The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1921-12-22
BANKS ASK FOR
$6,OOO,OOO CREDIT
The Government Agricultural Loan
Agency Means Real Help to
Minnesota Farmers.
ESQ BANKS SEEK LOANS
approximately 800 Banks Are Eligl-
BILE to Make Use Of New Agrl-
cultural Credit Facilities.

Minneapolis Dec. 22-Country banks
in Minnesota are awaking to the posi-
bility of giving real credit relief to
farmers through the agricultural loan
agency Of the war finance corporation.
More than $50 Minnesota banks have
applied for government loans on agrl-
cultural paper. These $50 banks have
asked the war finance corporation for
a total credit Of $6,377, 900 in less than
two months.
Officials of the corporation estimate
that there are 500 to 600 more coun-
try banks in Minnesota which are
eligible to make use of the new agrl-
cultural credit facilities provided by
the government, but which have not
vet applied for loans. Although Min
nesota has been much slower than
North and South Dakota to take ad-
vantage Of these credit facilities, al
ficials say, applications from Minne-
sofa banks are beginning to pour IN
to the northwest offices of the finance
corporation in Minneapolis. The num-
Der of incoming applications has more
than doubled during the last few
weeks. Five subcommittee of the
finance corporations northwest COM
mittee are working every day to rush
applications through to Washington,
D. c., without delay. In one day,
working from 9 a. m. to II p. M, the
committees approved 104 applications
for a total Of more than 100000, ac-
cording to NJ o. Grangaard, secretary.
"While the agricultural loans Of the
war finance corporation do not mean
a flood of new easy credit" Mr.. Gran
gard said, "thcy do mean positive and
practical benefits to the farmers of the
northwest. 1t is impossible to make
statcsments that will apply to every
individual bank, but generally speak
ing, use of these new credit facilities
should enable banks to carry farmers
present obligations without asking un-
due liquidation"
That extension of additional credit
is also possible under the new credit
act, to permit farmers to buy feeder
stock to consume the cheap grain and
feed now virtually unmarketaDle ex-
cept at prices below the cost Of pro-
duction, is demonstrated by the policy
of one country bank which has re-
ceived federal lean. This bank i'm
mediately used $4,000 for new loans,
by purchasing AZ head of Holstein
cattle and turning them over to farm
ers as the nucleus of pedigrccd herds,
taking notes as payment.
"There can be no doubt that the
agricultural credit act, with proper
understanding, can be of tremendous
benefit tc Minnesota farmers, rclicv-
ing some of the burden of the country
bank and averting any necessity OF
closing in on agricultural loans," the
MINNESOTA dIIu DuIcc1u 4CuC1o
said today in an official statement.
SIN general, creditors arc not
squeezing farmer borrowers because
it would be disastrous to do so. In
formation GEMS to US, however, that
in many cases farmers obligations
are not being removed, but are merely
being carried overdue, leaving the
borrower uncertain and liable to pres
sure at any time. Properly used, the
agricultural credit facilities of the
war finance corporation provide amply
for renewal of the farmers present
obligations. The evil effect of lack of
confidence must be recognized. The
farmer whose overdue note is held by
a bank without provision for renewal,
is not in franc Of mind conducive to
a return % better conditions"