FARM DEBT IS PUT AT $200 PER THOUSAND
Farm Debt Is Put At $200 Per Thousand Need for La Follette Bill Is Shown By Farm Research Study By FARM RESEARCH WASHINGTON, D. C—Should the farm debt be scaled down? This question has again...
...local housing authorities must raise 10 per cent of the capital cost of the housing project built, the USHA being empowered to lend the other 90 per cent at 3 per cent interest...
...This question has again become the most lively farm issue now before congress, with hearings already under way on the new streamlined debt adjustment bill introduced by Senators Wheeler, Bankhead and La Follette and in the lower house by Marvin S. Jones, chairman of the house committee on agriculture...
...The major objectives of the new measure whose senate number is S 3509 and House number HR 8748, are: 1. To provide a fair and practical method of refinancing farm mortgages to adjust or scale down the farm debt to normal producticity...
...While banks, insurance companies and other private creditors were paid off 100 per cent in most instances when the land banks or commissioner took over their mortgage holdings, only one farm in four, according to Dr...
...A. G. Black, the new governor of the Farm Credit administration, points out that one of the most serious weaknesses in the government's previous refinancing program was the failure to scale down farm indebtedness...
...201 1938...
...Government figures show that the farm debt is seriously out of line with farm income...
...Black, had its total debt load scaled down, and even then the reduction amounted to an average of only 10 per cent...
...2. To reduce interest rates on Federal land hank and Land Bank Commissioner loans to 3 per cent, this rate to apply to all loans outstanding or made up to 1946...
...This is more than double the level prevailing before the last war and is 59 per cent higher than at the close of the war with its already inflated valuations...
...127 1930...
...Cuts in costs of operation of 18 per cent in such housing projects, announced recently by Administrator Nathan Straus, also make it possible to build thousands more homes...
...5. To eliminate the present requirements that land bank borrowers buy capital stock amounting to 5 per cent of any loan and that 8 per cent interest be paid on defaulted payments...
...50.2 Dr...
...4. To abolish foreclosure proceedings and deficiency judgments except in ca?es of willful or negligent damage...
...Lower In Bid Than U. S. NEW YORK CITY—Private capital is competing—successfully—with public capita...
...202 The census of 1935 showed that not only are 42 per cent of our farms tenant-operated but also that "full owner-operators" now have on the average less than a half equity in their farms...
...39.6% 1935...
...Wall St...
...To be sure, there was a drop In this period of 15 per cent, in the mortgage debt on owner-operated farms, amounting to $654 millions, but this reduction resulted from foreclosures and did not reflect any net improvement of position...
...Ratio ef Mortgage Debt to Value of Owner-Ooperated Farms 1930...
...Slum-dwellers will not complain because every million dollars put in low-rent housing by Wall Street releases a million which the USHA may use to build still more houses for low-Income families...
...Farm Mortgage Debt per $1,000 of Farm Real Estate Value 1910 ...............$ 92 1920...
...Government figures show that the present farm mortgage debt amounts to more than $200 per thousand dollars of all farm real estate in the United States...
...6. To democratize the present credit system by Increasing the powers and responsibilities of the local farm loan associations...
...As a consequence, one out of every four loans marie by the land banks and the stringent foreclosure policy followed by the former heads of the Farm Credit administration is responsible for the FCA now holding $139 millions of farm lands...
...Under the V. S. housing act...
...the census showed that the mortagage debt on farms operated by full owners amounted to 39.6 per cent or the value of the farms, in 1935 the mortgage debt amounted to 50.2 per cent...
...n building low-rent housing...
...While the total farm mortgage debt in 1910 amounted to 48 per cent of the cash income received by all farmers in that year, it amounted to 83 per cent of the total in 1939...
...5 To make possible the repayment of loans on a variable payment basis whereby lower payments are required in years of subnormal production or low Incomes...
...While in 1930...
Vol. 10 • April 1940 • No. 15
