New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-11-18
FINANCING FARMERS is
MAIN BUSINESS OF WAR
FINANCE CORPORATION

Washington, Nov. l5-Contrary &c
a belief which prevails in some place
the War Finance Corporations as
s%istance to agricultural interests is not
confined to financing agricultural eN-
ports. In fact, the financing Of agri-
cultural products designed for export
is a comparatively insignificant part
OF the work of the War Finance
Corporation. In the language of Flu
gene Meyer, Jr., Director OF the Wa
Finance Corporation, the corporation
"has two functions; export power ant
agricultural financing power. w
have loaned some money for exports
one half through bankers and on,
half through cooperative associations
But our agricultural financing bus
ines, will amount to 95 per cent oi
the total! We discount the farmer,
paper through the bank. The actua'
paper to us,-the paper on
which the banker loans the money
1t is the War Finance Corporation's
dollar which goes into the agriculture
loan. Our regional committees are
mostly bankers because this is a bank
ing business. Many of them are al
so farmers.
Interest Rate Limited by Law
1--WE are loaning a great deal oil
money to the breeder OF livestock
We loan it for one year, and it can
be renewed for another year, and still
another year. if necessary. This is
one of the fundamental powers that
has been lacking in our financial sys-
tenn. This must be provided for when
we get down to a permanent financ-
ing institution. The War Finance
Corporation charges 6 per cent to the
bank. Under the law the bank can
reloan this money to the farmer at
any point between 9 per cent and 3
per cent. But the banker can not
charge more than 8 per cent
Mr.. Meyer also points out that there
is no limit to the size OF a loan which
the War Finance Corporation make,
There are also a great diversity Of
mediums through which II cav make
loans. Under the terms OF the act
any reputable and responsible i%inanci-
al institution or association. with re-
sources adequate to carry out the
proposed undertaking, may become a
borrower of the War Finance Cor
poration for the purpose of promot
agricultural and livestock interests.
The only provision regarding the to-
tai amount OF money advanced by
the War Finance Corporation to any
financial institution or association is
the stipulation that the loan may not
exceed the aggregate OF outstanding
agricultural or livestock loans made
by the borrowing financial institution
u association.
Billion Dollars Not the Limit
Another misapprehenSion prevails re
garding the total amount of money
the War Finance Corporation can loan
agricultural and livestock interests. 1t
is believed that a billion dollars is the
In point of fact, a billion dol
lars is the limit of the amount OF
loans the War Finance Corporation
have outstanding and unpaid at
any given time. The law is so word
ed, however, that the corporation may
money a. fast as it is paid in
In other words, the billion dollars
a revolving fund.
The corporation has not made any
ALLEGATION OF funds among sections or
institutions. 1t has no authority to
do so. Each application for a loan is
considered strictly on its merits. in
accordance with the law. In order
to facilitate the operations of the cor
poration, regional committees have
been established for the purpose of
considering all applications in their
regions Tor loans. The committees
in charge OF these regional offices,
from their territory and for
the same, with recommendations,
to the offices of the corporation in
Washington. The only exception to
this is the application for loans made
by cooperative associations. Such APP
plicationS should be sent direct to
he War Finance Corporation at Wash
and not through any regional
committee.
II Regional Headquarters
Up to date committees have been
appointed and regional headquarters
established at Little Rock, Arkansas
Los Angeles. San Francisco, Kansas
-ity. ST. Louis. Salt Lake City. CO.
umbus, Ohio: Des MONIES, Chicago,
Detroit, indianapolis. Louisville. New
Orleans, Denver, Minneapolis. Helena,
Montana Jackson Mississippi; Om-
aha, Raleigh. North Carolina: Port
and. Oregon; Memphis. Fort Worth,
iichuond. Virginia: spokane. Chey-
me, Wyoming: Columbia, South Caro-
Other regional headquarters and
ommittces VIII be appointed from time
time a. the work of the corpora
ion increases.