Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-07-19
40 GOO 600 Rushel. Sealed.

way
40. 900, 900 Bushels Sealed.
Altogether approximately 270 600 =
600 bushels were placed under seal
since last November, when the pro-
gram started, and this amount OF
corn represents q loan value OF about
sI2i 5000 900. Up to July IL, some Sc
600 600 in notes had been repaid by
the borrowing farmers In these IL
States The rate Of retirement Of tho
loan rotes Is increasing progressively
and before long 1t is expected to top
the present repayments Of nearly
81 900 900 daily
As q result OF these improved con-
ditionS and also 10 steady the market
and deal more leniently with some
farmers who are confronted with han
dicaps over which they have no con-
troll. the A. A. A. and the Commodity
Credit Corporation have extended the
maturity date of outstanding notes OF
Government corn borrowers from Au-
gust ! to September ] Prompt set
element after August !, the original
maturity date will be asked. however,
on outstanding loans which are Sc
cured by corn that is in poor condi-
ton and likely 10 deteriorste, or which
Is in storage In inferior cribs Offering
inadequate protection.
The extension of this maturity date
on loan notes TO September /. officials
said. will permit many farmers who
need the corn under seal for feeding
purposes to make necessary arrange
naents In the meantime for discharR-
Ing the loan obligations and will per-
nit o continuation of the orderly dis
charge OF loan notes by farmers who
are now in a position to make settle
nnent as well as making provisions for
their own feeding requirements.
Disturbance Prevented.
The months extension, therefore,
will prevent any unnecessary disturb
ance 10 the corn market by providing
this gradual settlement of loan notes.
Administration officials point out
that borrowers may sell the corn at
their own option st any time, in &C
cordance with regulations Of the Com
modify Credit Corporation, and re-
ceive for themselves any overplus re-
naming after the loan note principal,
with interests and all other legitimate
charges have been met. Until the c.
C. c. calls for the corn, the borrower
may also remove It from under seal
by repayment OF all outstanding OBJ
legations. e
In accordance with the c. c. c.
ruling of May 81, the corn borrowers
may make partial settlement under
supervision of an official State sealer:
that is, the farmer may make par
tial payments on loans upon sealed
corn and obtain the release, solely
for their own feeding purposes, of an
amount of sealed corn equivalent to
the partial payment made, at the rate
of "a cents per bushel, which equals
approximately the loan principal, plus
interest and incidental charges. All
authorizations Of the partial release
of corn collateral covered by a farm
warehouse certificate are granted by
the Commodity Credit Corp. Prior
10 this ruling. it WAS said. releases
could be obtained only when the to-
tai amount due, with respect to corn
collateral covered by one farm ware
house certificate, had been paid.
The total amount OF corn on farms
In States where loans were made Is
estimated at 3s2, 753 600 bushels as of
July !, as compared with estimated
stocks Of 62l 900 900 bushels on farms
In these States on April !. The
states are Colorado, Illinois, Indiana,
Iowa, Kansas, Minnesota, Missouri,
Nebraska, Ohio and South Dakota.
or the farm stocks now on hand
in the loan area, 256, 532 900 bushels,
or approximately tvo-thirdS, is
pledged under Government loan
agreements. Most of the disappear
ance in farm stocks since April l has
occurred in unpledged stocks. IN
pledged corn decreased 81 per cent
between April | and July /, while
pledged stocks decreased only about
4 per cent.
In Iowa, where most of the loans
were made, the amount of corn not
under warehouse seal is only about
Is per cent OF the total stocks on
hand and will not be sufficient TO