The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1921-10-20
MAKING LOANS TO
WISCONSIN FARMERS

The machinery necessary to enable
the War Finance Corporation OF the
United States to function in the
manner of providing relief for pro-
ducers and agricultural leaders in
agricultural products is being rapid
ly set up.
The Loan Committee in Wisconsin
consists of five members who are es-
pecially in touch with rural credit
conditions in the state. F. K. Nc
Pherson of Milwaukee is the chair
man of the Committee and the re-
manning members are II. A. Moeh-
lenpah, formerly member of the Fed
eral Reserve Bank Board but now OF
Milwaukee, E. j. Perry of Fond du
Lac. J. Russell Wheeler of Columbus
and II. l.. Russell of the University
of Wisconsin. The headquarters of
the Committee are in Milwaukee at
435 East Water street.
The War Finance Corporation is an
emergency body which was authorlz-
ed by Act of Congress. to make loans
through banks, trust companies, I'm
ancial institutions, and cooperative
associations of producers for agricul-
tural purposes to enable the farmer
to continue his productive farming
operations. 1t is not intended that
this relief shall be used for specula-
tive purposes or for the construc-
ton of permanent improvements. It
is designed as a means OF furnish
ing short term credit to enable the
so-called 'sfrozen paper" to be car
ried by the banks until such indebt-
edness can be melted out and paid by
the orderly sale of the products of
the fran and range.
The terrific decline in the price of
farm products, which as raw materials
has suffered in common with all other
raw products, has made it necessary
for the country banks to extend
credit to their farmer patrons be-
yond the customary period of time.
The farmer who bought dairy stock
last year at high prices and went in
debt for it now often finds himself
unable to pay his notes. If his
banker insists on payment, he would
be obliged to sell his stock at auc-
ton and at present prices would lose
heavily. Such procedure, would
curtail our dairy production as many
such animals would be t orced to
the block. Advances under this act
are for any purpose connected with
the growing, harvesting, preparation
for market, and the marketing OF
agricultural products, or the breed
ing, raising, fatten:ng, and market
ing of live stock. 1t is, therefore
sufficiently inclusive to embrace any
legitimate need of the farmer for
current farm operations but not
for capital or permanent improve
ments- on the farm.
The War Finance Corporation, To-
Gated of course at Washington, is
unable to deal directly with each
farmer needing such help. Farm
ers desiring to secure loans for the
above purposes will deal through
their local banks the same IS usual.
giving their notes which must be
adequately secured by proper COLA
teral. The War Finance Corpora
ton asks the farmer to make out a
financial statement as to his assets
and liabilities, the same as any bust
ness man is now called upon to make
when he borrows money from a
city bank This requirement may be
looked upon by some as piece of
red tape but it is already the gener-
al practice of the commercial world
and is a necessary basis for the
granting of credit. The farmer is
necessarily a business man, and if
his notes are to be discounted away
from his home bank it is no hard
ship to ask him to do what every
city business man is called upon to
DO in the regular channels of trade
These farm loans are then taken
by the local banks and offered to the
government with the endorsement
or guarantee of the local bank
through the recommendation of Agri-
cultural Loan Agencies that are be
ing organized in each state.
Loans are not limited in amount
to any particular sum but cannot
of course exceed the amounts advanc-
ed othe farmers on the security they
offer. Under this Act all loans must
be made on or before July 1, 1922,
and will mature from six months to
a year from the time when given.
For loans secured by chattel mort
gage or warehouse receipts mot in
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