The Redwood gazette., 1921-08-17
Farmers Given
$1OO,OOO,O Aid
ADDITIONAL CREDIT IN LARGE
AMOUNT EXTENDED DURING
PAST FOUR MONTHS.

The enlargement of the powers of
the War Finance Corporation, recent
ly recommended by the President to
the Congress in connection with the
financing of agricultural products will,
if adopted, mean adequate financing
of the 1921 harvests for the purposes
of foreign and domestic trade. Under
the powers already possessed by the
War Finance Corporation, it has eth
er advanced, or is negotiating ad-
vances in the aggregate sum of $685.
47I,0OO, approximately 93To OF which
covers agricultural commodities.
Finance Cotton.
The largest transactions relate to
cotton and represent n THE aggregate
the financing of a million bales. The
corporation has already closed loans
on cotton in the sum of $16,560,0OO
Ind has under negotiation, loans in the
sum of $15,225, 900. It is negotiating
an advance of $7,500,0O0 on approx
mately 100000 bushels of wheat.
Assistance has also been given in the
expectation of 1000 hogsheads OF to.
bacco, representing an expenditure OF
81, 100000 and another transaction
covering $4,000 hogsheads, represent
ing an investment Of $6,50O,00O. The
corporation has also agreed to ad-
vance $8,500,000 on exports Of con-
densed milk, $25O,000 to cooperative
associations on exports OF canned
goods and is negotiating an additional
expenditure on canned goods OF S55O,-
900.
Will Help North.
Inasmuch as a cottonplanter, as
rule, buys most of his cereals and
other food from the north and IS, IN
common with all other consumers,
patron of industries which manufac-
lure household necessities, clothing
and farm machinery giving employ
ment to millions Of workmen, who IN
turn consume food, it is believed that
the financing of cotton exports Will
Immediately start millions OF dollars
into circulation in the various channels
of American industry and immediate
ly stimulate the market for the food
nrod11cts of the~northern grain and
cattle growers.
In addition to the above mentioned
advancers on agricultural commodities
made bv the War Finance Corporation,
a banking loan fund of $50 0,0OO, 900 has
been organized and is in operation for
the relief of the live stock industry.
This fund was created largely upon
the initiative of Secretary of the Trea-
sury Mellon. 1t become operative
! about the middle of July and already
over SIS, 900 900 has been loaned out OF
it.
Loans Increased.
In addition to this provision, Con-
gress has enacted law increasing the
amount of loans available for farm
loans by the Federal Farm Loan Bank.
This is known as the Curtis-N Nelson
Bill and became a law July 1st. 1t
Immediately increased available farm
loans in the sum of $2O,000,000 and
under the provisions of the act this
sum will be still further increased.
A bill to increase the rate of interest
paid to investors in Farm Loan Bank
bonds has also been passed. This
will enable the Farm Loan bonds to
compete in the market with commerce.
al bonds and thereby increase the
funds of the Farm Loan Banks.
In addition to all this, the reduction
of discount rates by the Federal Re
serve Banks and the extension OF time
on agricultural paper to six months,
twice that extended on commercial
paper, will relieve the tension in agri-
cultural sections and make it easier
for the financing of agricultural COM