way of making new loans by the different banks-not the system as a whole, for 20 years, but what is being done now by each of these land banks with reference to lending money to farmers on their land.

Mr. WILLIAMS. Loans to solvent farmers who have the determination and ability to meet their obligations promptly, and who can give proper security, are solicited by the Federal land banks. The banks receive numerous applications from applicants who are not qualified to borrow under the terms of the Federal farm loan act and who offer securities which do not meet sound loaning standards. Mr. STEAGALL. Is that true as to each of the banks?

Mr. WILLIAMS. Yes, sir.

Mr. STEAGALL. Will you incorporate the figures showing for the past year, month by month, down to date, the new loans of each bank?

Mr. WILLIAMS. I shall be glad to furnish such a statement.

Loans closed by Federal land banks, by months, during 1929 and 1930, compiled from reports to the Federal Farm Loan Board

These amounts differ slightly from those previously published because of a revision reported by 1 bank subsequent to publication.

Mr. WILLIAMS. Both the volume of applications received by the Federal land banks from national farm-loan associations and the number and amount of loans closed by the banks declined during 1928, 1929, and the first half of 1930. There are indications, however, of a recent change in the trend. Whereas during previous quarters the total number of applications received by the Federal land banks was successively lower than the number received in the same quarter of the previous year, applications received in the last part of 1930 exceeded the number received in the corresponding months of 1929. The total amount of applications received during the last three months of 1930 was approximately 37 per cent greater than the amount of applications received in the corresponding period of 1929. This trend has been reflected also in the volume of loans closed. During the last three months of 1930, 3,230 loans were closed in an aggregate amount of $12,741,700 which compares with 2,966 loans in an amount of $10,420,700 closed during the last three months of 1929. The loans closed in December, 1930, were 46 per cent greater than those closed in December, 1929.

The CHAIRMAN. Now, Mr. Williams, we will proceed. In discussing the bills which are designed to grant a moratorium or require the banks to adopt a more liberal collection policy, I think we should consider the effect which it may have on the financial condition of the land banks and the possible effect, in turn, on the bond market.

Mr. STEAGALL. Mr. Chairman, it is apparent we can not finish with this to-day and we might as well quit now and meet again

to-morrow.

The CHAIRMAN. Very well; without objection the committee will recess until 10.30 o'clock to-morrow morning.

(Whereupon, at 12.20 o'clock p. m., the committee adjourned until to-morrow, Friday, January 23, 1931, at 10.30 o'clock a. m.)

RELIEF TO FARM LOAN BORROWERS

FRIDAY, JANUARY 30, 1931

HOUSE OF REPRESENTATIVES,

COMMITTEE ON BANKING AND CURRENCY,

Washington, D. C.

The committee met at 10.52 o'clock a. m., Hon. James G. Strong (acting chairman) presiding.

Mr. STRONG. We will proceed with the hearing on the bill of Mr. Steagall and kindred proposed legislation.

Mr. STEAGALL. Mr. Chairman, the Senate has passed a resolution calling on the Federal Farm Loan Board for certain information, which I understand the board is preparing. I do not know but what we might suspend our activities pending the preparation of that answer by the Federal Farm Loan Board, and let them submit it to us, and it will probably furnish the very information that we will be able to get by going forward to-day with these hearings.

Mr. GOLDSBOROUGH. What information can be furnished in addition to the information furnished by the report of December 31, 1930, about to be published, as I understand? That is supposed to be a full report, as I conceive it, a report that will convey the proper information to the borrower and to the public, to the country at large, to the National Legislature, and everybody else. What additional information, what can be given in addition to that report of December 31st?

Mr. STEAGALL. I want to ask for this information, and I want you to put it in your answer-you do not have to furnish it right now. I want the transactions in bonds of the various Federal land banks, covering the last recent issues of bonds, the rates of interest, the banks to which the proceeds of those sales were distributed; let us know what each bank is doing with reference to obtaining funds for loans, and what they are loaning. That is what I want to get at; not the system, of course; I do not care anything about that; but each bank for the past two or three years.

Mr. STRONG. I think the board will be glad to furnish that, and without objection, it will be inserted at this point.

Mr. WILLIAMS. The only public offering of bonds by the Federal land banks in the year 1930 was an issue of $20,000,000 par value 412 per cent bonds dated December 1, 1930, callable December 1, 1932, maturing December 1, 1933, which were sold for delivery December 5, 1930. The following banks participated in the sale, in the amounts named: The Federal Land Bank of Louisville, $2,250,000; the Federal Land Bank of St. Louis, $5,500,000; the Federal Land Bank of Omaha, $3,500,000; the Federal Land Bank of Wichita, $250,000;

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