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I. A. A. RECORD— October, 1933 



SpeaKer Rainey Critical 

 Of Credit Administration 



Sees Influence of Eugene Meyer 

 in Failure of System to !; i 

 Help Farmers 



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CONGRESSMAN Henry T. 

 Rainey of CarroUton, speaker 

 of the house, made a sharp at- 

 tack on Henry Morgenthau Jr., gov- 

 ernor of the Farm Credit Administra- 

 tion, at a recent meeting in E. St. 

 Louis sponsored by the Home Owners 

 Loan Corporation. 



According to the St. Louis Globe 

 Democrat, Rainey asserted that Mor- 

 genthau "is perpetuating reactionaries 

 of the Eugene Meyer school who be- 

 lieve in making peasants of the Amer- 

 ican farmer." Rainey predicted that 

 the course which he ascribed to Mor- 

 genthau would seriously affect the 

 success of the administration plan for 

 farm recovery. 



"In combating the present unprece- 

 dented depression, we must assure 

 people that their homes are safe," 

 Rainey declared in his address. "Re- 

 volutions commence always with the 

 land. The situation in Russia is due 

 entirely to the fact that for a long 

 time the nobility of Russia expanded 

 their properties until a few owned all 

 the land. The freeing of the serfs did 

 not do any good as long as they did 

 not own real property. 



"When they revolted, they disposed 

 of the land owners very simply. There 

 were so few that they were all killed 

 or exiled. Now all the people own the 

 land, which is not any more satisfac- 

 tory than the other way. Communism 

 can never obtain much headway as 

 long as the people preserve their 

 homes. 



Farmers Must Liquidate 



"Up to March 4 of this year, the 

 United States was making greater 

 progress toward Communism than any 

 other country ever made except Rus- 

 sia. The Federal Land banks were 

 taking over the farm lands at forced 

 sales, following the policy of Eugene 

 Meyer, 



"This situation was forced by the 

 Federal Land banks, who followed the 

 Wall street viewpoint of treating 

 farms and homes just as one would 

 treat a business that is unprofitable. 

 The values of homes and land can 

 never be determined withotit taking 

 into consideration the human element. 

 Homes do not earn income of them- 

 selves. They furnish a place for peo- 

 ple to live while they earn their in- 

 comes in other places. 



"Estimating values on a basis of 



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^ j ^: V URGE SUPPORT OF AAA AT PEORIA 



Ed-nard A. O'Xeal, president of the American Farm Bureau Federation, (ipeakH 

 at Peoria County Farm Bureau pienie attended by more than 2,00O members and 

 their f^uestM. Left to risht are: Albert Hayeci, president. Farm Bureau; State 

 Senator Carl Behrman. Mr. O'Neal, and Congrressman E. M. Dirkseu. Dirksen 

 iauded Mr. O'Xeal and the Farm Bureau for effective -work in securing the pas- 

 sage of the nefv farm legrislation. 



returns never ought to be the method 

 of establishing values for homes and 

 farms. The farmer is just a laborer. 

 He gets his wages when he sells his 

 crops. 



"It has been necessary in the past 

 months to resort to unusual methods 

 to raise the prices of farm products, 

 and the price of living in cities has 

 been rising as a consequence. We be- 

 lieve that the increased money in the 

 farmer's hands Vv-ill lead him to buy 

 the products of the city factory, and 

 bring the city to prosperity."' 



Roar of Disapproval 



Following a hurried trip by airplane 

 to Washington, Mr. Rainey on Sept. 

 13 issued a public statement reiterat- 

 ing previous criticism of the Farm 

 Credit Administration. 



"Farmers are having the same dif- 

 ficulties in obtaining mortgage relief 

 that they had when Eugene Meyer 

 and his crowd directed that whenever 

 a mortgage was in default it should 

 be foreclosed. 



"There is just a roar of disapproval 

 in the farm belt. All they can do is 

 kick. A few loans are being made 

 but they are not enough. And the land 

 is being appraised at ridiculously low 

 figures — not enough to carry the 

 loans."' 



Herbert Gaston, deputy administra- 

 tor under Morgenthau. in reply to 



Mr. Rainey said the administration 

 closed 85,000,000 of loans in August 

 and hoped to step this up to SIS.-OOO,- 

 000 in September. 



"There ought to be a great jump 

 from now on,'' said Gaston, "now 

 that we have our organization pre- 

 pared to dispose quickly of the ap- 

 plications." 



Sells $ 1 500 Of Dairy 



Stock In 3 Hours 



Charles Cameron, member of the 

 board of directors of Illinois Milk 

 Producers Association, Peoria, went 

 out calling on his neighbors Tuesday 

 morning Sept. 19. and in about three 

 hours sold S1500 worth of stock in 

 the "Producers Dairy of Peoria," or- 

 ganized to distribute the milk of mem- 

 bers at that market. 



The new co-operative expected to 

 raise at least $25,000 by the end of 

 the week. Many members who signed 

 up for stock at the initial meeting 

 Sept. 16 expressed a willingness to 

 raise their subscriptions should addi- 

 tional monev be needed. 



The New York state college of ag- 

 riculture has designed a fruit washer 

 that can handle from 50 to 60 bushels 

 an hour and can be built at home for 

 about S150. i;^.- ■ . : ■ ^" . 



