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Record of loans and collections, as of June 30, 1932–Continued
$35. 7 $89, 794.90 $25, 490, 666. 64 $11,000,000.00
Act of Dec. 20, 1930,
drought and storm stricken area, $45,000,000..
$39,633,728.77 $14, 143, 062. 13 Act of Feb. 14, 1931,
drought and storm stricken areas $20,000,000
14, 264, 559.31 1, 280, 951. 64 Act of Feb. 23, 1931, Southeastern States, $2,000,000 1,872, 432. 77 605, 800.02
Total, $83,750,000.. 70, 965, 800. 29 27, 010, 478. 80 Estimated value of warehouse receipts held...
+12, 175, 238.91 Approximate amount of interest withheld..
8, 152. 12 12,983, 607. 67 5,500,000.00
2, 155. 78 1, 266, 632. 75 800,000.00 591, 516.35 43, 955, 321. 49 20,000,000.00
-12, 175, 238.91
Total, $83,750,000.-. 70, 965, 800.29 39, 185, 717. 71
55. 22, 291, 516. 35
i Collection of $1,324,899.36 principal and interest made from July 1 to Oct. 25, 1932.
ACTIVITIES UNDER THIS APPROPRIATION
The appropriation requested is necessary in order to maintain regional field offices and to effectively carry on an adequate collection campaign during the fiscal year 1934. The appropriation provides for the force engaged in collecting the various loans authorized by Congress under appropriations directly to the Department of Agriculture. Field offices are inaintained at Memphis, Tenn.; Dallas, Tex.; St. Louis, Mo.; Minneapolis, Minn.; Salt Lake City, Utah; Spokane, Wash.; and Washington, D. C.
Mr. BUCHANAN. Tell us what this item provides?
Mr. Jump. It proposes to make available not to exceed half a million dollars from the repayments under the various seed-loan items for continuation of collections during the next fiscal year. Mr. Hoffman, of the seed-loan office, is here to give you any information you may want on this item.
Mr. BUCHANAN. This appropriates $500,000 of the balance of $80,000,000 that was allotted to the Secretary of Agriculture to make crop production loans; is that correct?
Mr. Jump. It is not the balance; it is taken from repayments; is that right, Mr. Hoffman?
Mr. Hoffman. It is from the repayments; the unobligated balances, by the language in last year's agricultural appropriation act, were covered into the Treasury as miscellaneous receipts on June 30, 1932.
Mr. BUCHANAN. Exactly what does this appropriate?
Mr. HOFFMAN. This appropriates half a million dollars of the collections that we make this present fiscal year.
Mr. BUCHANAN. Is this in connection with the acts authorizing the appropriation of $45,000,000, $20,000,000, and $2,000,000?
Mr. Hoffman. In 1931, there were three appropriations: One of $45,000,000 for the purchase of seed, feed, and fertilizer; $20,000,000 for loans to individuals for the purpose of assisting in forming local agricultural credit corporations, live stock loan companies, etc., and rehabilitation or food appropriation and $2,000,000 which was
appropriated for the six Southeastern States. These six States were not eligible for loans under the drought legislation.
Mr. BUCHANAN. These three loan acts were passed by this Congress?
Mr. HOFFMAN. Yes, sir; a total appropriation of $67,000,000 was made available by those three acts.
Mr. BUCHANAN. The $20,000,000 appropriation was in the Interior bill, was it not? Mr. HOFFMAN. Yes, sir.
. Mr. BUCHANAN. You have collected a good deal of that money, have you not?
Mr. HOFFMAN. Yes, sir.
AMOUNT OF MONEY LOANED OUT, COLLECTED, AND AMOUNT OF
Mr. BUCHANAN. How much did you loan?
Mr. HOFFMAN. We loaned out of the $67,000,000 approximately $55,000,000.
Mr. BUCHANAN. How much of that have you collected?
Mr. HOFFMAN. We have collected in cash between $16,000,000 and $17,000,000 up to June 30. In addition to that we hold certain collateral.
Mr. BUCHANAN. Up to June 30, last? ?
Mr. BUCHANAN. You have no figures of any collections that you have made this fall?
Mr. HOFFMAN. Yes, sir. I was speaking as of the last fiscal year. . In addition to that $16,000,000 in cash, we hold collateral in the nature of warehouse receipts representing cotton and other products worth at the present market price about $12,000,000. That has not been sold. From July 1, 1932, up to November 30, from the appropriations we have this year of $500,000, we have collected $1,688,408.81.
Mr. BUCHANAN. In cash?
Mr. HOFFMAN. In cash. That does not include warehouse receipts that we have received since that time.
Mr. BUCHANAN. What does that amount to?
Mr. HOFFMAN. I do not have the figures on the warehouse receipts. Our expenditures from July 1 up to the present time have been about $321,000 to collect $1,688,408.81.
Mr. BUCHANAN. That makes quite a collection fee, does it not?
Mr. SANDLIN. You have also taken in warehouse receipts which is not figured in this?
Mr. Buchanan, Have you some warehouse receipts on this year's collections?
Mr. HOFFMAN. Yes, sir.
Mr. BUCHANAN. But you do not know how much. Have you any idea approximately?
Mr. HOFFMAN. No, I have not been able to ascertain amount that has been received.
Mr. BUCHANAN. I am not asking for the exact amount.
Mr. BUCHANAN. The present value, warehouse receipts and cash, that has been collected up to the time when you make this report is how much? You have loaned out $55,000,000, I believe.
Mr. HOFFMAN. We have collected on the principal up to November 30, approximately $30,000,000 of the $55,000,000.
Mr. SANDLIN. That is figuring your warehouse receipts at the present price of commodities?
Mr. HOFFMAN. Yes, sir.
Mr. HOFFMAN. We have mortgages on this year's crop and also mortgages on livestock. Loans were made last fall and this spring in a total of $9,000,000 in the Northwest to feed livestock.
Mr. BUCHANAN. Is that on this year's production crop loans?
Mr. HOFFMAN. Those loans were on the farm foundation stock on which there is comparatively little chance to realize a repayment, except where there is some increase in the stock or where a farmer is able to pay something from his crop. Our collections have been further reduced because of the 75 per cent moratorium that was announced in the Northwest by the President.
Mr. BUCHANAN. Did that moratorium apply to loans made out of the appropriation you have just described of $67,000,000?
Mr. HOFFMAN. Yes, sir.
Mr. Buchanan. Did you handle the crop production loans of this year?
Mr. HOFFMAN. No, sir.
Mr. HOFFMAN. No, sir; except I assisted in that work, because of my knowledge of the work of previous years.
In connection with this collection, the same field inspectors have been collecting both moneys, the crop production loan money and the other money.
COLLECTIONS, 1931 LOANS BY STATES AS OF JUNE 30, 1932
Collection of 1931 loans, as of June 30, 1932—Acts of December 20, 1930, February
14, 1931, and February 23, 1931
7, 045. 00
171, 086.00 285, 234, 93 804, 563. 57
106, 056. 24
3,050.00 424, 575. 84 2, 181, 745. 96 4,618, 521. 22
218, 680.27 1, 608, 268. 78
2, 737.00 48, 175.00 962, 814. 10 3,675, 475. 65 2, 313, 310. 69 3,062, 605. 43
518, 469. 34
$524, 868. 75 3, 447, 578. 75
657.81 52, 115.82 612, 257.69
1, 524. 06 144, 119. 14 385, 174. 65
526. 09 57, 265. 55 1, 298, 995. 75 665, 861. 28 26, 189. 44 61, 971. 09
14, 947. 39 1, 293, 829. 12 1, 154, 106. 49 148, 408. 15
488 1, 128 33, 484 24, 853
509 30, 789 17, 957 13, 702 4,040
9 2, 480 17, 705 27,085
1, 458 18, 394
4 251 7, 864 22, 861 23, 920 28, 903
4, 205 19, 874
125, 942. 95 1, 149, 635. 11
125, 185. 99 103, 215. 26 958, 100.41
1, 196.90 12,010.08 342, 024.39
69, 292.47 881, 917. 46 1, 276, 497, 13
3, 890. 62 867, 108.92 102, 778. 20 150, 604. 16
3, 235. 72
Exclusive of collateral held valued at approximately $12,000,000 and $1,700,000 interest withheld from loans when made.
Those figures that I gave you do not represent the interest that we have collected. In other words, we have collected approximately $1,900,000 of interest on the loans we made last year, which includes interest withheld and interest paid after maturity.
Mr. BUCHANAN. This table that you have given us only covers your cash?
Mr. HOFFMAN. Yes, sir.
Mr. BUCHANAN. You have an item of interest here of $200,000 collected?
Mr. HOFFMAN. Yes, sir; if you will look at the statement already inserted in the record, it gives the fact that interest was withheld and it also specifies the collateral.
Mr. BUCHANAN. You have all the seed loan acts here from 1920 on up, have you not?
Mr. HOFFMAN. Yes, sir. Our administrative expenses have been heavier, in view of the fact that the loan area last year was expanded; loans were made in 31 States, necessitating establishing five different offices throughout the country whereas heretofore where we made loans in a small area, we had only one office serving that area.
Up to last year with one exception we never had over six States at one time and they were all handled from one office. When we started out in 1931 we had 31 States.
PRESIDENT'S ORDER ON PAYMENT OF SEED LOANS
Mr. Sandlin. Have you a copy of the President's order granting moratoriums?
Mr. HOFFMAN. Not with me.
SEPTEMBER 29, 1932. (The following statement was given out at the White House to-day):
Present low prices make it practically impossible for wheat farmers to repay their crop production loans without incurring grave risk of need during the winter. On September 14 the Secretary of Agriculture, in order to clear up the situation issued the following statement in respect to these loans:
“With respect to your recommendation as to deferment of collection of feed and seed loans made by this department I am authorized by the President to say that the department wishes to handle the situation with the utmost consideration for the borrowers who are in difficulties. You will realize that the law contemplates that the loans must be repaid out of this crop and that to give such extension as you wish will require legislative authority. To meet the needs of those who are in distress the department will not press for collection of these loans until Congress has an opportunity to act.'
It is now represented that this plan has not solved the difficulties in all localities as it has been construed that under this arrangement a claim remains upon the crop which prevents the marketing of any part of it.
In order to clear the att up, after consultation with authorities in the States concerned, and in order to enable such farmers to provide for their families, the Secretary of Agriculture, after consultation with the President, has directed the department to accept from such farmers 25 per cent of the amount due, together with an agreement to secure the remaining 75 per cent of such debt on whatever terms Congress may authorize. Upon payment of such 25 per cent and execution of the agreement, no further payment will be required until opportunity has been given Congress to pass on the question involved.
TOTAL AMOUNT OF LOANS MADE AND PRINCIPAL AND INTEREST COL
LECTED ON LOANS MADE FROM 1921 TO 1931
Mr. BUCHANAN. The total loans made was $70,965,800.29.
Mr. BUCHANAN. And you collected in cash of the amount loaned out, of the principal $27,010,478.80.
Mr. HOFFMAN. Yes, sir.
Mr. BUCHANAN. What do you mean here when you say interest collected on 38.1 per cent?
Mr. HOFFMAN. That means the percentage collected of the amount loaned during those years.
Mr. Buchanan. You mean you collected 38 per cent of the interest?
Mr. Hoffman. Thirty-eight per cent has been collected on the principal of the amount loaned, in cash.
Mr. Jump. It is 55 per cent if you are going to consider estimated warehouse receipts.
Mr. BUCHANAN. In another column here, you have amount of interest collected $591,000. Does that mean you have collected that much interest?