Date: 1985-12-10
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I causing many to go to the brink. Further. the assistance is provided in the yield myself the remainder of the Legislation is not written in stone. It absence of complete data as to the finantime. can be rewritten. We can come back. cial condition and viability of the System Mr. Speaker. there is no beginning modify and amend. but the time to act itself. It was very apparent during the and no end to those we need to thank on this piece of legislation is now. Banking Committee hearings that no one for their participation In this endeav- I urge you to support this legisla- knowsliterallywith any degree of ceror. also. for the negative words that we tion. tainty what the financial condition of the have heard. We consulted with the Mr. SHUMWAY. Mr. Speaker. I rise in FCS Is. the extent of the problems. et Treasury Department. We consulted reluctant support of H.R. 3792 for one cetera. In fact. the first complete audit of with the Agriculture Department. reason and one reason only: Given the pre- the FCSconducted by PriceWaterwith the administration. and with cipitous downward spiral of the Farm houseis now underway. with a comple. every Member who wished to be con- Credit System and its very apparent need tion date set for February of 1986. Given suited. We consulted with the Farm to restructure in order to remain a viable the lack of information to justify financial Credit System and the Farm Credit lender for Americas farmer. this legislaAdministration. There was no stone tion may be the only option available to assistance. I believe we should not act preleft unturned. Congress to effect the necessary changes in maturely or in haste. particularly since the This is not precise legislation. It the short time remaining this year. FCS canin the interimobtain assistance never is. However. it is good legisla- We are behind the eight ball. so to speak from the Federal Reserve for shortterm lition. It is consensus legislation. It is in that unlike other banklike regulations. quidity problems. the art of the possible. the possible the Farm .Credit Administration has had no ( Most significantly. the provision fails to today. now. this minute. real regulatory oversight and control over set appropriate prior conditions for the Why this process? Why bring this those which the agency supposedly regu- FCS to receive credit and to protect the bill under the rules of suspensions? latesthe entities within the Farm Credit Governments interest in underwriting the Because we are running out of time. System. Likewise. in addition to its mount- Systemconditions which were imposed in ing loan losses and possible collapse. the earlier rescues of Chrysler. Lockheed. and Time ran out yesterday for Dale Farm Credit System has been plagued by New York City. I believe we should not Burr of Iowa. who shot himself. his inconsistent internal operations. dissension place either the Government or the Ameriwife. a banker. and a neighbor. If he among its various bank districts. flight of can taxpayer at risk unless safeguards are would have had the word that the solvent farmer borrowers from the System. built into the assistance. Congress cared. that somebody cared. and an inability to marshal the Systems Second. I am troubled by the procedural that we were trying to do something. resources to help the weaker. financially approach taken in moving this bill through not arguing about jurisdiction or troubled bank districts. In short. the FCS is the legislative process. The Banking Coinabout whether it is appropriated annu- in a state of disorder. mittee. specifically. the Economic Stabilizaally or whether we came the fast or In recognition of these problems. H.R. tion Subcommittee. of which I am the the slowroute through here. perhaps 3792 provides for some vitally needed re- ranking minority member. was denied joint if we had done this last week. Dale forms of the FCA and the FCS. The legisla- or even sequential referral of the financial Burr would be alive today. I do not tion restructures the FCA into a true arms- assistance provisions of H.R. 3792. The subknow what his problem was. I do not length regulator. possessing full examina- committee has been the subcommittee of know what brought him to the brink. tion and supervision authorities. Further. it primary jurisdiction over other Federal but certainly the whole process we broadens the authority of the FCS so that rescue packages. including Chrysler. Lockfollow here is aimed at helping to it can mobilize its resources to absorb op- heed. and New York City. Further. the subavoid financial stress that brings erating losses and manage troubled loan committee has held a series of hearings on about such tragedies. such a sad deci- assets. the farm credit crisis. during which numersion in the end. That is why we are I believe these reforms should be en- ous experts testified. Hence. in addition to here on the fast track. dorsed and enacted as soon as possible its expertise in financial matters. the subThey say we are going to end this simply because they will quickly bring committeeindeed. the full committeesession Friday. yet on the other side order out of chaos and. in the process. help became well versed in the area of agriculwe are still meeting in conference on the FCS remain a viable lender and reas- tare credit. the farm bill. hopefully to get it out sure concerned capital market investors. W here before Friday. the source of the FCS funds. While I do not discount the knowledge Why are we here today at this stage? Despite these warranted reforms. I am and experience of my colleagues on the AgBecause of delays caused by the troubled by the Federal financial assistance riculture Committee in this area. I do think budget and the multiplicity of other provisions for the FCS and hence. the legis- that referral of the legislation to the Bankfactors that kept us from acting lation as a whole. for two reasons. ing Committee would have been approprisooner. We were ready to act on the First. a key provision of the bill provides ate. and should have occurred. farm bill last April. but we had to wait the FCS with permanent Federal financial This becomes more significant because out a budget process. We would have assistance through the Treasurys purchase the legislation is being taken up under the been happy to be here with this legis- of FCS bonds. This assistance is being pro- suspension calendar today. H.R. 3792 does lation earlier. but we had to listen to vided despite varying opinions as to wheth- not fit the description of noncontroversial everyone who needed to speak. We er or not it is needed at this time. Indeed. legislation. It makes substantive changes to gave everyone interested the opportu- during Banking Committee hearings last existing law and. as such. deserves full connity to be heard. month on this matter. various witnesses- sideration by the House. including being So I say to my colleagues. yes. it is including the Federal Reserve. the U.S. De- subject to the amendatory process. As it not perfect. Some of my fellow Texans partment of Agriculture and the Depart- now stands. the Banking Committee memare not happy. Some of the northeast- ment of Treasurytestified as to the con. bers and. for that matter. the other Memerners are not happy. Some of the siderable strengths of the FCS and the sub- bers of the House. will not have the opporMembers are not happy. but this is stantial amount of capital and liquid assets tunity to offer any amendments. even those what is available now. And now is that it could bring to bear on its problems. which might improve the legislation. when we have to act. This is regular Worse still. the financial assistance pro- This is not the right way to legislate. procedure. We have got to send the vision is openendedwith no cap on the even though a limited time remai1vjduring message out to the agricultural sector amountand contains no sunset d4te on this session. However. despite my grave resof this country that we care. which the assistance is to terminate. This ervations. it is for this very reasonthe I do not know if It will help anyone. leaves open the door to all types of possi- need for expedited actionthat I reluctantbut the odds are that it will. and that - bilities. for example. Treasury could pur- ly will support the bill.