Abstract

Finance

The article focuses on the War Finance Corporation bill passed by the U.S. Senate. The bill, as reported to the House by the Ways and Means Committee, laid down very specific directions on what interest rate would the War finance corporation's bonds bear, what rate would the corporation lend to the borrowers and under what circumstances could individuals secure advances. No interest rate is specified on the Corporation's own bonds, of which there may be outstanding an amount four times as great as the paid-in capital. Interest rates are to be determined by the board of directors, subject to the approval of the Secretary of the Treasury, who is ex-officio a member of the directorate. The House bill makes striking changes in the provisions under which the Reserve Banks may handle the Corporation's bonds.