Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-08-30
FIRST STEP TAKEN
IN GREAT SCHEME
FOR FARMERS AID
Naming of Committee to Ask
BiIIion-DoHar Fund for
Farm Credits Announced
on. Saturday
} BY RALPH SMITH

the Atlanta Clearing House aSSocld-
ton to advise with the war hnahce
corporation in 1oaning one billion dol
lars on staple agricultural products
under the provisions of the emer-
gency farm credits Legislation,
marked an initial step in perfecting
machinery essential to the success of
the most ambitious governmental
scheme ever devised for aiding the
farmers of America.
Clearing house associations In 9TH
err states throughout the union, ana
large business and agricultural In
terests have also forwarded to WASH
ington recommendations as to the
personnel of advisory committees
that are to be appointed to cooperate
with the war finance corporation.
1t has not been settled deflnltely
whether the advisory committee In
Georgia, or in any other state, Will
include in it's personnel only men,
bers Of clearing house associations.
Indeed, it is understood that the
finance corporation is seeking advice
from many sources concerning the
is altogether probable many dlversl-
fed interests will be represented In
their membership.
An analysis of the provisions OF
the emergency farm credits leglsla-
ton, which is in fact an amendment
to the act creating the war finance
corporation, conveys at once the tre-
nd
enactment to every phase of the In
dustriaI, commercial and agricultural
| interests of the nation.
The legislation makes available
| revolving fund of one billion dollars
| for agricultural and live stock loans.
| The money is to be derived through
| the sale of bonds by the war finance
corporation, and the money is to be
advanced under rules and regula-
tions prescribed by the finance cor
poration.
Advices to The Journal from its
Washington correspondent Indicate
that the rules to be prescribed by
the war finence corporation will eb
Flexible, Eugene Meyer, Jr., and his
associate directors being the sole
Judge of such securities as may be
offered as collateral for loans.
Nature of Securities
These securities will include trade
acceptances, warehouse receipts for
cotton and other farm products,
| notes rediscounted by banks with
the finance corporation and which
represent loans to producers, as
signment of export contracts and, In
special cases, farm mortgages as
supplementary collateral.
Washington adviceS are to the eff
feet that the bulk of the loans will
be made on warehouse receipts ana
| the obligations of banks that redis-
count their notes on agricultural
products.
Such securities as are accepted by
| the war finance corporation will, in
| most instances be played on deposit
| with the federal reserve banks.
Loans made in the southeastern
states will be advanced on secur1-
reserve bank of Atlanta.
Under the law, when loan is
| made to person engaged in market
ing agricultural products, the rate
| of interest shall not exceed one and
| one-half per cent the current 90
| day federal reserve rediscount rate.
| The rediscount rate of the Atlanta
| federal reserve bank is now six per
cent, so that the rate of interest
on farm loans cannot exceed seven
and one-half per cent. If the redis-
count rate is lowered, as is possible,
| the rate on farm loans will likewise
| be lowered.
| The interest rate on loans to banks
will be a matter for agreement be-
tween the Individual bank and the
war ar, finance 1ncg -, cQ4Tporation nd,n tho
powers and providing the means, for
obtaining the funds for making loans
on staple agricultural products, APP
| parently creates a fund of $780, 600.
1t contains proviso, however, stip-
poration shall not at any time per
nit it's advance to exceed $1,000
| in the aggregate.
The $1,000, 900, 900, it is pointed out,
will constitute huge revolving fund,
because as soon as one loan is liqui-
dated the money will be reloaned to
another bank, exporter, cooperative
association or producer.
Loans to Banks, Too
Advances may be made not only
on agricultural exports, but under
certain conditions loans will be made
to banks that have advanced money
against cotton and other farm prod
ucts which have not been exported
and which were not designed for
export.
it is provided in the hill that loans
may be made to cooperative selling
associations, and, as means of
promoting exports, advances may be
made to any person dealing in OF
marketing staple farm products until
such time as they can be exported
Or marketed locally in IAN orderly
manner"
Under this provision, 1t is pointed
out by Washington advices, 1t will
be possible for the war finance cor
poration to make loans to bankers
exports, marketing associations, pro
ducers' associations and individuals
providing only that the security rep
resented by warehouse receipts, ac'
ceptances, notes or contracts are sat
isfactory.
The war finance corporation will
be the sole and final judge of such
securities as are offered, but, in this
connection, it is pointed out that the
corporation will have the benefit OF
the advice and cooperation of loca
advisory committees in Atlanta anC
other large distributing centers.