New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-12-09
GRAIN AND LIVE STOCK
INTERESTS ARE LOANED
MILLIONS EVERY WEEK

Washington, Dec. 5.-No system
of public financing. either in this or
any foreign country, yet devised for
the purpose of promptly reaching
and assisting the average citizen, can
be compared in efficiency and popu-
larity to the War Finance Corpora
tion.
I As enlarged and reorganiZed un-
der additional powers given it by the
special session of Congress, the War
: Finance Corporation, from August
Gath to November 21st-a period of
80 days,-has made actual loans for
agricultural and livestock purposes
in the aggregate sum of SIS, ,53S,505
This is an average of a little over
$19,50O,0O0 a month, or S4,1S1, 900
a week. In considering this average
however 1T should be borne in mind
that the first month or six weeks of
the operations of the War Finance
Corporation under the new powers
given it by Congress was largely eX-
pended in setting up machinery to
reach the agricultural sections. Now
that the various regional committees
have been appointed and the ma
chinery of the corporation is per-
fected, loans are being made to farm
ing communities far in excess of the
average for the 80 days.
The week ending November 18th,
the corporation made 21S separate
loans for agricultural and livestock
purposes in the aggregate amount
of s13, ,447,000. On Monday. Noyem-
ber 21st, it made 76 more loans for
agricultural and livestock purposes
aggregating $3,1S7,000. On We'd
nesday, Nov. 23, it approved Sc more
loans for the same purpose, aggre-
eating $2,073,000. At present the
corporation is making loans to farm
communities at rate in excess OF
100000 a week,
A compilation of the number of
loans made by the corporation from
August cath to November 21st, in
elusive, shows that Iowa led the
state in the number of loans secured
from the corporation and also in the
total amount of money loaned. In
that period there were 1l6 separate
loans made for agricultural and live
stock purposes in the state of Iowa,
aggregating S4,705. 900. South Da-
kota comes next with As separate
loans aggregating s1,461,000.
The largest single loan was made
to a cooperative society which han
dies farm products, principally grain,
in the states of Minnesota, North
and South Dakota. This loan was
in the sum of 100000. Three
comparative societies in California
received loans aggregating $2,SOO,-
900. A cooperative association in
Arizona was loaned $1,200,O00.
All Western States Helped
The second largest single loan was
made to the sugar beet interests OF
Utah and Idaho, they being given an
advance of s4,150,000. The larg-
est single livestock loan was made
to a financial institution handling
livestock paper in the states OF Mon
tana and Wyoming. This loan was
in the sum of $1,000,00O. Another
institution handling livestock paper
for Montana was loaned 100000.
Montana livestock and agricultur-
al interests have been given IL loans
in the aggregate sum OF S9l7 ,00o.
Minnesota has received 2S loans in
the aggregate sum of S73S,OOO. Ne
braska has received 23 loans in the
aggregate sum of $4S2,775. North
Dakota received S59S,OOO in 20
loans. Wisconsin received S5lO,OOO
in II loans. Wyoming received $751;
600 in four loans. Kansas has re-
ceived 100000 in 13 loans; Mis-
souri, $735,OO0 in II loans.
Why Banks Are Used
There is some criticism of the fact
that the Finance Corporation makes
its loans to banks instead OF d.
rect to farmers and cattle growers.
This criticism is due to the lack OF
knowledge of all the facts in the
case. Were the War Finance Cor
poration to make its loans direct to
individuals 1t would have required
the creation Of an enormous federal
department employing thousands OF
people, 1t would have necessitated
the creation of an intricate system
that would have required many
months to put in operation. All this
would have taken so long that the
benefit of the loans would have been
lost. as in a great majority Of cases
the emergency was so urgent that
farmers and stockmen could not
have waited months for financial as
sistance. Moreover the overhead ex.
pense of such an organization would
have lessened the amount of money
at the disposal of the Finance cor
poration and would have necessitat-
ed its charging a higher rate OF in
tarest