Belt Valley times. [volume] (Armington, Mont.) 1894-1977, 1922-09-21
PRACTICAL HELP FOR FARMERS

During the year ending August Is the War Finance Corporation
has loaned to the farmers and stockmen of the United States near
l three hundred and fifty million dollars, an average of close to
a million dollars a day. AS an achievement in practical finance it
stands to the credit of the present administration as one OF the
most farreaching and beneficial measures ever enacted. With
the accession of the Harding administration there came a crisis
Wilson regime. The enforced deflation of prices in 1920 forced the
farmer and livestock grower to market their products at an actual
loss and very few of them had any money left to finance their
operations during the next season, neither could the banks help
in extending credits, much less expand already existing debts. 1t
was a very critical time, especially in Montana where most of the
banks were under the necessity of calling their loans unless some
means could be found to secure money to tide over. The farmers
and stockmen had gone through a series of bad seasons, culminat-I
ing in 1919 with a drought that for all practical purposes left the
state a desert. There was no feed for stock and no hay, and the
result was that the farmers and stockmen sacrificed heavily in
stock. and in some instances strained their credit to the breaking
point in order to buy high-priced feed to feed their remaining
herds. To cap all, after wintering reduced herds at an enormous
cost, they saw their values shrink to less than the cost of feeding
for one winter. The banks which in every case had been loyal to
their customers found they could go no further, in fact, they
found they had already gone too far. The situation was much the
same in varying degree all over the country, and Secretary OF the
Treasury Melen called a conference of the representatives of
financial institutions and formed a voluntary pool of fifty millions
of dollars freRa which loans were made instantly to the live stock
interests. In Montana a great many stockmen found themselves
already beyond their. limit of credit, but the share allotted to the
banks of the state was sufficient to put them In a position to at
least carry those whose credit was exhausted for the time being.
Meantime the republican congress in special session amended
the War Finance Corporation act giving 1T power to make loans
for agriculture and livestock purposes apart from the export bust
ness, also it was provided with a billion dollar revolving fund. 1t
was permitted to make loans to financial institutions, to livestock
companies and to cooperative agricultural organizations with three
years in which to make payments. The immediate effect was to
stop forced liquidation and to restore confidence throughout the l
agricultural and livestock districts. 1t served to stabilize the J
markets to a certain extent and has brought a general feeling of
optimism to the farming and stock raising interests OF the whole
country. The scheme has been a success and has gone far to prove
that the present administration is handling things along business 5
lines.
1t is true that many Montana farmers and stockmen found
themselves unable to borrow any more money from the banks dur t
ing this time as they had already more than exhausted their c
credit, but there was enough left who were able to use the credit
extended to relieve the banks, and it was a very small percentage
who were forced to liquidate, as the banks found themselves in a o
position to carry the larger part OF the loans for another season. L
Two fairly good seasons, and the partial restoration of the cattle a
herds together with the help of the War Finance Corporation has u
put Montana again on the finance map. In