510 AGRICULTURAL APPROPRIATIOX BILL, 1924. 



i 



Mr. Buchanan. A great many of those loans in each year were 

 made to the same people, were they not? 



Mr. EsTABROOK. Some of them were, but it is hard to say just 

 how many. 



Mr. Magee. How was the 1921 crop? 1 



Mr. Estabrook. The 1921 crop, as a rule, was a partial crop 

 failure. 



Mr. Magee. What was the percentage ? 



Mr. Estabrook. I do not recall just the percentage, but there were 

 several thousand farmers out there who made no crop at all. 



APPROPRIATION ASKED FOR COLLECTIONS OF LO.\N8. 



We are asking for an appropriation to continue the work of collec- 

 tions in the next fiscal year of S20,000. It is a question of just how 

 vigorously Congress wants the department to press these collections 

 next year and how much money it will take. We had an emergency 

 appropriation of S50,000, beginning with Julv of this year, for collec- 

 tions. Up to June 30, 1923, we have actualliabilities and estimated 

 liabilities amounting to $37,846. 



Mr. Anderson. Out of the S50,000 ? 



Mr. Estabrook. Yes, sir. 

 . Mr. Anderson. This is in addition to the S19,000 you spent? 



Mr. Estabrook. Yes, sir. Apparently we will have about SI 2,000 

 to turn back from the 1923, but S20,000 will not enable us to carry 

 on as vigorous a campaign next year as we are carrying on this year. 

 At the present rate of collections we will exceed §1,000,000 in the 

 next two or three weeks, so that for every dollar we spend in main- 

 taining a force of field agents up there and in sending out circulars we 

 get back many dollars in collections. 



Mr. Buchanan. Next year you will not have any security what- 

 ever, will you ? 



Mr. Estabrook. We are preparing to renew loans where the bor- 

 rower can submit satisfactory evidence that he is unable to pay his 

 loan, and in such cases will take a mortgage on the 1923 crop. 



Mr. Buchanan. Will 3"ou renew the mortgages? 



Mr. Estabrook. We will extend the loan and take a mortgage on 

 his 1923 crop. 



Mr. Buchanan. So that you will have some security next year to 

 proceed on ? 



Mr. Estabrook. Oh, yes; surely. 



Mr. Magee. Provided thev will give security? 



Mr. Estabrook. They will not get an extension of their loans 

 unless they give a mortf^^age on their next year's crop. We are 

 meeting with this little difliculty: The banks are pressing for pay- 

 ment and pointing out to the borrowers the fact that the Government 

 only charges o per cent interest wliilo the}* are paving a very much 

 higher rate on their other loans, so that it is to their advantage to 

 payoff their other debts and let the Government indebtedness stand. 

 Then, too, there are many people who advise the borr()wers to simply 

 hold buck, saying that it is only a (juestion of time when Congress 

 will cancel these loans and they will not have to j^ay them. 



Mr. Buchanan. It was pretty late when we made that appropria- 

 tion. Do you know what percentage of the farmers had already neen 



