The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-09-27
U. S. CUNNING
NEWEST WORRY
FOR FARMERS
Government to Hold Crop
Buyers Responsible for
R. F. c. Loans.


By Scripps-Hocard Newspaper Alliance
WASHINGTON. Sept. 27-An
elaborate set Of regulations has been
drawn, and detailed instructions
given to farmers and probable pur-
chasers Of their products by the
government to insure it's collection
OF federal loans to needy growers.
Paid in fulll' is the governments
admitted goal
The instructions to probable pur-
chasers that they will be held obli-
gated to see that the government
gets its money. if purchases are
made from debtor-farmers pub
lished in part by the New York
World-Telegram last week, are only
part Of the elaborate system of col
lection.
The collection agency is the de-
partment of agriculture, which also
was the distribution agency, in max
ing loans from Reconstruction FL
nance Corporation funds voted by
congress.
The loans, totaling almost $685.
100000, went into all parts of the
country, to more than $4,000 Dor
rowers, who gave first liens on their
crops as security. The advances,
made for crop production purposes,
draw 51z per cent interest, and are
due Nov 30.
Entire Crop Pledged
Over the signature of S. M.
Thompson, chief CT the collection
and inspection division of the
Washington regional crop produc-
ton loan office, a letter went to
farmer-b orrows, which said, in part
mo recent information has been
received on your crops, and we
therefore ask that you fill in the
accompanying form.
THE farmer is reminded that he
has pledged his entire crop as Sc
curity' for his loan, and the de
partment emphasizes "the i'm
portance Of keeping your present
good standing with this office, as
your future credit rating will he
largely determined by your prompt
ness in paying this loan"
The QUESTIONABLE asks such
questions as these: Are you max
ing a payment today? Have you
sold any crops? Was all this money
paid on your loan? Have you
enough crops to pay your loan? If
not, how are you going to nay this
loan? How many hogs or cattle
are you raising for sale? When will
you sell them? Are you depending
on the sale of your hogs to pay
your loan?"
Enclose Payment Slip
Finally, the same letter has en-
closed a payment slip for the CON
venience" of the indebted farmer.
Separate instructions have been
sent to field inspectors of the crop
production loan Office, county
agents, crop producers and buyers,
and this sets forth how proceeds of
sale of some crops may be used to
pay harvesting costs.
Another letter to state and field
inspectors tells them to furnish lists
of borrowing farmers to wholesale
and commission houses that buy
truck and fruit.
Cotton ginners have been warned,
In another letter, about protecting
the governments interest in loans
made to farmers. These ginners
have been supplied lists of indebted
growers. Their cotton" this notice
says, lis covered by a lien or bill of
sale and the purchaser is liable to
the secretary of agriculture unless
the funds are forwarded to Wash
ington for repayment on the loan"
The legal question of whether OF
not purchasers of farm products
from indebted growers could be
asked to act as collection agencies
was put to department. of agriculture
experts, and they explained that the
practice was legal.