The midland journal. (Rising Sun, Md.) 1885-1947, 1933-04-21

senator guarantees the inter-
Hop'"so" est payments. The
: bonds. or the money 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 in
terest 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 prin-
cipal of his debt to considerable ex-
tent. Henry Morgenthau, Jr., COVER
nor of the new farm credit admins
tration, believes mortgage indebted
ness may be scaled down in two ways.
A mortgage, willing to settle for cash
or bonds at 20 or so per cent Of the
principal. could exchange the mort
gage on that basis for land bank
bonds. The bank then would refinance
the farmer at Az per cent. Or a
farmer making composition with his
creditor could borrow the funds for
settlement from the land bank.
Opposition to the legislation revolves
around two arguments. One is that
1t will be an inducement to farmers to
default in the payments on their pres
ent mortgages in order to persuade
mortgages to settle at less than face
value. The other is that such vast
flotation of per cent bonds would
tend to .demoralize the bond market
and react unfavorably on banks and
insurance companies with large bond
portfolios The maturity of the bonds
is to be fixed by the land banks and
probably will he 30 or 40 years.
Stated briefly, the main provisions
of the farm finance bill are as follows:
Federal land banks are authorized to
issue UP to $4,000. 100000 in 4 per cent
bonds, interest guaranteed by govern
ment.
The same banks could purchase first
mortgages on farm land or exchange
bonds for them.
The treasury is authorized to SUBJ
scribe $50,000,00c to the paid-in sur
plus Of the banks.
Interest rate on loans on mortgages
shall not exceed Az per cent.
A total of $15,000,000 would be avail
able from the treasury to compensate
banks for interest reduction.
The limit on mortgage loans would
be raised from $4,000 to $4,000.
Voluntary liquidation Of joint stock
land banks is provided.
A total of 500, 900, 900 Of Reconstruct
tion Finance corporations funds is
made available for loans to farmers
for refinancing their debts in accord
ance with provisions of the new bank
ruptcy relief act
Reconstruction Finance corporation
Is authorized to loan $50.O00,000 to
drainage, levee and irrigation districts
to reduce and refinance their debts.
Increases the lending power Of the
Reconstruction Finance corporation by
$300,000,000.
tTHE number of veterans to be af-
4 fected by the Presidents order re-
ducing veterans benefits will not be
known for some time. In one way or
another it will be felt by practically
all Of the Spanish-American and
World war veterans. and the widows
of veterans Of these wars now on the
government pension rolls, because it
reduces the rates on the greater part
of such pensions as will continue to
be paid. These reductions and those
to be dropped from the pension rolls
will be affected after July of this
year. In brief, the order makes the
following provisions:
Payment Of pensions authorized to
veterans disabled by disease or injury
incurred or aggravated In line of duty
In active service.
Rates to be paid for service connect.
cd disabilities are: 10 per cent dis
abled. So month: rs per cent, $50; 50
pc. cent, $40: rs per cent, $50: 100 per
cent. $50. These are 20 per cent reduce
tions under present aids.
Pensions authorized to widows, chill.
dren, and dependent parents OF vet
Grams who died from disease or Injuries
incurred or aggravated In line OF duty
In active service. Rates continue as at
present.
Payments authorized for non-serv.
ice connected disabilities and deaths
of veterans who served 30 days In the
Spanish-American war, Boxer rebellion.
Philippine insurrection. and World war.
provided disability was total and not
due to personal misconduct.
Latter allowance will not be made
( 70 unmarried persons with income OF
more than $1,000 q year or to any mar
ried person or one with minor children
whose income exceeds $4,000.
Pensions OF widows and children OF
Spanish American war veterans cut so
per cent.
Excludes peace-time veterans from
domiciliary care.
Limits sharply emergency officers
pensions.
DOTH the senate and house are con
ID sidering bill. of which Senator
Black Of Alabama is the author. that
would establish thirty-hour WORK
week. AS the bill is presumed to have