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charged was $1.89. Taking it roughly, this interest charge figured in excess of 30 percent per annum.
There are hundreds of thousands of small merchants unable to secure assistance, which so many of them deserve, when occasions arise. For that reason, and no other, do I believe that the Government must establish an institution that will take care of these types of businesses. With all due respect to the chain stores and tremendous corporations functioning today, the local merchant is still a necessity.
I ask that you give serious consideration and look favorably upon the proposed bill for the establishment of the Intermediate Industrial Credit Corporation.
New York State Association of Manufacturing Retail Bakers, resolution:
Resolved, That the New York State Association of Manufacturing Retail Bakers favor the passage by the Congress of the United States of the bill H. R. 5918, providing for the creation of an Intermediate Industrial Credit Corporation, and that the secretary of the association be instructed to so inform Mr. Herman P. Kopplemann and to place the New York State Association on record with him as having taken this action.
Blandin Paper Co., St. Paul, Minn., by C. K. Blandin, president: It would appear that certain industries and business have no place to go at the present time for loans to extend for a period of 5 or more years. Inasmuch as many concerns are more or less embarrassed on account of a falling off in business and an increase in expenses, assistance that would be covered by ample security, such as mentioned, would be greatly appreciated. It would no doubt also have the effect of keeping many institutions in business that might otherwise fail on account of a temporary lack of capital and the pressure of loans and funded debts which are constantly becoming due.
The Code Authority of the Industrial Supplies and Machinery Distributors' Trade, New Orleans, La., by W. L. S. Gordon, secretary:
This piece of legislation is so outstanding in the benefit that commerce and industrial interest would receive, and justly so, through this medium of credit assurance, that a quick revival of industry, particularly so in durable goods, would give immediate reemployment to many thousands of deserving citizens, both men and women, many of whom have lost their positions, through no fault of their own.
As you know the banks have ceased to function with this class of borrowers, and speaking for my own firm, Gibbens & Gordon, Inc., this city, we formerly employed between 35 and 40 people. When the bank trouble came on we were forced into liquidation; it was necessary to curtail our force about 80 percent. While it would not be reasonable under present conditions for any concern to employ a force that was used in 1925 to 1929, 100 percent, but I say without fear of contradiction that not less than 60 to 75 percent, according to the volume of business that could be secured at this time, would be reemployed.
I feel that in making this statement this bill has more merit and will go further to improve business conditions throughout our country than any bill that has been presented to your body in this or any other administration within our memory.
For the reasons outlined above, and for the interest of industry, I respectfully appeal to you for your whole-hearted support in getting this legislation enacted by Congress.
Hattiesburg Compress Co., Hattiesburg, Miss., by F. L. Mathews, president:
You will perhaps recall our conversation in your office the early part of April 1933, during the special session of Congress, concerning proposed amendments to the Reconstruction Finance Corporation Act giving them the authority to make direct loans to industry and established businesses, and considerable correspondence passed between us during the last 2 years on this subject, although to the present time there has been nothing enacted into law that will enable private industry to obtain financing from any of the sources so far made available.
I refer now particularly to House bill No. 5918, introduced by Mr. Herman P. Kopplemann, which, if enacted into law, would afford substantially the same relief to industry that we were seeking in the proposed amendments to the original Reconstruction Finance Corporation Act, and it is our understanding that this bill has or will soon come before your committee for consideration. We wish you would please look into this bill with the view of having same brought up for attention as soon as possible, and that you would use your good offices toward getting it favorably acted upon by the committee and the House as a whole.
For your information, wish to state that, while conditions over the country have improved somewhat, it is still almost an impossibility for the average industry, and especially the smaller ones, to obtain credit for properly carrying on of their business; and unless one is able to put up the very best of liquid security, it is almost an impossibility to obtain loans from banks. Even with good security, it is difficult to obtain the necessary credit assistance, all of which could be greatly relieved by the enactment of and the proper administration of the above-mentioned bill.
Southern Butter Co., Muskogee, Okla., by C. E. Kerns, president:
In our opinion the real forgotten man in the recovery program has been the struggling small industrialist. We know from bitter experience. Congressman Kopplemann's bill now under consideration by your committee offers relief to small commercial enterprises which we believe will mark a long forward step in long-awaited recovery. We hope your committee will act favorably on bill. Mr. Chairman, that is all I have to submit at the present time. Mr. REILLY. If there is nothing further this morning, the committee will adjourn, subject to the call of the chairman.
(Thereupon, the committee adjourned, subject to the call of the chairman.)
INTERMEDIATE CREDIT CORPORATION
COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES
H. R. 5918 (H. R. 9090)
A BILL TO PROVIDE FOR THE CREATION OF AN INTER-