AGRICULTURAL MARKETING REVOLVING FUND
: Ma CHristENseN. We have actually collected $2,104,571.72 in-
erest. .
The CrarrmaN. Have any of them defaulted entirely in the pay-
ment of interest?
Mr. Lrge. There are a few cases where they have not been able
to meet the interest.
The Crmamman. What do you do with those fellows?
Mr. Lrcee. So far, we have not done anything except to nurse
them along so that they can eventually pay.
There are some pretty good reasons for that. For instance.
we had the bean growers’ associations before us this morning.
They are going to be sold out unless we put up some more money.
They are owing us some interest from last year. But the price of
that wi has dropped. I think. from 6 cents to 3 cents per
pound,
The Cramrarax. What kind of security do you get?
Mr. Lecce. We get warehouse receipts on the beans themselves,
but they are rather negligible when the price drops as much as 50
per cent, as it has.
The Cmamman. Is that because of an overproduction of beans
throughout the world?
Mr. Lecoe. Throughout the world; yes. They had a very heavy
crop of beans this year. Although the crop in New York and Mich-
‘gan was not so heavy, the crop in the Western States was very heavy.
The Cuamrmax. I want to ask you a further question. You are
asking for $150,000,000 in this estimate. I want to see where we are
in this matter, and how greatly you are in need of anv immediate
help.
Chelieve you stated you have a free balance of $2,000,000?
Mr. CuristeNseEN. Yes. sir: that is correct as of December 13
1930.
The CmarrmanN. And you have loans approved tentatively for
$75,000,000
Mr. Liecoe. No; there are $75,000,000 of bank obligations against
stabilization commodities which we are supposed to take up, but
nobody is urging us to take them up. We expect to pay off a lot
nf those obligations with a part of this money.
The CusrMmax. Is there any present need for that at the moment?
Mr. Lrace. Not all of it. The banks will be willing to carry us
along, although it is not a good precedent to renew all of it.
The CuarrMaN. Assuming that you pay that off out of the $150,-
000,000, if you should get it, von would have a balance remaining
nf about $75,000,000.
Mr. Lecee. Yes; we would use half of it.
The CumatrmaN. In addition to that, to what extent will repay-
ments come in?
Mr. Lreoe. Normally, they should be coming in in considerable
volume; but with this horrible market condition which is in existence
now, where there seems to be no buying. or no immediate need, it
is slow. ‘That is one thing that is tying up so much of the money,
the fact that the stuff is not selling normally as it ordinarily would
be at this time of the year.
The CaairMaN. Have you made any estimate of how mu h money
vould come in in the next two months from repavments?
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