FISCAL: Point & Counterpoint

Senators probing the affairs of the Reconstruction Finance Corp. had a jarring time of it last week. When Banking & Currency subcommittee members asked RFC Director Harvey J. Gunderson why the agency does not lend more money to small business, he had a ready answer. It's up to Congress, he said, "to place the small businessman in a competitive position." Cut the little man's taxes, said Gunderson, and he won't need any federal loans.

The next day, Indiana's Senator Homer E. Capehart nosed into an $18.5 million RFC loan granted to Carthage Hydrocol, Inc. for construction of a synthetic gasoline plant...