The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-02-03
New Bill to Aid
Farmers Enemies
Relief" for Banks Is
Aim of Hull Bill

WASHINGTON, Feb. 2.-Clearly
the result of the farmers mass re-
sistance to foreclosure sales and fear
ing outright reputation of all formal
indebtedness. Congress moved today
to put over fake mortgage relief"
measure sponsored by Senator Cor
dell Hull of Tennessee.
During the week the militancy Of
the farmers had resulted in six Of
the leading insurance companies OF
the country suspending foreclosure
sales against mortgages totalling
nearly 100000. While represent
ing a partial victory for the farmers
and a Vindication of their militant
tactics, the concessions by the in
surance companies does ret substan-
TALLY tighten the terrific h.7rten on
the shoulders of the farmers, mas
much as nearly 100000 in mort
cages is still held by local banks, the
majority of them direct agents Of
Eastern financiers.
Forced to yield as result of the
pressure of the farmers, the insur-
ance companies, banks and other
mortgage holders are looking to Con-
gressional farm relief" measures
which will provide relief" to the
mortgages rather than to the ruined
farmers.
Senator Hull's proposal fits snugly
into this category. BY the provisions
sc ~ III In ii
nance Corporation would be author
lied to hand over 100000 1000 to
loans for paying interest installments
and delinquent taxes and obtaining
the agreement of the holder OF the
mortgage, in return for these pay
ments, to grant twoyear postpone
ment of foreclosure"
Thus all the agencies who have
been tightening the moose around the
necks Of the farmers would share in
this "relief" fund.-" while the latter
would continue to struggle against
debts due to farm implement manu-
faeturers, commission merchants and
local banks and merchants who hold
notes for loans made. And all this
in the face of the lowest farm prices
in the history of the country.
Meanwhile hearings continued to-
day on the domestic allotment bill
In its present form the bill proposes
bounty to the producers of wheat,
cotton, hogs, tobacco, peanuts and
rice. The bonus thus proposed is
to go to farmers who can prove they
have reduced their acreage 20 per
cent, and the fund for the bonus is
derived from tax levied against
the professor and miller but passed
on the consumer.
The politicians have been very
dubious about the bill from the be-
ginning, not because of the fact that
it offers no relief to the farmers,
but because it would be 50 difficult
to persuade the farmers to support
the bill.
Trap for Farmers.
This bill, already passed by both
houses of Congress, provides for
$90,000,000 for crop production loans
for farmers. This money is to be
taken from the funds of the Re-
construction Finance Corporation and
is to be distributed by the Secretary
of Agriculture.
A first lien on crops is required
in exchange for the loan. The
Joker" of the bill, as far as the
farmers are concerned, is that it
gives the Secretary of Agriculture
power to demand 80 per cent acre
age reduction from those applying
for crop production loans-thus act
ing as direct agent of the big pro-
ducers and marketers in schemes to
control the market and jack up prices
of goods they now have on hand