Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1921-12-23
ESQ BANKS ASK FOR
100000 CREDIT
Government Agricultural Lean Ag-
ency Means Real Help To Min
nesota, Figures Show.
zKNMEsoTA FARG BUREAU
TBOERATION NEWS SERVICE
Minnesota Farm Bureau Federation
BY NEIL III. SWANSON
TdifOr NowS SarviCe

MlnnG RY NEIL II. SWANSON
Editor. News Service
MinneapoIis, Dec. 22.-Country
hanks in Minnesota are awaklng to
the possibility of giving real credit
relief to farmers through the agricul-
tural loan agency of the War Finance
corporation.
More than $50 Minnesota banks
have applied for government loans on
agricultural paper.
These $50 banks have asked the
War Finance corporation for a total
credit of $6,377, 900 in less than two
months.
Officials of the corporation estimate
that there are 500 to 900 more coun-
try banks in Minnesota which are
eligible to make use of the new agrl-
cultural credit facilities provided by
the government, but which have not
vet applied for loans. Although Min
nesota has sbeen much slower than
North and South Dakota to take ad-
vantage of these credit facilities, Of
ficials say, applications from Mime
sofa banks are beginning to pour in
to the northwest offices of the finance
CORPORATION in Minneapolis. The
number of incoming applications has
more than doubled during the last
few weeks. Five subcommittee of
the finance corporations northwest
committee are working every day to
rush applications through to Wash
ingtOn, D. c., without delay In one
day, working from a. m. to II p. M,
the committees approved 104 applica-
lions for a total Of more than $4,000
600, according to M. o. Grangaard,
secretary.
while the agricultural loans of
the War Finance Corporation do not
mean a flood of new easy credit Mr..
GRAVEYARD said, "they do mean posi-
tive and practical benefits to the far
mers of the northwest. 1t is impos-
sible to make statements that will ap-
ply to every individual bank, but gen
orally speaking, use of these new Gre
dit facilities should enable banks to
carry farmers present obligations
without asking undue liquidation.
That extension of additional credit
is also possible under the new credit
act, to permit farmers to buy feeder
stock to consume the cheap grain and
feed now virtually unmarketable ex-
cept at prices below the cost of pro-
duction, is demonstrated by the policy
of one country bank which has re-
ceived a federal loan. This bank i'm
mediately used $4,000 for new loans,
by purchasing AZ head of Holstein
cattle and turning them over to far
mers as the nucleus of pedigreed
herds, taking notes as payment.
There can be no doubt that the
agricultural credit act, with proper
understanding, can be Of tremendous
benefit to Minnesota farmers, reliev-
ing some of the burden of the country
bank and averting any necessity of
closing in on agricultural loans," the
Minnesota Farm Bureau federation
said today in an official statement.
I'm general, creditors are not
squeezing farmer borrowers because
it would be disastrous to do so. In
formation comes to us, however, that
in many cases farmers obligations
are not being renewed, but are mere
ly being carried overdue, leaving the
borrower uncertain and liable to
pressure at any time: Properly used,
the agricultural credit facilities of
the War Finance corporation provide
amply for the renewal of the farmers
present obligations.
"The evil effect of lack of conf
dence must be recognized. The far
mer whose overdue note is held by a
bank without provision for renewal,
OTnCT NEDDONIENHENT EOD