direction of the President, may avail itself of the use of information, services, facilities, officers, and employees thereof in carrying out the provisions of this Act.

DEPOSIT OF CORPORATE FUNDS

SEC. 9. All moneys of the Corporation not otherwise employed may be deposited with the Treasurer of the United States subject to check by authority of the Corporation or in any Federal Reserve bank, or may, by authorization of the Board of Directors of the Corporation, be used in the purchase for redemption and retirement of any notes, debentures, bonds, or other obligations issued by the Corporation, and the Corporation may reimburse such Federal Reserve bank for its services in such manner as may be agreed upon. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Corporation in the general performance of its powers conferred by this Act.

OBLIGATIONS OF THE CORPORATION

SEC. 10. The Corporation is authorized and empowered, with the approval of the Secretary of the Treasury, to issue, and to have outstanding at any one time in an amount aggregating not more than ten times the amount of its authorized capital stock, its notes, debentures, bonds, or other such obligations; such obligations to mature not more than twenty years from their respective dates of issue, to be redeemable at the option of the Corporation before maturity in such manner as may be stipulated in such obligations, and to bear such rate or rates of interest as may be determined by the Corporation. The notes, debentures, bonds, and other obligations of the Corporation may be secured by assets of the Corporation in such manner as shall be prescribed by its Board of Directors. Such obligations may be issued in payment of any loan authorized by this Act or may be offered for sale at such price or prices as the Corporation may determine with the approval of the Secretary of the Treasury. The said obligations shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof. In the event that the Corporation shall be unable to pay upon demand, when due, the principal of or interest on notes, debentures, bonds, or other such obligations issued by it, the Secretary of the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amounts so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such notes, debentures, bonds, or other obligations.

The Secretary of the Treasury, in his discretion, is authorized to purchase any obligations of the Corporation to be issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds from the sale of any securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under the Second Liberty Bond Act, as amended, are extended to include any purchases of the Corporation's obligations hereunder. The Secretary of the Treasury may, at any time, sell any of the obligations of the Corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of the obligations of the Corporation shall be treated as public-debt transactions of the United States. Such obligations shall not be eligible for discount or purchase by any Federal Reserve bank.

EXEMPTION FROM TAXATION

SEC. 11. The Corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, er by any State, county, municipality, or local taxing authority; except that any real property of the Corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

FORMS FOR OBLIGATIONS

SEC. 12. In order that the Corporation may be supplied with such forms of notes, debentures, bonds, or other such obligations as it may need for issuance under this Act, the Secretary of the Treasury is authorized to prepare such

forms as shall be suitable and approved by the Corporation, to be held in the Treasury subject to delivery, upon order of the Corporation. The engraved plates, dies, bed pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The Corporation shall reimburse the Secretary of the Treasury for any expenses incurred in the preparation, custody, and delivery of such notes, debentures, bonds, or other obligations.

DEPOSITARY OF PUBLIC FUNDS

SEC. 13. When designated for that purpose by the Secretary of the Treasury, the Corporation shall be a depositary of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary; and it may also be employed as a financial agent of the Government; and it shall perform all such reasonable duties, as depositary of public money and financial agent of the Government, as may be required of it. Obligations of the Corporation shall be lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.

INTERDEPARTMENTAL COMMITTEE

SEC. 14. (a) There is hereby created an Interdepartmental Committee on Veterans' Economic Development, which shall be composed of a representative of each of the following Government agencies designated by the head thereof: The Department of State, the Department of the Interior, the Department of Agriculture, the Department of Commerce, the Department of Labor, the Veterans' Administration, the War Assets Administration or its successor, and the Reconstruction Finance Corporation and such other departments or agencies as may be designated by the President. It shall be the duty of the Committee to consult with and advise the Board of Directors, as the Board of Directors may from time to time request, upon matters relating to the exercise of the functions of the Corporation.

(b) The Board of Directors is authorized to appoint and consult with an advisory council to be composed of representatives of groups having an interest in the education, training, rehabilitation, or employment of veterans, including representatives of industry, labor, agriculture, education, and veterans' organizations. Members of the Advisory Council shall receive compensation at the rate of $25 per diem for each day spent in meetings of the Council and shall be reimbursed for all necessary traveling, subsistence, and other expenses incurred while engaged in the business of the Council.

REPORTS TO CONGRESS

SEC. 15. The Corporation shall make and publish a quarterly report of its operations to the Congress stating the aggregate loans made to each of the classes of borrowers provided for and the number of borrowers by States in each class, and showing the assets and liabilities of the Corporation.

SEPARABILITY CLAUSE

SEC. 16. If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid, the remainder of this Act or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL

SEC. 17. The right to alter, amend, or repeal this Act is hereby expressly reserved.

[S. 2943, 81st Cong., 2d sess.]

A BILL To liberalize the lending policies of the Reconstruction Finance Corporation and of the Federal Reserve Banking System in favor of independent small business enterprises; to adjust the registration provisions of the Securities Exchange Act, as amended, in order to enable independent small business concerns to issue securities at a reasonable cost; to develop the productive facilities of the national economy; to further the interest of independent small business enterprises; to provide for the appointment of a Small Business Coordinator; and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) there is hereby established in the

Executive Office of the President a Small Business Coordinator (hereinafter called the "Coordinator") who shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate of $15,000 per annum.

(b) The Coordinator shall assist the President in the coordination of the activities of the executive agencies in furtherance of the interests of independent small business concerns and perform such other functions pursuant to this Act as the President may designate. For this purpose the Coordinator shall make or cause to be made such studies, require such reports and information from executive agencies, and consult with such representatives of industry, agriculture, labor, consumers, State and local governments, and other groups, as he deems necessary.

(c) To the fullest extent practicable, the Coordinator shall utilize the facilities and personnel of other executive agencies. Within the limits of funds which may be made available, he may employ and fix the compensation of such officers and employees, and may make such expenditures for supplies, facilities, and services as may be necessary to carry out his functions. The Coordinator may appoint not to exceed six deputies, specialists, or other experts without regard to the civil-service laws and may fix their compensation without regard to the Classification Act of 1949, except that one such person shall be compensated at a rate of not to exceed $14,000 per annum and five such persons shall be compensated at rates of not to exceed $12,000 per annum. All other officers and employees shall be appointed in accordance with the civil-service laws and their compensation fixed in accordance with the Classification Act of 1949.

(d) To the fullest extent practicable, the Coordinator shall utilize the facilities ef small business advisory boards created to assist and counsel Federal agencies, and he may utilize the services of Federal, and, with their consent, State, regional, and local agencies, and utilize such voluntary and uncompensated services as may from time to time be needed.

SEC. 2. The Coordinator shall have power, and he is hereby directed, whenever and to the extent that he determines such action to be necessary

(1) to make, or arrange with the Bureau of the Census, or such other governmental agency as may be possessed of the necessary personnel and facilities for the making of, a complete study of all productive facilities for the making of, a complete study of all productive facilities of independent small business enterpries in the United States which may be used for national defense, the needs of the Federal Government or civilian purposes; and to develop a definite criterion based upon census statistics and other data to determine what is a small business enterprise, and recommend to the Congress the enactment of a clear definition of small business that will be uniformly interpreted by all the executive agencies;

(2) to direct the attention of officers of the Government having procurement powers to the potential productive capacity of small business concerns and to supervise the awarding of bids in all departments of the Government, including the Military Establishment, in order to ensure that independent small business concerns receive a fair share of such awards, and to recommend to the Congress remedial legislation to correct any inadequacy in the present laws relating to the protection of the interests of small business enterprises;

(3) to take such action as will result in the granting of such Government contracts to small business concerns operating small plants as will provide them with a sufficient incentive to engage in production for the national defense and Government procurement, thereby eventually lowering the per unit cost to the Government; and

(4) to certify to procurement officers of the Military Establishment or other procurement officers with respect to the competency, or the capacity and credit, of any small business concern or group of such concerns to perform a specific Government procurement contract, and such procurement officers are directed to accept such certification as conclusive, and are authorized notwithstanding the provisions of any other law, to let such Government procurement contract to such concern or group of concerns without requiring it to meet any other requirements with respect to competency, capacity, and credit, such as the furnishing of nerformance bonds. SEC. 3. The Coordinator is hereby directed to consult with the various Federal, State, and local agencies and with independent small business enterprises and associations thereof with a view to recommending to the Congress appropriate

legislation designed to further the interests of independent small business enterprises including, but not limited to, the following subjects:

(1) The offering of more liberal terms through the Reconstruction Finance Corporation in respect to loans to independent small business enterprises, in order to equalize the credit opportunities of such enterprises in competition with large business (such liberalization taking the form, for instance, of allowing expected profits from a Government contract to be considered as prime collateral for a loan in the case of an independent small business enterprise needing such a loan for its development or maintenance);

(2) The adaptation of section 13b of the Federal Reserve Act to the present credit needs of independent small business enterprises;

(3) The adjustment of the Securities Exchange Act and regulations to the problems of independent small business enterprises which are unduly retarded in their development or growth by present policies, without a sacrifice of the interests of investors;

(4) The revamping of the Federal income tax structure in order to encourage the growth and successful development of independent small business enterprises;

(5) The development of a system of Government insurance of exports at reasonable rates to relieve independent small business enterprises of the financial hardship caused by the shortage of dollars in foreign countries;

(6) The formulation of a program, such as by ear-marking a certain percentage of all appropriations for the procurement of supplies for independent small business concerns, or by earmarking certain objects more readily produced by independent small business organizations to be procured therefrom, or by requiring the preparation of requests for bids in amounts within the productive capacity of independent small business enterprises, or by any other means, to ensure that independent small business enterprises will receive a fair share of all Government procurement.

The Coordinator shall promote the adoption of policies by the executive departments designed to encourage the growth and development of independent small business enterprises consistently with our traditional national system of free enterprise, and he shall recommend to the Congress the enactment of specific legislation to accomplish this result. While the Congress is determined to ensure that independent small business enterprises obtain a fair share of Government contracts, the Congress is fully aware of the fact that the eventual success of independent small business enterprises is dependent upon their ability to compete in the market place and that the Government should confine its endeavors to the removal of the barriers which impede the efforts of small business enterprises to compete fairly and equitably with larger business enterprises of equal benefit to the national welfare.

SEC. 4. The Coordinator shall make a report every ninety days of his operations under this Act to the President, the President of the Senate, and the Speaker of the House of Representatives. Such report shall include such information, and such comments and specific recommendations for legislation, with respect to the relation of independent small business concerns to the national economy as the Coordinator may deem advisable.

SEC. 5. There is hereby authorized to be appropriated such funds as may be necessary to carry out the functions of this Act.

SEC. 6. If any provision of this Act or the application of such provision to any person or circumstances shall be held invalid, the validity of the remainder of the Act and the applicability of such provision to other persons or circumstances shall not be affected thereby.

[S. 2947, 81st Cong., 2d sess.]

A BILL To amend the Reconstruction Finance Corporation Act, as amended, in order to provide more effective financial assistance for small business

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (b) (1) of section 4 of the Reconstruction Finance Corporation Act, as amended, is hereby amended by striking out the period at the end thereof and inserting a colon and the following: "Provided, That in order to encourage small business the Corporation is authorized to give management skills, past earnings, and prospective earnings consideration over security in the form of collateral, in the making of loans either directly or in cooperation with banks or other lending institutions under para

graph (1) of subsection (a) of this section for the purpose of establishing new business enterprises or for meeting the long-term capital requirements of existing small business enterprises. The Corporation shall make direct loans pursuant to the foregoing proviso only in those cases where loans cannot be consummated in cooperation with banks or other lending institutions."

SEC. 2. Subsection (b) (2) of section 4 is amended by adding before the period at the end of the first sentence thereof a colon and the following: "Provided further, That any loan made under section 4 (a) (1) for the purposes set forth in the proviso in paragraph (1) of this subsection as amended may be made for such period exceeding ten years as the Corporation may deem proper for the encouragement of small business".

SEC. 3. Subsection (b) (3) of section 4 is amended by striking out the period at the end thereof and inserting a colon and the following: "Provided, That such participations by the Corporation may amount to 90 per centum of the loan outstanding at the time of the disbursement, in the case of loans made for the benefit of small business enterprises in pursuance of the authority set forth in the proviso in subsection (b) (1) of this section as amended. In order to encourge loans in cooperation with banks or other lending institutions under the proviso in subsection (b) (1) of this section as amended, priority shall be given to private lending institutions over the Corporation against the assets of borrowers for the satisfaction of such loans made thereunder."

[S. 2975, 81st Cong., 2d sess.]

A BILL To establish corporations to assist financial institutions in making credit available to commercial and industrial enterprises and to provide capital for such enterprises Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 13b of the Federal Reserve Act is amended to read as follows:

"SEC. 13b. 1. PURPOSES.-The purposes of this section, in the light of which its provisions shall be construed and applied are

"(a) to foster competition in the growth and development of small and independent enterprises of economic and social value by providing intermediate and long-term credit and capital to small and independent business enterprises that are unable to obtain such capital from the usual banking or other financial sources on reasonable tems and conditions, where repayment or retirement of such credit or capital may reasonably be expected on the basis of prospective earnings, and a market exists for the products or services of such enterprises; "(b) the Board of Governors of the Federal Reserve System in cooperation with the Secretary of Commerce shall, in accordance with the provisions of this paragraph, determine the class or classes of small and independent_business enterprises which are eligible for financial aid under this section. In determining whether an enterprise is a small or an independent business enterprise for the purposes of this section, there shall be considered the relative size and position of the business in relation to the trade or industry in which it is engaged, the size and nature of the area of its operation, the size and independence of the group supplying capital or holding ownership or control of the business, and the independence of its management; and no enterprise shall be considered to be a small or independent business enterprise which is affiliated through_stock ownership or otherwise with any other enterprise in the same trade or industry which is determined to be dominant in the trade or business in which it is engaged;

"(c) to establish privately owned coporations within the Federal Reserve System, subject to the supervision of the Board of Governors of the Federal Reserve System, with authority to make loans and to provide capital to enterprises eligible therefor under the provisions of this section; and

"(d) to encourage the growth of local industrial development corporations formed for the purpose of supplying venture capital for the development of new and useful products, services, or techniques by providing for limited financial participation in such corporations.

"2. CORPORATIONS AUTHORIZED TO MAKE LOANS AND INVEST IN SECURITIES OF SMALL AND INDEPENDENT BUSINESS. (a) Corporations, not exceeding in number the total number of Federal Reserve banks and branches thereof, organized for the purpose of operating under this section, may be formed by any number of persons, but not less than five, and each of such persons shall be bona fide subscribers for shares in the corporation. Such persons shall enter into articles