The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-06-28
STATE WILL GET
FARM LOAN MONEY
FIFTEEN MILLIONS AVAILABLE
EACH MONTH
Member Of Federal Board Writes
Representative Byrnes Of Plans
for Relief
Hugh W. Roberts in The State.

I1uSN w. MOUTHS III 1He SCdIe.
Washington, June 2o.-Beginning
August /, South Carolina will get its
proportionate share of about $15,-
100000 per month of federal farm
loan money, according to A. F. Lever,
member of the farm loan board, in
a letter to Representative J. F. Byrnes
of South Carolina today.
Mr.. Levers optimistic letter fel-
lows:
"This letter is in response to your
personal call of this morning, at
which time you left with me letter
addressed to you by the Honorable
|, F. B. Grier Of Greenwood, S. c., in
which he discusses the financial stu
alton of the farmers in South Carroll
ma and the relationship of the farm
loan system thereto.
"You will recognize, of course, that
the farm loan system was intended,
and it's machinery has been organized
for that purpose, to meet the normal
longtime credit needs of agriculture.
1t was not intended in any sense to
become an organization to meet emer-
,gencies in farm credit such as we
have upon us at this time. But the
farm loan board is SO fully cognizant
of the agricultural situation through
out the entire country, and this is
likewise true of the federal land bank
officials, that we have all exerted our
selves to speed up the machinery in
the hope of furnishing at least :
measure of relief.
GAS you will recall, the loanihg
operations of the system until very
recently been in suspension due
to the pendency of suit in the SUI
preme court testing the constitution
atty of the law under which we oper-
ate, and thus making it impossible to
sell farm loan bonds. The favorable
decision of the court in this case on
February 28 was followed immediate
ly by renewed activity upon the part
of the system, and on April 13 an Of
fering of $4O,OOO,OOO of farm loan
bonds was made and this offering dur
ing this week has finally been absorb
ed, making available this amount in
money to be divided among IL feder-
al land banks of the country.
''It must be borne in mind at all
times that the farm loan system has
no available source of funds for loan
) ing purposes except as farm loan
bonds, based on farm mortgages
which may be sold to the investing
public There is always, therefore,
limitation upon the amount of funds
available for the system, Ghis limita-
ton being the amount of farm loan
bonds which the public will buy in
given market. 1t is estimated that
the investing public will absorb of
farm loan bonds an amount from year
to year not in excess of S200,000,-
900. The machinery of the system is
organized, in consequence, to loan
from s12,OOO,oOO to s15,OOO,o00 per
month for the entire country.
"The entire s4O,ooo,o00 made
available by the recent bond sale will
be in the hands of the farmer by Aug
ust /. The action Of the house on
yesterday, and it was practically un-
animous, in amending the farm loan
act, makes certain the continued and
uninterrupted loaning operations Of
! the system so that South Carolina
may hope to receive her proportion
ate share of the s12,0O0,000 to $15,-
900, 900 per month from now on. This
we realize, will not entirely meet the
situation, but when consideration is
given to the fact that 81 of money
will liuuidate from $5 to 81 of debts
| it will be seen that by the constlnt
relief thus given very general relief
will be afforded.
LET me emphasize that there is
only one source of loanable money
for the farm loan system as it is now
organized, and that comes through
the sale of farm loan bonds, but at
the same time let me reiterate that
the system is now in position, IN my
judgment, to operate without cessa-
ton and it is my belief that tremen-
dous relief, though not an entire re-
lief, will be furnished through the
system to the agricultural situation
throughout the country"