reduction of interest to the rate of 321⁄2 percent per annum on land-bank and Commissioner loans be discontinued upon the expiration of the present authority for such reductions and that the voluntary flat rate of 4 percent on land-bank loans be accepted. Therefore the bill as amended and reported by the committee deals only with the Commissioner loans. As stated above, the rate on these loans will return to 5 percent per annum on July 1 unless legislative action is taken. prior to that time. The committee feel that 5 percent interest on this type of long-time loan, considering the present supply of money, its cost, and the fact that these loans are secured by real estate which is now worth considerably more than at the time the loans were negotiated, is too high at the present time. While it is true that the outstanding bonds of the Federal Farm Mortgage Corporation bear interest at 3 percent, they are all callable not later than May 15 of this year and can be refinanced at a less rate of interest. It is believed that an interest rate to the borrower of 4 percent will be sufficient to pay the cost of the money and the cost of negotiating and servicing these loans. For these reasons, we are reporting and recommending that the rate of interest on these Commissioner loans for the period of time July 1, 1944, to June 30, 1945, be fixed at 4 percent per annum. The present authority to make Commissioner loans will expire on July 1, 1945, and it is anticipated that before that date this committee and the Congress will consider legislation touching on the question of whether or not these Commissioner loans should be made after the expiration of the present authority and whether changes should be made in the amount of loans which the Federal land banks are now authorized to make. Of course, at that time this question of interest rate will be considered by the committee and the Congress. Therefore the single purpose of the bill as reported by the committee is to fix the interest rate on Commissioner loans from 1 year at 4 percent as against 31⁄2 percent now charged and 5 percent after June 30 unless this bill is enacted. If the present authority should be continued for another 2 years with the rate of 3%1⁄2 percent on both landbank and Commissioner loans, it is estimated that the charge against the Treasury would be $11,700,000 for the fiscal year 1945, and $9,900,000 for the fiscal year 1946, as indicated by the following statement: Estimated amounts required for interest reductions fiscal years 1945 and 1946, if provisions of present act extended to July 1, 1946 For fiscal year 1945. Federal land $6,500,000 Federal Farm $5,200,000 4,300,000 The bill as reported does not deal with nor seek to reduce the interest rate on purchase money mortgages of either land banks or the Federal Farm Mortgage Corporation. After June 30, these will bear 5-percent interest and this rate appears justified on account of the higher percentage of the value of the property which remains unpaid under these mortgages. After paying purchase mortgages down to 50 percent of the value of the security the borrower can secure a 4-percent loan from the Federal land bank, or after paying a purchase-money mortgage held by either the land banks or the Federal Farm Mortgage Corporation down to 75 percent of the normal value of the security, the borrower will be able to secure a 4-percent land bank and Commissioner loan. The amount of purchase money mortgages outstanding is shown by the following statement: Neither does this bill treat with the interest rate on direct land bank loans or with loans made in Puerto Rico. Under the law, these are both fixed at one-half of 1 percent interest more than other loans, but under the law 10 or more holders of direct loans are authorized to form an association and thereby secure a reduction of one-half to 1 percent, or to 4 percent, in their interest charges. The committee respectfully recommends passage of the bill as amended. CHANGES IN EXISTING LAW In compliance with paragraph 2a of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): EMERGENCY FARM MORTGAGE ACT OF 1933, AS AMENDED SEC. 32 * * * (Last paragraph:) Notwithstanding the foregoing provisions of this section, the rate of interest on loans made under this section shall not exceed 4 per centum per annum for all interest payable on installment dates occuring on or after July 22, 1937, and prior to July 1, 1940, and shall not exceed 3% per centum per annum for all interest payable on installment dates occurring on or after July 1, 1940, and prior to July 1, 1944 [], and shall not exceed 4 per centum per annum for all interest payable on installment dates occurring on or after July 1, 1944, and prior to July 1, 1945. Notwithstanding the interest rate provided for in so-called purchase-money mortgages and real estate sales contracts taken by the Federal Farm Mortgage Corporation, the rate of interest payable on such mortgages and contracts shall not exceed 4 per centum per annum for all interest payable on installment dates occurring on and after July 1, 1942, and prior to July 1, 1944. DISPOSING OF CERTAIN PAPERS OF SUNDRY EXECUTIVE DEPARTMENTS APRIL 27, 1944.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. ELLIOTT, from the Joint Committee on Disposition of Executive Papers, submitted the following REPORT The joint select committee of the Senate and House of Representatives appointed on the part of the Senate and House of Representatives, and acting in compliance with the provisions of the act approved July 7, 1943 (57 Stat. 380), respectfully reports to the Senate and House of Representatives that it has received and examined the report of the Archivist of the United States No. 44-30, dated April 14, 1944, to the Seventy-eighth Congress, second session, submitting the following lists or schedules, or parts of lists or schedules, covering records proposed for disposal by the Government agencies indicated: Your committee reports that the records proposed for disposal in the said lists or schedules, or parts of lists or schedules, reported by the Archivist of the United States do not, or will not after the lapse of the period specified, have sufficient administrative, legal, research, or other value to warrant their continued preservation by the Government and recommends that their disposal be accomplished, subject to the provisions of section 9 of the afore-mentioned act, in accordance with the regulations promulgated by the National Archives Council under the provisions of said act. Respectfully submitted to the Senate and House of Representatives. A. J. ELLIOTT, Chairman, B. W. GEARHART, Members on the part of the House. ALBEN W. BARKLEY, OWEN BREWSTER, Members on the part of the Senate. Q EXTENDING THE TIMES FOR COMMENCING AND COMPLETING CONSTRUCTION OF A FREE HIGHWAY BRIDGE ACROSS CALCASIEU RIVER AT OR NEAR LAKE CHARLES, LA. APRIL 27, 1944.-Referred to the House Calendar and ordered to be printed Mr. NEWSOME, from the Committee on Interstate and Foreign Commerce, submitted the following REPORT [To accompany H. R. 4054] The Committee on Interstate and Foreign Commerce, to whom was referred the bill (H. R. 4054) a bill to extend the times of commencing and completing the construction of a bridge across the Calcasieu River at or near Lake Charles, La., having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The bill has the approval of the War Department and the Federal Works Agency, as will appear by the letters attached. WAR DEPARTMENT, February 12, 1944. Respectfully returned to the chairman, Committee on Interstate and Foreign Commerce, House of Representatives. So far as the interests committed to this Department are concerned, I know of no objection to the favorable consideration of the accompanying bill, H. R. 4054, Seventy-eighth Congress, second session, to extend the times for commencing and completing the construction of a bridge across the Calcasieu River at or near Lake Charles, La. The Bureau of the Budget advises that there is no objection to the submission of this report. HENRY L. STIMSON, Secretary of War. [H. R. 4054, 78th Cong. 2d sess.] A BILL To extend the times for commencing and completing the construction of a bridge across the Calcasieu River at or near Lake Charles, Louisiana. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the times for commencing and completing the construction of a bridge across the Calcasieu River, at or near Lake Charles, authorized to be built by the State of Louisiana, by an Act of Congress approved June 22, 1943, are hereby extended two and four years, respectively, from June 22, 1944. SEC. 2. The right to alter, amend, or repeal this Act is hereby expressly reserved. |