Images de page
PDF
ePub

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON BANKING AND CURRENCY

UNITED STATES SENATE

SEVENTY-SIXTH CONGRESS

THIRD SESSION

ON

S. 3509

A BILL TO REDUCE PERMANENTLY THE INTEREST RATES ON
FEDERAL LAND BANK AND LAND BANK COMMISSIONER LOANS;
TO RELIEVE FEDERAL LAND BANK BORROWERS OF STOCK
LIABILITY; TO PLACE THE FEDERAL LAND BANKS ON A SELF-
SUPPORTING BASIS; TO REFUND AND GUARANTEE THE BONDS
OF SUCH BANKS; TO INCREASE THE FUNCTIONS AND RESPONSI-
BILITIES OF NATIONAL FARM-LOAN ASSOCIATIONS AND COUNTY
COMMITTEES OF FARMERS; TO PROVIDE FOR THE ADJUSTMENT
AND REFINANCING OF FARM-MORTGAGE DEBTS; TO LIMIT THE
INSTITUTION OF FORECLOSURE PROCEEDINGS AND
THE TAKING OF DEFICIENCY JUDGMENTS;

AND FOR OTHER PURPOSES

MAY 7, 8, 9, 10, 16, 17, AND JUNE 7, 1940

Printed for the use of the Committee on Banking and Currency

[ocr errors][merged small][merged small]

COMMITTEE ON BANKING AND CURRENCY

ROBERT F. WAGNER, New York, Chairman CARTER GLASS, Virginia

JOHN G. TOWNSEND, JR., Delaware ALBEN W. BARKLEY, Kentucky

LYNN J. FRAZIER, North Dakota JAMES F. BYRNES, South Carolina

CHARLES W. TOBEY, New Hampshire JOHN H. BANKHEAD, Alabama

JOHN A. DANAHER, Connecticut
ALVA B. ADAMS, Colorado

ROBERT A. TAFT, Ohio
FRANCIS T. MALONEY, Connecticut
GEORGE L. RADCLIFFE, Maryland
PRENTISS M. BROWN, Michigan
JAMES H. HUGHES, Delaware
CLYDE L. HERRING, Iowa
WILLIAM H. SMATHERS, New Jersey
JOHN E. MILLER, Arkansas
D. WORTH CLARK, Idaho
SHERIDAN DOWNEY, California

PHILIP LEVY, Clerk

SUBCOMMITTEE ON AGRICULTURAL FINANCE, FARM MORTGAGES, AND RELATED

MATTERS

JAMES F. BYRNES, Chairman ALBEN W. BARKLEY, Kentucky

LYNN J. FRAZIER, North Dakota
JOHN H. BANKHEAD, Alabama

CHARLES W. TOBEY, New Hampshire
GEORGE L. RADCLIFFE, Maryland
JAMES H. HUGHES, Delaware
CLYDE L. HERRING, Iowa
JOHN E. MILLER, Arkansas
D. WORTH CLARK, Idaho

LIBRARY OF CONGRESS

JUL 1 9 1940
DIVISION OF DOCUMENTS

UA5

1440 a

Amlotta to

[ocr errors]

CONTENTS

Statement of-

Page

Black, Hon. Albert G., Governor of the Farm Credit Administration,

Washington, D. C...

8

Cheek, Tom W., member of the National Board of Farmers' Union and
president of the State Farmers' Union of Oklahoma -

187
Davis, Hon. Chester, Governor of the Federal Reserve Board..

189

Dickinson, Dr. M. F., representing legislative committee of the Na-

tional Farmers' Union and National Federation of Grain Coopera-

tives..

153

Doak, W. B., representing the National Farm Loan Association,
Fairfax County, Va., Clifton, Va.

134
Goss, Albert S., Chevy Chase, Md.

195, 217
Hodgkin, George B., representing National Council of Farmer Coop-
eratives, Los Angeles, Calif..

241
Mayer, E. S., representing National Wool Growers Association, San
Angelo, Tex..

193
Mylander, Charles H., vice president of the Huntington National
Bank, Columbus, Ohio..

259

Short, R. E., representing the American Farm Bureau Federation,

Brinkley, Ark

39, 71

Taber, L. J., master, National Grange-

137
Wallace, Hon. Henry A., Secretary of Agriculture, Washington, D. C. 269

EXHIBITS

Copy of bill, S. 3509.

Letter addressed to Hon. James F. Byrnes by Secretary Wallace in reply

to questions submitted by Senator Taft--

Statement submitted by Governor Black relative to bankruptcy cases

pending under section 75 of the Bankruptcy Act as of June 30, 1939--

Memorandum on centralization of authority in Governor of Farm Credit

Administration under provisions of S. 3509.

Supplemental statement submitted by Senator LaFollette on comparative

costs of interest subsidies under present law, under H. R. 8450 (as it

passed the House on March 18), under H. R. 8748 in its present form,

and under H. R. 8748 if amended to fix the rate of interest payable by

borrowers at 372 percent.--

Information requested by Senator Miller from Farm Credit Adminis-

tration -

Letter addressed to Hon. Robert F. Wagner by Mr. L. J. Taber, master,

National Grange, Columbus, Ohio.-

Statement submitted by Farmers Educational and Cooperative Union

of America, presenting information requested by Senator Miller -

Statement submitted by Dr. Dickinson relative to estimated amount of

Federal land-bank and land-bank Commissioner loan proceeds used for

refinancing, May 1, 1933, to December 31, 1939..

Letter addressed to the Members of Congress entitled “Debunking the

charges relative to the destruction of the Farm Credit Administration”.

Letter addressed to Senator Miller by Ezra T. Benson, executive secretary,

National Council of Farmer Cooperatives, Washington, D. C., relative

to major organizations which constitute the membership of council.-

Statement of A. L. M. Wiggins, chairman of the committee on Federal

legislation, American Bankers Association, and president of the Bank

of Hartsville, S. C..

Copy of amended bill and report of Department of Agriculture

259

286

FARM CREDIT ACT OF 1940

TUESDAY, MAY 7, 1940

UNITED STATES SENATE, SUBCOMMITTEE OF COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C. The Subcommittee on Agricultural Finance, Farm Mortgages, and Related Matters met at 10 a. m., pursuant to call, in room 310, Senate Office Building, Senator James F. Byrnes, chairman of the subcommittee, presiding.

Present: Senators Byrnes (chairman), Bankhead, Hughes, Miller, Clark of Idaho, and Frazier.

Present also: Senators Wheeler and La Follette.

Senator BYRNES (chairman of the subcommittee). The subcommittee will come to order.

This subcommittee of the Committee on Banking and Currency has under consideration S. 3509. The bill is as follows:

(S. 35C9, 76th Cong., 3d sess.] A BILL To reduce permanently the interest rates on Federal land-bank and Land Bank Commissioner loans; to relieve Federal land bank borrowers of stock liability; to place the Federal land banks on a selfsupporting basis; to refund and guarantee the bonds of such banks; to increase the functions and responsi. bilities of national farm-loan

associations and county committees of farmers; to provide for the adjustment and refinancing of farm-mortgage debts; to limit the institution of foreclosure proceedings and the taking of deficiency judgments; and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Farm Credit Act of 1940."

INTEREST RATES

SEC. 2. (a) The rate of interest payable on any loan made prior to the date of enactment of this Act, or made on or after such date and prior to June 30, 1946, by any Federal land bank under the Federal Farm Loan Act, as amended, or by the Land Bank Commissioner on behalf of the Federal Farm Mortgage Corporation, or otherwise, under the Emergency Farm Mortgage Act of 1933, as amended, shall be 3 per centum per annum for all interest payable

on installment dates occurring after the date of enactment of this Act; and the interest payable with respect to any such loans made during any calendar quarter after June 30, 1946, shall be at a rate to be fixed for such quarter by the Governor of the Farm Credit Administration (hereinafter referred to as the “Governor”), with the approval of the Secretary of the Treasury, which may reasonably be expected to reimburse the Federal land bank, or such Corporation, as the case may be, for the cost to it of the capital required for such loans, plus 1 per centum per annum for administration and reserves against losses.

(b) Notwithstanding the provisions of paragraph Ninth of section 12 of the Federal Farm Loan Act, as amended, the rate of interest payable after the date of enactment of this Act by any borrower from any Federal land bank or from the Federal Farm Mortgage Corporation on defaulted payments, or on taxes, liens, judgments, or assessments not paid by the borrower when due and paid by the mortgagee, skall be the same as the rate of interest payable by such borrower under the provisions of subsection (a) of this section.

(c) If the average rate of interest estimated by the Governor to be payable during any calendar quarter prior to July 1, 1946, by any such bank, or by such

1

« PrécédentContinuer »