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AGRICULTURAL-CREDIT CORPORATIONS

FEBRUARY 24, 1932.—Ordered to be printed

Mr. Jones, from the committee of conference, submitted the following

CONFERENCE REPORT

[To accompany H. J. Res. 292]

The committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the joint resolution (H. J. Res. 292) to authorize the Secretary of Agriculture to aid in the establishment of agricultural-credit corporations, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment insert the following:

That the Secretary of Agriculture is hereby authorized to make advances or loans to individuals, under such regulations as he may prescribe, for the purpose of assisting in forming local agricultural-credit corporations, livestock-loan companies, or like organizations, or of increasing the capital stock of such corporations, companies, or organizations qualified to do business with Federal intermediate credit banks, or to which such privileges may be extended.

Sec. 2. (a) No loans shall be made to individual stockholders on the capital stock of, or to create or increase the capital stock of such corporation, company, or organization in an amount in excess of 75 per centum of the par value of ihe capital stock of such corporation, company, or organization owned by or proposed to be subscribed to by such individual.

(b) No loan shall be made upon the capital stock of any corporation until the Secretary of Agriculture shall find that the financial structure of such corporation is sound and unimpaired and by him approved, nor shall any loan be made upon the capital stock of such corporation until the management of such company shall be made known to and approved by the Secretary, and the Secretary shall have the right at any time to declare the indebtedness to the Government that may be created hereunder due whenever, in his judgment, the financial structure of the corporation shall become so impaired or the management become so unsatisfactory as to jeopardize the interests of the Government.

SEC. 3. No loan or advance shall be made to any individual upon the capital stock of or to creare or increase the capital stock of any corporalion, unless the paid-in capital stock of such corporation shall be at least $10,000.

Sec. 4. To carry out the provisions of this resolution, including all expenses incurred ihereunder, there are authorized to be appropriated, out of the unexpended balances of appropriations made to carry out the provisions of Public Resolution Numbered 112, Seventy-first Congress (46 Stat. 1032), as amended by the Interior Department appropriation act for the fiscal year ending June 30, 1932, and as amended by Public Resolution Numbered 120 (46 Stat. 1167), and out of the collections from loans made under Public Resolution Numbered 112, as so amended, a sum not exceeding $10,000,000, which sum shall be paid into a revolving fund. Not to exceed 2 per centum of such fund may be used for expenses of administration. All moneys received from time to time upon the repayment of any advance or loan made pursuant to this act, together with the interest, shall be paid into the revolving fund and shall thereafter be available for the purposes and in the manner hereinbefore provided. And the Senate agree to the same.

MARVIN JONES,
H. P. FULMER,

G. N. HAUGEN,
Managers on the part of the House.

Chas. L. McNARY,

E. D. SMITH,
Managers on the part of the Senate.

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the joint resolution (H. J. Res. 292) to authorize the Secretary of Agriculture to aid in the establishment of agricultural-credit corporations, and for other purposes, submit the following statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

Under the House resolution the Secretary of Agriculture could not grant loans unless the individual desiring the loan submitted a credit statement to the Secretary showing that such individual was not indebted in excess of one-half the fair market value of his assets, nor unless the value of such individual's assets above his indebtedness was at least twice the value of the loan applied for; nor could any loan be made on the capital stock or to increase the capital stock of any corporation devoted mainly to the financing and/or sale of special products to farmers. Under the Senate amendment the loans were to be made under such terms and conditions as the Secretary of Agriculture might prescribe. In the proposed substitute, the language of the House resolution, above referred to, is omitted because deemed unnecessary in view of the power contained in section 1 of the House resolution and in the proposed substitute, authorizing the Secretary of Agriculture to make loans under such regulations as he may prescribe.

Other than the change suggested above, the substitute agreed upon in conference is the same as the House resolution.

MARVIN JONES,
H. P. FULMER,

G. N. HAUGEN,
Managers on the part of the House.

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