ment Committee was born, and before the 

 fall of 1933, over 2,800 county com- 

 mittees were meeting regularly iir the 

 United States under the spyonsorship of 

 Governor William E. Meyers of the Farm 

 Credit Administration, and the guidance 

 of Dr. H. C. M. Case of the University 

 of Illinois. 



The state committee appointed for Illi- 

 nois included: 



Walter W. McLaughlin, Springfield 



C. V. Gregory, Chicago 



Hudson Burr, Bloomington 



H. C. M. Case, Urbana _^^ 



John M. Crebs, Carmi 



C. E. Hopkins, Pontiac * 



Z. L. Linton, Springfield 



John G. Oglesby, Elichart 



William E. Tanner, Kankakee 



George F. Tullock, Rockford 

 Farm Home is Saved 



Adam Smith's financial problem was 

 not easily solved. By the fall of 1933 

 he was delinquent two years' interest on 

 his loan with the main creditor, the 

 principal amount of which was $18,000. 

 He owed the Citizens' Bank a note for 

 J3600 secured by a chattel mortgage cov- 

 ering all of his personal property. He 

 had other personal debts including doctor, 

 grocery, implement, and seed bils amount- 

 ing to $1,000. 



Adam freely gave ail this information 

 to the Committee, but he added, "I 

 don't see how you can help me. I have 

 signed a deed to the creditor." 



When Adam left the meeting, he 

 "didn't feel any too good." 



The district FDA supervisor and a 

 representative of the creditor were in 

 attendance at the next meeting oT the 

 committee. The creditor's representative 

 explained that although his agency held 

 the deed to Adam Smith's farm, it was 

 with the understanding that Smith would 

 have a year to find new credit and effect 

 settlement. This gave slight hope. 



The committee chairman telephoned 

 Smith and asked him to meet the commit- 

 tee that evening. He was instructed to see 

 the secretary-treasurer of the National 

 Farm Loan Association, and make appli- 

 cation for a loan. 



Smith did so, and received approval 

 for an $8,000 Federal Land Bank loan, 

 and a $4,000 Land Bank Commissioner 

 loan. After the National Association 

 stock had been deducted, the remainder 

 was offered the creditor. He refused to 

 accept the amount, because, he stated, he 

 could not afford to settle for that amount. 



The committments were increased to 

 $9,800 FLB and $5,000 LBC, and again 

 the creditor was given an opportunity to 

 settle. It looked as if an agreement could 

 be reached, provided Smith were granted 

 the 1933 corn crop. Arrangements al- 

 ready had been made with minor credi- 

 tors permitting settlement on all outside 

 debts at 50c on the dollar. 



The principal creditor again refused 

 settlement, but offered to settle for $15,- 

 000, and give Smith the corn crop. 

 The Federal Land Bank, after reconsider- 

 ation, then raised the LBC commitment 

 to $5,400. 



Srfiith shelled the corn, accepted the 

 committments, and came to the next 

 committee .meeting. 



He felt happy. Carrie was filled with 

 hope, and had accompanied Adam to 

 town. Another Christmas was near. She 

 had skimped, and saved a little money. 

 While Adam attended the committee 

 meeting, she would buy a gift for each 

 of the children. 



The committee chairman called the 

 meeting to order. Adam Smith sat in 

 the adjoining room. He felt relieved. 

 This was the day to which he had looked 

 forward for over a year. 



"Any communications.'" asked the 

 chairman, addressing the committee sec- 

 retary. 



"A letter from the creditor on the 

 Adam Smith case," was the reply. "The 

 Smith larm has been sold." 



The chairman sank into his chair. 

 What a blow ! How could he tell Smith .' 

 The district FDA supervisor thumbed a 

 file. 



Smith was called into the room. 



"Did the creditor notify you that your 

 farm was sold?" inquired the committee 

 chairman. 



"No, he didn't," replied Adam. 

 "When?" 



"A week ago last Saturday," responded 

 the secretary. 



Adam was stunned. What would Carrie 

 think? What could he do? 



The chairman offered Adam a chair, 

 and had a hasty consultation with the 

 district FDA supervisor. The committee 

 had met situations similar to this before. 

 No two cases were alike, and the com- 

 mittee was slow to recognize failure. 



Three members were immediately ap- 

 pointed to accompany the district FDA 

 supervisor to see the creditor, 156 miles 

 away, on the following day. 



Five hours were spent with the credi- 

 tor. No record was kept of what hap- 

 pened during that time, but before the 

 committeemen left, settlement had been 

 made, and arrangements were completed 

 to deed the farm back to Smith. They 

 had saved his farm ! 



Program in Operation 



Smith's case is only one of hundreds 

 worked out by these voluntary state and 

 county committees. Since September 1, 

 1935, the Farm Debt Adjustment section 

 of the Resettlement Administration has 

 been cooperating with the committees on 

 this program. 



The state Farm* Debt Adjustment Com- 

 mittee selects, approves, and guides the 

 geq^l policy of the county committee 



activities within a state, and also acts in 

 an advisory capacity to the supervisory 

 personnel of the farm debt adjustment 

 section. 



These committees cooperate with the 

 Resettlement Administration in handling 

 the individual distress cases. By this co- 

 ordination, together with patience and 

 self-sacrifice, the)' perform a neighborly 

 service by bringing about harmony and 

 returned confidence to thousands of 

 American farm families — families for- 

 merly haunted by the fears of foreclosure 

 and destitution. 



The county Farm Debt Adjustment 

 committees, through friendly counsel, 

 sers'e to reestablish farm confidence, and 

 act as a source of accurate local informa- 

 tion. They provide a means, in distressed 

 farm debt cases, of bringing farm debtors 

 and their creditors together in an effort 

 to solve their debt problems by an equi- 

 table adjustment of obligations. They 

 help to avoid unjustifiable foreclosures by 

 rendering social and economic justice to 

 both debtor and creditor. They have no 

 legal authority to enforce their recom- 

 mendations. 



Results in Illinois 



In Illinois, W. J. Carmichael directs 

 the Rural Rehabilitation program of the 

 Resettlement Administration, and O. Bly 

 Pace, whose office is in Champaign, 

 supervises the debt adjustment section of 

 the same organization. 



Up to August 1, 1935, over 7,000 

 FDA cases were considered by the Illi- 

 nois committees, and 4,102 of these were 

 satisfactorily settled. The settled cases 

 involved an indebtedness of $33,787,- 

 208, and their adjustment resulted in the 

 payment of $209,110 in delinquent taxes. 

 Of the 4,102 Illinois cases settled pre- 

 vious to September 1, 1935, the Federal 

 Land Bank supplied new credit for 3,652. 



With a constant increase in land values 

 since 1934, difficulty in obtaining settle- 

 ments has increa^d. From September 1, 

 1935, to October 31, 1936, the Farm 

 Debt Adjustment program in Illinois has 

 resulted in the settlement of 1,286 cases, 

 representing an indebtedness prior to 

 adjustment of $8,662,483, and the pay- 

 ment of $67,773 in delinquent taxes. 



Recently, near the close of the ' day's 

 work, the district FDA supervisor 

 stopped at Adam Smith's farm. 



Almost a year had passed since the 

 deed was turned back to him. He was 

 happy. Carrie had regained her health 

 and strength. 



' "Our crops weren't so good as they 

 might have been," Adam said. "But we 

 have. met all our payments, and we don't 

 owe anyone except the Federal Land 

 Bank — and a debt of gratitude to the 

 ■ county committee and the Farm Debt 

 Adjustment section. We are getting along 

 fine now." 



JANUARY, 1937 



$1 



