FEDERAL LAND BANKS

I recommend that the Congress authorize the subscription by the Treasury of further capital to the Federal land banks to be retired as provided in the original act, or when funds are available, and that repayments of such capital be treated as a fund available for further subscriptions in the same manner.  It is urgent that the banks be supported so as to stabilize the market values of their bonds and thus secure capital for the farmers at low rates, that they may continue their services to agriculture and that they may meet the present situation with consideration to the farmers.

DEPOSITS IN CLOSED BANKS

A method should be devised to make available quickly to depositors some portion of their deposits in closed banks as the assets of such banks may warrant.  Such provision would go far to relieve distress in a multitude of families, would stabilize values in many communities, and would liberate working capital to thousands of concerns.  I recommend that measures be enacted promptly to accomplish these results and I suggest that the Congress should consider the development of such a plan through the Federal Reserve Banks.

HOME-LOAN DISCOUNT BANKS

I recommend the establishment of a system of home-loan discount banks as the necessary companion in our financial structure of the Federal Reserve Banks and our Federal Land Banks.  Such action will relieve present distressing pressures against home and farm property owners.  It will relieve pressures upon and give added strength to building and loan associations, savings banks, and deposit banks, engaged in extending such credits.  Such action would further decentralize our credit structure.  It would revive residential construction and employment.  It would enable such loaning institutions more effectually to promote home ownership.  I discussed this plan at some length in a statement made public November 14, last.  This plan has been warmly indorsed by the recent National Conference upon Home Ownership and Housing, whose members were designated by the governors of the States and the groups interested.

RECONSTRUCTION FINANCE CORPORATION

In order that the public may be absolutely assured and that the Government may be in position to meet any public necessity, I recommend that an emergency Reconstruction Corporation of the nature of the former War Finance Corporation should be established.  It may not be necessary to use such an instrumentality very extensively.  The very existence of such a bulwark will strengthen confidence.  The Treasury should be authorized to subscribe a reasonable capital to it, and it should be given authority to issue its own debentures.  It should be placed in liquidation at the end of two years.  Its purpose is that