Evening star., 1933-03-28
CUT IN FARM LOAN
RATES IS PLEDGED
Procedure to Be SimpIified
by Head of New Credit
Administration.

Reduced and more uniform interes,
rates for farmers. based on a schedule
which will vary with type Of service
and term OF the loans, will be worked
out by the new Farm Credit Administra
ton.
Relief Of the farmer through reduc.
ton Of such charges was pledged yes
terday by Henry Morgenthau, jr.. chair
man Of the Farm Board, soon after
President Roosevelt ordered centraliza-
ton Of all existing Federal agricultural
credit agencies. They will be cen.
tralized In the new Farm Credit ad'
ministration, which will be headed by
Morgenthau, with the title Of gov
ernor."
Paul Bestor. farm loan commissioner
will be retained, but members Of the
Farm Loan Board and Of the Farm
Board will be "at liberty" after the con-
solidation. Morgenthau said he i
anxious to retain Bestor.
Morgenthau intends to have the func
tions Of existing credit agencies cen
tered In four divisions, the heads OF
which will be responsible directly t<
him. He also intends to merge regional
ofilces maintained by the various agen.
cies. The cities in which Federal lane
banks now are located probably will be
the sites for the new regional of1ces
housed with the banks.
viii Simplify Procedure.
These cities are Springfield, Mass.
Baltimore, Columbia. S. c.; Louisville
KY; New Orleans. st. Louis, st. Paul
Omaha, Wichita, Kans.; Houston
La1a Co1t
The farmer who wants credit will
have to enter only one door to make
his application instead of visiting the
headquarters Of several agencies" Nor
genthau said. I'VE will aim to cut out
overlapping Of loan functions in such
a way that II the Government is will
ing to provide credit in a certain case
the answer will be available to the
farmer quickly-and II credit is not to
be extended we want to give the farmer
his answer quickly instead Of telling
him to see another Federal agency"
Morgenthau said he will bring all
employees OF the credit administration
under Civil Service classification as
quickly as possible. Employees Of the
crop production loan division Of the
Department Of Agriculture and those
of the regional agricultural credit
agencies of the Reconstruction Finance
Corporation are not on a Civil Service
basis. In all, about 10000 persons are
employed by units affected by the con-
solidation order, which gives Morgen-
thau authority to dismiss, furlough or
Sum May Be Increased.
The scattered agencies now have
about $4,000 in outstanding credit
This sum may be increased greatly
gram being worked out by the President
for early presentation to Congress and
under which mortgage refinancing will
be offered farmers.
The existing agencies do not offer
loans on a uniform basis Morgenthau
said. He pointed to the crop production
loans being made from q $90, ,000, ,00C
fund-under which acreage reduction
of 80 per cent Is required except in
cases Of minor tracts-and the loans
being made by the agricultural agency
Of the Reconstruction Finance Corpora
ton. which makes no acreage reduction
requirement.
Morgenthau put an end to the con-
troverSy waged some months ago over
the right of the controller general to
audit the crop production loan divisions
records with a statement that all divi-
sions of the new administration will be
subjected to the controller generals
periodic audit.
One Of Morgenthau's first problems
will be preparation Of budget Presi-
dent Hoover pocket-vetoed the inde-
pendent ofices appropriation bill This
action left the Farm Board without
appropriations beyond June 30.