MORTGAGE-RIDDEN AMERICAN FARMERS

Manawatu Times, Volume LVI, Issue 7064, 25 January 1933, Page 7

MORTGAGE-RIDDEN AMERICAN FARMERS

Threats of Wholesale Foreclosures ENORMOUS LOAD OF DEBT United Press Association—By Electric Telegraph—Copyright Received Tuesday, 10.30 p.m. NEW YORK, Jan. 24. Declaring that unless Congress takes quick action thousands of farmers in every State will be evicted from their homes through foreclosure proceedings, Representative Kleberg, of Texas, today introduced a joint resolution urging tho Governors to issue a proclamation requesting the State courts to defer foreclosure proceedings until Congress and the State Legislatures can pass mitigating legislation. It is generally believed tho resolution has a good change of adoption. As an example of the seriousness of the situation Mr. Kleberg cited Texas where he says 43 per cent, of all owneroperated farms are at present mortgaged for more than 500,000,000 dollars. All the principal agricultural organisations endorse tho resolution. Income Halved, Taxes More Than Doubled WASHINGTON, Dec. 22. Figures detailed at hearings on the appropriation Bill for the Agi'iculture Department told why there is a farm problem. Mr. Nills A. Olsen, chief of the Bureau of Agricultural Economics, put into the record data which showed that tho estimated gross income on owner-operated farms had dropped from au average of 1900 dollars in 1929 to 533 dollars in 1932. In these figures were included tho valuo of the food produced and usod on tho farms. After deducting operating costs and interest charges paid non-farmers, the farmers had, on tho basis of partial figures, well below 300 dollars available for capital, labour and management in 1932 as compared with 847 dollars in 1929. Tho estimated decline in the gross income of agriculture as a whole in the three years was from around 12,000,000,000 dollars to 5,200,000,000 dollars. Mr. Olsen said it is estimated that it requires at the present time around flvo times as many units of farm commodities as before the war to pay taxes. Approximately 40 per cent, of the farm lands in the United States are under mortgage, according to Mr. Eric Englund, assistant chief of the Bureau of Agricultural Economics. About 5 per cent, of these farms, Mr Englund said, have mortgage debts in excess of their value; about 10 per cent, debts from 75 to 100 per cent, of their value, and 21 per cent, debts from 50 to 75 per cent. Much of this indebtedness is being wiped out through the drastic foreclosure method, he said.