Senator BARKLEY. Also, I think we should include in the record this statement of general policy of the Export-Import Bank. The CHAIRMAN. Very well. (General policy statement of Export-Import Bank of Washington, June 15, 1938, is as follows:) GENERAL POLICY STATEMENT OF EXPORT-IMPORT BANK OF WASHINGTON, June 15, 1938 I. PURPOSE The object and purpose of the Export-Import Bank of Washington (hereinafter called the "bank") is to aid in financing and to facilitate exports and imports and the exchange of commodities between the United States and any of its territories and insular possessions and any foreign country or the agencies or nationals thereof. In furtherance of said object and purpose the bank is authorized to do a general banking business; to purchase, sell, negotiate, and discount, with or without its endorsement, notes, drafts, bills of exchange, acceptances, including bankers' acceptances, cable transfers, and other evidences of indebtedness and, with the approval of the Secretary fo the Treasury, to borrow money and rediscount notes, drafts, bills of exchange, and other evidences of debt; to purchase and sell securities, including obligations of the United States or any State thereof, but not including the purchase with its funds of any stock in any other corporation; to accept bills or drafts drawn upon it; to issue letters of credit; to purchase and sell coin, bullion, and exchange; to lend money; and to do and to perform the necessary functions permitted by law to be done or performed in conducting such enterprise or business. II. GENERAL The bank is interested primarily in assisting nationals of this country in the development of sound foreign trade, and not in propositions involving the outright purchase of foreign securities or blocked balances having no relation to actual current commercial transactions. (1) In cases where American exporters desire to bid on foreign business the bank will study such proposals with a view to making commitments in advance of the submission of such bid. (2) The bank does not consider the discounting of obligations without recourse to the applicant to be a primary field for its operations; but where transactions involve terms beyond those usually experienced in export and import business the bank will undertake, in selected cases, to underwrite some portion of the risk. III. CREDIT AVAILABLE TO APPLICANTS 1. Maturities.-Consumers' goods usually will be limited to intermediate credit; capital and producers' goods will be considered for either intermediate or longterm credit. (a) Short-term credit (less than 180 days) will be considered only when commercial banks, because of unusual circumstances, are unable or unwilling to provide such accommodations. (b) Intermediate credit (180 days to 12 months). The bank will endeavor to supplement existing credit facilities in this field on terms and conditions which are considered advisable for the specific credit proposed. (c) Long-term credit (1 to 5 years) may be extended for periods up to 5 years, and under special conditions for such longer periods as may be warranted. 2. Charges. The bank will stipulate the rate of interest and other charges under which t e credit will be extended after consideration of a proposal and concurrently with approval thereof. Charges in connection with special transactions will be consistent with maturities, risks, and other particular circumstances involved. IV. HOW TO APPLY Any exporter or importer may make application for credit by writing directly to Export-Import Bank of Washington, Washington, D. C., or through a commercial bank. It is recommended that the applicant consult his commercial bank in any case, as experience has indicated the advisability of the applicant submitting proposals to the bank through his regular banking connection. i The following information is essential for the consideration of any application by the bank: 1. Amount of credit and terms of repayment. 2. Name of foreign country and purchaser. 3. Security for the proposed credit. 4. Commercial bank and trade references. 5. Comparative balance sheet and profit-and-loss figures for the preceding 3 years. 6. In certain cases, cost sheets or other evidence of cost. V. COOPERATION WITH PRIVATE BANKS The bank seeks to supplement rather than compete with the activities of existing financial institutions and, so far as practicable, opportunity will be given them to participate in commitments undertaken. Also, upon request of an American exporter or importer for whom a credit has been established, commercial banks will be designated to cooperate with the bank in handling routine details and, in some instances, may be authorized to advance funds. VI. UTILIZATION OF AMERICAN SHIPS Unless there are satisfactory reasons to the contrary, utilization of ships of American registry is required in the transportation of shipments financed by the bank. Also, whenever possible, applicant should give preference to insurance companies incorporated in the United States. VII. AUTHORITY The bank was organized as a District of Columbia banking corporation pursuant to Executive order of the President of the United States, dated February 2, 1934. Public Act No. 1, Seventy-fourth Congress, approved January 31, 1935, as amended by Public Act No. 2, Seventy-fifth Congress, approved January 26, 1937, continued the bank as an agency of the United States until June 30, 1939,1 or such earlier date as may be fixed by the President by Executive order. WARREN LEE PIERSON, WASHINGTON, D. C., President. Senator BARKLEY. Mr. Baldwin is outside. I should like to have him here. STATEMENT OF C. B. BALDWIN, ASSISTANT ADMINISTRATOR, FARM SECURITY ADMINISTRATION, DEPARTMENT OF AGRICULTURE, WASHINGTON, D. C. The CHAIRMAN. Mr. Baldwin, please take a seat at the committee table. Senator BARKLEY. Mr. Baldwin, will you state your position? Mr. BALDWIN. Assistant Administrator of the Farm Security Administration, Department of Agriculture. Senator BARKLEY. This morning a question arose in the committee about the provisions of this bill with respect to the amount available for the Bankhead-Jones Act and the amount available with respect to rural rehabilitation, Farm Security loans, and so forth. You are familiar with those provisions, are you not? Mr. BALDWIN. Yes, sir; I am. Senator BARKLEY. The bill states, on page 5, subsection 5 [reading]: (5) To the Department of Agriculture: Six hundred million dollars for facilities for farm tenants, farm laborers, share croppers, and other individuals who obtain, or who have in the past obtained, the major portion of their income from farm 1 Continued until June 30, 1941, by Public Act No. 3, 76th Cong. perations, including rural rehabilitation loans, projects for the provision of additional water facilities, and farm-tenant loans as provided for in title I of the Bankhead-Jones Farm Tenant Act, approved July 22, 1937— and then farther on there is a transfer of $100,000,000. Senator BANKHEAD. Page 15. Senator BARKLEY. Could you clear that up? There was some confusion, this morning, as to the relationship of these two items and what is available or would be available for each of these activities. Mr. BALDWIN. Yes, sir. The Emergency Relief Appropriation Act of 1939 appropriated $143,000,000 for the rehabilitation program. Senator TOWNSEND. What was your request? Senator BYRNES. There was no request from him. Mr. BALDWIN. $123,000,000 was the request of the Bureau of the Budget. It was not our request; it was the Budget estimate. Senator TOWNSEND. We gave you $143,000,000? Mr. BALDWIN. That is right. Senator TAFT. That is the rural rehabilitation and not the Bankhead-Jones? Mr. BALDWIN. That is right-$143,000,000, together with unobligated balances. There was $16,000,000 left from last year's appropriation. It is money that we got after the relief bill was passed last year, when the President had power to transfer money between agencies, and he transferred the money to the Farm Security Administration from the Emergency Relief Appropriation Act of 1937, but we were told that we were not to use that money. Senator TOWNSEND. What did he transfer it to you for? Mr. BALDWIN. To take care of any emergencies that might arise, that would increase the demand for direct relief. No such emergencies. did arise, so the money was not transferred to us. Senator BANKHEAD. That was the act of 1938? Mr. BALDWIN. Yes, sir. So we have available for this year $159,000,000 in the Emergency Relief Appropriation. Senator BARKLEY. That is for rural rehabilitation? Mr. BALDWIN. That is for rural rehabilitation loans and grants; yes, sir. Senator BARKLEY. Yes. Mr. BALDWIN. The Department of Agriculture appropriation bill makes available $40,000,000 for loans under title I of the BankheadJones Act. Senator BARKLEY. What is that? Mr. BALDWIN. The agricultural appropriations bill makes available $40,000,000 for the present fiscal year, for tenant loans under the Bankhead-Jones Act-title I of the Bankhead-Jones Act. Senator BANKHEAD. Let us not confuse the two accounts. We want to keep them separate. Mr. BALDWIN. All right, sir. Therefore we have $159,000,000 available from the Relief Act. sir. Senator BANKHEAD. That is for farm security and rehabilitation? Mr. BALDWIN. That is for farm security and rehabilitation; yes, Senator BANKHEAD. Yes. Mr. BALDWIN. There is also $40,000,000 available for loans, under title I of the Bankhead-Jones Act. Senator BANKHEAD. And you had practically no unexpended bal ance? Mr. BALDWIN. That is correct. Senator BANKHEAD. So you have only $40,000,000? Mr. BALDWIN. Yes. Senator BANKHEAD. That is what you stated, exactly. Mr. BALDWIN. But that leaves total appropriations, which could be transferred under this provision of the act of $199,000,000. Senator BARKLEY. This language states that the Secretary of the Treasury shall pay over and transfer to a special account or accounts with the Treasurer of the United States, as he may designate, not to exceed the sum of $100,000,000 upon any unobligated balances of sums heretofore appropriated or available to the Secretary of Agriculture to enable him to carry out the provisions of title I of the Bankhead-Jones Farm Tenant Act, the Emergency Relief Appropriation Act of 1938, and the Emergency Relief Appropriation Act of 1939. Senator BANKHEAD. Who wrote that? Senator BARKLEY. Well, it was submitted by the attorneys of the Treasury Department. Senator BANKHEAD. I wanted to see if anybody Senator BARKLEY. It is Secretary Wallace's own language, there, in that bill-not only in the amendment, but the original language; and there is a discrepancy there, somewhere, between that $100,000,000 sum and your $193,000,000, or whatever it is, that is available. Mr. BALDWIN. I think I can explain that. Senator BARKLEY. Yes. Mr. BALDWIN. It was not the intention of the Treasury Department to make available all of our present appropriations because we have appropriations made available for non-self-liquidating projects— for grants, for example. Senator BARKLEY. Yes. Mr. BALDWIN. Apparently the Treasury did not think it would be consistent with this bill to be making grants with the proceeds from this bill. Senator BARKLEY. So what you are really doing is that out of the one-hundred-and-ninety-odd which can be used for loans and grants, and so forth, you are providing here a maximum of 100 millions from loans? Mr. BALDWIN. Yes. Senator BARKLEY. And that could come from any of the three acts? Mr. BALDWIN. From any of the two acts. Senator BANKHEAD. What is the limitation on loans? Mr. BALDWIN. Six hundred million, total. Senator BARKLEY. There is 500 million of new money provided. Mr. BALDWIN. That is right. Senator BARKLEY. And this 100 million, transferred for loans alone, makes the 600 millions. Mr. BALDWIN. That is right. Senator MILLER. That is right; it is perfectly consistent. Senator TAFT. Do I understand that this 100 million is part of the 600 million, and then there is an additional authority for 500, so that altogether there is 700? Senator BARKLEY. No; there is only 600, of which 100 million is to be transferred from previous appropriations, and 500 of new money, which makes the 600. Senator TOWNSEND. Then, if 100 is transferred, he would have 99 more in your fund. Mr. BALDWIN. That is available for other purposes than this act. Senator TAFT. What I do not understand is this: The language here says the Secretary of the Treasury shall pay over to a special account which he may designate not to exceed 100 million dollars to enable him to carry out the provisions of title I of the Bankhead-Jones Farm Tenant Act, the Emergency Relief Appropriation Act of 1938, and of 1939. It does not say anything about this act. I do not see that the section does anything that is not already in the law. Senator BANKHEAD. I certainly do not want any limitation of $100,000,000 to apply to the money under the Bankhead-Jones Act. Mr. BALDWIN. There is no such limitation here, Senator. Senator BANKHEAD. It looks that way. Senator BARKLEY. No; it would not be. Senator MILLER. Does not that mean this: He has $199,000,000 now available for all purposes, under the Bankhead-Jones Act and the rural rehabilitation, and grants? Senator TOWNSEND. That is right. Senator MILLER. Now, the Treasury is dividing it, and sets apart $100,000,000 of that over in this fund for administration-in other words, for loans. I would suggest that that might be amended by adding the words "under this act." Then there would be no question. Senator TAFT. Yes; I think so. Senator BARKLEY. It may be necessary on page 5 to say that this $600,000,000 is for loans. It is intended to mean that-$100,000,000 of it being taken from these other funds. There are two sections there, dealing with this subject. Senator MILLER. I should like to ask Mr. Baldwin a question. Senator Barkley, have you finished with your point? Senator BANKHEAD. I did not call him, but I knew those were the facts. There were not any unexpended balances for title I, except what has just been recently appropriated. Mr. BALDWIN. That is right. Senator MILLER. Yes; we were together on that. Mr. BALDWIN. I might say this, Senator Bankhead: If this act should pass, and this provision remains as it is now, I think it would be the intention as I understand from talking with the Treasury people it would be their intention to transfer this $40,000,000 appropriated under title I of the Bankhead-Jones Act, plus $60,000,000 appropriated under the Emergency Relief Act, to this new bill. Senator MILLER. That would be $60,000,000 to the Farm Security? Mr. BALDWIN. That is right. I think it would be simpler to handle it that way. Senator BANKHEAD. I think we have the facts. We may have to reframe it. Senator MILLER. Mr. Baldwin, I have prepared an amendment to submit to the committee, to subparagraph 5 on page 5. It does not interfere with the loans under the Bankhead-Jones Farm Tenant Act, |