Evening star., 1934-04-09
HOUSE VOTE SEEN
0NMORTGAGEB BILL
Democratic Leaders Con-
cede Forced Action on
Measure to Aid Farmers.
lssst.s sisfa-s-
~ the Associated Press.

~ the Associated Press.
democratic leaders conceded yester-
day that a House vote would be
forced soon-probably April 23-on a
farm mortgage reflnancing bill for the
issuance of at least $4,000, 100000 in
new currency.
The bill was drafted by Senator
Frazier, Republican, of North Dakota,
and introduced in the House last ses-
sion by Representative Lemke, Repub-
lican, of North Dakota. 1t was re-
ferred to the Agriculture Committee
and there 1t has languished ever since.
Lemke filed petition to let the
House decide, without action by the
Agriculture Committee, whether it
wanted to consider the measure. On
that petition today there were 1873 of
the 145 signatures required.
We've got enough additional sigma
lures promised to assure that the petit
ton will be completed today" Lemke
told newspaper men.
zs't,. Byrns Doubts Approval.
And Representative Byrns of Ten
nessee, the Democratic leader, added:
II reckon they'll get it signed up.
That means We'll have to vote on the
bill" Byrns, however, doubts that the
House will approve it.
If the petition should be signed up
today the motion to discharge the Ag-
riculture Committee could not, under
the rules, be voted upon before April
%. ByrnS indicated that if the mo-
ton prevailed on that day the House
Immediately would proceed to consider
the bill itself and vote on its passage.
The administration opposes the
measure on the grounds that it might
mean too much currency expansion.
1t contends that it would take around
$9,000,000,000 to refinance all the
present farm Indebtedness.
Lemke Disagrees.
But Lemke disagrees with that view.
1T would take only $2,500, 900
to $4,000, 100000 in a revolving fund
to do the trick" he said. Its the
Frazier bill eventually, so why not
now?"
As he explained the measure, it
you'd give farmers who now are
paying around 101a per cent on their
debts a chance to ref1nance them
for 3 per cent"
IF I have a $4,000 mortgage on
my farm now, the Farm Credit Ad-
ministration can lend me but SO per
cent of the farms value, and I pay
or 5k per cent interest on that"
he said.
Then I have to borrow an addi-
honal $4,000 from some other source
and pay even higher interest charges.
And the Farm Credit Administration
makes service charges that would re-
quire me to pay back around 10ls
per cent of the loan the first year.
Can Get 100 Per Cent Loan.
"Under the Frazier bill, if I have
Q $4,000 mortgage, the Govern
ment, through the Farm Credit Ad-
ministration, can advance me a loan
OF 100 per cent of the value of my
property.
1T will in that way pay off my
old mortgage and give me a new
one on which my payments would
amount to $500 a year for not more
than At years. would be paying
IA per cent interest on the loan and
IL per cent of the principal.
AT the end of At years I would
nave paid the Government $14,l0O
on $4,000 loan. The result would
be that besides helping farmers retain
their homes, the Government would
make net profit of S6,345, 100000
in the Al years.
And it would put much-needed new
currency into circulation"
In expressing doubt that the House
would pass the bill, Byrns said he
understood, however, that about half
Of the discharge petitions signers were
Democrats.
To pass the House, the bill would
need pit votes, 70 more than the
number required to make discharge
petition effective.