Imperial Valley press., 1921-09-29
HOW To GET
LOANS FROM
WAR FINANCE
CORPORATION.
Pres. Leroy Holt of First
National Bank Explains in
Detail Procedure for Sc.
curing Financial Assist
anCe. A @

How the agriculturalist and live
stock men of the Imperial Valley can
secure loans from the war finance cor
poration under the provisions of the
bill passed by congress to provide re-
lief for producers of and dealers in
agricultural and livestock products,
was explained this morning by Presl-
dent Leroy Holt, Of the First National
bank of Ell Centro, who is member
of the agricultural loan committee, OF
the war finance corporation for South
ern California and Arizona.
Since the local publication of a
week ago that congress had made
available fund of one billion dollars
to aid agriculturalists in the growing
harvesting, preparation for market or
marketing Of farm products, and cat
tie, hog or sheep men in breed, rails
ing, fattening and marketing livestock
there have been a steady flow OF ap-
plicants for loans, the majority OF
whom were not fully informed as to
the method Of procedure in securing
loans or the manner in which loans
can legally be made.
"The wording of the act under
which the war finance corporation
functions" said Mr.. Holt, ."is very
plain. Under the provisions of the
bill the corporation is authorized to
make loans to any bank, or banker,
or trust company in the United States
or to any cooperative association OF
producers, which may have made ad-
vances for agricultural purposes, in
cluding the breeding, fattening and
marketing of livestock up to the full
amount remaining unpaid, OF such ad-
vances made by the banks or coopera-
tive associations. The individual ag--
riculturalist or livestock grower must
make his application for loan to the
local banks or to any cooperative mar
keting association of which he is a
member in the usual way, and the
bank in turn submits the application
to the regional, or local agricultural
loan committee and the committee IN
turn makes an examination of the ap-
plication and passed upon the charac-
ter of the security offered and all
conditions being complied with will
recommend The granting of the loan.
"The procedure is identical with
that of the Federal Reserve banks,
except that the war finance corpora
ton is empowered to make loans for
a period of IL months, whereas the
reserve banks are limited to loans Of
six months. In addition the corpora
ton is empowered to extend loans for
a second and third period of twelve
months each, making the length of the
loan three years if it is necessary. This
is to enable the borrower to turn his
product over. This is especially valu-
able provisions in the case of live
stock men,"
Mr.. Holt went on to explain, how
ever, that the Imperial Valley was in
, worse shape to take advantage of the
provisions of this act, than any other
section of the state. Banks, he stated,
either state or national, are limited
by law as to the amount of money
thew may borrow. And unfortunately
almost every bank in the valley has
borrowed almost as much money as
is allowed by law. There are few
banks which yet have a borrowing ca.
pacity and in one instance he has gone
to the officers of one of the banks and
asked them to take advantage Of the
provisions of the act up to the amount
they may yet borrow, 500, 900, for the
reason that the money is badly needed
in the valley.
The only other agency provided b!
law through which the producer cal
secure loan is cooperative market
ing association, and Of these the val
ley has none with the required assets
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