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RT TRUMAN NARA EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON, 25, D. C. JUN I 3 1946 My dear Mr. Latta: On May 24, 1946, you advised this office that H. R. 5504, "To amend an Act entitled 'An Act to establish a uniform system of bankruptcy through- out the United States,' approved July 1, 1898, and Acts amendatory thereof and supplementary thereto," had been received at the White House and re- quested reports and recommendations as to the approval of the bill. The purpose of this enactment is to amend Section 75 (c) of the Bank- ruptcy Act by extending from March 4, 1946, to March 31, 1947, the time within which a farmer, who is insolvent or unable to meet his obligations as they mature, may file a petition in the District Courts of the United States to effect a composition or an extension of time in which to pay his debts. Section 75 of the Bankruptcy Act, which on several occasions heretofore has been amended by extending the time limit period for filing such peti- tions, provides, in brief, that if the proposal made in the petition is not accepted by creditors, the farmer may file an amended petition to be ad- judicated a bankrupt, to be allowed to retain possession of his property for three years upon payment of a reasonable rental, and to redeem the property within a period of three years at its appraised value. While the number of cases filed under this law has decreased in the last several fis- cal years, there will doubtless still be cases of farmers who, owing to adverse weather conditions or other misfortune, will be unable to pay their debts, and who may desire to take advantage of the moratorium relief which this legislation provides. A facsimile of the enrolled enactment has been referred to the Depart- ment of Agriculture and the Attorney General, and their replies, interposing no objection to the approval of the bill, are attached. I recommend that the bill be approved. Very truly yours, Mr. M. C. Latta, The White House. Telephone Acting Director. Enclosures: Letters from Agriculture and Attorney General. One copy each of the Senate and House reports on the bill.