The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-11
Agricultural Element Now
Shows Recuperation and
Faces Prosperity.
BOARDS POWERS BROAD,
1t May Extend Credits in AS
sisting Producers to Hold
Grain for Export.

Washington. ID. c.. Sept. 10.
| Easier money conditions have prac-
tically halted loan operations of the
War Finance Corporation. A flood of
ready cash in the banks, available to
farmers at low rates of interest, has
made it unnecessary for the Govern
ment during the last month to extend
credits to assist in crop operations.
1t was for the purpose of relieving
the credit stringency in the farm belts
that the corporations functions were
| extended by Congress until July /,
1923. Improved financial conditions
may lead to proposals in Congress to
repeal the authority thus given and
end the activity Of this organization,
except as to its function of obtain
ing repayments upon loans already
granted.
Farmers. cooperative farm organiza-
tions and banks through which agricul-
tural credits have been extended. are
rapidly repaying outstanding loans OBJ
! tanned from the corporation and rela-
lively few applications for new credits
are being received.
Aggregate of Loans.
The corporations loans since January
l. 1921, when 1t resumed operations,
have aggregated $363,63S.72S. Repay
ments since that date on account of all
loans have amounted to 1888 ,291.
The announcements of the corporation
now deal with repayments and not new
loans.
Two-thirds of the loans granted by
the corporations were made to financial
institutions, but the stronger con-
dition of the banks, particularly in the
country districts, has stimulated repay
ments to the Government with indica-
tions that the banks are more capable
Of caring for the needs Of such bor-
rowers.
Small banks In the West and South
west have chiefly participated in the
credits extended by the corporation. The
financial position of such banks Is gradu-
ally improving, according TO reports 10
the Comptroller Of the Currency.
Postwar losses of the farmers are be-
ing rapidly liquidated, according to the
reports to the Federal Reserve Board.
The deposits show that the agricultural
element of the country has exhibited for
speedier recuperation and better ability
to liquidate old obligations than many
other Industrial groups.
Wealth Awaiting Farmers.
| The farmer to-day faces the most
! prosperous season in many years, ac-
cording to Secretary of Agriculture Wal
| lace. The crop reporting boards new
estimate of this years harvest, which
means nearly $4,000, 10000 more wealth
| to the farmers than was indicated by
the farm price OF last year, reflects con-
agriculturists. The cotton and whea.
| growers. officials say, will share the
greater portion of the wealth which may
be distributed by the higher prices pre-
vailing for farm commodities.
The only cloud in the farmers hori
| ION Is the uncertain aspect of the rail.
road situation. His harvests soon will
be ready to move to the markets. II
all depends upon what the railroads may
be able to transport. Unless the rail
roads exhibit a greater carrying capacity
than Is indicated by their maximum
loadings OF all kinds OF freight II is feared
that some part of the crops may have
to be stored until a ready market l.
found.
Crop experts. figuring on the farmers
Improved money status, declared to-day
that in the majority of cases the farmers
probably will be eager to ship their crop.
soon after they are harvested to rear
the benefit of the expected high prices
But the farmers are far better prepared
to store their grains. cotton and other
products than they were a year or ever
two years ago IL transportation conges.
ton or other handicaps prevent a nor
NAL flow of crop commodities to tho
markets.
IL the War Finance Corporation re-
sumes its loan operations upon any ex-
tensive scale It is possible that it's aid
might be required to assist producers. OF
banks acting for the producers. in hold
ing their grain or cotton for export pur.
poses.
The corporation has very broad powers
to extend credits on exports, although
such commodities may be placed in ware
houses in the United States for as lone
as six months awaiting export to Euro
pean or other foreign buyers. The neec
for such Government credit however
probably would not be manifest for some
time. as local banks are expected to b,
able to extend accommodations to financ,
such projects in their own communities.
II 10 the view OF the Treasury Depart
ment that increasing reserve ratios o.
the Federal Reserve banks generally arr
an omen of a splendid financial condi
ton OF the country.