Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1922-02-10

"a iAAhA hCliu6 was neGUe0.
Bonds
. The act provided for a bond issue
and to have outstanding at any one
time its notes or bonds to an amount
not aggregating more than three
times the paid-in capital. Such
notes and bonds to mature not less
than six months nor more than five
years from the respective dates of
issue and might be redeemable be-
fore maturity at the option of the
corporation.
The original law provided for six
times the paid-in capital. In this
connection it is we'll to mention that
the government is in no way liable
for the payment of any bonds or 9th
er obligations or interest thereon in
Cured by the corporation or for any
act or omissions of the corporation.
Advances
1t provides for advances to any
person or association in the United
States engaged in dealing in or in
marketing products or in producing
products or in assisting to carry
such products until they can be ex-
ported or sold for export in an or
drely manner. 1t further provides
that the interest shall be one and
one-half per cent in excess of the
9O-day commercial rate at the Fed
eral Reserve bank in the district in
which the borrower is located and,
as stated, provides that the money
shall be used in the United States
and in no case shall the money so
advanced be expended without the
United States.
Federal Reserve banks are desig-
mated to act as repositories for the
receiving of notes and collateral that
goes with these loans.
How the Money Is Advanced
A~Cchiio al = ilOJ IilCldC uiIGCI 10 lUG
individual by the association but
must be made through a bank, bank
err or trust company in the United
States or through a cooperative as
ISOLATION of producers or through
cattle loan companies or corporations
formed specifically to handle these
loans-such as the one they are or
ganiZing at present in the Yakima
valley for the sheep men. The law
provides that the corporation must
have a paid-in capital stock of $50
600, if other than bank.
If you were wanting funds
through the War Finance Corpora
ton you would have to apply
through one of the above named cor
porations furnishing a financial
statement showing that your loan
could be paid off during the three
year period and pledging the col
lateral which you have to secure the
loan. Your loan is then guaranteed
by the corporation and the money
advanced if the loan is approved by
the War Finance board.
All loans must be for advancing
of agricultural or livestock purposes,
including the breeding, raising, fat
tening and marketing Of livestock
1t may have discounted or redis-
counted notes drafts or bills of ex-
change or other negotiable instru-
ments issued for such purposes.
These advances may be made for
a period not exceeding one year and
the corporation may, from time to
time, extend the time of payment Of
any such advances through renew
ais, substitution or new obligations
or otherwise but the time of pay
ment OF any such advances shall not
be extended beyond three years
from the date upon which such ad-
vances were originally made.
I 1t has been stated that when you
get a loan through the War Finance
Corporation that you can. so to
speak, go to sleep on the job for
three years. but, in my judgment,
the individual who takes one Of these
loans or the corporation which guar
antees this loan and who goes to sleep
for the period Of three years while
this loan runs, will wake up with a
headache, as these loans must be
paid at maturity There is no pro
vision for extension of time after
three years and I do not believe con
gress will perpetuate the War FL
nance Corporation It will, however,
in my opinion, provide some form
for the rediscounting of southwest
ment paper of the agricultural inter
ests as it is generally conceded that
the farmers products must be mar
keted over a longer period of time
/ If they are to enjoy stabilized prices
at the same time and be arranged in
-, - NOV C. RI aUOfd cnacu1atiOu