AGRICULTURAL CREDIT SYSTEM HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON AGRICULTURE AND FORESTRY SEVENTY-SECOND CONGRESS FIRST SESSION ON S. 1197 A BILL TO LIQUIDATE AND REFINANCE AGRICULTURAL INDEBTED- FEBRUARY 2, 3, AND 5, 1932 Printed for the use of the Committee on Agriculture and Forestry CONTENTS Page 36 Emil Becker, member of Farmers Union of America, National Board III TO ESTABLISH AN EFFICIENT AGRICULTURAL CREDIT SYSTEM TUESDAY, FEBRUARY 2, 1932 UNITED STATES SENATE, SUBCOMMITTEE OF COMMITTEE ON AGRICULTURE AND FORESTRY, Washington, D. C. The subcommittee met, pursuant to call, at 10.30 o'clock a. m,, in Room 424, Senate Office Building, Senator Lynn J. Frazier, presiding. Present: Senators Frazier (chairman of the subcommittee), Thomas of Idaho, Smith, and McGill. Present also: Senators Norbeck of South Dakota, Nye of North Dakota, and Thomas of Oklahoma. Senator FRAZIER (chairman of the subcommittee). The subcommittee will come to order. The hearing is on bill S. 1197, which will be made a part of the record. (S. 1197 is here printed in full as follows:) [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 refiancing 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 12 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, farmer' 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 indebted 1 |