White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1934-07-05
Frazier-Lemke Bill
Protects Mortgagors

1.-THE Frazier Lemke amendment to
the Bankruptcy Act is In accordance
with the program OF the Farm Credit
Administration, since it attempts TO
prevent occasional selfish creditors
from foreclosing on distressed farm
debtors" w. +. Meyers, Governor OF
the Farm Credit Administration, said
in a recent statement TO the press.
The Frazier-Lemke bill was signed
June % by President Roosevelt after
having passed both houses of Congress
late in the session It provides for
fve-year moratorium on the payment
of farm mortgages when conditions
Justify the action.
THE program OF the Farm Credit
Administration has been to prevent
farm foreclosures and to retinance eX-
cessive debt burdens on basis which
would permit good farmers to work
| out. AS result of the general recovery
| during the past year and the loans OF
| the Federal Farm banks with the Land
Bank Commissioner, the great majority
of distressed farm mortgage cases
have been relieved, leaving a very
slight minority of farmers who will
have to go into bankruptcy to save
their homes. Farmers as q class are
very slow to take Bankruptcy" Gov
ernor Meyers stated, land my expert
ence in working with them personally
and in the Farm Credit Administra-
ton gives me every confidence that they
still retain an ever present urge to
pay their debts"
Ninety cents out of every dollar
loaned by the Land banks and Com
missioners under the Farm Credit Adj
ministration has gone to put farmers
in a position where they are not II
need of bankruptcy. The total farm
mortgage loans and commitments
made under the refinanclng program
will raise the total outstanding loan
of the Land Bank and the Land Banl
Commissioners to more than $2,5OO,
600 900 in few months so that the.
will become holders Of over 80 pc
| cent of the total farm mortgage in
debtedness in the United States nov
placed at $8,OO0,000,000
4 in the last year more than 1000
farmers have appealed directly to tn
y Farm Credit Administration IN Wash
n ington for emergency aid because tn
mortgage holders were pushing thef
for settlement. The creditors OF thes
farmers were requested not to pres
. foreclosure proceedings until the Ian
bank could determine If they could b
. refnanced. Appeals for such eme1
= gency assistance have fallen from
=" peak of two thousand a week In Nc
yember to five hundred recently. c
- the 10000 emergency cases more tina
two-thirds of the farmers applied fl
n loans and about 70 per cent obta1ne
N loans or commitments, thus removir
m thousands of farmers from the ten p
~ cent class which otherwise might ha'
err needed to resort to bankruptcy
Foremost among the creditors wi
have greatly reduced the number
SIS their foreclosure actions during II
rs, past year have been the Federal Lal
er banks, The number of farms acquir
by the Federal Land banks duril
On the last year is the smallest IN ma
years. The policy which the Fa1
Credit Administration has pursu
mt during the last year is not to forecle
IN upon any borrower who is doing
lss honest best to meet his obligation
who is making proper application
his income, II any, after meeting NJ
ng assaly living expenses, and who Is &C
on quately caring for the mortgaged p'
on perty This policy has been followed
many other creditors, believing tt
avoidance of foreclosure whenever p
:. sible will prevent losses of capital
, debtor and creditor alike. Further p
Il suit OF this policy pending cont1n,
recovery and further rise OF ia
values will obviate any extensive NJ
the for resort to the bankruptcy provisi
asst Of the F'razier-Lemke Act