The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1933-04-20

farm loan banks OF
/ bonds to the extent
senator of $4,000. 100000. on
oD'nson which the govern
ment guarantees the interest pay
ments. The bonds, or the money
I derived from their sale, are to be
used by the farm loan banks for
the purpose of taking over the
farm mortgages on which the inter-
est rates cannot be more than AZ
/ per cent.
The expectation is that with
money available to settle with his
! creditor the farmer can scale down
the principal of his debt to a con-
/ siderable extent. Henry Morgen-
than, Jr., governor of the new
farm credit administration, believes
mortgage Indebtedness may be
/ scaled down In two ways. A mort
/ gagee, willing to settle for cash or
bonds at 20 orr 80 per cent of the
principal, could exchange the mort
gage on that basis for land bank
bonds. The bank then would ref
nance the farmer at AZ per cent.
Or a farmer making a composition
with his creditor could borrow the
funds for settlement from the land
bank.
Opposition to the legislation re-
wolves around two arguments. One
is that it will be an inducement to
farmers to default in the payments
on their present mortgages In order
to persuade mortgages to settle at
less than face value. The other is
that such vast flotation Of A per
cent bonds would tend to democrat
lie the bond market and react nm
favorably on banks and insurance
companies with large bond port
folios The maturity of the bonds
is to be fixed by the land banks and
probably will be 80 or 40 years.
Stated briefly. the main provi-
sfons Of the farm finance bill are
as follows:
Federal land banks are authorized
TO issue up to $4,000. 100000 in per
cent bonds, interest guaranteed by
government.
The same banks could purchase
first mortgages on farm land or ex-
change bonds for them.
The treasury is authorized to SUBJ
scribe $50,000,000 to the paid-in sur
plus Of the banks.
Interest rate on loans on mort
cages shall not exceed ~ per cent.
"a hA
available from the treasury to COM
pensate banks for interest reduction.
The limit on mortgage loans would
be raised from SIS, 900 to $4,000.
Voluntary liquidation of joint
stock land banks is provided.
A total of $100.0o0.0oo of Recon-
structfon Finance corporations funds
Is made available for loans to farm
ers for refinancing their debts In ac-
cordance with provisions Of the new
bankruptcy relief act.
Reconstruction Finance corpora
ton is authorized to loan $4,000
600 to drainage, levee and irrigation
districts to reduce and refnance
their debts.
Increases the lending power of
the Reconstruction Finance corpora
ton by Ssoo.ooo.ooo.
DOTH the senate and house are
~ considering a bill, of which
Senator Black Of Alabama is the
author, that would establish a
thirty-hour work. week. AS the bill
is presumed to have the endorse
ment Of the President and the spe-
cial approval Of Secretary of La
Dor. Miss Perkins. it is expected to
pass both houses.
The bill would compel private in.
dustry to adopt the thirty-hour
week and penalize interstate move
ment Of products made by labor
working longer hours.
Black expressed confidence the
bill would be upheld by the United
States Supreme court.
The Alabama senator said the bill
would not accomplish its purpose
If it resulted In reduction of wage
levels as well as hours and ex-
pressed the belief that, If industry
attempted to reduce wages. con-
gress would act. Labor has been
undergrad and capital overpaid."
he said. = :
Borah said he was ''in thorough
accord with the principle of this
bill and I'm not so sure that we're
Z not going to have to come to it."
His argument revolved around
whether congress had the power to
take action. =
THE number of veterans to he
i affected by the Presidents Or
der reducing veterans benefits will
not be known for some time In one
way or another it will he felt by
practically all Of the Spanish-Amer-
lean and World war veterans. and
the widows of veterans of these
wars now on the government PEN