Evening star., 1933-03-23
Issuance Up to Two Billion
May Be Made Possible,
Rainey Declares.
CONGRESSIONAL LEADERS
CONFER AT White HOUSE
Farm Bill Goes to Agriculture
Committee of Senate-Treasury
Probes Mortgage Relief.
BY the Associated Press.

BY the Associated Press.
From a conference of congressional
leaders at the White House today is
sued word that the impending farm
mortgage plan will call for refinancing
present debts with new Government
bonds. probably totaling a billion dol
lars.
Speaker Rainey told newspaper men
this was the plan, explaining it was
provide the needed relief, but adding
that issuance up to two billions would
probably be made possible
=. At the same time, Senator Smith.
Democrat, of South Carolina, who has
been strongly critical of the farm relief
Dill passed by the House yesterday, 315
to o8, indicated confidence that changes
would be made which would satisfy
those opposed to its present language
and please the administration as well.
The farm relief bill was referred to
the Agricultural Committee by the Sen
ate today. It will be considered by this
committee tomorrow.
Rainey, leaving the White House con-
terence, said the mortgage bill now is
at the Treasury for careful scrutiny
He expected 1t would be given to Con-
gress within few days and would be
attached to the farm relief bill as an
amendment for sake of speed.
AS he explained the plan, the bill
would call for immediate and complete
liquidation Of the joint stock land
banks; extension Of the farm loan sys-
tenn to replace the stock banks. It
would, he said, refinance as many
mortgages as could be obtained through
"conciliatory methods"
Mortgage Cuts Likely.
This would mean, probably, reduction
OF the amount Of individual mortgages
through agreement between debtor and
creditor, with the Government then
buying the reduced mortgages, paying
with new bonds. However, Rainey said
1t was not decided whether the bonds
would be issued in this way or sold on
the open market and the cash used to
buy mortgages. Interest, he said, would
come down to S per cent or less.
"A tentative draft OF the bill Is In
the hands Of Secretary Woodin for any
suggestions he might have to make, /"
Rainey said. He predicted that "for the
sake Of speed, this bill will be added
In the Senate to the farm price fixing
bill we passed yesterday.
The bond issue might reach So
900. .000, 900, but we hope it won't go over
1,000, ,000, ,000," the Speaker said.
In addition to Rainey and Smith,
those who gathered at the White House
Executive offices this morning included
Senator Robinson of Arkansas, the ma
jortty leader; Senator Byrnes, Demo-
crat, Of South Carolina; Chairman Jones
of-the House Agriculture Committee,
Chairman Buchanan of the House Ap-
preparations Committee, Senator Bank
head, Democrat, of Alabama, and Sen
ator Gore, Democrat. Of Oklahoma.
Join Session Later.
Shortly afterward they were Joined
by Senator Wagner, Democrat, New
York; Chairman Steagau of the House
Banking Committee, Senator McAdoo,
Democrat, California; Henry Morgen-
thau, Jr., chairman of the Farm Board,
and Prof. w. I. Myers, Morgenthau's
assistant.
These two have been working cut the
details OF the program. similar to the
Canadian plan. which is to be presented
for congressional approval.
President Roosevelt was represented
today as not perturbed over opposition
which has arisen to the farm relief bill
In the Senate, including the refusal Of
Senator Smith to support the measure
and his intentions Of introducing a SUBJ
stitute.
The huge majority given the bill In
the House has strengthened his belief
that the bill will pass the Senate with
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