Evening star., 1932-10-05

of work has been done on the water.
ways in the last three years than in
any similar period in the history Of the
United States. am also glad to report
that after 20 years of discussion
examination and intermittent negotia-
ton, treaty has been signed with
Canada which only awaits ratification
of the United States Senate and the
Dominion Parliament for us to under
take that great contribution to the
strengthening of Midwest agriculture in
reaching out to world markets.
We have suffered from unprecedented
droughtS both in the north and south
of you. Some other sections were
unable to obtain credit for seed and
feed for live stock. Through various
Government agencies loans to the
amount OF 100000 have been made
to 100000 of our families to rehabilitate
their production and ameliorate these
conditions. Some of these families are
in difficulties in making immediate re-
payment because of demoralized prices
I have seen to 1t that they are not
unduly pressed.
Last April / delivered an address tC
the Conference of the Governors of the
various States. l stated in effect that
the most inf1eXible tax in our country
is the tax on land and on real property
1t is the least adaptable to the vary
ing income of the taxpayers. l stated
that in the present situation the taxes
upon farms and homes have become
almost unbearable, that such taxes are
wholly out OF proportion to other forms
of taxes.
stated then, emphatically. that
there is no farm relief more needed to-
day than readjustment OF land taxes.
Review Of Tax System.
The Federal Government collects no
direct property taxes but at that meet
ing / proposed that We should review
the whole relations of our tax system
between Federal, State and local gov
ernmentS and seek a basis of taxation
fol each that would give opportunity
for readjustmentS between our different
forms of government Such readjust-
ments should be found which would
enable tie States to find other sources
of tax revenue, and would more equita-
bly, distribute the burden over the
whole people. l announced last April
that I would cali tax experts of the
Nation together to determine methods
We should pursue. / shall do SO as soon
as the national election is cut Of the
way. anu j oittilL
methods to Congress.
The very first necessity to preyent
collapse and secure recovery in a2rlcul-
ture has been TO keep open TO the
farmer the banking and other sources
from which to make short-term loans
for planting, harvesting, feeding live
stock. and other production necessities.
That has been accomplished indirectly
in large measure through the in
creased authority to the Federal Re-
serve system and its expansion Of
credits, and indirectly through the
Reconstruction Corporation loans to your
banks 1t has been aided directly
through the intermediate credit banks
and through the 10 new agricultural
credit institutions which alone can
command over 300000,000 credit and
which are now being erected in all
parts Of the country.
We are thus rapidly. everywhere re-
storing normal short tterm credits to
agriculture.
: In another direction. upon my
recommendation, the Reconstruction
Corporation has been authorized to
make credit available to professors to
purchase and carry their usual stocks
OF agricultural products and thus re-
Eeye a burden which was resting upon
farm prices because the farmer was
forced to carry these stocks. But even
more important than this, at my recon-
mendation. the Reconstruction Corpora
ton has been authorized to make
credits available for sales of farm prod
ucts in new markets abroad. This Is
today and will with increasing activity
extend immediate markets in relief OF
farmers and the prices of products.
Long Term Credits.
The mortgage situation-that is. long
term creditS-is one Of our most diff
ago 1 secured and published an under
taking from the leaders of both politi-
cal parties that We should extend aid
to this situation. In December we ap-
propriated S125,0O0,000 directly to in
crease the capital of the Federal Land
Banks and We provided further capital
through authority that the Reconstruct
tion Corporation should purchase the
bonds of these banks The purpose
was to enable the Federal Land Banks
to expand their activities and to give
humane and constructive consideration
to those indebted to them who were
in difficulties. In the large sense it
has pursued this policy A little over
l per cent OF the farms held under
mortgage by the Federal Land Bank
system today are under foreclosure and
these mostly cases where men wished
to give up.
The character of the organization OF
the Joint Stock Land Banks whose
business methods are not controlled by
the Federal Farm Loan Board has re-
suited in disastrous and unjust pressure
for payments in some of these banks.
The basis of that organization should
be remedied. We have sought to fur
ther aid the whole mortgage situation
by loans from the Reconstruction Cor
poration to banks, mortgage companies
and insurance companies to enable
them to show consideration to their
farmer borrowers. AS a result OF these
actions hundreds of thousands of foress
closures have been prevented.
But despite the relief afforded by
tl,cca Ynaa S11rac tho mort 90 Sifuo tin1,