Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1918-09-06
WILL LOAN MONEY
TO AID FARMERS


%:
Acting upon the urgent representa-
tons that many wheat growers in
certain sections of the West who have
lost two successive crops by winter
killing and drought, have exhausted
their resources and may be com
PEELED to forego fall planting and, in
some cases, TO abandon their homes
unless immediate assistance is ex-
tended. the President. on Saturday,
July %. placed at the disposal of the
Treasury Department and the De-
partment of Agriculture, $1,000, 900
to enable them to furnish aid to that
extent. The two departments are al
ready actively at work formulating
plans for making loans under this
authorization, and complete details
will be announced within the next
few days and operations begun.
1t may be stated generally that the
federal land banks in the districts at
fected will be designated by the Sec
rotary of the Treasury as the finan-
cial agents of the government to-
make the loans and to collect them.
The Department of Agriculture,
through its special officers, includ-
ing the county agents, will ascertain
the needs of the individual farmers
and determine the feasibility of the
planting. The primary object of this
fund is not to stimulate the planting
of an increased fall acreage of wheat
or rye in the severely affected
drought areas, or even necessarily to
secure the planting of a normal acre
age, but rather TO assist in tiding the
farmers over the period of stress, to-
enable them to remain on their farms
and to plant such an acreage as may
be determined to be wise under all
the conditions, with view to in
crease the food supply of the nation
and to add to the national security
and defense. 1t is distinctly not in
tended to be used to stimulate the
planting OF wheat or any other grain
where such planting is not wise from
an agricultural point OF view and
where other activities are safer.
Ii is not intended that this fund
shall be used to make loans to farm
els who have banking collateral and
can otherwise secure loans The re-
cent action of the War Finance Cor
poration. indicating its willingness to
make advances to banks and trust
companies which have made loans to
farmers and cattlemen, should ease
the general financial situation and
in large measure enable bankers to
extend accommodations to farmers
having such collateral. Banks are
urged to avail themselves of the Of
fer of the War Finance Corporation
This fund, because of its limited
amount, will be used necessarily prin-
cipally in connection with the fall
planting of wheat, or of preferred
substitute grains in the areas in
volved. This will not exclude consid-
GRAFTON of cases OF individuals who
do not intend to or who can not en-
gage in fall seeding, who might other
wise be compelled to abandon their
homes and make great sacrifices,
provided sufficient funds are left
after considering the pressing fall
planting needs
The loans win probably not be
made for more than SO an acre, and
II is likely that maximum of 100
acres in some localities and of 150I
in others will be established. InI
addition to paying a reasonable rate
OF interest, each farmer will be re-
quired to contribute to an insurance
fund out of the proceeds from the
sale of his crops il his operations are
successful.
The following statement, supple
mentary to that issued July 20, was
given out August l by the Treasury
and Agricultural Departments, ex-
planning how loans will be made to
farmers in certain drought-strckenI
areas from the Presidents special
fund. The areas now under consid-
Grafton are those in the Northwest
and Southwest, where two successive
crop failures have resulted from
severe drought and winter-killing.
The money will be advanced as a
loan in cases of necessity upon the
crop of wheat or substitute grains
planted. No loan will be made in ex
cess Of So per acre, and no applicant
will be financed beyond 100 acres.
Therefore no loan will be made in
excess of $500. Notes given will
bear six per cent interest, PAYABLE in
the southern districts October / and
In the northern districts November