The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1922-05-18

racy, whether they would gain or
lose by buying ahead cotton which
would have to be paid for in Ameri-
can dollars and sold in terms Of de
preciated Europeon currency. So,
instead Of laying III the greater part
Of their annual supply shortly after
the harvest, they bought only to
meet current needs, spreading their
purchases over the year. This left
several million bales for the American
producer to take care of until they
were wanted abroad. He had to wait
from one to six months longer for his
money. He had not calculated on this
waiting.
With the economic activity and
buying power Of the grower seriously
impaired, the whole cotton producing
section Of the country was disas-
trously affected. The way to relieve
the situation was to put the producer
in position to market his crop over
a longer period and, at the same
time, to go on with his regular oper
atoms. With this end in view, the
War Finance Corporation financed.
under its export powers the ship
ment Of considerable quantities of
cotton to foreign warehouses, there
to be sold to foreign buyers for cash
as it was needed. This action was
followed by a loan Of So, 900, 900 to a
Mississippi cooperative marketing
association to finance the carrying
Of 1000, 600 bales in public warehouses
in the United States until it could be
shipped abroad in an orderly way.
Within a short time similar arrange
ments had been made with other CO.
operative associations, and these
transactions, in, turn, were followed
by agreements to make large ad-
vances on cotton to other
tive marketing organizations and to
banking and financing institutions
throughout the south.
When it became clear that the
cotton grower would have time to
market his output, that the crop
would be adequately financed and that
he would not have to dump it on an
overloaded market in order to meet
his obligations, the whole business
outlook OF the southern states was
changed. Depression gave way to
hope and confidence; manufacturers
and merchants who had held back
began to buy, the fear began to go out
of the situation and the resulting i'm.
provement was reflected throughout
the cotton belt, as we'll as in other
sections Of the country.
In the financing of the live stock
INDUSTRY IN the west, he normal
length Of time required to bring grow
ing sheep and cattle to maturity has
not always received sufficient consid-
GRAFTON.
When the Agricultural Credits Act
was passed, August, 1921, the situa-
ton confronting the live stock indus,
try was decidedly acute. The breed.
ing herds were being sacrificed and
young stock not ready for market
was being sent to the block, endan.
gering u future meat supply. But
the act gave the corporation ade,
quate funds and authority to deal
with the problem on a comprehen.
sive scale, and during the past four
or five months it has authorized adj
yances on live stock ~aggregating near
ly $685. 900 900. Under the law, loans
may be made for a period Of not tC
exceed one year., and these loans may
proper cases, be extended for an adj
ditional period, of not to exceed two
years, thus giving the stockmen time
to carry through his operations with,
out the necessity Of sacrificing his
immature and breeding animals.
One outstanding development, al
ready an accomplished fact, is the
establishment of new live stock loan
companies in the principal stock
growing states. The corporation has
encouraged the bankers and business
men in these communities to form
such companies, each with substan,
tial capital, in order to make it's re.
sources readily and effectively avail
able in the emergency.
In the corn belt, many farmers make
it a regular practice to buy young live
stock, and feed and fatten them with
corn and other field products: in other
words. to send their crops to market
ION four feet" Normally, about
eighty per cent Of the corr grown in
the United States is fed to live stock
And this process takes time. For in.
stance it requires from eight to 10
months to fatten on-year-old steers
for market, and calves as long as a
year. The farmer, with his barns full
of corn. needs considerable time il he
is going to turn it into beef, pork OF
mutton.
The corn crop in the last two years
has been extraordinarily large, the
total production amounting to ap
proximately $500, 900, OOO, 900 bushels,
And the collapse in commodity prices
tied IN the banking facilities in the