Speech Draft of Senator Harry S. Truman

The problem of farm loans is one of the greatest importance to the agricultural interests of the country. For a number of years there has been the growing tendency on the part of those who have money to invest to seek liquid loans. The word liquid came into prominence with the beginning of the depression, when the banking policy of the country seemed to be one of deflation and to put all kinds of assets into investments that were immed- iately convertible into cash, and that has been the policy since that time, resulting in demoralizing all kinds of business and particularly real estate loans, which of necessity must extend over a considerabl period of time. Because of depressed agricultural prices and the consequent decline of land values, it has been practically impossible to obtain farm loans from private investors. The Government has done a great work in saving thousands and thousands of farms from foreclosure throughout the country, but despite its efforts there have been thousands of foreclosures. It has been almost imposs- ible to obtain loans with which to buy farms. Of course the time must come when the Government will have to get out of the financing business, and the quicker private capital 1 put to work to take care of the demands of business everywhere, the better off the country is going to be. The Government has no money naturally ex- cept that which it borrows and exacts from the people through tax- ation, and when the Government borrows money whatever that amount is it is taken away from every community in this country for the purpose of taxation. If the farmer of this country are to be able to acquire their own homes, it is necessary that the loans executed in the purchase of such homes shall extend over a long period of time, thus insuring to them security against foreclosures and the necessity for the constant renewal of such obligations and in cident worries and uncertainty concerning it. (s)