Evening star., 1932-09-29
i. s. MAY EXTEND
FARM MORATORIUM
Partial Suspension to Grain
Farmers May Reach
Othsrs if Needed.
Continued From First Page.)

been biighted for at least one or two
seasons past.
In response to questions, Newton said
that if it was shown that producers of
such products as cotton and tobacco
had suffered to such an extent as some
Of the wheat farmers. he had no doubt
the partial moratorium would be ex-
tended to them.
Participation By Southern cotton and
tobacco growers il the IS per cent sus-
pension of crop loan payments was de-
manded By Senator Smith. who charged
'glaring sectional and partisan discrim-
nation"
Il shall insist" the veteran Demo-
cratic Senator said. that the cotton and
tobacco growers, who are cue the Gov
eminent on crop loans. shall be given
the same treatment that is now given
the wheat growers. and if it is not given.
public opinion. based on equity and JUS
tice, will uphold them in refusing to pay
any more and under different terms
than that granted the wheat growers"
Smith. ranking Democrat on the SEN
ate Agriculture Committee, said the
cotton and tobacco growers were IN Just
as distressing conditions as wheat farm
ers. He added:
Grown in Democratic Area.
Unfortunately these two products
are grown almost exclusively in the
South and the South is almost exclu-
sively Democratic Even If it were not,
the intent of the administration in
making this order to so discriminate, It
lays itself liable to justidable criti-
cism"
The administration had annSunced
that present low prices make it prac-
tically impossible for wheat farmers
to repay their crop production loans
without mourning grave risk of need
during the Winter
ever. the Agriculture Department ssid.
prices higher than last years should
enable borrowers to meet their pay
ments, though from these sections also
applications for extensions have been
received
The Government advanced approx.
mately S64C00,000 in seed loans this
year, of which s23.0oOO0O falls within
the suspension order. The re, ainder is
distributed largely in cotton and tobacco
regions
The administration plan leaves TO the
next session of Congress the decision
upon what terms the suspended rs per
cent of seed loans shall be repaid. The
White House further said the intention
previously announced by Secretary Hyde
not to press collections from those in
distress has not solved the difficulties
in all localities"
The new step, It added. was taken
in order to clear the matter up
and in order to enable such farmers to
provide for their families
Demands for farm debt moratorium
long have been heard from the North
west wheat regions, and a national
farmers conference. with this as the
primary goal, has been called to meet
here In December.
The farmers conference. demanding
primarily that farm debts be continued
without payment for the present, has
been called here to meet at the same
time Congress reconvenes for the ses-
sion which will have to determine re-
payment terms for the sums postponed
under yesterdays decision.
Crop production loans were first un-
dertaken by the Federal Government in
1921 and have been continued through
the years, with many millions outstand-
ing even before this years loans were
maoe While in many sections good
l lepayment to the Government, some OF
the Western localities have been getting
steadily further behind. To avoid dis
possessing the farmers. the Govern
ment, in many instances, has renewed
the loans from year to year, necessitat-
ing maintenance Of inspectors through
out the region.
Message of President.
Mr.. Hoovers message to Gov Turner,
sent yesterday, follows:
You will be glad to know that
have secured a preliminary discussion
among Eastern mortgage concerns and
go.errim entail agencies upon the question
Of farm mortgages.
las a result. Mr.. Henry Robinson,
chairman of the Executive Committe of
the Federal Reserve Banking and In
dustrial Committees. has arranged fo-
further meeting of members OF those
committees for the Midwest districts to-
gether with representatives of mortgage
agencies In Chicago at the Federal Re
serve Bank in Chicago tomorrow. II
is to be followed by more extended
meeting on Friday.
In order that we may have full CO.
ordination Of governmental agencies
the Secretary Of Agriculture and repre-
sentatives of the Reconstruction Corpo-
ration and the Federal Farm Loan
Banks will participate in these meetings
with other mortgage agencies. am
very hopeful that constructive steps
will follow from these conferences"