Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1921-06-22
FINANCIAL RELIEF FOR IOWA
FARMERS

Described by prominent corpor'
alton attorney as "the only concern
! OF its kind in the United States, and
the most advanced piece OF financial
machinery yet attempted for the re-
lief of farmers" the recently or
ganized Iowa Farm Credits Corpora
tion occupies a unique place in the
financial affairs of the nation.
Briefly stated the company is cap
italized at $5,000,000. 1t is organized
to finance farmers and farming Oper-
atoms. It is not a bank, but will dc
rediscount business, loaning money
on land, livestock and warehouse re-
ceipts for grain. 1t will begin opera
& lions with a paid up capital Of $1,000
600 The stock will be equally di-
yided between Iowa bankers and Iowa
farmers, and the plan provides for
about $4,000 worth of it in each OF
the ninety-nine counties, in order to
distribute the holdings and make 1t
statewide enterprise.
There will be no preferred stock.
Every dollar of II will be common,
which means that there will be abb
solutely no chance for any man or
group Of men to get control. nor for
any one locality to exercise dispro-
portionate influence. Articles OF in
corporation have been filed with the
Secretary of State. and the company
will be ready to function shortly af-
ter July 4th, when the new state law
passed by the Thirty-Ninth General
Assembly, making such concerns
possible; will become operative.
The need for some such plan for
financing Iowa farmers has long been
apparent Iowa has plenty Of money
with which to finance Iowa Business.
Millions OF dollars have drifted out
of the state seeking Investment At
the same time Iowa farmers have
been compelled to depend on outside
capital for loans, often paying ex-
horbitant rates of interest and sub
uniting to exacting commissions. The
thing to do is to mobilize Iowa re-
sources, direct the money into prop
er channels and use it at home. This
lis precisely what the Iowa Farm
Credits Corporation will do--conserve
Iowa capital for Iowa business.
The trouble in the pasts has been
the lack of enabling laws permitting.
the organization of financial enter
prises Of this character During the
recent session of legislature the Iowa.
Farm Bureau Federation set out to
clear the way of legal obstacles by
getting law to cover this lack. a.
farm credits bill was drawn by the.
Federation's attorney 1t was sane
toned by banking interests and bus
ines interests generally, introduced
by friendly lawmakers and passed by
both legislative bodies without dis
senting vote. This law will become
operative July 4th.
l.. A. Andrews, retiring president
of the Iowa State Bankers Associa-
ton. has been chosen to head the
company. Mr. Andrews is widely
known in Iowa and the Middle West.
Few men have worked harder than
he has to tide the agricultural inter-
ests Of the state over the financial
emergency" Of the last year. He
has vision, as well as practical bus
mess sense, broad, sane outlook.
and believes religiously in the doc
trines of live-and-let-liye. Business
interests generally will approve the
Judgment that placed him at the
head of the new concern.
C. w, Hunt of Logan, j. H. McCord
of Spencer, e. H. Cunningham of
Cresco and John Gavanaugh of Des
Moines, were chosen vice presidents.
Frank Warner of Des Moines was
elected secretary, and f. G. Redfield
OF the same city was made treasurer.
"a . + u Z . a f.