The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-10-21
APPLICATIONS Can BE
FILED FOR FARM LOANS
Federal Loans Will Be Made But Must Be Guaranteed By
Banks-NO Loans Made To Observation-Disclosures
ers Must Apply Through Local Banks.
Helena. Oct. 2O,-Montana stockmen

Helena, Oct. 20.-Montana stockmer
and farmers in need of funds who have
security that would be adequate under
normal conditions, should consult thei1
bankers. Notice has been sent to al
Montana banks by the Agricultural
and Livestock Loan agency acting fol-
the War Finance corporation in this
state, that it is organized and ready
to receive applications from banks
bankers, trust companies and other
financial institutions for agricultural
and livestock loans. Headquarters OF
this agency are. at Helena. H. H.
Pigott, secretary, states the agency is
not authorized to deal with individual
borrowers. They must do business
through their local banks.
When congress revived the War FL
name Corporation to aid the agricul-
tural and livestock interests it placed
at the disposal of the corporation one
billion dollars. So far as known, no
allotment has been made by states.
Cooperative associations are aslo eli
gible but their business must be done
direct with the War Finance Corpora
ton at Washington.
While strict limitations are placed
on the loaning of this money and the
first loans made in Montana will be
to cover loans already in effect, the
limitations do not preclude the making
of additional loans for agricultural
and livestock expansion.
All loans are limited to the aggre-
gate of all outstanding advances made
by the bank or institution for agri-
cultural purposes. The term "agri-
cultural purposes is thus defined:
"that is, for any purpose connected
with the growing, harvesting, proper
alton for market, and marketing of
agricultural products, or the breeding,
raising, f%attening, and marketing of
live stock"
This definition, it is held, is not
broad enough to permit loans to be
made on real estate, or for paying off
mortgages on real property. Banks
are advised that "such loans should
not be listed except as additional Sc
curity to livestock loans offered"
Loans will be made only for six
months, but there is nothing in the
law or in the regulations that pro-
hibits these loans being renewed every
six months for a period of not more
than three years. The money is be-
ing loaned to the banks at six per
cent interest and the banks may not
charge upon such loans more than two
per cent more, making the maximum
rate to the individual 8 per cent.
After a bank has received an ad-
vance from the war finance corpora
ton to take care Of loans heretofore
made for agricultural and livestock
purposes, it can then proceed, if it
so sees fit, to make new loans of it's
funds for agricultural and live
stock purposes, and then present a
new application for an advance to
cover the second batch of loans. This
plan can be pursued up to July 1, 1922.
After that date no further advances
will be made.
While this money is being advanced
aid the agricultural and livestock
industries, it is not being placed on
the same terms as were federal seed
grain loans. Seed loans were made To
farmers who had no money and no
credit. 1nasmuch, however, as the
banks that borrow this money are re-
CURED TO guarantee the notes that
are given as collateral security, thew
VIII not be able to make loans to the
or stockmen who are in the
same financial condition as were those
that obtained seed loans.
The idea back of the loans now he
ing made, is to carry the stockmen
agriculturalist who has resources
adequate to insure his s%olvencv if
there was a normal market for bis
product. Instructions to banks from
the agricultural and livestock loan
agency state that "these loans are to
ne secured by the collateral notes If
the customers of said banks. which
loans must be based upon livestock or
products at present mar
valuation" In addition these notes
must be guaranteed by the borrowing :
bank, and it must also be prepared
furnish additional security if called
upon.
Ihere are II forms that a financial !
institution must fill out in apnlvino
or a loan. Included among these
.orms is n showing the financial
condition of the farmer or stockman