or wheat flour permitted to be exported or imported under regulations issued by the President, he shall forfeit to the United States a sum equal to three times the market value of the excess amount of wheat or wheat flour over the authorized amount of such exports or imports as the case may be. Such forfeiture shall be recoverable in a civil suit brought in the name of the United States.

Subsection (e) would give the district court of the United States and the District Court of the United States for the District of Columbia jurisdiction of violations of the act and of any actions brought to enforce any liability or duty under the act or rules and regulations issued thereunder.

Subsection (f) would provide that the President may exercise any power, authority, or discretion conferred on him by this act through such department, agency, or officer of the Government as he may direct.

Subsection (g) would authorize appropriations for such sums as may be necessary to carry out the provisions of this section, including necessary expenses and contributions of the United States in connection with the administration of the international wheat agreement.

Subsection (h) provides for the employment of personnel without regard to the personnel ceilings provided in section 607 (g) of the Federal Employees Pay Act of 1945, as amended, and for the employment of experts on a temporary basis without regard to the Classification Act, at rates not in excess of $50 per diem.

Subsection (i) would provide that the functions exercised under authority of this act shall be excluded from the operations of the Administrative Procedure Act except as to the requirements of sections 3 and 10 thereof. Section 3 of the Administrative Procedure Act contains the public information provision with respect to rules. opinions, and orders. Section 10 of the Administrative Procedure Act relates to judicial review.

Subsection (j) would define the term "person" as used in this section to include the singular and the plural and any individual, partnership, corporation, association, or any other organized group of persons.

O

INTERIM HOUSING AMENDMENTS

OCTOBER 10 1949.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. SPENCE, from the Committee on Banking and Currency, submitted the following

REPORT

[To accompany S. J. Res. 134]

The Committee on Banking and Currency, to whom was referred the joint resolution (S. J. Res. 134) to amend the National Housing Act, as amended, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the joint resolution as amended do pass.

The amendment is as follows:

After section 5 add the following new sections 6, 7, and 8:

SEC. 6. Section 24 of the Federal Reserve Act, as amended, is hereby amended(1) by striking out the second sentence thereof and inserting in lieu thereof the following: "A loan secured by real estate within the meaning of this section shall be in the form of an obligation or obligations secured by a mortgage, trust deed, or other instrument upon real estate, which shall constitute a first lien on real estate in fee simple, or, under such rules and regulations as may be prescribed by the Comptroller of the Currency, on a leasehold (1) under a lease for not less than ninety-nine years which is renewable or (2) under a lease having a period of not less than fifty years to run from the date the loan is made or acquired by the national banking association, and any national banking association may purchase any obligation so secured when the entire amount of such obligation is sold to the association."; and

(2) by striking out of the third sentence "titles II and VI" and inserting in lieu thereof the words "title II, title VI, or title VIII". SEC. 7. Section 301 (a) of the National Housing Act, as amended, is hereby amended by striking out the proviso at the end of paragraph (1) (E) and inserting in lieu thereof the following: ": Provided, That this clause (2) shall not apply to (nor shall any terms therein include) any mortgage which is (i) guaranteed under section 501 of the Servicemen's Readjustment Act of 1944, as amended, and made for the construction or purchase of a family dwelling or dwellings in an original principal amount or amounts which does not exceed $10,000 per dwelling unit, or (ii) insured under section 803 of this Act": Provided, That the amendment made by this section 7 with respect to mortgages guaranteed under section 501 of the Servicemen's Readjustment Act of 1944, as amended, shall apply only to such mortgages guaranteed after the date of enactment of this Act.

SEC. 8. The Housing Act of 1948 is hereby amended by inserting before section 103 thereof the following new section:

"SEC. 102a. For the purpose of aiding the distribution, erection, and marketing of prefabricated houses manufactured with financial assistance under section 102 of this Act, and to overcome the delays which arise when permanent financing must otherwise be arranged in advance of the distribution, erection, and marketing of such houses, the Reconstruction Finance Corporation is authorized to make loans directly to any business enterprise or financial institution to finance the purchase and erection of such houses or for site improvements or other financing connected therewith, which loans may be made under such terms and conditions and with such maturities as the Corporation may determine: Provided, That no financial assistance shall be extended under this section unless it is not otherwise available on reasonable terms: And provided further, That the total amount of loans, including commitments, under this section shall not exceed $25,000,000 outstanding at any one time.'

GENERAL STATEMENT

Your committee has previously considered and reported out housing legislation making comprehensive amendments to the several types. of mortgage insurance and guaranties provided for under the provisions of the National Housing Act and the Servicemen's Readjustment Act of 1944, and the complementary changes with respect to such legislation in the provisions of the Reconstruction Finance Corporation Act, Federal Reserve Act, and the so-called Lanham Act. These provisions were contained in H. R. 6070 (H. Rept. No. 1295) which was passed by the House on August 25. 1949

It has not been possible for the Senate to act upon the comprehensive House bill and consequently the Senate on October 5, 1949, passed Senate Joint Resolution 134, which contains provisions designed primarily to provide an interim extension of time and insurance authorization under titles I and VI of the National Housing Act, and additional insurance authorization under title II of the National Housing Act. In addition to these interim extensions of FHA insurance authorizations. the joint resolution provides for $1,000,000,000 increase in the mortgage purchase authority of the Federal National Mortgage Association-the Government secondary market for FHA and GI home mortgage loans-and a corresponding increase in the amount of loans which the Reconstruction Finance Corporation might have outstanding. The joint resolution also provides that the Federal Housing Administration may use a limited percentage of its income derived from fees and premiums for the purpose of paying its current nonadministrative expenses in the operation of its field offices. The provisions of the joint resolution are merely extensions of the basic insuring authority which H. R. 6070 had treated in a comprehensive manner. Section 3 of the joint resolution, which makes clear the authority of the Federal Housing Commissioner to amend, extend, or increase the amount of any commitment prior to final insurance endorsement under the provisions of the act or the rules and regulations in effect at the time the commitment to insure was issued, was not previously in the House bill.

It is the opinion of your committee that the amendment which the committee has made to the joint resolution is highly desirable even in stopgap legislation. The committee amendment would add three sections to the joint resolution. The proposed new section 6, which was section 304 of H. R. 6070, is designed to permit national banks to finance the construction of military rental housing under title VIII