act relating to surplus control operations and the stabilization corporations shall not be in force.

SEC. 2. After this act takes effect no loan to any stabilization corporation shall be made under authority of the agricultural marketing act except such as may be necessary, in the judgment of the Secretary of Agriculture, in pursurance of existing contracts or in furtherance of the process of winding up the affairs of the board with respect to surplus control operations or other operations of the stabilization corporations.

SEC. 3. (a) The Secretary of Agriculture shall continue to make loans to cooperative associations in accordance with the provisions of the agricultural marketing act, and any part of the revolving fund created by such act which has been allotted for cooperative marketing purposes, including the proceeds from loans for such purposes now outstanding, shall be available for such loans. (b) The Secretary of Agriculture is authorized, by order or regulation, to consolidate the functions in respect of cooperative marketing transferred to him by this act and to create a new bureau, agency, or office in the Department of Agriculture for the effective administration of such functions, subject to his supervision.

SEC. 4. For the purposes of this act

(1) All the officers and employees of the board, except the members of the board (whose officers are hereby abolished), are transferred to the Department of Agriculture.

(2) All the official records and papers now on file in and pertaining to the business of the board, together with the furniture, equipment, and other property now in use by the board, are hereby transfered to the Department of Agriculture.

(3) All unexpended appropriations available at the time this act takes effect in respect of the board shall be available for expenditure by the Secretary of Agriculture in the same manner and to the same extent as if the Secretary of Agriculture had been directly named in the laws making such appropriations. SEC. 5. (a) All contracts or agreements lawfully entered into before the time this act takes effect, by the board, shall be assumed and carried out by the Secretary of Agriculture.

(b) All rights, interests, or remedies accruing or to accrue, as a result of any such contract or agreement, or of any action taken in pursuance of law by the board, shall be in all respects as valid, and may be exercised and enforced in like manner, as if this act had not been enacted.

(c) All orders, rules, regulations, and privileges which have been issued or granted by the board, and which are in effect at the time this act takes effect, shall continue in effect as if this act had not been enacted, until modified, superseded, or repealed by the Secretary of Agriculture.

SEC. 6. Any office, bureau, service, division, commission, or board transferred in whole or in part to the jurisdiction and control of the board under the authority of subsection (e) of section 13 of the agricultural marketing act is hereby retransferred to the department or establishment from which it was transferred to the board, together with its functions, and its records, property, including office equipment, and personnel, so transferred. Any unexpended balance of appropriations allotted by the board in respect of such agency or function is hereby transferred to such department or establishment.

SEC. 7. This act shall take effect 30 days after the date of its enactment.

[S. 1197, Seventy-second Congress, first session]

A BILL To liquidate and refinance agricultural indebtedness, and to encourage and promote agriculture, commerce, and industry, by establishing an efficient credit system, through which the unjust and unequal burdens placed upon agriculture, during the period of price fixing and deflation, may be lightened, by providing for the liquidation and refinancing of farm mortgages and farm indebtedness at a reduced rate of interest through the Federal farm loan system, the Federal reserve banking system, and the postal savings depository system, and creating a Board of Agriculture to supervise the

same

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Government now perform its solemn promise and duty and place American agriculture on a basis of equality with other industries by providing an adequate system of credit, through which farm indebtedness and farm mortgages now existing may be liquidated and refinanced, through real-estate mortgages on the amortization

plan, at 11⁄2 per centum interest and 11⁄2 per centum principal per annum, and through mortgages on livestock used for breeding or agricultural purposes at 3 per centum interest per annum through the use of the machinery of the Federal farm loan system, the Federal reserve banking system, and the postal savings depository system.

SEC. 2. This act shall be known by the title "The farmers' farm relief act." SEC. 3. The Federal Farm Loan Board is hereby authorized and directed to liquidate, refinance, and take up farm mortgages and other farm indebtedness, existing at the date this act takes effect, by making real-estate loans, secured by first mortgages on farms, to an amount equal to the fair value of such farms and 50 per centum of the value of insurable buildings and improvements thereon, through the use of the machinery of the Federal farm land banks and national farm loan associations, and to make all necessary rules and regulations for the carrying out of the purposes of this act with expedition. Such loans to be made at a rate of 12 per centum interest and 12 per centum principal per annum.

SEC. 4. The Federal Farm Loan Board is further authorized and directed to liquidate, refinance, and take up chattel mortgages and other farm indebtedness, existing at the date that this act takes effect, by making loans at the rate of 3 per centum interest per annum, secured by first mortgages on livestock used for breeding or agricultural purposes, to an amount equal to 65 per centum of the fair market value thereof, such loans to run for a period of one year, with right of renewal from year to year for a term of ten years: Provided, That any depreciation in the value of such livestock is replaced by additional livestock used for breeding of agricultural purposes, and the amount of the loan is reduced 10 per centum each year.

SEC. 5. The funds with which to liquidate, refinance, and take up existing farm mortgages and other farm indebtedness shall be provided by the issuing of farm loan bonds by the Federal farm loan system, through the Federal Farm Loan Board and Federal land banks, as now provided by law, which bonds shall bear interest at the rate of 11⁄2 per centum per annun, if secured by mortgages on farms, and 3 per centum per annum if secured by chattel mortgages on livestock used for breeding or agricultural purposes. These bonds, after delivery to the Federal Farm Loan Board, may, by it, be sold at par to any individual or corporation, or to any State, National or Federal reserve bank, domestic or foreign, to the trustees of the postal savings depository system or to the Treasurer of the United States. And it shall be the duty of the Federal reserve banks to invest their available surplus and net profits, after the dividends are paid to their stockholders, in such farm loan bonds. Such profits to include the franchise tax now paid to the United States.

SEC. 6. The trustees of the postal savings depository system are authorized and directed to invest at least 40 per centum of the postal savings in such farm loan bonds, and all limitations upon the amount that may be deposited in the postal savings depositories are hereby removed. And such farm loan bonds may be exchanged and delivered to depositors for their deposits in postal savings depositories as is now provided by law for investments of savings funds in bonds. SEC. 7. In case all of said farm loan bonds are not readily purchased, then the Federal Farm Loan Board shall present the remainder to the Federal Reserve Board, and the Federal Reserve Board shall forthwith issue and deliver to the Federal Farm Loan Board Federal reserve notes, as now provided by law, to an amount equal to the par value of such bonds as are presented to it. Such farm loan bonds to be held by the Federal Reserve Board as security in lieu of any other security or reserve.

SEC. 8. The Federal Farm Loan Board and the Federal land banks shall turn over all payments of interest and principal on such farm loan bonds, for which the Federal Reserve Board issues Federal reserve notes, to the Treasurer of the United States, and shall be by him kept and reinvested as a sinking fund in municipal or State bonds and in bonds of the United States Government, bearing interest at the rate of at least 3 per centum per annum.

SEC. 9. Whenever the amount of money actually in circulation in the United States shall exceed $75 per capita, then the Treasurer of the United States, by and with the advice and consent of the Federal Reserve Board and the President of the United States, may retire Federal reserve notes in an amount equal to the principal paid on farm loan bonds, for which Federal reserve notes were issued, not to exceed 2 per centum in any one year, of the amount of Federal reserve notes so issued.

SEC. 10. There is hereby created a board of agriculture consisting of one member from each State, elected by the farmers of such State, who shall be

elected by delegates selected by a mass convention of farmers in each county or parish within the United States, who are indebted and declare it to be their intention to take advantage of this act, such county or parish convention to be its own judge as to who are bona fide farmers and otherwise eligible to participate in its proceedings.

SEC. 11. The State delegates, so elected, shall meet at the State capital of their respective States and elect a member of the board of agriculture, who shall hold his office from the date of such election and for a period of two years from March 4 following, and who shall receive a salary of $4,000 per annum and 5 cents per mile for necessary traveling expenses while on official business,. to be paid by the United States Government in the manner now provided for the payment of salaries of Members of Congress.

SEC. 12. The Federal Farm Loan Board is hereby authorized and directed to give public notice, through the Federal land banks, to the farmers of each county or parish of the time and place of holding the first county or parish. convention, which shall be held at the seat of government of each county or parish; and it shall at the same time give notice of the first convention of the State delegates, to be held at the State capital of each State, notice of such convention to be given at an early date after the passage of this act.

SEC. 13. The farmers attending such county or parish convention and the State delegates attending such State convention shall organize and make such rules and regulations for their procedure as they deem necessary or convenient, and shall elect a president and a secretary and make arrangements for such other and future conventions as they may deem necessary, and they shall at all times cooperate and assist the Board of Agriculture, the Federal Farm Loan Board, the Federal land banks, and national farm loan associations to liquidate and refinance farm mortgages and farm indebtedness.

SEC. 14. Immediately after their election the members of the board of agriculture, upon call of the Federal Farm Loan Board, shall meet at Washington, District of Columbia, and organize by electing a chairman and a secretary, and they shall make such rules and regulations as they deem necessary and expedient in carrying out the purposes of this act. They shall elect an executive committee of three, none of whom shall be members of the boardi of agriculture, who shall hold their office at the will of said board, and who shall receive a salary of $10,000 per annum, and 5 cents per mile for necessary traveling expenses while on official business, to be paid by the United States Government in the manner now provided for the payment of salaries of Members of Congress.

SEC. 15. The members of the Board of Agriculture shall keep in touch with and report to the executive committee the progress of liquidating and refinancing farm mortgages and farm indebtedness in their respective States. They shall cooperate with county or parish and State governments, and with all farm and cooperative organizations within their respective States, to speedily bring about the liquidation and refinancing of farm mortgages and farm indebt-edness.

SEC. 16. The executive committee of the board of agriculture shall counsel with and supervise the work of liquidating and refinancing farm mortgages and farm indebtedness by the Federel Farm Loan Board and the Federal Reserve Board, and they shall cooperate with said boards and with county or parish and State governments and with the various farm organizations, and. with the agriculture colleges of the Nation, in order to bring about a just and speedy liquidation and refinancing of farm mortgages and farm indebtedness. They shall report any member of the farm loan system or the Federal Reserve Board or of the postal savings system, who neglects, hinders, or delays, the carrying out of the provisions of this act, to the President of the United States, and it shall be the duty of the President, upon cause shown, to remove any such officer and to appoint some other suitable person in his place with the advice and consent of the Senate.

SEC. 17. The benefits of this act shall also extend to any farmer, or member of his family, who lost his farm through indebtedness or mortgage foreclosuresince 1920, and who desires to purchase the farm lost or another farm. It shall also extend to any tenant, or member of his family, who desires to purchase a farm, provided he has lived on and operated a farm as a tenant for at least three years prior to the passage of this act.

SEC. 18. The executive committee of the board of agriculture shall have power in case of crop failures, and in other meritorious cases, to extend the time payments due on loans made under this act from time to time for a

period not exceeding three years, provided that the mortgagor keeps up the payment of all taxes on the mortgaged property.

SEC. 19. This act shall be liberally construed, and no technicalities or limitations shall be imposed or permitted to interfere with the speedy carrying out of its purposes; and the provisions of the Federal farm-loan system, the Federal reserve banking system, and the Postal Savings System shall apply as far as applicable in the carrying out of the provisions of this act; and all laws or parts of laws in conflict herewith are for the purpose of this act repealed. The persons charged with the duty of carrying out the provisions of this act are authorized and directed to do all things necessary or convenient to accomplish its purposes with expedition.

[S. 1698, Seventy-second Congress, first session]

A BILL Providing for regulation of the transportation of cotton in interstate and foreign commerce, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture is authorized and directed to provide for taking a vote, during the crop year 1932 and subsequent crop years, of the owners of lands used for the production of cotton during the calendar year preceding that in which such vote is taken, for the purpose of determining whether or not such owners favor the regulation by Congress of the transportation of cotton in interstate and foreign commerce and the amount of cotton which, in the opinion of such owners, should be so transported during the calendar year next succeeding that in which such vote is taken. Such vote shall be taken by mail by means of ballots prepared under the supervision of the Secretary of Agriculture and made available for distribution in such manner as he shall prescribe. Each such owner shall be entitled to one vote. Such vote shall be taken during the week beginning on the first Monday in November of such year, except that for the crop year 1932; the President is authorized by proclamation to fix the period within which such vote shall be taken. Upon the issuance of such proclamation notice thereof shall be posted in a conspicuous place in the post offices of each State in which any such lands are located.

SEC. 2. The ballots shall be mailed without requirement of postage to agents to be designated by the Secretary of Agriculture for the counties, parishes, or other similar political subdivisions in which such lands are located. No ballot contained in an envelope bearing a postmark later than the last day of the period within which any such vote is to be taken shall be counted in making up the returns. Within five days after the taking of any such vote all ballots submitted as herein provided shall be counted publicly by such agents and immediately thereafter the results of the vote shall be certified to the Secretary of Agriculture who shall make a report thereon to the President. Such report shall show the number of votes cast in favor of and in opposition to such regulation by Congress and the average number of pounds of cotton which, in the opinion of the persons voting, should be transported in interstate and foreign commerce during the next succeeding calendar year. Such average number of pounds shall be determined by (1) taking the total number of pounds specified by such voters and adding thereto, for each voter who voted against such regulation and who failed to specify any amount in his ballot, an amount equal to the average number of pounds produced in all the States during the five calendar years preceding that in which the vote was taken, and (2) dividing the same by the total number of ballots cast less the number of ballots in which the voters who voted in favor of such regulation failed to specify the amount which in their opinion should be so transported in interstate and foreign commerce. In the event that a majority of the persons voting are in favor of such regulation by Congress, the Secretary of Agriculture shall also include in his report to the President a statement showing the average number of pounds of cotton produced in each State and in each county, parish, or other similar political subdivision thereof, during the five calendar years preceding that in which such vote is taken. Upon the receipt of any such report the President is authorized by proclamation to make public the result of the vote and, if the report shows that a majority of the persons voting are in favor of such regulation by Congress, the proclamation shall also specify (1) the total amount of cotton to be transported in interstate or foreign commerce during the calendar year next succeeding that in which such vote was taken, which

shall be equal to the average number of pounds determined pursuant to the vote as herein provided, and (2) the part of such total amount to be so transported from each State during such year, which shall be determined by the ratio of the average number of pounds produced in such State during the five calendar years preceding that in which the vote was taken to the average number of pounds produced in all the States during the same period. Upon the issuance of any such proclamation it shall be unlawful during such calendar year to transport any cotton, or any manufactured or processed article containing ninety per centum or more of cotton, in interstate or foreign commerce except as provided in section 3 of this act. Each such proclamation shall be issued on or before the 1st day of December of the year in which such vote is taken except that the first such proclamation shall be issued within fifteen days after the taking of such vote.

SEC. 3. (a) The Secretary of Agriculture is authorized (1) without regard to the civil service laws, to appoint a local board to be composed of three members for each county, parish, or other similar political subdivision in each such State for the purpose of issuing licenses to transport cotton in interstate and foreign commerce during the calendar year specified in any such presidential proclamation and (2) without regard to the classification act of 1923, to fix the compensation of the members of each such board. Any person entitled to vote under this act may secure such a license upon filing an application therefor with the board under such regulations as the Secretary of Agriculture shall prescribe, accompanied by a statement under oath showing the approximate amount of cotton produced on the lands of the applicant in such county, parish, or other similar political subdivision during the five calendar years preceding that in which such vote was taken. The license shall specify the amount of cotton to be so transported and such amount shall be determined by the ratio of the average amount of cotton produced on such lands of the applicant during such five-year period (or part thereof during which cotton was so produced) to the average amount produced during such five-year period in the State in which such lands are located. Such licenses may be transferred or assigned in whole or in part, and shall be issued with detachable coupons, or in such other form to be prescribed by the Secretary of Agriculture as will facilitate such transfer or assignment. Each such license shall be effective from the 1st day of January of the year next succeeding that in which such vote was taken and shall remain in effect until surrendered and canceled as hereinafter provided. The amount of cotton for which licenses may be issued during any one calendar year by any such local board shall be determined by the Secretary of Agricuulture by the ratio of the total amount of cotton produced in the county, parish, or other similar political subdivision in which such board is located during the five calendar years preceding that in which such vote was taken to the total amount of cotton produced in the State during the same period.

(b) During any calendar year for which such licenses are required, no cotton, nor any manufactured or processed article containing 90 per centum or more of cotton, shall be transported in interstate or foreign commerce from any State until it is stamped or labeled for purposes of identification nor until there shall have been surrendered to an agent to be designated by the Secretary of Agriculture for such purpose licenses or parts thereof issued under this section sufficient to cover the amount of cotton, and/or the manufactured or processed articles containing 90 per centum or more of cotton to be so transported. For the purposes of this provision the Secretary of Agriculture shall prescribe a uniform method to be followed by such agents (1) for determining the number of pounds of cotton contained in any such manufactured or processed articles and (2) for the stamping or labeling of such cotton and manufactured or processed articles. The licenses or parts thereof so surrendered shall thereupon be canceled under rules and regulations to be established by the Secretary of Agriculture. The provisions of this paragraph shall not apply to articles containing 90 per centum or more of cotton which are manufactured or processed in a State other than that in which the cotton in such articles is produced.

(c) If the President is of opinion, upon the joint recommendation of the Secretary of Agriculture and the Secretary of Commerce, that conditions warrant an increase of the amount of cotton to be so transported under license, he may by proclamation specify the additional amount to be transported from each State. Upon the issuance of any such proclamation the Secretary of Agriculture shall immediately notify the local boards in each State of the