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(g) The board, under regulations prescribed by it, is authorized to pay to any such person required to collect such fees a reasonable charge for his services.

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(h) Every person who, in violation of the regulations prescribed by the board, fails to collect or account for any equalization fee shall be liable for its amount and to a penalty equal to one-half its amount. Such amount and penalty may be recovered together in a civil suit brought by the board in the name of the United States.

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(i) As used in this section

(1) In the case of corn, wheat, and oats the term 'processing' means milling of such grain for market or the first processing in any manner for market (other than cleaning or drying) of such grain not so milled, and the term 'sale' means a sale or other disposition in the United States of such grain for milling or other processing for market, for resale, or for delivery by a common carrier-occurring during a marketing period in respect of such grain. "(2) In the case of cotton the term 'processing' means spinning, milling, or any manufacturing of cotton other than ginning; the term 'sale' means a sale or other disposition in the United States of cotton for spinning, milling, or any manufacturing other than ginning, or for delivery outside the United States; and the term 'transportation' means the acceptance of cotton by a common carrier for delivery to any person for spinning, milling, or any manufacturing of cotton other than ginning, or for delivery outside the United States-occurring during a marketing period in respect of cotton.

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"(3) In the case of livestock the term 'processing' means slaughter for · market by a purchaser of livestock, and the term 'sale' means a sale or other disposition in the United States of livestock destined for slaughter for market without intervening holding for feeding (other than feeding in transit) or fattening-occurring during a marketing period in respect of livestock.

"(4) In the case of corn, wheat, oats, and livestock the term 'transportation' means the acceptance of the commodity by a common carrier for delivery.

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(5) Thet term 'sale' does not include a transfer to a cooperative association for the purpose of sale or other disposition by such association on account of the transferor; nor a transfer of title in pursuance of a contract entered into before, and at a specified price determined before, the commencement of a marketing period in respect of the agricultural commodity. In case of the transfer of title in pursuance of a contract entered into after the commencement of a marketing period in respect of the agricultural commodity, but entered into at a time when, and at a specified price determined at a time during which a particular equalization fee is in effect, then the equalization fee applicable in respect of such transfer of title shall be the equalization fee in effect at the time when such specified price was determined. If all or any part of this section is held to be unconstitutional by the courts such holding shall not invalidate any other part of the act."

SEC. 7. The first sentence of section 15(a) of such act is amended by inserting before the period at the end thereof a comma and the following: or under section 16 of this act."

SEC. 8. Such act is further amended by adding at the end thereof the following new section:

66 FEDERAL COOPERATIVE ASSOCIATIONS

"SEC. 16. Authority is hereby granted under the laws of the United States to one hundred or more persons to organize cooperative organizations or associations upon the terms and definitions prescribed in this section, as follows: "(1) Each member of any such cooperative association shall have one vote, and the capital stock of such association shall not vote in its control. Two or more cooperative associations shall have the right to subscribe for all the stock in an association for the purpose of federation, and when capital stock is so held by other cooperative associations, then the vote shall be in proportion to the membership of each association subscribing for such stock and the stock itself shall not vote, and this provision shall apply to the stabilization cooperatives herein provided for.

"(2) The net earnings of all cooperative associations for the purpose of dividend upon the capital stock shall not exceed 5 per cent per annum, but deficiencies in any year may be made up in subsequent years, but the capital stock shall not upon liquidation or otherwise receive any dividend in excess of said sum of 5 per cent per annum.

"(3) All of the earnings of a cooperative association over and above the earnings of capital and the operating expenses shall be held either in surplus or for the purpose of trade dividends. Unless directed by a vote of the membership 25 per cent of said net earnings shall be kept in the business as a surplus for the enlargement, growth, and safety of the business. This surplus may be used to reduce the capital stock upon a vote of the membership. The other net earnings may be distributed back to the members in trade dividends in proportion to the amount of business each member shall transact with the enterprise. In the case where the membership is composed of other cooperative associations the trade dividends shall be paid in the same way to such association and by them distributed to their members as provided for other profits and earnings.

"(4) Cooperative associations engaged in trade and merchandising shall transact their business for cash or its equivalent.

"(5) Individual memberships in any cooperative association having individual members shall not exceed $100 in cost, and memberships of cooperative associations in federated associations shall not exceed $1,000 in cost.

"(6) Cooperative associations shall be composed of individuals who voluntarily join.

"(7) There shall be unlimited membership. No reason shall exclude a person from membership except that his purpose may be injurious to the society.

"(8) Persons who have not sufficient capital to pay for initial stock may be permitted to join the society and they may permit the savings returns accruing from their patronage to be applied to the share for their capital.

"(9) Cooperative associations shall have the right to set off not exceeding 5 per cent of the surplus savings for educational and organization purposes in the field of cooperation.

"(10) That at each inventory depreciation shall be charged off against the property of the society in conformity with sound business principles."

SEC. 9. The Secretary of the Treasury is hereby authorized to issue the certificates provided for in section 9A and to make such advances or loans to the Federal Farm Board as may be necessary to carry out the provisions of section 5A of the agricultural marketing act, as amended. Such advances or loans shall bear interest at not to exceed per cent per annum and shall be repaid in such manner and at such times as the Secretary of the Treasury and the Federal Farm Board, acting jointly, shall prescribe.

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SEC. 10. Section 202 (a) of the Federal farm loan act, as amended, is amended by adding at the end thereof a new paragraph to read as follows:

"(4) To make loans or advances to the Federal Farm Board upon the security of the credit or property of the board for the purposes authorized by section 5A of the agricultural marketing act, as amended."

SEC. 11. (a) Paragraph 2 of section 1 of the act entitled "An act to authorize association of producers of agricultural products," approved February 18, 1922, is amended by striking out "8 per cent" and inserting in lieu thereof 5 per cent."

(b) Section 2 of such act is hereby repealed.

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[S. 653, Seventy-second Congress, first session]

A BILL To abolish the Federal Farm Board, to provide for the discontinuance of surplus control operations under the agricultural marketing act, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Federal Farm Board created by the agricultural marketing act of June 15, 1929, is hereby abolished, and all authority, powers, and duties vested in the board by such act are hereby transferred to the Secretary of Agriculture. The Secretary of Agriculture is authorized and directed, except as herein otherwise specifically provided, to wind up the affairs of the board, so far as they relate to the surplus control operations of the board and the surplus control operations or other operations of stabilization corporations, at the earliest practicable date, and to provide for the disposal of all commodities held by stabilization corporations; but no such commodies shall be disposed of at a price less than the cost of production at the time of sale, as determined by the Secretary of Agriculture. Any funds received in the process of such winding up shall be covered into the Treasury as miscellaneous receipts; and thereafter the provisions of the agricultural marketing

act relating to surplus control operations and the stabilization corporations shall not be in force.

SEC. 2. After this act takes effect no loan to any stabilization corporation shall be made under authority of the agricultural marketing act except such as may be necessary, in the judgment of the Secretary of Agriculture, in pursurance of existing contracts or in furtherance of the process of winding up the affairs of the board with respect to surplus control operations or other operations of the stabilization corporations.

SEC. 3. (a) The Secretary of Agriculture shall continue to make loans to cooperative associations in accordance with the provisions of the agricultural marketing act, and any part of the revolving fund created by such act which has been allotted for cooperative marketing purposes, including the proceeds from loans for such purposes now outstanding, shall be available for such loans. (b) The Secretary of Agriculture is authorized, by order or regulation, to consolidate the functions in respect of cooperative marketing transferred to him by this act and to create a new bureau, agency, or office in the Department of Agriculture for the effective administration of such functions, subject to his supervision.

SEC. 4. For the purposes of this act―

(1) All the officers and employees of the board, except the members of the board (whose officers are hereby abolished), are transferred to the Department of Agriculture.

(2) All the official records and papers now on file in and pertaining to the business of the board, together with the furniture, equipment, and other property now in use by the board, are hereby transfered to the Department of Agriculture.

(3) All unexpended appropriations available at the time this act takes effect in respect of the board shall be available for expenditure by the Secretary of Agriculture in the same manner and to the same extent as if the Secretary of Agriculture had been directly named in the laws making such appropriations. SEC. 5. (a) All contracts or agreements lawfully entered into before the time this act takes effect, by the board, shall be assumed and carried out by the Secretary of Agriculture.

(b) All rights, interests, or remedies accruing or to accrue, as a result of any such contract or agreement, or of any action taken in pursuance of law by the board, shall be in all respects as valid, and may be exercised and enforced in like manner, as if this act had not been enacted.

(c) All orders, rules, regulations, and privileges which have been issued or granted by the board, and which are in effect at the time this act takes effect, shall continue in effect as if this act had not been enacted, until modified, superseded, or repealed by the Secretary of Agriculture.

SEC. 6. Any office, bureau, service, division, commission, or board transferred in whole or in part to the jurisdiction and control of the board under the authority of subsection (e) of section 13 of the agricultural marketing act is hereby retransferred to the department or establishment from which it was transferred to the board, together with its functions, and its records, property, including office equipment, and personnel, so transferred. Any unexpended balance of appropriations allotted by the board in respect of such agency or function is hereby transferred to such department or establishment. SEC. 7. This act shall take effect 30 days after the date of its enactment.

[S. 1197, Seventy-second Congress, first session]

A BILL To liquidate and refinance agricultural indebtedness, and to encourage and promote agriculture, commerce, and industry, by establishing an efficient credit system, through which the unjust and unequal burdens placed upon agriculture, during the period of price fixing and deflation, may be lightened, by providing for the liquidation and refinancing of farm mortgages and farm indebtedness at a reduced rate of interest through the Federal farm loan system, the Federal reserve banking system, and the postal savings depository system, and creating a Board of Agriculture to supervise the

same

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Government now perform its solemn promise and duty and place American agriculture on a basis of equality with other industries by providing an adequate system of credit, through which farm indebtedness and farm mortgages now existing may be. liquidated and refinanced, through real-estate mortgages on the amortization

plan, at 11⁄2 per centum interest and 11⁄2 per centum principal per annum, and through mortgages on livestock used for breeding or agricultural purposes at 3 per centum interest per annum through the use of the machinery of the Federal farm loan system, the Federal reserve banking system, and the postal savings depository system.

SEC. 2. This act shall be known by the title "The farmers' farm relief act." SEC. 3. The Federal Farm Loan Board is hereby authorized and directed to liquidate, refinance, and take up farm mortgages and other farm indebtedness, existing at the date this act takes effect, by making real-estate loans, secured by first mortgages on farms, to an amount equal to the fair value of such farms and 50 per centum of the value of insurable buildings and improvements thereon, through the use of the machinery of the Federal farm land banks and national farm loan associations, and to make all necessary rules and regulations for the carrying out of the purposes of this act with expedition. Such loans to be made at a rate of 12 per centum interest and 12 per centum principal per annum.

SEC. 4. The Federal Farm Loan Board is further authorized and directed to liquidate, refinance, and take up chattel mortgages and other farm indebtedness, existing at the date that this act takes effect, by making loans at the rate of 3 per centum interest per annum, secured by first mortgages on livestock used for breeding or agricultural purposes, to an amount equal to 65 per centum of the fair market value thereof, such loans to run for a period of one year, with right of renewal from year to year for a term of ten years: Provided, That any depreciation in the value of such livestock is replaced by additional livestock used for breeding of agricultural purposes, and the amount of the loan is reduced 10 per centum each year.

SEC. 5. The funds with which to liquidate, refinance, and take up existing farm mortgages and other farm indebtedness shall be provided by the issuing of farm loan bonds by the Federal farm loan system, through the Federal Farm Loan Board and Federal land banks, as now provided by law, which bonds shall bear interest at the rate of 11⁄2 per centum per annun, if secured by mortgages on farms, and 3 per centum per annum if secured by chattel mortgages on livestock used for breeding or agricultural purposes. These bonds, after delivery to the Federal Farm Loan Board, may, by it, be sold at par to any individual or corporation, or to any State, National or Federal reserve bank, domestic or foreign, to the trustees of the postal savings depository system or to the Treasurer of the United States. And it shall be the duty of the Federal reserve banks to invest their available surplus and net profits, after the dividends are paid to their stockholders, in such farm loan bonds. Such profits to include the franchise tax now paid to the United States.

SEC. 6. The trustees of the postal savings depository system are authorized and directed to invest at least 40 per centum of the postal savings in such farm loan bonds, and all limitations upon the amount that may be deposited in the postal savings depositories are hereby removed. And such farm loan bonds may be exchanged and delivered to depositors for their deposits in postal savings depositories as is now provided by law for investments of savings funds in bonds. SEC. 7. In case all of said farm loan bonds are not readily purchased, then the Federal Farm Loan Board shall present the remainder to the Federal Reserve Board, and the Federal Reserve Board shall forthwith issue and deliver to the Federal Farm Loan Board Federal reserve notes, as now provided by law, to an amount equal to the par value of such bonds as are presented to it. Such farm loan bonds to be held by the Federal Reserve Board as security in lieu of any other security or reserve.

SEC. 8. The Federal Farm Loan Board and the Federal land banks shall turn over all payments of interest and principal on such farm loan bonds, for which the Federal Reserve Board issues Federal reserve notes, to the Treasurer of the United States, and shall be by him kept and reinvested as a sinking fund in municipal or State bonds and in bonds of the United States Government, bearing interest at the rate of at least 3 per centum per annum.

SEC. 9. Whenever the amount of money actually in circulation in the United States shall exceed $75 per capita, then the Treasurer of the United States, by and with the advice and consent of the Federal Reserve Board and the President of the United States, may retire Federal reserve notes in an amount equal to the principal paid on farm loan bonds, for which Federal reserve notes were issued, not to exceed 2 per centum in any one year, of the amount of Federal reserve notes so issued.

SEO. 10. There is hereby created a board of agriculture consisting of one member from each State, elected by the farmers of such State, who shall be

elected by delegates selected by a mass convention of farmers in each county or parish within the United States, who are indebted and declare it to be their intention to take advantage of this act, such county or parish convention to be its own judge as to who are bona fide farmers and otherwise eligible to participate in its proceedings.

SEC. 11. The State delegates, so elected, shall meet at the State capital of their respective States and elect a member of the board of agriculture, who shall hold his office from the date of such election and for a period of two years from March 4 following, and who shall receive a salary of $4,000 per annum and 5 cents per mile for necessary traveling expenses while on official business, to be paid by the United States Government in the manner now provided for the payment of salaries of Members of Congress.

SEC. 12. The Federal Farm Loan Board is hereby authorized and directed to give public notice, through the Federal land banks, to the farmers of each county or parish of the time and place of holding the first county or parish convention, which shall be held at the seat of government of each county or parish; and it shall at the same time give notice of the first convention of the State delegates, to be held at the State capital of each State, notice of such convention to be given at an early date after the passage of this act.

SEC. 13. The farmers attending such county or parish convention and the State delegates attending such State convention shall organize and make such rules and regulations for their procedure as they deem necessary or convenient, and shall elect a president and a secretary and make arrangements for such other and future conventions as they may deem necessary, and they shall at all times cooperate and assist the Board of Agriculture, the Federal Farm Loan Board, the Federal land banks, and national farm loan associations to liquidate and refinance farm mortgages and farm indebtedness.

SEC. 14. Immediately after their election the members of the board of agriculture, upon call of the Federal Farm Loan Board, shall meet at Washington, District of Columbia, and organize by electing a chairman and a secretary, and they shall make such rules and regulations as they deem necessary and expedient in carrying out the purposes of this act. They shall elect an executive committee of three, none of whom shall be members of the board of agriculture, who shall hold their office at the will of said board, and who shall receive a salary of $10,000 per annum, and 5 cents per mile for necessary traveling expenses while on official business, to be paid by the United States Government in the manner now provided for the payment of salaries of Members of Congress.

SEC. 15. The members of the Board of Agriculture shall keep in touch with and report to the executive committee the progress of liquidating and refinancing farm mortgages and farm indebtedness in their respective States. They shall cooperate with county or parish and State governments, and with all farm and cooperative organizations within their respective States, to speedily bring about the liquidation and refinancing of farm mortgages and farm indebtedness.

SEC. 16. The executive committee of the board of agriculture shall counsel with and supervise the work of liquidating and refinancing farm mortgages and farm indebtedness by the Federel Farm Loan Board and the Federal Reserve Board, and they shall cooperate with said boards and with county or parish and State governments and with the various farm organizations, and with the agriculture colleges of the Nation, in order to bring about a just and speedy liquidation and refinancing of farm mortgages and farm indebtedness. They shall report any member of the farm loan system or the Federal Reserve Board or of the postal savings system, who neglects, hinders, or delays, the carrying out of the provisions of this act, to the President of the United States, and it shall be the duty of the President, upon cause shown, to remove any such officer and to appoint some other suitable person in his place with the advice and consent of the Senate.

SEC. 17. The benefits of this act shall also extend to any farmer, or member of his family, who lost his farm through indebtedness or mortgage foreclosure since 1920, and who desires to purchase the farm lost or another farm. It shall also extend to any tenant, or member of his family, who desires to purchase a farm, provided he has lived on and operated a farm as a tenant for at least three years prior to the passage of this act.

SEC. 18. The executive committee of the board of agriculture shall have power in case of crop failures, and in other meritorious cases, to extend the time payments due on loans made under this act from time to time for a