Mortgage instruments used by banks and periods of redemption thereunder as of 1930-Continued The CHAIRMAN. In pursuance with the direction of the committee, I have introduced a new bill to supersede the bill H. R. 4741, the new bill being H. R. 6172, and is printed herewith, as follows: [H. R. 6172, Seventy-second Congress, first session] A BILL To amend the Federal farm loan act, as amended, to provide for additional capital for Federal land banks, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1 of the Federal farm an act, as amended (U. S. C., title 12, ch. 7, secs. 691-697), is amended by adding to the end thereof a new paragraph as follows: "It shall be the duty of the Secretary of the Treasury on behalf of the nited States, upon the request of the board of directors of any Federal land ank made with the approval of the Federal Farm Loan Board, to subscribe from me to time for capital stock of such bank in an amount or amounts specified such approval or approvals, such subscriptions to be subject to call in whole or in part by the board of directors of said bank upon thirty days' notice with the approval of the Federal Farm Loan Board. The Secretary of the Treasury * hereby authorized and directed to take out and pay for shares having an agregate par value equal to the amounts so called; and to enable the Secretary of the Treasury to pay for stock issued hereunder there is hereby authorized to be appropriated the sum of $100,000,000. Shares of stock issued pursuant to this paragraph shall be paid off at par and retired in the same manner as the original apital stock of said bank after said original stock outstanding, if any, has been aid off and retired: Provided, however, That stock issued from time to time rsuant to this paragraph may, in the discretion of the directors and with the oval of the Federal Farm Loan Board, be paid off at par and retired in le or in part; and that said board may require such stock to be paid off at ar and retired in whole or in part out of available resources of said bank. The eds of all repayments on account of stock issued pursuant to this paraaph shall be held in the Treasury of the United States and shall be available the purpose of paying for other stock thereafter issued pursuant to this aragraph." S2 Section 23 of the Federal farm loan act, as amended (U. S. C., title ch. 7. secs. 901, 902), is amended by adding at the end thereof a new aragraph as follows: Effective beginning with the first full semiannual period, ending June 30 or December 31, following the enactment of this paragraph, every Federal land ank shall carry to reserve account semiannually a sum not less than 50 per tam of its net earnings until said reserve account shall show a credit balance qual to the oustanding capital stock of said land bank. After said reserve shows a credit balance equal to the outstanding capital stock 10 per centum o the net earnings shall be added thereto semiannually. Whenever said reserv shall have been impaired it shall be fully restored before any dividends ar paid. No Federal land bank shall declare or pay a dividend or dividends t shareholders unless approved by the Federal Farm Loan Board. Stock owne by the Government of the United States in Federal land banks shall receiv no dividends. In the case of Federal land banks the requirements of this para graph shall be in lieu of the requirements of the first three sentences of thi section and of the requirements as to percentages of reserves stated in th second paragraph of this section. This paragraph shall not be applicable t joint-stock land banks." SEC. 3. The first three paragraphs of section 24 of the Federal farm loa act, as amended (U. S. C., title 12, ch. 7, secs. 911-913), are amended, effectiv beginning with the first full semiannual period, ending June 30 or December 31 following the enactment of this act, to read as follows: "That every national farm loan association shall, out of its net earnings carry to reserve account semiannually a sum not less than 20 per centum of such net earnings until said reserve account shall show a credit balance equal to the outstanding capital stock of said association. After said reserve show a credit balance equal to the outstanding capital stock 5 per centum of the net earnings shall be added thereto semiannually. Whenever said reserve shall have been impaired it shall be fully restored before any dividends are paid. "After deducting 20 per centum or the 5 per centum herein before directed to be credited to reserve account, said association may at its discretion declare a dividend to shareholders of the whole or any part of the balance of said net earnings." SEC. 4. That section 25 of the Federal farm loan act (U. S. C., title 1, ch 7. sec. 921) is amended by adding at the end thereof a new paragraph to read as follows: "Each Federal land bank is authorized, when in the judgment of the di rectors conditions justify it, to extend, in whole or in part, any installment or installments upon any mortgage that may be unpaid, and to accept payment of such unpaid installment or installments during a period of five years or less thereafter, to be paid in equal amounts in addition to the regular installments to become due during such period." SEC. 5. The Federal Farm Loan Board is authorized to make such rules and regulations, not inconsistent with law, as it deems necessary or requisite for the efficient execution of the provisions of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7). (Thereupon the committee went into executive session.) Reconstruction Finance Corporation HEARINGS BEFORE THE COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES SEVENTY-SECOND CONGRESS FIRST SESSION ON THE BILLS H. R. 5060 and H. R. 5116 TO PROVIDE EMERGENCY FINANCING FACILITIES FOR DECEMBER 18, 1931, AND JANUARY 5, 6, AND 7, 1932 UNITED STATES WASHINGTON: 1932 COMMITTEE ON BANKING AND CURRENCY HENRY B. STEAGALL, Alabama, Chairman WILLIAM F. STEVENSON, South Carolina, II LOUIS T. MCFADDEN, Pennsylvania. |