I have just signed the Farm Relief Bill, which includes the refinancing of farm debts.
The Act extends relief not only to farmer borrowers, but to mortgage creditors as well.
Holders of farm mortgages will have the privilege of exchanging them for Federal Land Bank bonds, the interest payments upon which are to be guaranteed by the Treasury of the United States.
Farmers whose mortgages are to be exchanged for these bonds will reap the benefit of lower interest rates and more liberal terms of payment.
It is to the interest of all the people of the United States that the benefits of this Act should be extended to all who are in need of them and that none should be deprived of them through ignorance or precipitate action.
For this reason, I appeal particularly to mortgage creditors and all others who have money claims against farmers. Every effort will be made to administer the Act promptly, considerately and justly.
All preparation that could be made in advance by officers of the Federal Land Bank system has been made. However, applications cannot be acted upon instantly. Time for examination, appraisal and perfection of records will be necessary.
I urge upon mortgage creditors, therefore, until full opportunity has been given to make effective the provisions of the mortgage refinancing sections of the Farm Relief Act, that they abstain from bringing foreclosure proceedings and making any effort to dispossess farmers who are in debt to them. I invite their cooperation with the officers of the land banks, the agents of the Farm Loan Commissioner and their farmer debtors to effect agreements which will make foreclosures unnecessary.
This is in line both with public duty and private interest.