The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-03
F. R URGES
MORTGAGE AID
FOR FARMERS
Message to Congress Asks
Legislation That Will
Ease Burden.
HOME HELP PLEDGED
Senate Committee Ends
Agriculture Bill Study;
Wants Passage.
BY FREDERICK A. STORM
United Press STAFF CorrespOndent

WASHINGTON, April 3.-Presi-
dent Roosevelt asked congress to-
day to include in its farm relief pro-
gram specific measures for dealing
with the nations crushing burden Of
farm mortgage indebtedness.
The Presidents farm mortgage
program was introduced in the SEN
ate Immediately after reading OF
Mr.. Roosevelts special message
stressing the need for reflnanclng
the farm debt.
The credit measure, referred 10
the banking and currency commit
tee. provides for refinancing mort
cages by reducing interest rates and
through a temporary readlustment
of amortization It would operate
through a S2,OO0000000 federal land
bank bond issue.
After committee action the farm
mortgage bill is to be reported in an
omnibus measure with the Roosevelt
farm bill. which would give Agricul-
turc Secretary Wallace wide author
itv to raise commodity prices
through cmtailed production and
processing taxes.
Commodity Bill Approved
The senate agriculture committee
today completed action on the COM
modify bill in substantially the form
approved by the house. II will meet
Tuesday to act on a combined COM
modify md credit bill.
Mr.. Roosevelt's special message
1t was the eighth he has sent to
congress in less than a mOnth-de-
clared the farm mortgage situa-
ton must be dealt with in order to
"end the forced liquidation Of prop
erty, to increase purchasing power
and to broaden the credit structure
for the benefit of both the produc-
ing and consuming elements in our
population
Other rehabilitation steps to fol-
low, Mr. Roosevelt said, would De
similar measures of relief for the
small home owner and legislation
to break through trade barriers in
order to re-establish foreign markets
for farm and industrial products.
A summary of the farm mortgage
legislation showed that it proposed
the land bank bond issue would be
at 4 per cent, with the bonds issued
for two purposes:
/. Making new loans.
2. Exchange of outstanding mort
cages.
AZ Per Cent Maximum Rate
The land banks would be author
lied to purchase first mortgages on
farm lands within their districts,
or to exchange bonds for them. The
motgagor would be entitled to have
his Indebtedness refnancTd for the
amount paid by the bank for his
mortgage,
The maximum rate of interest on
loans on mortgages outstanding
would not exceed A. per cent. In
his message Mr. Roosevelt said
that present interest rates in many
cases were "unconScionably high
The Reconstruction Finance Cor
poratiun would be directed to make
available $1OO,0OO,000 for loans to
Joint stock land banks at 4 per cent
in providing collateral for these
loans the bill makes possible COM
plete revaluation of the lands I'M
der mortgage, the borrowing ca
pacity to be limited to 60 per cent
Of the lands appraised value.
The borrowing land bank must
agree to reduce to 5 per cent the
rate of interest carried in its mort
cages pledged as collateral and to
refrain from foreclosure during a
2-year period.
Mr. Roosevelt said that legislation
relating to farm mortgages should
be AN integral part of the broad
plan to end the forced liquidation
of property to increase purchasing
power and to broaden the credit
structure for the benefit of both the
producing and consuming clements
in our population.
I seek the President said, AN
end to the threatened loss of homes
and productive capacity now faced
by hundreds of thousands of Amer
lean farm families