[Version 1]

The bill is designed to solve the problem of supplemental financing for the REA [Rural Electrification Administration] borrower companies and redirect them from government- subsidized loans to loans using commercial money and reflecting bank rate interest.

[Version 2]

This bill is the best available vehicle to provide such financing. It would create a Rural Telephone Bank. The bank would reduce the amount of money needed to be loaned at two percent, and it would eventually use all commercial — rather than [U.S.] Treasury — money. It would assist the government to a large extent in getting the government out of the telephone loan business. And finally, the rural telephone companies would go to the telephone bank rather than compete individually in the commercial money market.