mcnt Committee was born, and before the" 

 ^llo f iy,>3. over 2,800 county com- 

 mittees were risgL-tint; ret;ularly in the 

 United States under the sponsorship of 

 Governor >X'i II iam I:. Meyers of the I'arm 

 Credit Administration, and the guidance 

 of Dr. H. ('. M. Case of tlie University 

 of Illinois. 



The state committee appointed for Illi- 

 nois included: 



Waiter W. McLauijhIm. Sprinutield " 



C. V. Gregory, ( hica^o 



Hudson Burr. Bloomint;ton 



H. C M. Case. Urbana 



John M. Oebs, Carmi 



C. n. Hopkins. Pontiac 



Z. L. Linton, Springfield 



John G. O^lesby. IHkhart 

 SC'iliiam I:. Tanner. Kankakee 



George F. Tullock, Rockford 

 Farm Home is Saved 



Adam Smith s financial problem was 

 not easily solved. By the fall of ly33_ 

 he was Jelincjuent 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 

 $3600 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 all this information 

 to the C^ommittee. but he added. I 

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

 signed a deed to the crcilitor." 



When Adam left the meeting, he 

 "didn t feel any too good. ' 



The district FDA supervisor and a 

 representative ol the creditor were in 

 attendance at the next meeting of 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 ga\e slight hope. 



The committee chairman telephoned 

 Smith and asked him to meet the commit- 

 tee that evening. He was instructed to see 

 the secretary-treasLjrer of the National 

 [■"arm l.o.in Association, and make appli- 

 cation for a loan. 



Smith did so. and received approval 

 for an, $8,000 Federal Land Bank Iban, 

 and a $1,000 Land Bank Commissioner 

 loan. After the National Association 

 stock had bec-n 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 I-I.B and 5^,000 LBC. and again 

 the creditor was given an opportunity to 

 settle. It looked as if an agreement could 

 be reaihed. 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 "SOc on the dollar. 



The principal creditor again refused 

 settlement, but offered to settle for $1 "i.- 

 000, and give Smith the corn crop. 

 The Federal Land Bank, after reconsider- 

 ation, then raised the LB( commitment 

 to $'^,100. 



Smith shelled the corn, accepted the 

 committments, and came to the next 

 committee meeting. 



He felt happy. ( arrie was filled with 

 hope, and had accompanied Adam to 

 town. Another ( hristmas was near. She 

 had skimped, and saved a little money. 

 While Adam attended the committee 

 meeting, she would buy a gift for e.uh 

 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 

 Lliairman. addressing the committee sec- 

 ret 



"AN<(tter from the creditor on the 

 Adam Smith case," was the reply. The 

 Smith farm has been sold." 



The chairman sank into his chair. 

 What a blow! How could he tell Smith' 

 The district IT)A 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. ^X'hat 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 recogni/.e failure. 



Three members wx-re immediately ap- 

 poiii.ted to accompany the district I'DA 

 supervisor to see the creditor, 1 •'i(S miles 

 away, on the following dav. 



Live hours were spent with the credi- 

 tor. No recorti 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 ot hundreds 

 worked out by these voluntary state anil' 

 county committees. Since .September 1 . 

 195"^, the I'arm Debt Adjustment section 

 .of the Resettlement Administr.ition has 

 been cooperating with the committees'on 

 this program. 



The state I'arm Debt Adjustment (om- 

 mittce selects, approves, and guides the 

 general policy of the county committee 



activities within a slate, and also acts in 

 an advisory capacity to the supervisory 

 personnel of the farm debt ad)ustment 

 section 



These committees ccx>perate with the 

 Resettlement Administration in handling 

 the individual distress cases. By this co- 

 ordination, together with patience anvl 

 self-sacrifice, they perform a neighborly 

 service bv bringing about harmony anil 

 returned confidence to thousands ot 

 American farm families - families tor 

 merly haunted by the fears of foreclosure 

 and ilestitution. 



The countv I'arm Debt .^d|^stment 

 committees, through Iriendiv counsel, 

 "serve to reestablish farm confidence, anil 

 act as a source of accurate local intorma 

 tion. They provide a means, in distressed 

 farm debt cases, of bringing farm debtors 

 and their crcilitors together in an effort 

 to solve their debt problems by an ec|ui- 

 table ad|ustment of obligations. They 

 help to .ivoi.l un)ustifiable 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. |. ( armich.iel directs 

 the Rur.il Rehabilitation program of the 

 Resettlement Administration, and O. Bly 

 P.ice. vchose office is in Champaign, 

 supervises the debt adjustment section of 

 the same organization. 



Up to August I, 19^^. over ".000 

 IDA cases were considered bv the Illi- 

 nois committees, and t.lOJ of these were 

 satisfactorily settled. 1 hi- settled casts 

 involved an indebtedness ot S^3.'"8".- 

 _^08. and their adjustment resulted in the 

 p.ivmcnt of $J09. 1 10 in delincjuent taxes 

 ()f the I.IOJ Illinois cases settled pre- 

 vious to .September 1. \')^^. the I'eilcral 

 Land Bank supplied new creilit for 3.f>^- 



With a constant increase in land values 

 since Ivvi. difficulty in obtaining settle- 

 ments has increased. I'rom .Septemlxr 1. 

 ^JtS, to October si. 19sf\ the I'arm 

 Debt Adjustment prcJgram in Illinois has 

 resulted in the settlement ot I.J8fi cases, 

 representing an indebtedness prior to 

 adjustment of S8.66J.i8s. anil the pay 

 ment of $<■)". VS in delincjuent taxes. 



Recently, near the dose of the d.iy s 

 vcork. the distriit IDA supervisor 

 stopi^ed at Adam Smith s farm. 



Almost a year had |\issed sintc the 

 deed vc.is turned back to him He was 

 hap|n . ( arrie had regained her healtii 

 ,ind strength. 



Our crops weren t. so gooil as thev 

 might have Ixen. Ailam said. But we 

 have met all our payments, and vve don I 

 owe anyone except the Federal Land 

 Bank anil a ilebt of gratitude to the 



countv committee and the I arm DeN 

 Adjustment section \\ t are getting .ilong 

 fine naw. ." - 



JANUARY, 1937 



31 



