Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1921-12-21
ESQ BANKS ASK FOR
$6,0OQ,OOO. CREDIT
Government Agricultural Loan Agency
Means Real Help To sMim,e
Y sofa, Figures Show

Minneapolis, Dec. @ e. Country
banks in Minnesota are awakening to
the possibility Of giving real credit
relief to farmers through the agricul-
tural loan agency of the War Finance
corporation. &
More than $50 Minnesota banks
have applied for government loans on
agricultural paper. ~ +. ...S.s... q.
These $50 banks have asked the
War Finance corporation for a. total
credit of $6,377 900 in less than two
months. .#....5 Il. II.
Officials of the corporation estimate
sthat there are 500 to 600 more coun-
try banks in Minnesota which are
eligible to make use of the new agri-
cultural credit facilities provided by
the government, but which have not
yet applied for loans. Although Min
nesota has been much slower than
North and South Dakota to take adj
vantage Of these credit facilities, Off
Gals say, applications from Minnesota
banks are beginning to pour in to the
northwest offices Of the finance cor
poration in Minneapolis. The number
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 total of more than $4,000, 900, ac-
cording to M. o. Grangaard, secre-
tary. ... .....: 49,. ..-,. -" -,s...
"While the agricultural loans of the
War Finance corporation do not mean
flood of new easy credit" Mr..
Grangaard said, "they do mean posi-
tive and practical benefits to the
farmers of the northwest. It is i'm
possible to make statements that will
apply to every individual bank, but
generally speaking, use of these new
credit facilities should enable banks
to carry farmers present obligations
without asking undue 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 unmarketable ex-
cept at prices below the cost of pro
duction, is demonstrated by the policy
of one country bank which has re-
ceiyed a federal loan. This bank i'm
mediately used $4,000 for new loans,
by purchasing ~ head of HOlstein
cattle and turning them over to farm.
ers as the nucleus of pedigreed herds,
taking notes as payment. s..
'"There can be no doubt !. that the
agricultural credit act, with proper
understanding, can be of tremendous
benefit to Minnesota farmers, reliev-
ing some of the burden of the coun-
try banks and averting any necessity
of closing in on agricultural. loans,''
the Minnesota Farm Bureau fedora
ton said today in an official state
ment. :. ''In general, creditors are not
squeezing farmer borrowers because
it would be disastrous to do so. In
formation comes to us, however, that
in many cases farmers obligations are
not being renewed, but are merely
borrower uncertain and liable to pres
sure at any time. Properly used, the
credit facilities Of the
War Finance corporation provide am
ply for the renewal of the farmers
present obligations. @-h s>%E %:@
"The evil effect OF lack of conf
dence must be recognized. The farm
er whose overdue note is held by q
bank without provision for renewal,
and with no assurance as to how long
it will be- carried, is not in a frame
of mind conducive to a return of bet