Imperial Valley press. (El Centro, Calif.) 1907-current, 1933-05-10
BILL
PASSED TODAY
BY CONGRESS
Provides For Initiation, Farm
Relief And Scaling Down OF
Farm Mortgages.
CERTAIN TO BECOME LAW
Measure Backed By Administra-
ton Now Goes To President
For Signature.
BY LYLE C. WILSON

United Press Staff Correspondent
WASHINGTON, May 10. U.P)-
Administration bludgeons today
beat down resistance to the omni-
bus farm relief, currency initiation
and mortgage refinancing measure
and forced its final enactment by
congress.
The disputed legislation, accepted
in final form today by the senate
and previously approved by the
house, now goes to President
Roosevelt for signature.
WASHINGTON, May 10. = The
administration S unprecedented cur
rency initiation, farm relief and
mortgage reduction bill received
the final approval of congress to-
day and awaits only the requisite
signatures to become law.
President Roosevelt assured the
nation in an address last Sunday
evening he would resort to infla-
ton "when, as and if necessary"
The bill is in three sections. It's
currency initiation and farm relief
provisions are discretionary with
the President but the third section
providing for scaling down of the
farm mortgage debt must become
effective.
Final approval came today after
the senate receded from the So
called Simpson price fixing amend
ment which would have authorized
the secretary of agriculture to
guarantee fixed prices to farmers
for that portion of their product
consumed in the domestic market.
? Mr.. Roosevelt objected to that
authority and at his bidding the
house yesterday refused to accept
the senate price fixing amendment.
The Thomas currency initiation
amendment was accepted by the
house without change. Senator
Thomas DEM Oklahoma, predict
ed when initiation was approved
the farm relief features of the bill
never would be utilized because in
flation would remedy the ills of
agriculture.
The currency initiation section of
the completed measure gives the
President authority to bring about
credit expansion up to 5000 ,000,-
600, issue new money to the same
amount, alter the gold content of
the dollar, order free coinage of
silver, and accept 200,000,o00 in
silver in foreign debt payments.
Wallace Given Power
power Secretary of Agriculture Wal
lace to reduce farm acreage and
production through the cotton OPP
ton, domestic allotment and land
leasing plans; impose processing
taxes designed to raise prices on
basic farm commodities; make
marketing agreements with produc-
ers, professors and distributors In
addition he is authorized to license
professors and distributors so as to
enforce fair marketing.
Relief would be extended to the
mortgage burdened farmers through
the credit section of the bill, which
provides for $4,000, 100000 issue
of four per cent federal bank bonds
and extends S200,000000 in Recon-
struction Finance Corporation cred
it to farmers scaling down indebt-
edness under the federal bank
ruptcy law.
The federal land banks are auth
cried to purchase first mortgages
or exchange bonds for them, on
basis of unpaid balance on so per
cent of appraised land value plus
20 per cent of Improvement value.
Interest rates on outstanding
land bank mortgage loans is re-
duced to four and a half per cent
The credit section also provides
for gradual liquidation of joint
stock land banks, authorizes Re-
construction Finance Corporation
loans of $1000OO,O00 to refinance
drainage, irrigation and levee dis
trict indebtedness, and treasury
subscriptions of S50,000.00O to ia
cilitate land bank operation of the
1000, 900, 900 program for refinanc-
ing farm mortgages.