The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-07-02
farm CREDIT HEAD
DEFENDS SIX-YEAR
MORATORIUM BILL
Myers Declares "SIioht Minor.
ity" Only Will Have to Go
Into Bankruptcy
PRESIDENT SIGNS SATURDAY
Measure Fits in With General
Program Of Protecting
Distressed Farmers

distressed Farmers
Washington, July 2.-(R)-William
I. Myers, governor Of the farm credit
administration. said Monday only a
very slight minority" Of farmers will
shave to 60 into bankruptcy to save
their homes" under the Frazier
Lemke act giving q partial six-year
moratorium on farm mortgages.
The measure was signed Friday by
President Roosevelt, but his action
| was not announced until Saturday
He expressed the opinion that "losses
OF capital will not greately exceed. if
they exceed at all, the losses that
would be sustained If this measure
were not signed"
Myers, in statement, said the leg
islation fits in with the farm credit
program "since it attempts to prevent
occasional selfish creditors from fore
closing on distressed farm debtors"
Land Banks Brought Relief
The general recovery program OF
the past year and loans made by the
federal land banks and the land bank
commissioner have relieved the great
majority of distressed farm mortgage
cases." Myers added.
He said more than 86 per cent OF
the installments on land bank COM
missioner loans which matured prior
to June were paid before they were
due. OF the delinquent loans two
thirds were for less than 80 days, he
! added. gs
Myers statement in part follows:
The Frazier -Lemke amendment tt
the bankruptcy act Is in accord with
the program of the farm credit adj
ministration, since it attempts to
prevent occasional selfish creditors
from foreclosing on distressed farm
debtors.
THE program Of the farm credit
administration has been to prevent
excessive debt burden on q basis
which would permit good farmers to
work out.
"As a result Of the general recov-
cry during the last year and the loans
Of the federal land banks and the
land bank commissioner, the great
majority Of distressed farm mortgage
cases has been relieved, leaving q
very slight minority of farmers who
will have to 60 into bankruptcy to
save their homes.
Farmers as class are very slow
to take bankruptcy and my expert
ence In working with them PERSONAL
" and in the farm credit admins
tration gives me every confidence
that they still retain an ever-present
urge to pay their debts.
More than IS per cent Of the in
stallments on land bank commission
er loans, which generally have been
made to the most heavily indebted
farmers, which matured prior to June
l, were paid on or before they were
due. OF those which are delinquent.
two-thirds are for less than 80 days.
Farmers Show Good Faith
This shows that even the most
heavily indebted farmers are acting
In the highest good faith.
In lending almost billion dol
lars on the security Of farm mort
cages, 80 per cent Of which was used
to refinance existing farm debt bur-
dens, and in making commitments to
lend $700, 000, 900 more, the farm cred
It administration has become the
creditor Of the vast number Of farm
ers who otherwise might have needed
to avail themselves Of bankruptcy as
provided by the Frazier Lemke bill in
order to avoid foreclosure.
Loans by the land bank commits
sioner have been made, and will con-
tinue to be made. up to IS per cent
Of the normal value Of farms, al
though less than one-tenth Of the
farms in the country were indebted
for more than 70 per cent Of their
value at the time the refinancing
program began.
"At that time more than one-half
Of all the farms in the country were
free from mortgages. The ten per
cent Of the farms mortgaged for 70
per cent or more Of their value has
been cut to an even smaller percent
age since last year by the refinancing
program, thus diminishing to excep-
tional cases the number Of possible
applicants for bankruptcy under the
Fraxier-Lemke bill.
Reduction in the number Of FORE
closures shows that an increasing
number Of heavily indebted farmers
are getting their indebtedness In bet
ter shape.
lo.ooe Farmers Appeal 70 FCA
TN the last year more than 10000
farmers have appealed directly to the
farm credit administration IN WASH
ington for emergency aid because the
mortgage holders were pushing them
for settlement.
THE creditors Of these farmers were
requested not to press foreclosure
proceedings until the land bank could
determine Il they could b refinanced.
appeals for such emergency a.
sistance have fallen from peak Of
1000 . week In November 70 about
500 recently.
Foremost among the creditors who
have greatly reduced the number Of
their foreclosure actions dusing the
frlos4flnsAnf1 ~ 0a0A A.