Evening star., 1932-09-28
TIME IS EXTENDED
T0PAY j. S. LOANS
New Terms Allow Wheat
Growers to. Settle Only
One-Fourth of Debt.

President Hoover has taken steps to
assist wheat farmers who, because Of
present low prices, are unable to repay
the Government the full amount due
for loans advanced for crop production,
it was announced today at the White
House.
Secretary Of Agriculture Hyde has
been directed by the President, because
Of this situation, to accept from such
farmers Is per cent of the amount due,
together with an agreement to secure
the remaining rs per cent on whatever
terms Congress may authorize.
Present low prices on farm products.
the White House statement said, would
make it practically impossible for
wheat farmers to repay their crop pro-
duction loans without incurring grave
risk of need during the Winter"
VIII Not Press Farmers.
On September IA, Secretary Hyde
said he had been authorized by the
President to say the Agriculture De-
partment would not press for collection
of its feed and seed loans until Congress
had an opportunity to act.
The White House statement today
said this order had not solved the
difficulties in all localities, since 1t had
been construed as meaning that a claim
remained upon the crop. preventing the
marketing of any part of it.
After further consultation with the
President. the statement added, Secre-
tary Hyde has issued a new order to
accept from farmers rs per cent of the
amount due, and upon receiving such
payments to press for no further money
from the farmers involved until Con-
gress has acted.
Text of Statement.
The announcement text follows:
Present low prices make 1t prac-
tically impossible for wheat farmers TO
repay their crop production loans with
out incurring grave risk Of need during
the Winter.
"On September IA the Secretary of
Agriculture, in order to clear up the
situation, issued the following statement
in respect to these loans:
With respect to your recommenda-
ton as to deferment of collection of
feed and seed loans made by this de-
partment, I am authorized by the Pres
ident to say that the department wishes
to handle the situation with the ut
most consideration for the borrowers
who are in difficulties. You will realize
that the law contemplates that such
loans must be repaid out of this crop
and that to give such extension as you
wish will require legislative authority.
To meet the needs of those who are in
distress, the department will not press
for collection of these loans until Con-
greSs has an opportunity to act
1t is now represented that this plan
has not solved the difficulties in all To-
calities. as it has been construed that
under this arrangement claim remains
upon the crop. which peryentS the mar
keting of any part Of it.
In order to clear the matter up
after consultation with authorities in
the States concerned, and in order to
enable such farmers to provide for their
families, the Secretary of Agriculture.
after consultation with the President
has directed the department to accept
from such farmers 25 per cent of the
amount due, together with sn agree
ment to secure the remaining rs per
cent of such debt on whatever terms
Congress may authorize.
Upon payment of such 25 per cent
and execution of the agreement, no
further payment will be required until
opportunity has been given Congress
to pass on the question involved"
Affects S23, 100000.
The 25 per cent moratorium on the
loans will affect approximately s23,0-0,-
900 which has been loaned through the
Northwest farm regions where droop-
ing grain prices brought poverty.
The rate of interest on the loans Is
5ia per cent and this rate will BE- con-
tinued upon the rs per cent lett out
standing after the loans fall due No
vember 80, officials said
While applications have been re-
ceived for similar extensions of paying
from the cotton, tobacco and other
agricultural regions, Secretary Hyde
made the order applicable only to grain
regions.
Seed loan officials said both cotton
and tobacco prices are above those OF
last year and the need for extensions
was not felt so keenly.