priate to the problem in your own district, this type of situation has occurred not infrequently every year throughout the United States; does it not?

Mr. GATHINGS. Yes.

Mr. McINTIRE. I was somewhat interested in view of the fact that it does-in fact, we had a hurricane in New England a couple of times in the last 25 years, but nothing was done or proposed, so far as I recall, in this type of an approach to meet the farmer's problem in that area, and that is no criticism, but is simply an observation.

Why limit this legislation if it is meritorious to one area, and why limit it to December 31?

Mr. GATHINGS. I agree with the gentleman that it may be necessary to pass legislation for a longer period.

Mr. McINTIRE. There will be another problem coming up somewhere else.

Mr. GATHINGS. I agree heartily, since these first bills were introduced on this subject they have had this freeze in Florida. So we do know that these disasters come, year in and year out. While we are vitally concerned about the problem as it affects us at this moment, we may have the same thing happen this year or next year.

Mr. McINTIRE. Yes.

Mr. GATHINGS. Or some other part of the Nation would find itself in a situation of this kind.

Mr. JONES. Before you came in, I explained that I went down to the Department of Agriculture-to explain to Mr. McIntire-and one of their lawyers drew the bill and it was presented to him just as an emergency bill. Actually, of course, so far as this year is concerned we hope it will be taken care of promptly and that these loans will be made. In fact, they have to be made within the next 2 or 3 months so far as that is concerned, if they are going to do any good. If we want to adopt permanent legislation I would like to see that done, but this was presented on the basis of the emergency as it existed at this time, and perhaps I am not as familiar with the actual wording, except I relied on the ability of the man in the Department in whom I have the utmost confidence. He drew the bill and I went to them so that they could draw something that they felt could be administered with the least amount of trouble and could be put into effect with the least amount of delay. So the wording of the bill is that of the Department.

Mr. GATHINGS. I sent out to my people information that the SBA amendment had been approved by the House of Representatives. When it was signed by the President, I again sent out the information that it had been signed. Quite a lot of the correspondence came back to me, "Oh, yes, the SBA bill has been signed, but what are you going to do about us folks who now have these open accounts that we need help on? We do need this other legislation that had been originally proposed in the Senate."

Mr. POAGE. Thank you, Mr. Gathings.
Mr. Rogers, do you want to be heard?

to the extent of executing agreements (including standby agreements) that are reasonably necessary to give the borrower a chance to improve his situation. Loans shall bear interest at the rate of 5 per centum per annum and shall be made upon such other terms and conditions as the Secretary shall prescribe. Loans exceeding $50,000 or which would cause the borrower's indebtedness hereunder to exceed $50,000 principal balance shall be approved by the Secretary."

[H. R. 10317, 85th Cong., 2d sess.]

A BILL To authorize emergency refinancing loans to farmers in disaster areas 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 to make loans, in any area heretofore or hereafter covered by a major disaster determined by the President under Public Law 875, Eighty-first Congress, or any area covered by a production disaster determination by the Secretary of Agriculture under section 2 (a) of Public Law 38, Eighty-first Congress, to bona fide farmers and stockmen who have a reasonable chance of continuing their farming operations but who are unable to secure necessary extensions, renewals, or refinancing of their existing indebtedness from their present creditors or from commercial banks, cooperative lending agencies, the Farmers' Home Administration or other responsible sources, at rates and terms at which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine, but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secretary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

SEC. 2. There is hereby created a revolving fund for the purposes of this Act which shall be established as a separate fund available only for the purposes of this Act. Said fund shall be composed of not more than $200,000,000, such additional amounts as Congress may from time to time approve, and collections from repayments and liquidations of loans made under section 1 of this Act. Such sums shall be borrowed by the Secretary from the Secretary of the Treasury for such terms as may be determined by the Secretary of Agriculture with interest at the rate as determined by the Secretary of the Treasury equal to the current average market yield of outstanding marketable obligations of the United States having maturities comparable to such advances.

The Secretary of the Treasury is directed to purchase any notes issued by the Secretary pursuant to this section and any renewals thereof and for such purposes may use as a public transaction, the proceeds of the sale from any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, are hereby extended to include any such purchases. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated as public debt transactions of the United States.

[H. R. 10318, 85th Cong., 2d sess.]

A BILL To authorize emergency refinancing loans to farmers in disaster areas 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 to make loans, in any area heretofore or hereafter covered by a major disaster determined by the President under Public Law $75, Eighty-first Congress, or any area covered by a production disaster determined by the Secretary of Agriculture under section 2 (a) of Public Law 38, Eighty-first Congress, to bona fide farmers and stockmen who have a reasonable chance of continuing their farming operations but who are unable to secure necessary extensions, renewals, or refinancing of their existing indebtedness from their present creditors or from commercial banks, cooperative lending agencies, the Farmers' Home Ad

ministration or other responsible sources, at rates and terms which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secretary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

SEC. 2. There is hereby created a revolving fund for the purposes of this Act which shall be established as a separate fund available only for the purposes of this Act. Said fund shall be composed of not more than $200,000,000, such additional amounts as Congress may from time to time approve, and collections from repayments and liquidations of loans made under section 1 of this Act. Such sums shall be borrowed by the Secretary from the Secretary of the Treasury for such terms as may be determined by the Secretary of Agriculture with interest at the rate as determined by the Secretary of the Treasury equal to the current average market yield of outstanding marketable obligations of the United States having maturities comparable to such advances.

The Secretary of the Treasury is directed to purchase any notes issued by the Secretary pursuant to this section and any renewals thereof and for such purposes may use as a public transaction, the proceeds of the sale from any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, are hereby extended to include any such purchases. All redemptions, purchases and sales by the Secretary of the Treasury of such notes shall be treated as public debt transactions of the United States.

[H. R. 10356, 85th Cong., 2d sess.]

A BILL To authorize emergency refinancing loans to farmers in disaster areas 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 to make loans, in any area heretofore or hereafter covered by a major disaster determined by the President under Public Law 875, Eighty-first Congress, or any area covered by a production disaster determination by the Secretary of Agriculture under section 2 (a) of Public Law 38, Eighty-first Congress, to bona fide farmers and stockmen who have a reasonable chance of continuing their farming operations but who are unable to secure necessary extensions, renewals, or refinancing of their existing indebtedness from their present creditors or from commercial banks, cooperative lending agencies, the Farmers' Home Administration or other responsible sources, at rates and terms at which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secretary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

SEC. 2. There is hereby created a revolving fund for the purposes of this Act which shall be established as a separate fund available only for the purposes of this Act. Said fund shall be composed of not more than $200,000,000, such additional amounts as Congress may from time to time approve, and collections from repayments and liquidations of loans made under section 1 of this Act. Such sums shall be borrowed by the Secretary from the Secretary of the Treasury for such terms as may be determined by the Secretary of Agriculture with interest at the rate as determined by the Secretary of the Treasury equal to the current

average market yield of outstanding marketable obligations of the United States having maturities comparable to such advances.

The Secretary of the Treasury is directed to purchase any notes issued by the Secretary pursuant to this section and any renewals thereof and for such purposes may use as a public transaction the proceeds of the sale from any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, are hereby extended to include any such purchases. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated as public debt transac tions of the United States.

[H. R. 10397, 85th Cong., 2d sess.]

A BILL To authorize emergency refinancing loans to farmers in disaster areas 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 to make loans, in any area heretofore or hereafter covered by a major disaster determined by the President under Public Law 875, Eighty-first Congress, or any area covered by a production disaster determination by the Secretary of Agriculture under section 2 (a) of Public Law 38, Eighty-first Congress, to bona fide farmers and stockmen who have a reasonable chance of continuing their farming operations but who are unable to secure necessary extensions, renewals, or refinancing of their existing indebtedness from their present creditors or from commercial banks, cooperative lending agencies, the Farmers' Home Administration or other responsible sources, at rates and terms at which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secre tary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

SEC. 2. There is hereby created a revolving fund for the purposes of this Act which shall be established as a separate fund available only for the purposes of this Act. Said fund shall be composed of not more than $200,000,000, such additional amounts as Congress may from time to time approve, and collections from repayments and liquidations of loans made under section 1 of this Act. Such sums shall be borrowed by the Secretary from the Secretary of the Treasury for such terms as may be determined by the Secretary of Agriculture with interest at the rate as determined by the Secretary of the Treasury equal to the current average market yield of outstanding marketable obligations of the United States having maturities comparable to such advances.

The Secretary of the Treasury is directed to purchase any notes issued by the Secretary pursuant to this section and any renewals thereof and for such purposes may use as a public transaction, the proceeds of the sale from any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, are hereby extended to include any such purchases. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes shall be treated as public debt transactions of the United States.

[H. R. 10954, 85th Cong., 2d sess.]

A BILL To provide for emergency credit to farmers and stockmen in certain disaster areas to refinance certain indebtedness, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That until December 31, 1958, in any area determined by the Secretary of Agriculture (hereinafter referred to as the "Secretary") under the provisions of section 2(a) of the Act of April 6, 1949, as amended (12 U. S. C. 1148a-2), to have suffered a production disaster in 1957, the Secretary is authorized to make and insure loans to farmers and stockmen

Mr. JONES. I might say for the record that Congressman Everett is comparatively new. He was elected to succeed our late friend, Hon. Jere Cooper, and he comes just from across the river from me in Tennessee, and he represents an area which is very much like that which I represent and has been hit by about the same type of disaster. Mr. Everett is not new to Washington. He has been in Washington in various capacities, and he is a well-qualified man and I know he is going to render a high type of service to the people in that area of west Tennessee. I am personally glad that he is here this morning to appear for this bill.

Mr. POAGE. We are delighted to have you and delighted to hear from you.

Please proceed, sir.

STATEMENT OF HON. ROBERT A. EVERETT, A REPRESENTATIVE IN CONGRESS OF THE EIGHTH DISTRICT OF THE STATE OF TENNESSEE

Mr. EVERETT. Thank you, Mr. Chairman and you, Mr. Jones. My district is east of Congressmen Gathings' and Jones' district. The only thing that separates us is the Mississippi River.

Mr. POAGE. That is a pretty good sized thing to separate you.

Mr. EVERETT. From approximately December 22 until the night of January 31, when I was elected on February 1, I had an opportunity to observe these conditions at first hand. I made every country store and every hamlet and every town in nine countries of northwest Tennessee.

Frankly, I have never seen the economic situation, since the great depression of 1930, what it is today. When you go into town and you see empty store buildings and you see the people that you have known for many years and talk to them and see their outlook on life for making a new crop, it is certainly appalling. I contacted several wholesale grocers, several insurance agencies, and others, and asked them about the economic conditions there. They tell me that their accounts are delinquent this year anywhere from 65 to 75 percent. As the Chairman stated a while ago it is not so much that they realize the disaster is there, something has got to be done in a very short time, in which time is of the essence in this matter. I would say for the next 4 to 6 weeks we either have to pass some kind of legislation or there will be a world of these people that will not be able to make a crop there.

I think the $200 million that has been suggested, I would like to recommend that and I would like to recommend that these farmers be given a clean bill of credit and that it be amortized over a period of, say, 4 to 6 years, and I want to say that, as Dr. Long did, that over in northwest Tennessee in the district that I represent, several farmers had to replant 2 or 3 times.

Of course, that incurred additional expense, and also that after they got the crop in, why I have seen hundreds of acres of soybeans as they stated, I have also seen hundreds of acres of crops that they planted late after it was too late to plant cotton or corn to try to make a corn crop there, and water would be, or, say half way up to the head and of course rains came and then the head dropped down in the water, and they completely lost the crop.