Morris tribune., 1921-09-30
CREDIT In SIGHT
TO HELP FARMERS
War Finance Corporation Funds
Ready Soon For Northwest's
Agriculture.
MINNESOTA FARM BUREAU
FEDERATION NEWS SERVICE
Minnesota Farm Bureau Federation
BY NEIL H. SWANSON
Editor, News Service

whose assets justify the extension of
additional credit, R. e. MacGregor,
chairman of the War Finance corp
oration's committee for Minnesota
and the Dakotas, told a conference of
farmers and bankers at state head
quarters of the Minnesota Farm Bu-
reau federation here.
Funds to be loaned for agricultur-
al purposes probably will be available
as soon as the committee can be COM
pletely organized, Mr.. MacGregor
said
The conference was called by the
farm bureau federation Committee of
Six, representing farmers and coun-
ty bankers, to lay before Duluth and
twin city bankers the~credit needs of
the farmer. The meeting, attended
by representatives of the Duluth, st.
Paul and Minneapolis clearing house
association, the federal reserve; bank
and the federal land bank, resulted
in two important developments:
First-Both farmers and bankers
agreed that agricultural loans made
possible to country banks through
the War Finance corporation will af
ford definite relief by carrying many
farmers through the present critical
credit situation.
SecOnd-The Committee of Six
launched a campaign to encourage
eastern investors to put their money
into northwest farm mortgages, as
the best means of providing long time
agricultural credit.
The amendment to the War Fin
ance corporation act, which made ST.,
900, 100000 available for agriculture
al credit, was drafted in consultation
with officers Of the American Farm
Bureau federation, and was backed
by the state federation.
mo credit scheme in the world,
however, can save the man who has
involved himself so heavily in debt
| that his farm, in normal operation,
cannot meet current expenses, pay
interest and reduce obligations" E.
G. Quamme, president of the st. Paul
federal land bank said.
poration, Mr.. MacGregor said, will
permit country banks to obtain
enough money to carry solvent far
mers until they can bring their live
stock or crops to their most valuable
market conditions.
The principal financial difficulty of
the producer, according to Thomas
Meighen of Preston, banker member
of the Committee of Six, is that while
he can obtain credit for planting and
raising and harvesting his crop, he is
pressed to liquidate as soon as the
crop is harvested.
"The inevitable result" Mr.. Meig-
hen said, "is to throw the whole crop
on the market at once, and put it in
to the hands of men who buy it at
depressed prices, and are enabled, by
simply handing it and holding it, to
realize more than farmers got for il
by their year of labor"
Farmer representatives contended
that it would require no more credit
to finance this grain in the hands OF
the farmer, in country or terminal
elevators, than to finance it in the
hands of spectators.
Mr.. MacGregor outlined the plans
under which the War Finance cor
poration will extend credit to north
west agriculture, as follows:
Rediscount loans will be made tc
banks for strictly agricultural pur-
poses.
Loans will be made to extend up tc
one year, with renewal privileges OF
not to exceed three years. Renewal
for three years was provided Mr.. Mac.
Gregor said he believed, to permit as.
sistance to farmers while developing
young livestock to maturity.
Agricultural purposes are defined
as involving the production and mar.
keting of livestock and crops, not the
construction of silos and fences anG
similar improvements.
Small loans Of one or two hundred
dollars will receive as careful con.
sideration as applications for severa
thousand dollars.
The War Finance corporation will
not advance money to any bank in ex
cess of the loans actually made by the
bank for agricultural purposes.
Mr.. MacGregor said that while
authoritive information was lacking
he understood the interest rate to far
mers for loans based on rediscount!
by the War Finance corporation
would be about per cent.
The Committee of Six voted to ap
, peal to eastern investment firms tt
encourage purchases of farm mort
gage securities, so that all mortgage:
falling due can be renewed and addi
tional loans obtained on northwest
!, farm lands. Eastern Investors will
be told that by using their money tt