GOVERNMENT: New Lender

Last week the Senate Banking and Currency Committee put new Federal Loan Administrator Jesse H. Jones on the carpet, asked him about the success of Federal lending. To a query about the amount of losses on RFC loans to business, the retiring RFC Chairman admitted: “I am ashamed to tell you what I think it will be. It will be plenty.”

That admission became the headache of tall Emil Schram, 45, who became Jesse Jones’s successor as RFC Chairman. A successful Hoosier whose business was farming, timber, coal, he was made a member of RFC’s board in 1936. From handling RFC loans to needy drainage and irrigation districts he was graduated to manager of RFC’s business loan program. On the side he ran Electric Home and Farm Authority (set up to finance the sale of electrical appliances to home owners). One of the most capable members of RFC, his selection was backed both by conservative Jesse Jones and by New Dealing Tommy Corcoran.

> In answer to SEC’s demand that Wall Street set up brokerage banks to hold all the cash and securities of brokers’ customers, the New York Stock Exchange last fortnight set up a four-man committee to formulate a plan. Chosen to head it last week was Roswell Magill, father of the New Deal’s 1938 Tax Bill, Under Secretary of the Treasury from early 1937 till last year when he resigned to return to his Manhattan law practice and Columbia teaching.