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Unemployment 

 Relief Session 



A Review of Legislation Before the Recent Special Session 

 ^ ;% o the Illinois General Assennbly 



T" 



iHS first Special Session of the 

 58th General Assembly, which 

 adjourned on November 9, was 

 convened chiefly to provide additional 

 ; state funds for relief of the destitute. 



Aids Corn-Hog Prices 



(Continued from page 3) 

 every eligible county in states with 

 " farm warehouse laws. The county 



■ corn-hog production control associa- 

 tions to be organized will be desig- 



■ nated as warehouse boards wherever 

 ; established and each is to select one 

 V or more official sealers to be appointed 

 '; by the State Department of Agricul- 

 ture and placed under bond. 



The loan regulations will permit 



r any bank, co-operative association or 



other agency to lend money to pro- 



/'; ducers on eligible farm warehouse cer- 



- tificates. Thus, the plan contemplates 



.; that an eligible borrower may take his 



; receipts to a local bank, fill out a note 



and sign the loan agreement, the bank 



notifying the Commodity Corporation 



, of the granting of the loan. '■■{'[ ;"•'-. 



Will Rediscount Notes , / 



At any time up to July 1, 1934 the 

 Commodity Corporation will buy the 

 note from the loaning agency at the 

 face amount plus accrued interest at 

 four per cent. Banks and other financial 



. agencies handling notes and loan 



;;■ agreements are not permitted to make 



'/ special handling charges. 



The borrower may retire the note 



':, at any time on or before the maturity 

 date. He may dismiss his application 

 by turning over to the Commodity Cor- 

 poration the number of bushels of 

 corn originally stored if the market 

 price of com should be less per bushel 

 than the loan amount per bushel. 

 There will be no recourse to the origi- 

 nal maker of the note or to any 

 subsequent endorser provided the loan 

 agreement including acreage reduc- 

 tion is fulfilled and provided there is 

 no misrepresentation of fact made by 

 the borrower in securing the loan. 



Applications for loans will be re- 

 ceived by the time this issue of the 

 RECORD is in the mails, according to 

 an announcement from Washington. 

 The last day for accepting applica- 

 tions will be March 1, 1934. 



The call issued by the Governor 

 limited the General Assembly to the 

 provision of relief funds fur the Illi- 

 nois Emergency Relief Commission. 

 This limitation was at once recognized 

 by the metropolitan press as an at- 

 tempt to bar consideration of any leg- 

 islation such as the Lantz bills, passed 

 last June and vetoed by Governor 

 Horner. These measures, sponsored by 

 the Illinois Agricultural Association, 

 were intended to give Cook County 

 and sixteen downstate commission- 

 governed counties additional taxing 

 power to carry out the mandatory 

 duty of providing poor relief and to 

 permit the city of Chicago and all out- 

 lying townships in Cook County to use 

 the same taxing power for relief which 

 is mandatory upon all townships in the 

 remaining 85 counties of the state. 



The issue in the Special Session was 

 not whether additional funds for re- 

 lief should be provided, but the most 

 desirable method of providing them. 

 Practically every one, including repre- 

 sentatives of the I. A. A., agreed that 

 the emergency, clearly foreseen last 

 summer but having been allowed to 

 arise, demand emergency legislation. 



Administration Bills 



In the special session, the State Ad- 

 ministration sponsored the six so- 

 called bonding bills, all of which 

 passed and have now become law. The 

 key measure levies a state tax of 

 $38,000,000 on the 1934 valuations of 

 all Illinois property, to be paid in 

 1935, thus more than doubling the 

 1934 tax levies for all state purposes 

 made in the regular session last June. 



Existing la-s authorize the sale of 

 state anticipation tax warrants up to 

 75 per cent of any levy, thus permit- 

 ting the sale of $28,500,000 in war- 

 rants on the new emergency levy. 

 When and if certain serious legal ques- 

 tions involved in some of the enacted 

 bills are upheld by the courts, such 

 state warrants will doubtless be sold 

 from time to time as funds are re- 

 quested by the Emergency Relief Com- 

 mission. 'J . ■' ' ■/ <':■' '-■■ ■■■ _."': .■'■ ':'.; ':': 



Companion measures of the tax levy 

 act provide for the submission of a 

 State Bond Issue in the amount of 

 $30,000,000 to be voted on in Novem- 



I. A. A. RECORD— December, 1933 



ber, 1934. If the proposed State bonds 

 are approved by a majority of all 

 votes cast for members of the General . 

 Assembly, the $38,000,000 levy on 

 property is not to be made. In this . 

 case the state anticipation tax war- 

 rants and arcrued interest thereon will 

 be redeemed out of the proceeds from 

 sale of the State bonds. Provision is 

 further made for payment of the 

 bonds and accrued interest, as they 

 mature, out of allocations of gasoline 

 taxes, one-half out of the share al- 

 located to each county obtaining funds 

 from this source and one-half out of 

 the share allocated to cities and vil- 

 lages therein, in proportion to the ex- 

 penditure of relief funds in each coun- 

 ty and in each city and village therein. 



'■■■"' •■^^' ' • The I. A. A. Bills "•''^"' '■"'■' ■''■'^ 



The Illinois Agricultural Associa- 

 tion prepared and sponsored five bills 

 which were introduced by Senator 

 Lantz, a somewhat simplified form of 

 the bills passed last June and vetoed 

 by Governor Horner. In order to bring 

 them within the terms of the call of 

 the special session, it was necessary . 

 to provide that any funds raised under 

 the provisions of the new bills should 

 be paid over -to the Illinois Emergency 

 Relief Commission. However, the prin- 

 ciple of local responsibility was pre- 

 served by the provision that such 

 funds could be expended by the Relief 

 Commission only in the taxing districts 

 levying and paying the taxes therefor. 



The new Lantz bills proposed elimi- 

 nation of Cook county as the taxing - 

 district responsible for relief and mak- 

 ing this duty mandatory upon the City 

 of Chicago and upon all townships in 

 Cook county outside of Chicago. The 

 new bills used the same mandatory 

 language as is used in the statute ap- 

 plying to all townships in 85 counties 

 of the state. They also proposed giving 

 the sixteen commission-governed coun- 

 ties downstate an additional tax rate 

 up to 15 cents, to be used exclusively 

 for relief purposes. ;i : ^; 



They Are Responsible 



The new Lantz bills were revised to 

 meet all objections raised by the at- 

 torney general and by Governor Hor- 

 ner when he vetoed them last summer. 

 They all carried the emergency clause 

 to give them immediate effect upon pas- 

 sage and approval. This would have 

 made possible immediate supplemental 

 levies by any taxing district in Cook 

 county or in the 16 commission-gov- 

 erned counties, and tax anticipation 

 notes issued against these supplemen- 

 tal levies would have provided funds 

 immediately. 



Responsibility for the passage of the 

 administration relief program must be 

 (Continued on page 8) 



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