Evening star., 1933-05-05
FARM GUARANTEE
VOTE SCHEDULED
House Will Decide Monday
on Final Amendment,
Rainey Declares.
ey the Associated Press.

Bv the Associated Press.
Speaker Rainey today set Monday for
the House vote on the lone amendment
holding up final action on the farm
relief-infation bsll-tl1e Norris -Simp-
son cost production proposal
Secretary of Agriculture Wallace was
represented by Speaker Rainey as re-
garding the amendment as "unwork-
able" ,''-,-' ~
Secretary Wallace told me that the
so-called Simpson amendment would
muss things up so that he was afraid
of it," Rainey told newspapermen.
The House and Sera5e conferees
were in disagreement over the amend
ment after an all-day conference yes
terday, but agreed on all other amend
ments.
The amendment is designed to assure
the farmer a reasonable profit above
the cost Of production.
Interest Scale Retained.
II the House Is willing to accept the
amendment, final congressional action
will be mere formality. II 1t decides
to support Wallace, another vote on
the amendment will be necessary when
the Senate resumes work Monday with
a prospect of further delay If the Sem
ate insists on the amendments reten-
ton.
A House provision that farmers OBJ
tanning mortgage refinancing loans shall
pay AZ per cent interest when the
loans are made through cooperative
loan associations and per cent II OBJ
tanned directly from Land Banks was
retained during the conference. The
Senate had votsd that the lower rate
prevail in both cases.
The limit on salaries for admins
traitors of both the farm relief and
mortgage reflnancing sections was
raised to $4,000, as approved by the
House, from the maximum Of $500
set by the Senate.
The cost production amendment,
the only snag in the way of complete
agreement, was championed In the
Senate by Norris, Republican, of Ne
braska, although It's provision would be
optional, Wallace is strongly opposed
to it.
The conferees eliminated sugar beets,
sugar cane, cattle and sheep from the
list of basic commodities.
Oll Jllc SluclllCo WClS WV AlSA
watching this little drama Of conflict
John A. Simpson, the veteran president
of the Farmers Union and legislative
representative of the Farmers Holiday
Association, which today at Des Moines
voted to call a farm strike for May
s13, and Frederic P. Lee, Wallace's
spokesman to the conferees. Lee, who
drew the administration farm relief
program under the direction of the
President and Wallace, urged the
amendments quick removal.
Expects Cross Fires. o..
i. The Wallace opposition Is based on
the belief that with alternative plans
for setting the price goals" Of the
bill endless conflict between farmers
will arise and the administrators of
the bill will be caught IN the cross
fires.
I The Simpson amendment proposes
that Wallace be empowered to proclaim
minimum prices at which farm COM
smodities shall sell-these prices to be
equal to the cost Of production plus
reasonable profit to the farmer. CAL
culation of the production cost would
Involve such factors as prices farmers
pay for consumption goods, wage levels
OF farm labor, capitalization Of the farm
plant and other factors. Simpson con-
tends that by exercising this power. nix
Ing farm prices well above present levels,
the farm problem would disappear over
night.
: Wallace favors the parity price as
the goal Of the relief administration.
This price would represent return to
pre-war, 1909-1914, levels, to return the
farmer the purchasing power he had at
that time in relation to the price he
pays for goods. On April Is the prices
farmers pay equaled exactly the pre-
war level, but as this level rises, the
goal price would increase, with the
Idea Of closing the gap between levels
OF farm costs and farm prices.
Relief Hopes Rise.
Meanwhile, prospects increased today
for a two-year holiday on mortgage
foreclosures for those farmers with land
loans from joint stock land banks.
It was learned that most of the 46
Joint stock banks now in operation
have decided to avail themselves Of
the 100000, 900 fund to be set up un-
der special mortgage relief provision
of the administration farm bill.
To obtain the loans, on a per cent
interest rate, the banks will be required
to agree to reduce their interest rates
to farmers to 5 per cent within 60 days
after the bills final approval. This
came nearer yesterday when Senate and
House conferees reached an agreement
on the mortgage relief portion Of the
farm bill
In addition the banks must agree to
suspend foreclosure proceedings for two
years on loans in default except where
the land serving as security has been
abandoned or special authorization is
provided by Government credit officials.
These banks, which began the loan
operations in 1918, have more than
s4o0,o0o,000 in outstanding farm loans,
or about per cent of the Nations
farm mortgage debt. This figure is ex-
elusive Of about $4,000, 900 in out
standing loans Of three banks which
are in receivership. The average inter-
est rate to farmers has been So per
cent
Henry Morgenthau, jr, Farm Board
chairman and governor designate of
the farm credit administration, said
the farm bill contemplates eventual
liquidation of the banks which have
been the center of controversy. Oppo-
nentS Of the system accused the banks
of rushing foreclosures in order to OBJ
tain cash to retire their bonds. The
liquidation process will require many
years, as the bank loans have been
made on 33-year basis.
.