Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-01-30
EXPORTERS ONLY
ARE ALLOWED TO
BORROWED FROM IT
lConLImuel Erom Eirst pasrD

CONTINUED From FIRST paecD
IL. che open market. thus absorbing
credits that farmers otherwise might
directly obtain: else tho United states
Treasury would have To borrow mon
~ in tnc open narkc, Tor the cor
ror";."n. likewise absorbing funds
that farmers might directly obtain
These open mark", funds as acccssi-
bic now to reputable farmers as to
anybody with good security. would
lie withdrawn from the general ag-
grcEutior az credits and devoted en-
clusivcly To the use of "a single class
OF tradcSmcn. The funds OF the cor
p"ration are not 20 he loaned 10 farm.
erS Tor the pTrpos" Of holding crops
tor a higher market on making new
crops; but only To tradesmcn to sell
AMI ship At prevailing prices; in 9TH
or words. the avowCd purpose Of the
act IS 10 stimulate" an export trade
which. for tho year just ended. was
the creates, OF all history, cXceclin.:
10y s3:l.o00.00 that OF the preceding
year.
Only Exporters lIcncft.
You Will observe from the law
itself tina, only exporters" and
pdihN lIidl lhiht IOiuS 20
may borrow from the War Finance
Corporation. You viii also see that
these may not borrow unless and until
they make II perfectly plain that they
D are unable TO obtain funds upon rca
sonab!e terms through banking chan
n"!S." Having don. this they must
, furnish the war Finance Corpora
.tion :ull and adequate security. by
I endorsement. guaranty or otherwise"
And YOU viii finally note that the loan
10 hslu nj a s..nt .t0E q,
III" exporter, must be made at 4 rate
Of interest no; less than per cent
above Jhc rate charged 10y the Federal
reserve bank on an ordinary CONNER
Cial transaction" NJ the present mo-
mcrt this wuulu mean per cen, at
least. OF as much more as tn" War
Finance Corporation in it's Judgment
might determine.
THE War Finance Corporation was
established to take care OF war rN-
| iEcnc!cs. when all the ordinary bank
| ing resources Of the country We're Ell
gagged IN iinancims war activities. and
when !; was difficult To borrow on
u normally reasonable terms. II WAS
not originally Intended to operate this
! corporation in time OF peace. For
! purely pSyChulOSiCaI reasons its aC-
! tivit!cs We're prolonged little while
as fol! TO c%iortionaic bank loans.
| If any loans ar" made under this act
| NOW. they Will ne loans To exporters
! VINO. as middlrmcn. will have already
: purchased the farmers produce az :,
| low enough uELfr In 'naglt inc IN
porter To pay to the War Finance Cor
| pUration Il higher rate of interest
| ihan he would hav" Ia pay 10 u bank,
The very fact that an exporter. in
! time OF profound peace. would be
| Willing 10 certify that he would no;
| borrow money from the banks ~ \
! reasonable rate. but must pay tn.
| Mar Finance Corporation an cNcce
| Siv" rate. would be- primo fIcic c"i'
| dcncc Of The exporters bad Crcd.;
standing In his own community,
| How many farmers OF hor;icultu
! r.stS In Virginia ar" engaged III th'
business Of directly exporting thcil
own products HUs now many q
ties" are willing 20 pay the War ~!
nance Corporation at least pc
cent and maybe more" above th'
commercial rntr uf !ntrrCst. aitc
furnishing good Endorsements an,
, adequate security l. j. my con
sid"rcd Judgment that there are f"v
farmers ia virginia engaged IN cN
port trade. II fortified w!'h goo,
endorsement and adequate security