American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1921-12-16

In normal times It has been the a
practice of the farmer to sell his pro-
ducts within a short time after the O
harvest. He was then in position to G
nut the returns into meeting his nm \
ancial obligations and buying his sup 7
plies and equipment for the next OPP 8
Grafton. But when he has to carry ms
output, or a large part of 1T, on the
farm or in the warehouse, as has been s
the case this last season, his capital |
Is tied up and he Is not only faced
with the difficulty Of meeting his OBJ
legations but he cannot go ahead pro
perly with his regular farming bust
ness. He hasn't the money for seeds, {
labor and equipment and he is brought
to a %standstill.
Greatest Buyer In World.
When the agricultural population is
affected in this way the whole nation
feels the pinch. The farmer Is the
greatest buyer in the country as well
as the greatest producer. But his
potential purchasing power cannot
make itself felt in an effective nan
ner so long as he is compelled to play
the role of keeper of the national stor-
age, so to speak. He may have done
his part in producing food n other
commodities. He may want 70 CON
tinue operations and be willing to
make the necessary expenditure, but
unless he can find a market for his
products his hands are tied.
The way out Of this situation is to
unite the farmers hands-to provide
him with the means Of spreading the
marketing of his products over a
longer period and at the same time
of carrying on the regular farm OPP
erations. If, in this way, We can help
the farmer to help himself, the good
effect will extend gradually through
our whole business structure.
The War Finance Corporation Is
now making every effort to supply just
this help. To assist in the orderly
marketing Of agricultural products,
the Corporation is making advances
on adequate security and on a sound
business basis to properly qualified as
sociations Of producers, to financial in
s%titutions, and to exporters OF agri-
cultural products. Good results have
already been obtained. For instance,
the cotton belt used to make 300 OF
its exports of cotton within six months
of the harvest. Last year it forward
ed only 51% in the same period. This
has necessitated the carrying of from
a million and a half to two million
bales of cotton into the second sir
months. The burden fell chiefly on this
original producers and the country
banks which do their financing. TIL,
War Finance Corporation has author
lied advances of nearly $50 900 900 on
cotton, and the improvement in tn
situation in the South il ~undoubtedl,
due in no small degree to this assis
lance.
Finances Orderly Marketing .
Steps have been taken by the Cor
poration TO meet the financial need
of the livestock industry, so as I
eliminate the necessity for sendinI
immature stock to market and saw
the breeding herds; and assistance !
being given also to corn growers
wheat growers and many othe
branches Of our agricultural industry
There il still much to be done, bu
what has already been ~accomplishe
indicates clearly that we are OF tn
right road.
The restoration In a marked degre
of confidence in business circles
the South as n result of the improve
ment in the cotton situation has bee
felt in other parts of the country, I'll
purchasing power Of the cotton plai
ter. having been greatly Increase
he has gone into northern and ives
ern markets for products that he nee'
to carry on his business and suppo
the labor that works his plantation
Helped Cotton Grower
Somewhat similar results may
expected in other regions and wi
other lines of agricultural commoc
ties, because the loans made by q
War Finance Corporation will help
stabilize the market and thus TO e
gender the confidence necessary for
more equal distribution Of stoc
among producers, jobbers, wholesi
ers, and retailers on the basis of &
probable needs OF consumers. Nc 9th
single thing would do more than su
a distribution TO restore business in
sound and conservative manner.
The Corporation has no authorl
under the law to make direct loa
TO individual farmers. Along wi
other methods, II is seeking to rea
the farmer or stockman through /
local financing institution-the ms
tuition with which he is accustom
to do business and which is in clio
touch with conditions in his commul
~. BY advances TO such institution
not only will the pressure for fore
liquidation be relieved but the ban
win be put in better position TO Ia
care of the current needs of the IA
mers to the extent that their in
vidual credit may warrant.
Agricultural Loans
Any bank desiring TO secure an 1
vance from the War Finance Corpol
ton should make application throu
the Agricultural Loan Agency of
Corporation that has been establish
in its territory. The address of
Agency nay be obtained from
nearest Federal Reserve Bank or FIR
the offices Of the War Finance G
poration at Washington. The Agric
tural Loan Agencies are in charge
committed Of bankers. business n