The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1921-08-23
sraff Cnrresr.anaencfl J

letter from Senator CA9Per. >ecre
fz-r Hoover recently named fF'
fsndx of credit needed by the agracei
txrz1 industry. of these. beyond II.
farmers own capital. al are he says
partially covered hy present cred
machinery and some ct then fulig. '
TIE fsve kinds named are.
Loans 10 &c s.x months for
either prosuctso- q marketing
Arnukl v-cdnce-
Loans between s5x months and
tweare fo- these Purposes
Loans from one II three Eears
eo- producing and marketing Of
cattle
Loans from one - three years
for farm equipment
Loag- -ierns lnaas sor purchase
Ra1 Improvement
OF these tie frs, Ana, in norma
times even the second are partially.
or fairly v'ell. covered sr the Trese1.
hsrking system. though, as NT
Hoover point ont The federal Re
serve system being q mobilization q.
The demand deposits u the country.
they cs1nos ne called upon fpr loans
of over six months NJ agricultural
PAPER without seoF,ar5izlue the whole
commercial banking struciure- TAa
deposits II banks unsi be reA1llr
available for parrnen; al Ant ttrae
and ore Of the peculiar conditions as
10 agricultural loans Is TINT the crndf;
demand is largely seasonal. couinr
IN h11k zi about The ssTns date. II Is
chiefy then seasonal demand, ana
even SIX months is longer period
.han Is warranted as a Tractics- nr
commercial hzrks
There. also are largely What are
in fart consu1npiive credits Ther
ARE snch As show l1es ot Avkiiahle
cz1itAl OF The use q suth II some
form ct farm investment T'her
shonld oe restricted g. far Rs possi
be IS banking credits Yet tbs
need has never been zcuie hsFoua
thu ability O, the Treseri .,ansiAa
system 10 fairly wei meet !, in vea
developed and prosperous tsrn.sns
sections until This veH- with It's ene--
cency conditions Il Il never possl-
hle to meet il through banking chan
Dels IN the Dever settled rarSuns
The last named tvps o. c-edH is
nov sufficiently covered bv the hand
1oa1 bank system This lAares hn-
the third and fourth svre nnrrorida1
for SAve hy eDerreocv provisions
and they ara both credits fo- p-r
dpc15on These are loans Tor onr-
irr. Or investment IN persona "
which is reasonably certain to va,
hack the loan with 8 profit Cause
farm machinery. COWS. rirs. exrlo-
sives fer clearing land. fertilizers ans
she Ike win q themselves. not alone
Jay their cost in added rro5nction
cr price, tui they vii thereafter
have s continuirE or remaining
rslns which becomes an asset. OF
ca-itEi
II Is such credits those tor which
no adequate Trrcvis1cn Is now rnadt.
tha1 cover the whole field cf IN
creased agricultural production Ther
are al suhSect To security 'hInueh
insurance With such roslAisrzl
they become among the rsrT safes
cf loans Il is this rvps Q. credits,
secured IN fhis wav, Tor Which fAs
1lcFsdden- KENYON Tin r-sv1des II
makes tins the most important Ag~
cultural measure before The present
congress ant one whose passage VII
k,s ri the utmost vslps 10 agriculture
There is another result oi this
measure whirh VII ~ helpful se
commercial banking Those fETzillsF
with r-ainz-r farm MANAGEMENT an1
The average tanner who Is solvent
and good xredss. recognize D gensrsi
weakness ir the usual agricultural
financial process When farmers sea
their products and have cash II hsod
instead Q. szFiRr enough 70 csrfT
then through 10 the rext r-on y<sa-.