The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-04-05
PROPOSES NEW PLAN
FOR FARMERS LOANS
Senator Simmons Offers Bill for Ma
tional Credit Corporation, Govern
ment Controlled

WASHINGTON, April ). - Senator
Simmons of North Carolina has intro
duced a bill intended TO provide funds
for farmers and livestock raisers to mar
ket their products under better condi-
tions than is now possible The bin pro-
poses to create a national agricultural
credits corporation. which would take
over the assets of the war finance cor
poration.
Senator Simmons's proposal is the out
come of appeals by farmers and others
for more liberal means for obtaining
loans than are afforded by the federal
reserve system. They say that their
turnover is usually only once a year and
that they need longer loans than they
are able TO obtain. The farm bloc in CON
gress favors the bill and is expected to
nreSs for its passage at the present ses-
sion.
TIE proposed new organization would
be corporation controlled by tho gov
+ eminent. with the secretary of agricul-
ture and four other persons. appointed
| by the president with the sanction of the
| senate as director. Each of the di-
rectorS appointed by the president must
/ be engaged in farming or LIVESTOCK rails
| ing. and must have had not less than FIVE
years experience rs a director of n
| banking institution located in an agri-
/ cultural district.
! The terms of the first appointed di-
rectorS would be two. three four and
/ five years each. and thereafter for five
| years. The salary of each would be
! $4,000. The life of the corporation
would be 30 years.
| The country would be divided into
| four regions for the purposes of the
act. New York would be in the third
/ region, along with Maine. New Hamp-
shire. Vermont. Massachusetts, Connee-
! ticut. Rhode Island. New Jersey, Penn
| sylvania. Maryland. Delaware. Ohio,
| Indiana and Michigan.
Corporations which could become
members of the organization are:
Class \ - Any national bank, state
/ bank, trust company or other banking
corporation organized under federal or
/ state laws which has an unimpaired cap
! tal stock of at least $4,000.
/ Class h - Any incorporated livestock
| or other loan company having q capital
/ of 100000 and engaged principally in
making agricultural loans.
Glass C-Any federal agricultural cor
poration organized and doing business
as defined by the act
The central corporation would be en-
4 powered to make loans TO member cor
pOrationS under certain limitations. The
! corporation and its members could make
/ loans for one year and extend them to
not more than three years from the
4 oflElhdl uate. NOiHihouitleS count be 1T
| copied by the member organizations as
security from persons engaged in farm
! ing and livestock raising.
| The capital stock of the corporation
would be S300,000.000, paid for and
deducted by the retirement of the capt
| tai stock of the war finance corporation
and the transfer and liquidation of its
| assets
| The new corporation would be allowed
to issue bonds aggregating not more
than 10 times it's paid-up capital the
bonds to mature in not less than six
months or more than five years. 1t
could deal in bonds and other oblga-
| tions of the United States and establish
agencies and district branches.