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RECONSTRUCTION LOANS IN AUGUST ARE MADE PUBLIC
Total Of $186,209,310 Borrowed From Finance Corporation In Month
WASHINGTON, Oct. 7.—(AP)—The Reconstruction Corporation report for August made public to-day by South Trimble, clerk of the house of representatives, showed loans totalling $186,209,310 authorized during that month.
The report was given out over the objections of Atlee Pomerene, chairman of the reconstruction board. It said loans authorized to financial institutions, including insurance companies and railroads, totaled $122,277,641.
Loans authorized to governors of states for relief purposes amounted to $13,931,669, while $15,000,000 was authorized for the Cotton Stabilization Corporation and $35,000,000 to the American Cotton Co-operative Association. (No part of the latter two authorizations had been disbursed up to September 21st.
Denies Choice.
Pomerene had contended in a formal protest that the publicity provision of the Garner-Wagner relief act did not give Trimble authority to make the monthly report on loans public. Trimble released the July report in August, holding that he had no discretion under the law to do otherwise.
States to which relief loans were authorized in August at 3 per cent interest follow:
Alabama, $225,000; Illinois, $6,000,000; Louisiana, $1,096,084; Michigan, $1,800,000; North Dakota, $50,000; Ohio, $768,000 and $842,585; South Dakota $150,000, and Wisconsin, $3,000,000.
The report showed that a total of $5,552,400 authorized to banks and trust companies during the last ten days of July covered by the previous report was cancelled.
Other Cancellations.
Other authorized loans to financial institutions cancelled between August 1st and September 21st, totaled $1,224,264. This included $240,000 cancelled by the State Life Insurance Company of Indianapolis.
Application for loans received during August numbered 1,151, with repayments in the month totaling $35,241,799.
Loans to bank and trust companies included $39,290,150 to aid in reorganization or liquidation of closed banks.
Aid Seen In Publicity.
Trimble to-day said the statement of his counsel "contains all I have to say on the matter."
It said that:
"The publication of the Reconstruction Finance Corporation report furnishes the depositors the additional information that their bank possesses adequate security to meet all governmental requirements necessary to obtain a loan.
"That this assurance to the depositors is of great value is recognized by many banks in deliberately giving publicity to the fact that they have obtained a loan from the Reconstruction Finance Corporation.
"The publication of July report of the Reconstruction Finance Corporation, during the month of August did not have the bad effect upon the banks as predicted by the opponents of the provision.
"This is shown by the greatly decreased number of bank suspensions that have occurred since the report was published."
Loans Listed.
Loans included in the following to banks in California:
Alturas, Modoc County Bank, $30,000; Alturas, Modoc County Bank, $15,000; Anaheim, Anaheim First National, $18,000; Cambria, Bank of Cambria, $50,000; Chico, Peoples Savings, $42,000; Coachella, First National, $40,000; Corcoran, First National, $20,000; Cucamonga, First National, $10,000; Folsom, Bank of Folsom, $27,500; Glendale, First National, $75,000.
Hermosa Beach, First National Bank, $10,000; Hermosa Beach, First Bank of Hermosa Beach, $8,250; Huntington Park, City National Bank, $10,000; Laton, First National, $15,000; Laverne, Farmers & Merchants, $30,000; Lindsay, Lindsay Savings, $75,000; Long Beach, Seaside National (receiver), $165,000; Marysville, Decker-Jewett, $40,000; Madera, First National, $27,500; Maywood, Maywood Bank, $15,000; Monterey, First National, $65,800.
Newport Beach, First National (receiver), $19,000; Pasadena, Citizens Commercial, $225,000; Pacific Grove, First National, $25,000; Salinas, Monterey County, $130,000; Santa Ana, Farmers & Merchants, $84,000; Soquel, Citizens Commercial, $10,000; Torrance, First National, $13,000; Vacaville, First National, $20,000.