The Bismarck tribune., 1933-04-18
new PROCLAMATION
LIFTS RESTRICTIONS
ON FEDERAL LOANS
Revision of Stand Follows Ac
ton of Farm Credit Chief
in Denying Credit j.
HAD HALTED U. S. FINANCES

Regional Credit Manager Asks
Washington's Permission !,
to Resume Action
Governor william LANCER Tuesday
issued new proclamation lifting the
restrictions Of two prior moratorium
proclamations as they apply to loans
made to farmers by the federal gov
The announcement followed an ap-
parent disagreement between the gov
ernor and Henry Morgenthau, head
Of farm finance operations ct Wash.
ington, and was made as an induce
ment to Morgenthau to withdraw
orders denying any further loans to
North Dakotans. The reason for the
Morgenthau order, announced Mon
day. was the governors moratorium
proclamation.
The new proclamation specifically
exempts for his previous moratorium
proclamations regional agricultural
credit corporation loans, RECONSTRUCT
ton finance corporation loans and
crop production loans made through
the department Of agriculture.
Immediately on issuance Of the new
proclamation. Attorney General A. ].
Gronna, r., communicated BY tele-
phone with John w. Barton, executive
vice president and manager Of the
regional agricultural credit CORPORA.
ton of Minneapolis, which Monday
ordered discontinuance Of disburse-J
ments to North Dakota due to TIM
governors moratorium proclamation.
Barton informed Gronna he would
telephone to Warrington asking for
release Of the loans h
North Dakota farmers
The governors first proclamation.
which came March ( during the M.
tional Banking Holiday, declared q,
blanket moratorium on all indebted.
ness and on foreclosure Of pcopeutN;
Modified March a
He modified this proclamstlor
March 22. BY permitting mortsaea
foreclosure sales on property in which
the owner does not reside. but pro2
mortgage foreclosures on excel
cution sales Of livestock and other perl
sona property used by an actual farm-
er IN operation Of his farm, and resa{
property occupied BY the owner.
Gronna said, that with the exceu.5
lion Of prohibiting foreclosures or exe.;;
cutlon sales Of livestock and otherl
personal property used by farmers In
making . livelihood, the March ~
proclamation revoked the eartiec
proclamation which declared 4 morae
torium on all private indebtedness.
tuesdays proclamation folloV
that OF March q to tho word, h,aS
ADDS the following paragraph: I
subject, however, to these excen,
lions: That this proclamation shaIT
not apply to Regional Agricultural
Credit Corporation loans. Recon-
struction Finance Corporation loans.
ana crop production loans made
through the department Of aericul-
ture now existing or which loans
may be made In the future by them"
The governors third proclamation.
repeating the language Of the March
~ edict. directs all state, county and
township officers to desist from fore
closing or forcing the sale Of homes
or property necessary and indis-
pensable to the livelihood Of such
occupant. or in the dispossession of
nome owners who may have lost their
homes by foreclosure since 1882. or
IN the obtaining of tax titles To
homes where the same may be now
subject to tax deed"
See End to Ban
representatives Of agencies ham
ding federal loan funds said at Mn
neapols Tuesday they believed the
ban on further loans in North Da.
kota would be lifted soon.
Morgenthau had persisted IN his
refusal to extend further loans nend.
ing Qualification Of the moratorium
situation, despite Langers declara-
ton IN an address Monday uiRht
that the government loans were not
affected.
Asks for EXPLANATION
Morgenthau, who on May n win
become governor Of the new farm
credit administration, which vim in-
clude the Regional Agricult ural
Credit Corporations. has Interested
himself in the North Dakota situa-
ton and is making an INDEPENDENT
Inquiry into the status Of farm loans
here. He has asked LANCER to de-
Tine his policy particularly with
respect to the collection Of short
term loans which are secured bv
property other than land.
The Regional Agricultural Credit
corporation makes loans principally
upon livestock and their mainte-
nance, H. O. Putnam, Burleigh couu-
" agricultural agent. said Tuesday
As security the corporation accents
chattel mortgages on the livestock
ana IN some cases win accept farm
as additional security.
Loans are made principally on cat
tie. horses. sheep and hogs but ucne
Is made on poultry OF bees.
J. 4. Kramer, district inapectoe 1oe
croD production loans, has rsueaNcd
40 orders 1rom Minneapolis 6 coaaa
granting seed loans. he aai4 T>noe-
day. Crop production loans ~
handled under :. apecdal aoqlaGv q
the r a. q. 1e&-llp. W.
Govegnee Deeon1s IoG111nn
Loans made ~ eovernm1ne0 o1ln.
cies 10 North Oa1cta 1o911nEH -
not af1ectsd ~ ~ unctn1ou1n
proclamation nov A elooot. nGS1-
nor IAneef s91 Monday 49,
The govetnor oal1o6 at<eaf1o
(fe0atA0aaoh - Unn nnau66n.s - =