Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1921-06-29
State Will Get Farm Loan
Money.

Money.
Washington, June 26.-Beginning
August 1, South Carolina will get its
proportionate share of about $15,-
100000 per month of federal farm
loan money, according to A. F. Lev
er, member of the farm loan board,
in a letter to Representative j. F.
Byrnes of South Carolina today.
Mr.. Levers optimistic letter fol-
lows:
s'This letter is in response to your
personal call of this morning, at
which time you left with me letter
addressed to you by the Honorable
F. B. Grier of Greenwood, S. c., in
which he discusses the financial sit
uation of the farmers in South Caro-
lima and the relationship of the farm
loan system thereto.
"You will recognize of course, that
the farm loan system was intended
and it's machinery has been organized
for that purpose, to meet the normal
longtime credit needs Of agriculture.
1t was not intended in any sense to
become an organization to meet
emergencies in farm credit such as
we have upon us at this time. But
the farm loan board.is so fully cog
infant of the agricultural situation
Throughout the entire country, and
this is. likewise true of the federal
land bank officials, that we have all
exerted ourselves to speed up the ma
chinery in the hope of furnishing at
least measure of relief.
GAS you will recall the 1oaning op-
erations of the system until very re-
Gently have been in suspension due
to the pendency Of a suit in the su-
preme court testing the constitution
atty of the law under which we op-
crate, and thus making it impossible
to sell farm loan bonds. The favor
able decision of the court in this case
on February % was followed imme-
diately by a renewed activity upon
the part of the system, and on April
1s an offering of S40,0OO,000 of farm
loan bonds was made and this offering
during this week has finally been abb
sorbed, making available this amount
in money to be divided among the ~
federal land banks of the country.
at must be borne in mind at all
times that the farm loan system has
no available source of funds for
loaning purposes except as farm loan
bonds, based on farm mortgages
which may be sold to the investing
public. There is always therefore, a
limitation upon the amount of funds
available for the system, this limita-
ton being the, amount of farm loan
bonds which the public will buy in a
given market. 1t is estimated that
the investing public will absorb of
of farm loan bonds an amount from
year to year not in excess of $780,
100000. TIE machinery of the sys-
tenn is organized, in consequence, to
loan from s12,0O0,O00 to $15,0OO,-
600 per month for the entire country.
"The entire s40,OOO,000 made
available by the recent bond sale will
be in the hands of the farmer by Au-
gust 1. The action Of the house on
yesterday, and it was practically unan
imous, in amending the farm loan act,
makes certain the continued and un-
loaning operations of the
system so that South Carolina may
hope to receive her proportionate
shore of the s12,oOO,OOO to $751;
900, 1000 per month from now on. This
we realize will not entirely meet the
but when consideration is
given to the fact that 81 of money
will liquidate from SIS to 81 of debts
it will be seen that by the constant
relief thus given a very general re-
lief will be afforded.
Let me emphasize that there is
only one source of loanable money
for the farm loan system as it is now
organized land that comes through
the sale of farm bonds, but at the
same time let me reiterate that the
system is now in position, in my.
judgment, to operate without cessa-:
tion and it is my belief that a 'tre-
mendous relief, though not an en-
tire relief, will be furnished through
the system to the agricultural sit
:uation throughout the country"
WY m r. H.