Evening star., 1933-04-03
Proposes Issuance of Bonds
Running as High as Two or
Three Billions to Aid Re-
financing.
SPECIAL MESSAGE ASKS
SPECIFIC LEGISLATION
Presidents Plan Would Give Agri-
| culture Benefit of Decreased
Principal, Lower Interest Rates
and Extension of Time to Care
for Indebtedness.
BY G. GOULD LINCOLN.

President Franklin D. Roosevelt
today called upon the Congress to
pass legislation to aid in the re-
financing of farm mortgages.
The Presidents proposal calls
for the issuance of a great bond
issue, running perhaps as high as
$4,000, 100000 bearing interest at 4
per cent. These bonds are to be
substituted for farm mortgages
the country over, giving the farm
erS the benefit of somewhat de-
creased principal, much lower in
terest rates, and an extension Of
time in which to care for their
Indebtedness, or may be used for
new loans.
In special message which was read
in both Senate and House the President
stressed the need of going to the aid Of
the American farmers through the re-
financing of their indebtedness. At the
same time the President struckSanother
blow for the passage of his farm-relief
bill. now pending in the Senate, which
Is designed to increase farm prices.
Specific Legislation Asked.
"As an integral part of the broad plan
to end the forced liquidation of property,
to increase purchasing power and to
broaden the credit structure for the
benefit of both the producing and con-
suming elements In our population. I
ask the Congress for specific legislation
relating to the mortgages and other
forms OF Indebtedness of the farmers OF
the Nation" said President Roosevelt in
his message.
THAT many thousands of farmers
In all parts of the country are unable
to meet indebtedness incurred when
their crop prices had very different
money value is well known to all Of
you. The legislation now pending,
which seeks to raise agricultural COM
modify prices, Is definite step to en-
able farm debtors to pay their indebt-
edness in commodity terms more close
ly approximating those in which the
indebtedness was incurred; but that
is not enough.
In addition the Federal Government
should provide for the refinancing of
mortgage and other indebtedness SO az
to accomplish a more equitable read
justment of the principal of the debt,
reduction OF interest rates, which in
many instances are so unconscionably
high as to be contrary to a sound pub
lie policy, and, by temporary read
lustment OF amortization, to give suf-
f1cient time to farmers to restore to
them the hope of ultimate free owner
ship of their own land. seek an end
to the threatened loss Of homes and
productive capacity now faced by hun
dreds OF thousands of American farm
families
Would Aid Home Owners.
1.-THE legislation I suggest will not
impose heavy burden upon the Ma
tional Treasury. 1t win instead provide
a means by which. through existing
agencies of the Government, the farm
owners of the Nation will be enabled
to ref1nance themselves on reasonable
terms, tighten their haraSsing burdens
and give them a fair opportunity to
return to sound conditions
Il shall presently ask for additional
legislation as part of the broad pro-
gram, extending this wholesome prin-
ciple to the small home owners of the
Nation, likewise faced with this
threat.
ALSO. I shall ask the Congress for
legislation enabling us to initiate
practical reciprocal tariff agreements
to break through trade barriers and
establish foreign markets for farm and
industrial products"
The farm mortgage bill was intro
duced shortly afterward as an amend
ment to the farm relief bill during that
measures consideration in the Senate.
The Senate Committee on Agriculture
today voted into the administration farm
relief bill the so-called Simpson pro-
duction costs guaranty plan, and con-
cluded their work on that measure.
Continued on Page 2, Column a.