Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1921-10-19
MAKING LOANS To
WISCONSIN FARMERS

The machinery necessary to enable
the War Finance Corporation Of the
United States TO function in the man.
ner of providing relief for producers
and agricultural leaders in agricul-
tural products is being rapidly set up.
The Loan Committee in Wisconsin
consists of five members who are es-
pecially in touch with rural credit con-
ditions in the state. F. X. Mcpherson
of Milwaukee is the chairman of the
I Committee and the remaining men,
bers are H. A. Moehlenpah, formerly
member of the Federal Reserve Bank
Board but now of Milwaukee, E. J.
Perry of Fond du Lac, J. Russell
Wheeler of Columbus and Fl. L. Rus
sell of the University of Wisconsin.
The headquarters of the Committee
are in Milwaukee at ABS East Water
Street.
The War Finance Corporation is an
emergency body which was authorized
by Act of Congress to make loans
through banks, trust companies. finan-
cial institutions, and cooperative as
sociations of producers for agricultu-
raj purposes to enable the farmer to
continue his productive farming opera
tons. 1t is not intended that this re-
lief shall be used for speculative pur-
poses or for the construction of per
manent improvements. 1t is designed
as means of furnishing short term
credit to enable the so called frozen
paper" to be carried by the banks I'M
Til such Indebtedness can be melted
out and paid up by the orderly sale
of the products of the farm and range.
The terrific decline in the price of
farm products, which as raw mater
j2ls has suffered in common with all
other raw products, has made it neces-
sary for the country banks to extend
credit TO their farmer patrons beyond
the customary period of time The
farmer who bought dairy stock last
year at high prices and went in debt
for it now often finds himself unable
to pay his notes. If his banker in
sists on payment, he would be obliged
to sell his stock at auction and at pres
ent prices would lose heavily. Such
procedure would curtail our dairy
production as many animals would be
forced to the block. Advances under
this act are for any purpose connected
whit the growing, harvesting, prepar-
alton for market, and the marketing
of agricultural products, or the breed
ing, raising fattening, and marketing
of livestock. 1t is, therefore sufficient
ly inclusive to embrace any legitimate
need of the farmer for current farm
operations but not for capital or per-
manent improvements on the farm.
The War Finance Corporation, To-
Gated of course at Washington, is I'M
able to deal directly with each farm
er needing such help. Farmers de-
string to secure loans for the above
purposes will deal through their local
banks the same as usual, giving their
notes which must be adequately Sc
cured by proper collateral. The War
Finance Corporation asks the farmer
to make out a financial statement as
to his assets and liabilities, the same
as any business man is now called
upon to make when ne borrows money
from a city bank. This requirement
may be looked upon by some as piece
of red tape but it is already the gen.
eral practice of the commercial world
and is necessary basis for the grant
ing of credit. The farmer is neces-
sarily business man, and if his notes
are to be discounted away from his
home bank, it is no hardship to ask
him to do what every city business
man is called upon to do in the regu-
lar channels of trade.
These farm loans are then taken
by the local bank and offered to the
government with the endorsement or
guarantee of the local bank, through
the recommendation of Agricultural
Loan Agencies that are being organ
lied in each state.
Loans are not limited in amount to
any particular sum but cannot of
course exceed the amounts advanced
to the farmers on the security they
offer. Under this act all loans must
be made on or before July /, 1922, and
will mature from six months to year
from the time when given. For loans
secured by chattel mortgage or ware
house receipts mot including live
stock advance is made for six months
only. Renewal of loan may be made
only upon the consent of the War FL
nance Corporation and in no case can
be extended by them beyond three
years from date of advance.
1t is expected that the rate of inter
est will in no case exceed the legal
rate that obtains in the state. The re-
discount rate to the banks by the FL
nance Corporation will be determined
from time to time by that Board. The
War Finance Corporation has at its
command one billion dollars credit.
The utilization of this amount of cred
it should go far toward improving the
existing conditions of things. The
primary purpose of the government
in authorizing this aid has been to ex-
tend to agriculture type of short
time credit that will bridge over the
existing situation, and enable the ag-
ricultural classes to re-adjust their
farm operations with as little sacri-
flee as possible. The measure is Who'll
ly emergency in character and will
cease to operate, so far as the making
of loans is concerned on the first of
next July.