| Show J Bill BiB i To o Afford or Mortgage f I IThe The following is 13 a n discussion o 0 the Iho only mortgage relief bill that thai has been Introduced In congress f that will afford an any relief relIo to th In an and drainage districts This legislative proposal slid said Ir 11 1 Driver deals In iu an adequate and practical manner with tho the pro prof lorn of ot farm mortgage roller relief the imperative need for which has hns repeatedly re urged b by tho the incoming administration Ono of the main twain difficulties continued Mr Mr Driver In tho the wa way of tho the farmer on n whose whoso farm there then theres is 15 s a lion Hon is ia that when such lien Hen matures no source is available to him from which he ho can refinance tho the loan and the tho price of or the products pro ducts with which he ho deals is so so low that ho cannot meet the tho annual annu annu- al maturing payments on these obligations The unprecedented number of oC foreclosure proceedings resulting in practically each in instance instance lu- lu stance stanco in the security holder takIng taking taking tak ing over the tho property at a price considerably o the tho amount of of the lieu lien and for which ho lie can find tint no market has hns r resulted in lu destroying destroying destroy destroy- ing the market value of such property property prop prop- or erty y making it Imi impossible to ro- ro without tho the aid of federal credit credit The bUll bill deals not only with what are commonly known as ns real estate mortgages but improvement dl district bonds as the they are aro superior In their lien lion rights to real estate i I mortgages and It is necessary to todeal todeal deal with them in order to put tho the 1 farmer in the Improvement districts dis- dis on a parity with those outside outside outside out out- side and before the tho real estate mortgages can be bo dealt lt with in such buch districts The bill provides pro a moratorium Continued on page Vago 2 n Bill To Afford or Mortgage e Continued ll from rom page 1 I of or five years cars on pa payments of both principal and Interest This moratorium mora mora- moratorium Is essential to e enable the farmer to provide himself for years and which are aro needed for the tho proper carrying on of ot his farming activities This potential demand It Is expected will released through the administration of ot this legislative proposal set the wheels of ot manufacturing establishments to turning with a rapidly IncreasIng Ing acceleration It will also enable enable enable en en- able the farmer Carmer to meet the annual state and county taxes assessed against his hla property avoiding th tha Uia tax sales amounting in some somo s sec sections to 40 per cent of ot all the lands assessed The tiThe bill provides for tor an appraisal sal by the Secretary of Agriculture of ot the tho liquidated value of ot each lien Hen Henon on a given farm and an agreement on the part of oC tho the mortgagor and mortgagee that a new now mort mortgage abe will be executed at this liquidated value which shall be in full Cull settlement settlement settlement settle settle- ment of ot the lien for Cor which it Is isI I given In the case caso of ot real estate mort ageS amortized mortgage bonds are executed having a maturity maturity ma ma- over a period of ot 33 years year and In the case of ot Improvement district bonds new bonds are issued having a maturity over a period not to exceed forty years years ears Both the mortgage and Improve improve- Improvement ment uncut bonds bear interest at the rate of ot 3 per cent per pcr annum during during dur dur- ing the tho first four and five years tho the Interest accrues and Its payment payment pay pay- ment is distributed over the succeeding succeedIng succeeding suc suc- years of the life of the bond bond When the tho new bonds bonda are aro properly executed by both the mort mortgagor agor and the mortgagee then the tho Secretary of Agriculture Ag signs the lie bond guaranteeing the pay- pay as and when due due No mone money will ill be appropriated od ed for the first five years except such as Is necessary for the tho actual cost of ot administration which is la lathe the Secretary of ot Agriculture It is bell believed eyed that while the guaranty of these bonds will make them as desirable for Investment purposes as the bonds of or the United Unit Unit- ed States very few If It any payment purposes will have to be made by bythe bythe I Ithe the federal government for in five years the rehabilitation of ot the farmer will have been accomplish accomplish- accomplished ed and he will be able to meet the annual payments from the sale of the tho product of his farm farm This bill Is not only an aid to the farmer whose lands are mortgaged mortgaged mortgaged mor mor- It is an aid to the farmer whose lands are not mortgaged but butare butare butare are subject to the tax burdens of ot I all lands sold for taxes and it is anaid an anaid anaid aid to manufacturing industry as asIt asIt asit It at once restores the purchasing power of the farmer One of the the Important provisions of ot the bill is that It provides for refinancing and restoration to farm owners of all lands sold under foreclosure proceedings during the past three years providing the tho land Is still In inI inI I I tho the possession of ot the tho mortgagee I I and It denies to the mortgagee tho the privileges of the tho bill it if he hag haa pending vending tor foreclosure c or dot deficiency judgment s suits but thIs disability c can can n be bo removed by tho the mortgagee mortgages by discontinuing the foreclosure r or deficiency judgment proceedIngs proceed proceed- j a Ings lags The Tho principle as set up In this thU j I bill is the tho foundation on which must bo be bO constructed all alb ett effective vo measures for tho the restoration Of economic affairs to a normal condition con con- f If I consideration of ot the tho bill Is Ly LInot not reached In the present session I of the Congress It will be Introduced Introduced introduced Intro Intro- In the special session expected expected ex ex- to be called in April |
