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VUb.“As a result of the general recovery during the last year and the loans of the federal land banks and the land bank commissioner, the great majority of distressed farm mortgage cases has been relieved, leaving a very slight minority of farmers who will have to go into bankruptcy to save their homes.“Farmers as a class are very slow t6 take bankruptcy and my experience in working with them personally and in the farm credit administration gives me every confidence that they still retain an ever-present urge to pay their debts.“More than 86 per cent of the installments on land bank commissioner loans, which generally have been made to the most heavily indebted farmers, which matured prior to June 1, were paid on or before they were due. Of those which are delinquent, two-thirds are for less than 30 days.Farmers Show Good Faith“This shows that even the most heavily indebted farmers are acting in the highest good faith.“In lending almost a billion dollars on the security of farm mortgages, 00 per cent of which was used to refinance existing farm debt burdens, and in making commitments to lend $700,000,000 more, the farm credit administration has become the creditor of the vast number of farmers who otherwise might have needed to avail themselves of bankruptcy as provided by the Frazier-Lemke bill in order to avoid foreclosure.“Loans by the land bank commissioner have been made, and will continue to be made, up to 75 per cent of the normal value of farms, although less than one-tenth of the farms in the country were indebted for more than 70 per cent of their value at the time the refinancing program began.“At that time more than one-half of all the farms in the country were free from mortgages. The ten per cent of the farms mortgaged for 70 per cent or more of their value has been cut to an even smaller percentage since last year by the refinancing program, thus diminishing to exceptional cases the number of possible applicants for bankruptcy under the Frasier-Lemke bill.“Reduction in the number of foreclosures shows that an increasing number of heavily indebted farmers are getting their indebtedness in better shape. .4MM Farmers Appeal to FCA“In the last year more than 40,000 farmers have appealed directly to the farm credit administration in Washington for emergency aid because the lt;mortgage holders were pushing them for settlement.“The creditors of these farmers were requested not to press foreclosure i proceedings until the land bank could determine if they could be refinanced. i“Appeals for such emergency assistance have fallen from a peak of 3,000 a week in November to about 500 recently.“Foremost among the creditors who have greatly reduced the number of their foreclosure actions dudng the (Oontlnued on Page 4?
Newspaper Details
Bismarck Tribune
Bismarck, North Dakota, US
Mon, Jul 02, 1934
Page 1
Full Page
Clipped by
Michael W.
NA, 27 Jul 2023
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