Letter on Crop Production Loans.

My dear Senator:

This is in reply to the letter of March 5, 1936, addressed to me by yourself and other members of the Senate Committee on Agriculture and Forestry, with respect to the allotment of funds under my Executive Order of February 28, 1936, for the purpose of making loans to farmers during the year 1936 for production of crops.

I note that you and your committee members are of the opinion that at least $28,500,000 should be immediately allotted for the making of these loans and are requesting that this be done.

In my Executive Order I set aside, or earmarked, not to exceed $30,000,000 for this purpose, of which $7,000,000 was immediately allotted, and I stated that additional allotments would be made from time to time as might be necessary. I propose to carry out this program. The Governor of the Farm Credit Administration advises me that an additional $13,000,000 will be required on or about March 20th, at which time I shall cause that sum to be made available. He further advises that additional funds may be required on or about April 10th, at which time I shall take the necessary action to see that such amount as may be shown to be necessary is supplied. I cannot see why this arrangement should not be satisfactory to all concerned.

It is not practicable to make an immediate allotment of all of the funds estimated to be required, since it is necessary to follow the routine of drawing in unobligated balances from various allotments of emergency funds and making them available for the making of crop production loans. This will be done, of course, as rapidly as possible and in ample time to meet the needs of the Farm Credit Administration.

I trust that the foregoing will be sufficient to assure you and the members of your committee that adequate provision will be made for providing funds for the making of the loans in question as the need for them becomes necessary.

Sincerely yours,

Honorable E. D. Smith,

Chairman,

Committee on Agriculture and Forestry,

United States Senate.