Evening star., 1939-06-19
Senate Group Backs
Bill 10 Underwrite
Farm Purchases
Measure Would Apply
Principle Now in Use
In Home Loan Field
b the Associated Press.

b the Associated Press.
The Senate Agriculture Commit
tee approved today bill under
which the Federal Government
could underwrite S350,O0O 900 of
private loans for the purchase of
farms.
The bill, by Senator Lee, Demo-
crat, of Oklahoma would apply to
farm purchase loans a principle
similar to that followed in the
home loan field by the Federal
Housing Administration.
Aides of Senator Lee said So Sem
ators, a majority, had signed the
measure as co-authors, and that
Chairman Jones, Democrat, of
Texas of the House Agriculture
Committee would press for similar
bill in the House
The bill would be administered
by the Farm Security Administra-
ton. which directs the Govern
ment's existing program of finan-
Sfal assistance for farm tenants de-
string to become land owners.
The House Public Lands Commit
tee, meanwhile, charged that the ad-
ministration's farm security pro-
gram tended to weaken the morale
Of the farm population and regi-
ment farm families and farm prac-
tlces under strong centralized
Federal supervision.
The committee made this asser-
ton in a report. prepared for sub
mission to the House today. recon-
mending legislation by Representa-
tive Peterson. Democrat, of Georgia,
to provide debt-free homesteads for
farm families.
The report, which bore the name
OF Chairman De Rouen, Democrat,
OF Louisiana, hailed the Peterson
bill as "a simple and effective REM
edy" for the national farm problem.
1t would authorized the General
Land Office to acquire lands now in
private ownership through the pur-
chase of liens and to convey tracts
OF so to 100 acres to farm families
as homesteads.
This, of course, is in bold con-
trast,' said the report. ito our
present so-called pump printing pro-
gram OF giving only temporary re-
lief. And the permanent relief af-
forded through this program brings
definite hope for reduced Federal
expenditures in future years"
1t said expenditures under the
Peterson bill would be far less per
farm unit than is now being spent
by the Farm Security Administra-
ton.
Throughout the United States,'
1t added, "the Farm Security Ad-
ministration is establishing farm
units at an average cost of ap-
proximately $1,000 per unit. How
ever, the average farm mortgage
throughout the United States is
only about $4,000, and under this
proposed act the average mortgaged
farm, which contains approximately
$50 acres, may be obtained for this
sum-"
F. S. A. Plan Called Fantastic.
The report added that every farm
unit set up under the F.. S. A. was
under paternalistic" control, with
financial liabilities greater than its
assets.
Common sense shows that such a
program as this is not only fantastic
and Impractical but that it is also
antagonistic to, and destructive of,
individual liberty and free govern
ment.
Loans on farm land, either by
private agencies or by the Govern
ment, do not solve the problem.
They only add fuel to the flames"
In another farm development OF
today, r. M. Evans, agricultural
adjustment administrator, advised
farmers they would have to curtall
operations even further than they
already have done under crop-con-
troll programs.
Writing in the Agriculture Depart
ment's Extension Service Review, he
said loss of foreign markets would
require smaller acreage.
Under New Deal programs. the
planted acreage has been reduced
from about 35O,OOO,O 900 to 29O 900 900
acres.