which would indicate that perhaps 30 percent of the Reserve personnel on active duty might extend beyond their 17 months and up to 24 months. Those officers are World War II veterans. Those are the only figures we do have on that subject, sir. Mr. BURRUS. Could I ask one question that is right on this point? I think it was not brought out. If a person receives a Reserve commission, say in 1939, before we were in a period of war, I understand it would run for 5 years. But at that time did not the person also know that in the event of war, it would run for the duration of the war and 6 months? Colonel MITCHELL. That is a portion of the National Defense Act, section 37; and if he read the law he would certainly know that. I presume they knew that. Mr. PICKETT. He also knew, did he not, that at the termination of the war and 6 months, he reverted back to his 5-year status? Colonel MITCHELL. Yes, sir. Mr. PICKETT. That is the very subject I understand we are dealing with here, as to whether to continue him in an indefinite status for a second time, as I want to put it, whether I am accurate or not. Mr. BURRUS. There is a question of whether there were one or two unexpected extensions. That was all I wanted to bring out. Mr. FORRESTER. As I see you gentlemen's contention, the circumstances just simply require this thing to be extended. Mr. BURRUS. As I understand it, to bring the issue down to a final point, we consider it very urgent that this provision in the Emergency Powers Continuation Act be extended at least until the Armed Forces Reserve Act is passed; and at that time there is a question in the mind of the Department of Defense whether the item in the Emergency Powers Continuation Act can be repealed or whether it should be continued. Is that correct? Lieutenant Colonel PLOTT. No. I thought I made that clear. We want this regardless of the Reserve Act. We feel we have to have it regardless. Mr. BURRUS. Even after the Reserve Act is passed and regardless of your study at that time? Lieutenant Colonel PLOTT. Certainly, because the Reserve Act says he will revert to his status at that time, so that if his status is that his commission has ended, then he has the option of going off active duty just the same as if the Reserve Act were not passed. Colonel MITCHELL. I think that is a matter of conjecture. I would hate to state that so definitely, myself. Mr. BURRUS. I think we ought to know clearly the policy of Defense on that. Lieutenant Colonel PLOTT. That was brought out in the hearings on the Reserve Act on this particular indefinite section. You can go to them and see it. Mr. POLLAK. When was that hearing, Colonel? Lieutenant Colonel PLOTT. Before the Brooks subcommittee. Lieutenant Colonel PLOTT. Certainly, but we had this thing in the fire then. We were certainly considering this then. Mr. BURRUS. I do not think we have to conjecture in this manner about it. I think we can find out what the policy of the Department of Defense is by going to the proper authorities. We will do that and make it perfectly clear just what the position is. Mr. FORRESTER. I will appreciate that. I am rather of the opinion that probably Colonel Plott is going to be found correct on that. I am going to make this observation at this time, and this is Private Forrester that is talking to you now. I do not know too much about the military except from the private's standpoint. But I do want to get all the information I can, because I do not mind saying to you I am very sympathetic to this situation. As a matter of fact, if Private Forrester has anything to do with it, we would already have a whole lot larger Air Force than we have got. I may be wrong about that, but I believe that is the first line of defense and offense, and I cannot help but think that maybe we are not taking first things first here. I do not agree with our idea of waiting until 1953 for a large Air Force, because I believe that is the thing that protects our women and children; and I think also that is the thing between success and failure with the boys over there in Korea. I will say this-I just throw this in for what it is worth-I do not believe in the boys having to fight with wraps on in Korea, either. Mr. BURRUS. Mr. Chairman, our next witness is Mr. Charles Q. Kelley, special assistant to the Administrator of Farmers Home Administration, and veteran representative. Mr. Kelley will discuss items 2 (b) (5) and 2 (b) (9). Item 2 (b) (5), Title 42 Section 1477. Preferences for veterans and families of deceased servicemen. As between eligible applicants seeking assistance under this subchapter, the Secretary shall give preference to veterans and the families of deceased servicemen. As used herein, a “veteran" shall be a person who served in the land or naval forces of the United States during any war between the United States and any other nation and who shall have been discharged or released therefrom on conditions other than dishonorable. "Deceased servicemen" shall mean men or women who served in the land or naval forces of the United States during any war between the United States and any other nation and who died in service before the termination of such war. July 15, 1949, c. 338, Title V, Section 507, 63 Stat. 436. Section 1471. Financial assistance by Secretary of Agriculture; definitions; conditions of eligibility. (a) The Secretary of Agriculture (hereinafter referred to as the "Secretary") is authorized, subject to the terms and conditions of this subchapter, to extend financial assistance, through the Farmers Home Administration, to owners of farms in the United States and in the Territories of Alaska and Hawaii and in Puerto Rico and the Virgin Islands, to enable them to construct, improve, alter, repair, or replace dwellings and other farm buildings on their farms, to provide them, their tenants, lessees, sharecroppers, and laborers with decent, safe, and sanitary living conditions and adequate farm buildings as specified in this subchapter. (b) For the purpose of this subchapter, the term "farm" shall mean a parcel or parcels of land operated as a single unit which is used for the production of one or more agricultural commodities and which customarily produces or is capable of producing such commodities for sale and for home use of a gross annual value of not less than the equivalent of a gross annual value of $400 in 1944, as determined by the Secretary. The Secretary shall promptly determine whether any parcel or parcels of land constitute a farm for the purposes of this subchapter whenever requested to do so by any interested Federal, State, or local public agency, and his determination shall be conclusive. (c) In order to be eligible for the assistance authorized by subsection (a) of this section, the applicant must show (1) that he is the owner of a farm which is without a decent, safe, and sanitary dwelling for himself and his family and necessary resident farm labor, or for the family of the operating tenant, lessee, or sharecropper, or without other farm buildings adequate for the type of farming in which he engages or desires to engage; (2) that he is without sufficient resources to provide the necessary housing and buildings on his own account; and (3) that he is unable to secure the credit necessary for such housing and buildings from other sources upon terms and conditions which he could reasonably be expected to fulfill. July 15, 1949, c. 338, Title V, section 501, 63 Stat. 432. Section 1472. Loans for housing and buildings on adequate farms-Terms of loan. (a) If the Secretary determines that an applicant is eligible for assistance as provided in section 1471 of this title and that the applicant has the ability to repay in full the sum to be loaned, with interest, giving due consideration to the income and earning capacity of the applicant and his family from the farm and other sources, and the maintenance of a reasonable standard of living for the owner and the occupants of said farm, a loan may be made by the Secretary to said applicant for a period of not to exceed thirty-three years from the making of the loan with interest at a rate not to exceed 4 per centum per annum on the unpaid balance of principal. PROVISIONS OF LOAN INSTRUMENT (b) The instrument under which the loan is made and the security given shall (1) provide for security upon the applicant's equity in the farm and such additional security or collateral, if any, as may be found necessary by the Secretary reasonably to assure repayment of the indebtedness; (2) provide for the repayment of principal and interest in accordance with schedules and repayment plans prescribed by the Secretary; (3) contain the agreement of the borrower that he will, at the request of the Secretary, proceed with diligence to refinance the balance of the indebtedness through cooperative or other responsible private credit sources whenever the Secretary determines, in the light of the borrower's circumstances, including his earning capacity and the income from the farm, that he is able to do so upon reasonable terms and conditions; (4) be in such form and contain such covenants as the Secretary shall prescribe to secure the payment of the loan with interest, protect the security, and assure that the farm will be maintained in repair and that waste and exhaustion of the farm will be prevented. July 15, 1949, c. 338, Title V, section 502, 63 Stat. 1472. Section 1473. Loans for housing and buildings on potentially adequate farms; conditions and terms. If the Secretary determines (a) that, because of the inadequacy of the income of an eligible applicant from the farm to be improved and from other sources, said applicant may not reasonably be expected to make annual repayments of principal and interest in an amount sufficient to repay the loan in full within the period of time prescribed by the Secretary as authorized in this subchapter; (b) that the income of the applicant may be sufficiently increased within a period of not to exceed five years by improvement or enlargement of the farm or an adjustment of the farm practices or methods; and (c) that the applicant has adopted and may reasonably be expected to put into effect a plan of farm improvement, enlargement, or adjusted practices or production which, in the opinion of the Secretary, will increase the applicant's income from said farm within a period of not to exceed five years to the extent that the applicant may be expected thereafter to make annual repayments of principal and interest sufficient to repay the balance of the indebtedness less payments in cash and credits for the contributions to be made by the Secretary as hereinafter provided, the Secretary may make a loan in an amount necessary to provide adequate farm dwellings and buildings on said farm under the terms and conditions prescribed in section 1472 of this title. In addition, the Secretary may agree with the borrower to make annual contributions during the said five-year period in the form of credits on the borrower's indebtedness in an amount not to exceed the annual installment of interst and 50 per centum of the principal payments accruing during any installment year up to and including the fifth istallment year, subject to the conditions that the borrower's income is, in fact, insufficient to enable the borrower to make payments in accordance with the plan or schedule prescribed by the Secretary and that the borrower pursues his plan of farm reorganization and improvements or enlargement with due diligence. This agreement with respect to credits or principal and interest upon the borrower's indebtedness shall not be assignable nor accrue to the benefit of any third party without the written consent of the Secretary and the Secretary shall have the right, at his option, to cancel the agreement upon the sale of the farm or the execution or creation of any lien thereon subsequent to the lien given to the Secretary, or to refuse to release the lien given to the Secretary except upon payment in cash of the entire original principal plus accrued interest thereon less actual cash payments of principal and interest when the Secretary determines that the release of the lien would permit the benefits of this section to accrue to a person not eligible to receive such benefits. July 15, 1949, c. 338, Title V, section 503, 63 Stat. 434. Section 1474. Special loans and grants for minor improvements; terms: loans for enlargement or development. (a) In the event the Secretary determines that an eligible applicant cannot qualify for a loan under the provisions of sections 1472 and 1473 of this title and that repairs or improvements should be made to a farm dwelling occupied by him, in order to make such dwelling safe and sanitary and remove hazards to the health of the occupant, his family, or the community, and that repairs should be made to farm buildings in order to remove hazards and make such buildings safe, the Secretary may make a grant or a combined loan and grant, to the applicant to cover the cost of improvements or additions, such as repairing roofs, providing toilet facilites, providing a convenient and sanitary water supply, supplying screens, repairing or providing structural supports, or making other similar repairs or improvements. No assistance shall be extended to any one individual under this subsection (1) in the form of a loan, or combined loan and grant, in excess of $1,000, or (2) in the form of a grant (whether or not combined with a loan) in excess of $500. Any portion of the sums advanced to the borrower treated as a loan shall be secured and be repayable in accordance with the principles and conditions set forth in this subchapter. Sums made available by grant may be made subject to the conditions set out in this subchapter for the protection of the Government with respect to contributions made on loans by the Secretary. (b) In order to encourage adequate family-size farms the Secretary may make loans under this section and section 1473 of this title to any applicant whose farm needs enlargement or development in order to provide income sufficient to support decent, safe, and sanitary housing and other farm buildings, and may use the funds made available under clause (b) of section 1483 of this title for such purposes. July 15, 1949, c. 338, Title V, section 504, 63 Stat. 434. Section 1475. Moratorium on loan payments. During any time that any such loan is outstanding, the Secretary is authorized under regulations to be prescribed by him to grant a moratorium upon the payment of interest and principal on such loan for so long a period as he deems necessary, upon a showing by the borrower that due to circumstances beyond his control, he is unable to continue making payments of such principal and interest when due without unduly impairing his standard of living. In cases of extreme hardship under the foregoing circumstances, the Secretary is further authorized to cancel interest due and payable on such loans during the moratorium. Should any foreclosure of such a mortgage securing such a loan upon which a moratorium has been granted occur, no deficiency judgment shall be taken against the mortgagor if he shall have faithfully tried to meet his obligation. July 15, 1949, c. 338, Title V, section 505, 63 Stat. 435. Section 1476. Technical services and research preparation and submission of estimates of housing needs. (a) In connection with financial assistance authorized in sections 1471-1474 of this title, the Secretary shall require that all new buildings and repairs financed under this subchapter shall be substantially constructed and in accordance with such building plans and specifications as may be required by the Secretary. Buildings and repairs constructed with funds advanced pursuant to this subchapter shall be supervised and inspected, as may be required by the Secretary, by competent employees of the Secretary. In addition to the financial assistance authorized in sections 1471-1474 of this title, the Secretary is authorized to furnish, through such agencies as he may determine, to any person, including a person eligible for financial assistance under this subchapter, without charge or at such charges as the Secretary may determine, technical services such as building plans, specifications, construction supervision and inspection, and advice and information regarding farm dwellings and other buildings. The Secretary is further authorized to conduct research and technical studies including the development, demonstration, and promotion of construction of adequate farm dwellings and other buildings for the purposes of stimulating construction, improving the architectural design and utility of such dwellings and buildings, utilizing new and native materials, economies in materials and construction methods, new methods of production, distribution, assembly, and construction, with a view to reducing the cost of farm dwellings and buildings and adapting and developing fixtures and appurtenances for more efficient and economical farm use. (b) The Secretary of Agriculture shall prepare and submit to the President and to the Congress estimates of national farm housing needs and reports with respect to the progress being made toward meeting such needs, and correlate and recommend proposals for such executive action or legislation necessary or desirable for the furtherance of the national housing objective and policy established by this Act with respect to farm housing, together with such other reports or information as may be required of the Secretary by the President or the Congress. July 15, 1949, c. 338, Title V, section 506, 63 Stat. 435. Title 42 Section 1478. Local committees to assist Secretary-composition, appointment, and compensation; Chairman; promulgation of procedural rules; forms and equipment. (a) For the purposes of this subsection and subsection (b) of this section, the Secretary may use the services of any existing committee of farmers operating (pursuant to laws or regulations carried out by the Department of Agriculture) in any county or parish in which activities are carried on under this subchapter. In any county or parish in which activities are carried on under this subchapter and in which no existing satisfactory committee is available, the Secretary is authorized to appoint a committee composed of three persons residing in the county or parish. Each member of such existing or newly appointed committee shall be allowed compensation at the rate of $5 per day while engaged in the performance of duties under this subchapter and, in addition, shall be allowed such amounts as the Secretary may prescribe for necessary traveling and subsistence expenses. One member of the committee shall be designated by the Secretary as chairman. The Secretary shall prescribe rules governing the procedures of the committees, furnish forms and equipment necessary for the performance of their duties, and authorize and provide for the compensation of such clerical assistance as he deems may be required by any committee. DUTIES (b) The committees utilized or appointed pursuant to this section shall examine applications of persons desiring to obtain the benefits of this subchapter and shall submit recommendations to the Secretary with respect to each applicant as to whether the applicant is eligible to receive the benefits of this subchapter, whether by reason of his character, ability, and experience, he is likely successfully to carry out undertakings required of him under a loan or grant under this subchapter, and whether the farm with respect to which the application is made is of such character that there is a reasonable likelihood that the making of the loan or grant requested will carry out the purposes of this subchapter. The committees shall also certify to the Secretary their opinions of the reasonable values of the farms. The committees shall, in addition, perform such other duties under this subchapter as the Secretary may require. July 15, 1949, c. 338, Title V, section 508, 63 Stat. 436. Section 1479. General powers of Secretary. (a) The Secretary, for the purposes of this subchapter, shall have the power to determine and prescribe the standards of adequate farm housing and other |