xt7wwp9t2q46_33 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 36 "The Farmers' Home Bill: An Analysis of a Proposed Experiment in Socialism Which Would Increase Government Obligations by a Billion Dollars, Encourage Farmers to Contract Debts Without Improving Their Ability to Pay Them, Subsidize a Particular Class of Citizens and Afford an Opportunity for Scandal and Political Favoritism," May 20, 1935 text No. 36 "The Farmers' Home Bill: An Analysis of a Proposed Experiment in Socialism Which Would Increase Government Obligations by a Billion Dollars, Encourage Farmers to Contract Debts Without Improving Their Ability to Pay Them, Subsidize a Particular Class of Citizens and Afford an Opportunity for Scandal and Political Favoritism," May 20, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_36/Am_Lib_Lg_36_001/Am_Lib_Lg_36_001.pdf section false xt7wwp9t2q46_33 xt7wwp9t2q46 Pamphlets Available * *
I *
Copies of the following pamphlets and
other League literature may be obtained
upon application to· the Lea.gue’s national   F  -
headquarters :
Why, The American Liberty League?
Statement of Principles and Purposes    
American Liberty League—I ts Platform I
An Analysis of the President’s Budget Message
Analysis of the $4,880,000,000 Emergency Relief
Appropriation Act
Economic Security—A Study of Proposed I
Legislation _
The Bonus—An Analysis of Legislative Proposals * * *
Inflation—Possibilities Involved in Existing and
Proposed Legislation _ · `
The Thirty Hour Week-—Dangers Inherent in
ProposeddLegislati1on B H A P Z
The Pen ing Ban ing i —— roposa to _ _
Subject the Natirrpii Monetary Structure to ADADRIYSIS of a P1‘0p0scdExpc1’1m€I1t
the Exigencies of 0 itics · · · ·
rhs Hsidmg osmpssy Bill—An Analysis of m S°°1‘*1‘Sm W1“°1}WF’“1d I“°"°?S°
Proposed Legislation GOV€1'1‘1mcI1t Obl1gat10ns by a B1l»
"What is the Constitution Between Friends?"——— lion Dollars Encourage Farmers
Speech by James M. Beck ‘ ’ . h I
Where Are We Going‘?—Speech by James W. ee Contract Debts Wit out m'
Wedewerih _ _ proving Their Ability to Pay
» Price Contr0l—An Analysis of Experiments and Th S b .d. P t.
Recommendations for the Future cme u S1 me a at mu'
Ycasrterdayi, ;l1`od;ay and ’I&omorB>w——A Review lof lar Class OfCi1;izgng g_ndAf»
actua nayses an a iscussion of t e ·
Legislative Situation _ ford an OPPOrtun{t¥ for
The Labor Relations Bi1l—An Analysis of an Scandal and P0l1t1Cal
Undesirable Measure · ·
Government by Experiment—Speech by Dr. Favorltlsm
Neil Carothers
How Inflation Affects the Average Family- _
Speech by Dr. Ray Bert Westerfield
The AAA Amendments——A Study of Proposals -
Illustrating a Trend Toward Fascist Control o_€RI(~
of Agriculture and Other Industries y-  
Political Banking—Speech by Dr. Walter E. _  
Spahr » C   —; ld
The Bituminous Coal Bill———An Analysis of a 6* ’~*=*·2¥‘··?’ °
Proposed Step Toward Socialization of In- *649,. evo
dustry Y le
Rigimenting the Farmers—Speech by Dr. G. W.
Extension of the NRA—A Recommendation for
Action to Rescue American Business from a .
Quicksand of Bureaucracy and Visionary Ex-
perimentation _ _ l AMERICAN LIBERTY LEAGUE
Htkmegwi lgggtgreggethe C0nst1tut1on—-Speech by National Headquarters
it Document N0. 36
@ 4 I Mays I935

l The Farmers’ Home B1]1
I ir
l The Farmers’ Home Bill (S. 2367) proposes
~ an adventure in paternalism which offers no real
solution of the existing tenant problem and
would prove costly to the taxpaye-rs. It is one
, of a group of measures which, however worthy
,` in purpose, would prove impractical in operation
? and would serve to delay recovery.
; Some of the objectionable features of the bill
l &I`€Z
I 1. It proposes without constitutional authority
i to authorize the government to buy land.
1   It is a step towards socialization of agri-
2 cu ture.
· { 3. It provides a subsidy to enable one class
i of farmers to compete against another.
’ 4. It is inconsistent with other present policies
  in that it encourages new agricultural produc-
  tion by farmers hit by AAA restrictions.
l 5. It proposes to allow governmental loans up
to 100 per cent of the value of the collateral.
4 6. It makes it easy for farmers to contract
· new debts but offers no promise of improved
ability to pay them.
_ 7. It increases the contingent obligations of
the government by a billion dollars.
8. It offers an opportunity for scandal and
political favoritism.
9. It is unnecessary inasmuch as rural re-
habilitation is provided for in the four-billion-
dollar work—relief appropriation, if that act is
held to be constitutional.
* . History of Bill
The bill, introduced by Senator Bankhead of
p Alabama and approved by the Secretary of
' Agriculture, is intended, according to its title, to
promote more secure occupancy of farm homes
and to correct the economic instability resulting
from some present forms of farm tenancy.
While applicable to the entire country, it is
especially designed to provide assistance to ten-
ants and share—croppers in the South.
The Senate Committee on Agriculture reported
the bill favorably on`April 11, 1935. It was de-
bated in the Senate and returned to Committee
1 on April 24 with instructions to report it back
with modifications by May 12. The Committee

 approved on May 9 a revised measure contain- · The Tenant Problem
egg lleetllletieeleiend Safeguards Whmh were not m Farm tenancy has increased in the United
l e (meme 1 ‘ I T States in recent years. tratertgervatiiable censéis
ts erms iigures show that on pri 1, , ere were ,-
it ' 42.4 er
The bill creates a Farmers’ Home Corporation i eggte4te,erlelreIi;rg;edVl§;hteeigg%ee65ri·Vlr3el_thirdspef
under the lllellelgelllelle el e' Beard ef Dlmelers lh the tenants were white and one-third colored.
el eve m€mb€I`S> °°nSlS'°lng el elle Seellellelly el Between 1920 and 1930 white tenants increased
Agriculture and the Governor of the Farm Credit   hy 200 000 While eeiered tenents deereesed
Administration as members ex-oflicio and three by 4000 {The nereenteee ef tenents is iereer
members appointed by the President at salaries I in the Seuth then elsewhere
not in excess of $10,000. The revised bill pro- In the eenthern etetee there ere Whet are
vides that not more than two of the appointive known ee ehere_erennere Whe rank below ten,
lllelllbelle Shall belellg be elle Same pe‘l`l’y‘ ants in the lsocial scale The system in the South
Capital le elle ellledllle el eee*eee’eee Shall be is an outgrowth of the situation existing after
Subserlbed by elle President lllelll lllllde e”pplle` the Civil War when the former slaves were glad
blllelled by the Elllellgelley Rellel Aell el 1935 to have the security afforded by tenancy on the
Bonds in an aggregate amount of not to exceed ientetiene Where they always had lived- A
el*eee>eee*eee llley be leeded’ fully elld lllleell` limi ue lan grew up wherein tenants and share-
ditionally guaranteed both as to interest and ereqpere) were nneneed hy iendierds Whe in tum
blllllelpel by lllle Ullllled Slelee The Tlleeedlly weile financed by local merchants The collapse
is elllllllelllzed le pllllelleee elle bellde elld le ber' of cotton prices in the depression led to a break-
llew lllelley lee the pdllbeee‘ The revlsed blll down of the credit system The subsequent cur-
blievldee lllelll mine el the bellde Shall be leelled tailment of cotton alcreagelunder the Agricultural
Wltlllll elle yeell elllell the elleel°mellll.ell.lllle law Adjustment Act forced out thousands of tenants
and not more than $300,000,000 within three end ehere_erenners_
years. · · re]
The C¤r¤¤mli¤¤ is gm a¤*¤h<¤i’¤y l0 estab- ESSY?§EZ§”li.€ii’§FfSiE$i°S€i~l;€f$lSEihlléesllseggc -
lish and to assist in the establishment of small 000 fermere in the Senth en the relief reiis BTS
individual farms and farm homes, together with eemnered with 300 000 in the drought States and
the necessary buildings and other structures, live 000 000 in eh ether stetes If the AAA pre,
Steele equlpmene llllblelllellle elld llleelllllel`y* rafn were effective the- destitution among
furnishings, supplies and facilities. The revised eermere in the Senth’ shenid be reietiveiy less
bill is broadened to include farms and homes on than eieewhere Cetten hes been most, promi,
the public demeln and in leelellleldell plleleele nent amon the commodities involved in benefit
Preference shall be given applicants for the d ere eeirteihnent lans
purchase of farm homes who are married or who an p ll '
have dependentffamiltes anti whre are or recently Recovery Impeded
were armers, arm enan s, s are-crop ers or - -
farm laborers. New provisions in the rev£ed bill Seme el elle epelleele eg llletgelldlllgiblll tem
seek to guard against unsound loans. aclueled by e' deellle le lee Ogle e Seller? Stye me
Amortization of loans. may be provided for elld llllplleve the llvllig Con -1 letlhe OS ti Engg
over periods as long as 60 years. The interest is edd elle’l`e`ellebpell e eeeee m h°€h Oi; 'id he
at as low a rate as the government can secure mllledlle ll,lrei§e elle ervl S tw lee   Ou h 6
the money plus a reasonable administration l`ellledled‘ e ellllllell fed e Slilleilelb brew-
charge of not to exceed one per cent per year, ever, represenle Plllltllilel Y ei. lee le r tlilim em’
The Corporation is given power to employ and Caused lll Pellll PY lllleeheiil FO eelete 0 d e pres"
fix the compensation of ofiicers, employees, at- elle edlllllllelllellelltwhle eve as relic Olielen
torneys and agents. The revised bill, unlike the markets for Amelleell eel/eell. end dmven ll Ou`
original measure, requires appointments to be Sands el Wellkelle mee the rellef lmesi- d
made within Civil Service and Classification laws. The elllelllpled llellledy lllellely eemp leellee an
4 5

 obstructs the progress of recovery. The best as- "In my opinion, this measure may not be_ de-
surance of a correction of conditions in the South fended upon constitutional grounds, and it is
will come with the abandonment of these policies. saturated with socialistic, or at least paternal-
Paternalistic policies offer no hope of a istic, qualities foreign to democratic ideals and
permanent solution of the problems. The in-   the concepts of the founders of the Republic."
variable fate of paternalism was illustrated in i Senator Warren R. Austin, Republican, Ver-
the failure of two land settlement colonies pro- } mont—"It seems to me that the whole effect of
moted by the State of California under an act · the Constitution is against the theory of the
of its legislature in 1917. A report of the -l· Federal Government reaching over the boundary
Division of Land Settlements of the Department of the state and undertaking to become a pro- .
of Agriculture of California, commenting upon prietor, in a bus-iness sense, of any of the lands
reasons for the abandonment of the project, of that sovereign state."
said under date of June 30, 1931: Senator L. J. Dickinson, Republican, Iowa-
"The conclusion is unavoidable that few "I do not believe the government under the Con-
human beings are fashioned from sufficiently stitution was ever expected to go into the land
rugged fiber to withstand the weakening in- business. I believe that what the government
iluences of paternalism, that few can resist the cannot do directly it cannot possibly do by the
temptation to lean too heavily on a paternal agency of setting up a Corporation."
government where the opportunity oifers."
Constitutionality American P*`m°1P1€S
The 0011Stit11ti0¤3litY of the bill has been €1¤€S· The bill represents a radical departure from
tioned by Senators of both parties. American principles. It is a step toward social-
A few of the comments during debate in the ization of land. It means a Russianization of
Senate follow: agriculture. It points to an intrusion by the Fed-
Senator Alva B. Adams, Democrat, Colorado eral Government into the ownership and manage-
——"My honest, deliberate judgment is that the ment of farm land in competition with private
pending bill is unconstitutional. There is a owners. It subsidizes one group of farmers and
fundamental in the levying of taxes that they gives them an unfair advantage over others.
must be for a public purpose. The purpose of The bill gives authority to establish and
this bill is to appropriate money to buy farms assist in the establishment of farms and farm
for private individuals. That is not a public homes, including the financing of buildings and
purpose and cannot be sustained under the Con- equipment, and the further authority, as set
stitution of the United States. It is no answer to X forth in the language of the bill, "to acquire by
that question to say that the Congress has passed purchase, gift, or otherwise, any real or personal
other unconstitutional measures." '   property or any interest therein, and to improve,
Senator Josiah W. Bailey, Democrat, North   develop, maintain and sell any such property or
Carolina-"If anyone has ever found anything interest therein." Such authority is ample basis
in the Constitution authorizing the government for almost any kind of socialistic experiment.
to buy real estate, I should be glad to have him The provisions of the bill are so confused
show it to me." that it is impossible to know what may
Senator Carter Glass, Democrat, Virginia- actually be done if it is enacted into law. It
"It seems to me that the bill is clearly in con- may be noted that the Corporation is given
flict with the express provision of Section 8 of authority to develop and maintain farm prop-
Article I of the Constitution, which prohibits erties as well as to finance prospective home
the government of the United States from ac- owners. If present tenants and share-croppers
quiring by purchase any property in any state are elevated to nominal ownership, their equities
without the specific consent of the legislature of will be so small that the Corporation, as the
the state." mortgage holder, will be in a position to domi-
Senator William H. King, Democrat, Utah- nate them. Whether the Corporation retains title
6 7

 teigheislegt gs pureheset the e¤*¤er- Financial Uneoundness
P G ° The bill is unsound from a firiancialdstang-
. . oint and si nificantl was not su mitte tot e
Pollclcs Involved 'II`reasury ,D§partmeni?ufor an opinion.
Strange contradictions are involved in the * _ The measure creates e b111ie¤-deller bank-
policy of encouraging farm ownership by present mg mstltutwn entirely mdependenttof other gev-
and former tenants and ShaI·B-cI•Opp€I·S_ Much Brnlnqnt 8»g€IICI€S. Never before In leglslallzlqn
of the present distress in the South is due to _ aPPlylng te a Permanent crecllt agency hae lt
the reduction of cotton acreage which has meant been Prcpceetl that the gcyernment eheuld lencl
the elimination Of many tenants and farm an amount equal to 1QO per cent of the value of
laborers. The pending bill proposes to put these the eelleterel; There le ne reclnlrement fer any
persons back on the farms. In the South it can klnd Pt lnltlal Payment- _ Under the tl0‘year
mean Only mere cotton acreage. The theory amortization l1m1t a principal payment_of $50
doesn’t square with the production curtailment annually ee n nn>n00 farm Would be sueeleet- A
policies of the AAA. very low interest rate would be fixed. _
Senator Ellison D. Smith, Democrat, of South d Elgltllntttnn blll eeeeutesgg ggermer tef inn late
Carolina, the Chairman of the Senate Commit- nge OI? Wiillgovgrnmnn ’X 32 dnptglnsll he nin`
tee on Agriculture, which reported both the been umblemto pggeemulgtgn eggugg gg (imag?
7 ' '
Farmers Home Blll sed the pnndlng nlnnnu' an initial payment toward a farm is unlikely to
meets te tnn Agllluultulnl Adluetment Aetr be any better off by assuming a debt equal to its
frenkly tclrl the Senate that there Wes ne ccn‘ entire value. The burden of debt has been re-
sistency in policy in the two. measures. _ sponsible for much of the agricultural distress 0f
e Cn the. one hand, _he said, "we.are restrict- the period since the World War. Governmental
mg, curtailmg, licensing, regimenting, and, on encouragement of new indebtedness involves the
the other hand, we are throwing the door wide farmer in new difliculties and goes counter to
open with a billion dollars to increase the num- time-honored principles of thrift.
ber of farmers." In the end it will be the taxpayer who bears
One important question of policy involves the the lead; The geVe1`11me11l> assumes 3 new 0011-
desirability under present conditions of encourag- tlngent llahlllty ln $l»tltle»0O0»0Otl ef bends which
1ng farm ownership. To aid tenants to acquire rt scerectcees es ee Prlnelpal eee lntereet· There
than homes in nermal times when a term is e is a much greater prospect of defaults than 1n
reasonably good investment is one thing. To im- *` the Case. ef inn n2>u00>000>0On ef farm merteaee
pose responsibility for ownership upon tenants retnngaegae under the general Land Bnnnn ee
in a period when it means a constant-drain on   eettt e egverélmgnt. ae gssueged aheentmeent
capital is quite another. Settlers on reclamation n $51  `ht nge ginsngisglca Fgder t' G finding
Egg; iii; tgglglglgsgng $1 dnngnvgincglihné  Blsnege cause oi the doubtful security, ang tIl;mTr;a»su1ny
successful fermms cccc msc fe·vereb1e,in many “'°i`tl‘ilSiicatéticltntitfiitiliiacnncm, ir not
lnetancee Went brcke- Many 0f_tl}€ t€11&11tS and outright scandal, would follow where large tracts
share-croppers lack suincient training to manage of land, representing a liability rather than an as-
farms successfully. A large proport1on would set to the owners under existing agricultural con-
be unable to keep up their payments. Unless ditions, might be unloaded on the government at
the government used harsh measures, ejecting excessive prices. There would be a temptation
delinquents, the farmers soon would be living on to locate land settlements at points where they
its bounty. The result would be a government- would be most eEective in influencing elections.
sustained peasantry. The United States cannot Perticen regnlarlty might be required 01` eX·
stand that. It is not in our heritage. peered cf epplieents fen geyefnment l0a11S.
8 n There would be opportunity for all sorts of

 petty as well as major graft in the handling of
so large a fund.
No Reason or Excuse for Bill
The support given by many members of the ;
Congress and by the Secretary of Agriculture to
a bill involving as much as $1,000,000,000, and
contemplating a credit policy which would not
be tolerated in any private banking institution ·
or even in any existing governmental agency,
offers a disheartening commentary on present
policies of the administration. The public ,
should be on guard against dangers involved.
Each large appropriation makes another in-
evitable. Each relaxation of sound principles
to meet a supposed emergency weakens resist- y
ance to improper measures. It is time to call an
abrupt halt on legislation of this character.