The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-07-02
C. o N II N U E ID
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Farm Credit Head
Defends Six-Year
Moratorium Bill

past year have been the federal land
banks. The number of farms acquir-
ed by the federal land banks during
the past year has been the smallest
in many years.
THE policy which the farm credit
administration has pursued during
the last year is not to foreclosure upon
any borrower who is doing his honest
best to meet his obligations, who Is
making proper application Of his In
come. if any, after meeting necessary
living expenses, and who Is adequate
~ caring for the mortgaged property.
Further pursuit of this policy,
pending continued recovery and
further rise in farm values, will OBJ
viate any extensive need for resort
to the bankruptcy provisions Of the
Frazier Lemke act. One farmer in
several hundred of insolvent farm
ers who can not come to an agree
ment with his creditors or arrive at q
solution through one Of the $500 debt
Cancellation committees by voluntary
action, can obtain court action under
the bill.
Under the refinancing program Of
the farm credit administration, scale
downs Of the claims Of creditors have
been necessary in less than one out Of
seven loans"
Mr.. Roosevelt approved the bill on
June % but he delayed making his
action public SO he could explain his
reason for signing 1t.
Says Amendments Needed
He said the legislation was In some
respects loosely worded and would re-
quire amendment at the next session
Of congress.
Nevertheless" the chief executive
concluded, 1.-The reasons for signing It
far outweigh the arguments on the
other SIDE"
There has been . serious lack Of
understanding Of its provisions" Mr..
Roosevelt said, "and 1t has been al
legged that insurance companies and
other mortgages will suffer severely
through the use Of this law by farm
ers to evade the payment Of debts
within their capacity to meet.
Il do not subscribe to these fears.
II have sufficient faith In the hon.
esty Of the overwhelming majority Of
farmers to believe that they will not
cvade the payment Of just debts"
He added that contrary to the be-
lief Of many uniformed persons,
this Is not q general or wholesale
moratorium privilege"
The bill, first advanced by Repre-
tentative McKeown, Democrat Of Ok
lahoma, would enable farmers who
try to reach . debt settlement through
county Cancellation commissions to
ask federal courts that they be i'd
juged bankrupt. The Cancellation
commissions were authorized during
the Hoover administration but advo-
Gates Of additional farm debt relief
claimed they have helped the produc-
crs very little.
After the farmer begins bankruptcy
proceedings, the court Is to appoint
appraisers to arrive at the flair value
OF hts land and chattels, II liens are
held against them. .
Creditors May Block Settlement
Il that appraisal Is satisfactory "a
the lien holders, the farmers may pay
of the indebtedness over . six-yeaa
period ct rates Of interest which be-
GIN ct / per cent On the total and
gradually rise to per cent.
/ Any creditor may block the settle
ment II he desires. But II be does
the federal court Is authorized 10 give
the farmer . five-year moratorium
During that time. the debtor would
keep his place and pay fair rental
value" to be determined b. the court
This rent would b divided among the
creditors.
/ At the end Of the five-year period
the court may make Q new appraisal
of the property and the farmer could
atll - relieved q his debts & III