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Show Mortgage Relief Bui H. R. H139 and Drainage Districts. "This legislative proposal," said Mr DriveT "deals in an adequate Tnd practical manner with he nrnhiem of farm mortgage reliei, been repeatedly urged by the in :oming administration. "One of the main f' continued Mr. Driver, "in the way 3f the fanner on whose farm there a a lien is that when such hen matures no source is mailable to him from which he can refinance the loan and the price of the products with which he deals is so low that he cannot meet the annual maturing payments on the-e obligations. The unprecedented unprecedent-ed number of foreclosure proceed-ngs proceed-ngs resulting in practically each instance in the security holder taking over the property at a price considerably below the amount of the lien, and for which he can find no market, has resulted In destroying the value of such property pro-perty making It impossible to refinance re-finance without the aid of federal credit." "The bill deals not only with what are commonly known as real estate mortgages, but im-i provement district bonds as they are superior in their lien rights to real estate mortgages and it is necessary to deal with them In or-, der to put the farmer In the im-' provement districts on a parity with those outside, and before the real estate mortgages can be dealt w.th lr. such districts." "Ihe bill provides a moratorium of five years op payments of ootn principal and interest. This mora-j tcrium is essential to enable the j faiier to provide himself with the commodities of industry which he has denied himself for years and which are needed for the pro-! cer carrying en of his farmii.g activities. This potential demand, it is expected, will when released the administration of this. thr0ve proposal, set the wheels; lesll fracturing establishments to of manufacturing lncreasin:j turning with a rap y rtrow'to meet the annual nd county taxes assessed a-Imst a-Imst ht property avoiding the LTsales amounting in some sections sec-tions to 40 per cent of all the birp'rovidcs for an ap-nraisal ap-nraisal by the Secretary of Agri-cuUure Agri-cuUure of the liquidated value of each lien on a given farm and an agreement on the part of the mortgagor and mortgagee that a new mortgage will be executed at This liquidated value which shall be in TS Settlement of the lien for which it is given. In the case of real estate mortgages amortized mortgage bonds are executed hav-Z hav-Z maturity over a period of 33 vears and in the case of improvement im-provement district bonds, new-bonds new-bonds are issued having a maturity matur-ity over a period not to exceed forty years." "Both the mortgage and improvement im-provement bonds bear interest at the rate of 3 per cent annum, during the first four and five vears the interest accrues and its payment is distributed over the succeeding years of the life of the bond. When the new bonds are properly executed by both the mortgagor and the mortgagee, then the Secretary of Agriculture signs the bend guaranteeing the payments as and when due." "No money will be appropriated for the first five years except such as is necessary for the actual cost of administration which is by the Secretary of Agriculture." "It is believed that while the guarantee of these bonds will make them as desirable for investment purposes as the bonds of the United Unit-ed States, very few if any payments pay-ments will have to be made by the federal government, for in five years the rehabilitation of the farmer will have been accomplished accomplish-ed and he will be able to meet the annual payments from the sale of the product of his farm." "This bill is not only an aid to the farmer whose lands are mortgaged, mort-gaged, it is an aid to the farmer whose lards are not mortgaged but are subject to the tax burdens of all lands sold for taxes and it is an aid to manufaturing industry indus-try as it at once restores the purchasing power of the farmer. One of the Important provisions of the hill is that it provides for refinancing re-financing and lestoration to farm owners of all lands sold under foreclosure proceedings during the past three years providing the land is still it the possession of the mortgagee and it denies to the mortgagee the privileges of the bill if he has pending fore-closuv fore-closuv or deficiency judgment Su!ls but this removed by the w contninrng the ' ficiency Ju-u Ju-u , T'-e Principle bill is the U'L W. .. mea.-'.re f,. K, economic affairs I ; consideration ,, )v ' not reached ,n d-'-eo in th..pwit " be cai,,: |