Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1921-09-28
RURAL ACTIVITIES AND NEWS
OF INTEREST TO THE FARMER
Will,
GET CREDIT ! AID
War Finance Corporation Funds Soon
Available For NOrthwest's "
Agriculture .-

AfttldD1t T VI 1<OIlnWcSt 5
Agriculture
Financial help is in sight for Min
nesota farmers whose assets justify the
extension of additional credit, r. E.
MacGregor, chairman of the War Fin
ance corporations committee for Min.
.nesota and the DakOtas. told confer
ence OF farmers and bankers at state
headquarters of the Minnesota Farm
Bureau federation here.
Funds to be loaned for agricultural
purposes probably will be available as
soon as the committee can be complete
~ organized, Mr.. MacGregor said.
E The conference was called by the
farm bureau. federation Committee of
Six, representing farmers and country
bankers, to lay before Duluth and twin
city bankers the credit needs of the
farmer. The meeting. attended by rep
resentatives of the Duluth, st. Paul and
Minneapolis clearing house associations,
the federal reserve bank and the fed
eral land bank, resulted in two import
ant developments:
First-Both farmers and bankers
agreed that agricultural loans made
possible to country banks through the
War Finance corporation will afford
definite relief by carrying many farmers
through the present critical credit sit
uatiOn.
Second-The Committee of Six
launched campaign to encourage east
ern investors to put their money into
northwest farm mortgages, as the best
means of providing long time agricul-
tural credit.
The amendment to the War Finance
corporation act. which made 81 900 900, ;
600 available for agricultural credit,
was drafted in consultation with officers
of the American Farm Bureau fedora
ton. and was backed by the state feder-
atoms.
mo credit scheme in the world, how
ever. can save the man who has invOlv-
ed himself so heavily in debt that his
farm, in normal operation, cannot meet
current expenses, pay interest and re-
duce obligations" E. G. Quamme,, pres
ident of the st. Paul federal land bank
said
Operations of the War Finance cor
poration, Mr.. MacGregor said, will per-
money to carry solvent farmers until
they can bring their livestock or crops
to their most valuable market condi-
tiOns ,~[
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 rails
ing and harvesting his crop, he is pres
sed to liQuidate as soon as the crop is
harvested. w.. ~. !: g
'"The inevitable result" Mr.. Meighen
said, "is to throw the whole crop on the
market at once. and put it into the
hands of men who buy it at depressed
prices, and are enabled, by simply
handling it and holding it, to realize
more than farmers get for it by their
year of labor :~s- g. ..,@ !. 2s>.> :
Farmer representatives contended
that it would require no more credit. to
finance this grain in the hands of the
farmer. in country or terminal eleva-
SPECTATORS. =! ...,.s 81 = A..
Mr. MacGregor outlined the plans UNI
der which the War finance corporation
will extend credit to northwest agricul-
ture, as follows: Nse,s II
Rediscount loans will be made to
banks for strictly agricultural pur-
poses. i sE..4 Il i. {. >.l#. s fs..
Loans will be made to extend up to
one year, with renewal privileges Of not
to exceed three years. Renewal for
three years was provided, Mr.. MacGreg-
or said he believed, to permit assistance
to farmers while developing young live
stock to maturity. Nj * S. h; ~
Agricultural purposes are defined as
involving the prod uction and marketing
of livestock and crops, not the cOnstruc-
ton of silOs and fences and similar inn
prOvements. " S III 5s 5 n Hi. I'D. :s.:
Small loans OF one or two hundred
dollars will receive as careful consider
alton as applic ations for several thous-
and dollars. al Ii .s.sf 55, j
The War Finance corporation will not
advance money to any bank in excess
Of the loans actually made by. the bank
for agricult ural purposes. HI
Il Mr.. MacGregor said that while au-
thoritative informal ion was lacking, he
understood the interest rate to farmers
for loans based on rediscounts BY the
War Finance corporat ton, would be
about s per cent. . III. H
The Committee Of Six voted to APP
peal to eastern sinvestmen firms to en-
courage purchases Of farm mortgage Sc
curities, so that all mortgages falling
due can be renewed and additional
loans obtained on mort invest farm lands.
Eastern investors will be told that by
using their money to support north
western agricult ulre, they viii protect
their other iHyestmei 6 So nor Invest 81
curities, and increase their value. isss
SSIcratch pads ffOl sale at the sheaf
O@ce 81