I. A. A. RECORD-^une, 1933 



PRESIDENT ROOSEVELT SIGNING THE BILL THAT PROMISES A NEW DEAL FOR AMERICAN AGRICULTURE 



Grouped about tke President In the M^hlte Honae when he (ilsned the Bmersency Farm-Inflation Act em May 12 aret 

 left to rlKht, Conarreasmen ^^all Doxey, Ml«s.; Hampton P. Fnlmer, S>. C; Geo. N. Peek, Mollne, 111. (rear); Marvin Jonea* 

 Texas, chr. Honae Agricultural Conunltteei L. J. Taber, prea. National Oranarei Senator Blllaon D. Smith, S. C; Henry Mor- 

 venthan, Jr., chairman Farm Credit Admlnlatraton t Henry A. \l^allace, Secretary of AKrlcuiture; Edward A. O'Neal, preal- 

 dent, American Farm Bureau Federation. 



I 



ever the President finds and pro- 

 claims that the national economic 

 emergency in relation to ag^riculture 

 has been ended." The President like- 

 wise may terminate the application 

 of the act to any basic commodity. 

 The "cost of production" section 

 providing for fixing minimum prices 

 for farm products was stricken from 

 the bill in conference committee. This 

 section would have made it unlawful 

 for anyone to buy farm products for 

 domestic consumption below a certain 

 price named by the Secretary. 



The bill as passed provides for an 

 immediate appropriation of ^100,000,- 

 000 to administer the Act and make 

 benefit payments. The Secretary of 

 the Treasury is authorized to permit 

 postponement for a period not to ex- 

 ceed 90 days, of the payment of the 

 processing tax. 



i Farm Mortgage Section 



As we go to press, Henry Morgen- 



thau, Jr., farm credit administrator, 

 according to press dispatches, has ap- 

 pointed nine regional loan agents to 

 carry out the provisions of this sec- 

 tion of the Emergency Farm Act. 

 The bill provides for: 



1. Issuing up to two billion dollars 

 of 4% federal land bank bonds the 

 interest of which is unconditionally 

 guaranteed by the government. Such 

 bonds may be exchanged for farm 

 mortgagees or the proceeds used for 

 making new loans. 



2. Reducing the interest rate on 

 present federal farm loans to 4V2% 

 and waiving principal payments for 

 five years. 



3. Making loans at 5% on farm 

 lands or property up to 75% of nor- 

 mal value of the property pledged. 

 Limit of loan is $5,000 and principal 

 and interest must be paid pack in 10 

 years. 



4. New mortgage loans shall be 

 limited to 30% of normal value of 



land mortgaged and 20% of perma- 

 nent improvements thereon, and in no 

 case shall purchase price of any mort- 

 gage exceed its face value. 



5. $200,000,000 from Reconstruc- 

 tion Finance Corp. for loaning up to 

 $5,000 to farmers on good security as 

 outlined above. 



6. Slow liquidation of joint stock 

 land banks -and halting of arbitrary 

 farm foreclosures. The joint stock 

 land banks are permitted to borrow 

 up to $100,000,000 from the R. F. C. 

 to refinance present mortgages. Loans 

 may not exceed 60% of the normal 

 value of farm lands pledged as se- 

 curity. 



7. Loans up to $50,000,000 from R. 

 F. C. to refinance encumbered lands in 

 drainage districts, levee, and irriga- 

 tion districts. 



Farmers may apply for loans up to 

 $5,000 on farm property at once 

 through the Federal Land Bank of 

 St. Louis. 



