The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1921-08-30
United States to Back
the Weed Growers

which was approved in the final
hours before the recess of Congress,
last week, the War Finance Corpora
ton is now preparing regulations for
making loans for the relief Of agri-
culture, and in this connection. it
was learned it intends to give i'm
mediate consideration to means of
assisting tobacco growers, particu-
larry in Kentucky, North Carolina
and Tennessee,
AS amended by Congress last
week, the War Finance Corpora
ton act will make available re-
volving fund of $1,OOO,0O0,O0O, most
of which probably will be advanced
on agricultural products.
Under the new legislation the cor
poration is authorized to issue bonds
to the amount of $1,000, 100000, or
three times the amount of its capital
stock, but it is stipulated that not
more than $1.00O,OO0,O0O in loans
may be outstanding at any one time.
The amended law, it was pointed
out, not only will enable the War
Finance Corporation to assist in the
financing of expectations of agri-
cultural products, but also to redis-
count the paper of banks that have
made advances to farmers on prod
ucts covering which export contracts
have not vet been made.
This is aimed to assist the banks
and producers in holding staple
products until they can be marketed
in Gan orderly manner" and to pre-
vent sacrifice sales on the existing
sagging market.
The corporation will pass on all
loans in Washington, but it invites
the aid of advisory conJmittees"
of bankers, agriculturists and credit
experts in practically all of the large
cities of the South. These commit
tees, it is understood, will be con-
suited regarding loans and appli-
cations in their particular terri
tories.
Broadly speaking. the War Fl
nance Corporation is now prepared
TO receive applications. for advances
in connection with the exporting Of
American agricultural products.
First. for prompt shipment against
deferred payments.
Second. for future shipment with
in reasonable time against either
prompt or deferred payments. where
the products are under a definite
contract for sale.
Third, for prompt shipment to
warehouses in foreign distributing
of American exporters and bankers
points to be held there for account
for marketing out of warehouses
Fourth, for shipment within a def
mite period, the products to be held
in warehouses in this country until
such time as they can he marketed
abroad in an orderly manner. How
ever, since no advance by the cor
poration may be made for a period
longer than one year. marketing must
take place before the expiration of
the loan.
Under the amended law in con
nection with export advances. loans
are permitted to any person dealing
in or marketing agricultural prod
ucts. associations of persons pro-
ducing such products, banks and ex-
porting firms.
Under another section of the act
there is authority for the rediscount-
ing of paper held by banks and rep
resenting loans the banks have pre-
viously made on staple farm prod
ucts. Cooperative selling associa-
tons also are entitled to receive
such loans.
The interest rate to banks is to
be fixed by the War Finance Cor
poration. The interest to other
classes of borrowers is not to exceed
l IL per cent of the current redis-
count ninety day rate charges by
tho Federal reserve Bank of the
district In which the applicant for a