The Delta independent., 1921-12-09

in q sound and conservative manner.
The corporation has no authority
under the law to make direct loans to
individual farmers. Along with other
methods, it is seeking to reach the
farmer or stockman through his local
financing institution-the institution
with which he is accustomed to do
business and which Il in close touch
with conditions In his community. BY
advances to such Institutions. not only
will the pressure for forced liquida-
tion be relieved but the banks will
be put in better position to take care
of the current needs Of the farmers to
the extent that their individual credit
may warrant.
Any bank desiring to secure an ad-
vance from. the War Finance Corpor-
alton should make application through
the Agricultural Loan Agency of the
corporation that has been established
in its territory. The address of the
agency may be obtained from the
nearest Federal Reserve Bank or from
the Ofices of the War Finance Cor
poration at Washington. The Agri-
cultural Loan Agencies are in charge
of committees Of bankers, business
men, and others, and each agency has
headquarters In the place that or
dinarily serves as the financial center
of the surrounding territory.
Upon receipt of an application from
bank or other financial institution,
the committee examines the collateral
offered as security and submits rec
ommendation to the corporation at
Washington. II the application is ap-
proved. the War Finance Corporation
arranges to. MAKE THE ADVANCE
PROMPTLY through the nearest Fed
eral Reserve Bank against the securi-
ties specified in the application. Loans
may be made for not more than one
year. and the board of directors may,
in its discretion, renew them for ad-
ditional periods not exceeding two
years.
The Agricultural Credits Act. under
which the War Finance Corporation is
now making advances in the manner
indicated above, is an emergency
measure designed to meet the abnor-
NAL conditions that grew out OF the
war. Its object is to make possible
the orderly marketing of agricultural
products. A time limit is set. July 1.
1922, after which no further advances
can be made.
The total amount OF advances out
standing at any one time is limited to
s1,O00,000. The act authorized the
War Finance Corporation to make ad-
vances for any purposes connected
with the growing, harvesting, prepar-
alton for market, or marketing OF
agricultural products, or the breeding.
raising, fattening and marketing Of
livestock. The law provides that a
bank obtaining an advance from the
corporation for loans for agricultural
purposes cannot charge upon such
loans a rate Of interest more than two
per cent in excess of the rate charged
by the corporation.
The ultimate objective Of the work
OF the War Finance Corporation is to
hasten the return of q normal h0w OF
business. II the producers can be
enabled to handle their products for
marketing in an orderly way. they
can go ahead with their regular bust
ness in a normal manner, make their
plans, purchase their supplies and
equipment. and start a buAiness cir
cuiation that will undoubtedly reach
through the manufacturing and other
industries and now back again to the
producers.
Considerable progress has already
been made in this direction and be-
lieve the movement Is gathering mo-
mentum and that steady advances are
being made toward the return Of more
normal conditions In the production
and marketing Of our agricultural
Deoducts.