The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-07-13
SHOULD Be BOON
TO WHEAT FARMER
WORKINGS OF INTERMEDIATE
CREDIT BANK EXPLAINED BY
VICE PRESIDENT LEWIS

ChEUlI DANh EAILAlN ED b i
VICE PRESIDENT LEWIS
OF equal Importance with the per
acre production of farm products is
the marketing of the products SO that
the farmer may receive the best pos
sible returns for his investment and
his work This is equally important
to the farmer and the business man
as anything that limits the purchas-
ing power of the farmer limits the
volume of business done in all other
lines in the community. One of the
great needs of the farmer, especially
since the disastrous slump in prices
which followed the war period, is a
credit which will permit an orderly
marketing Of his crops. In other
words to prevent his being forced to
turn his crop, which is principally
wheat in the Palouse country, loose
on the opening market with the re-
sultant glutting of the market and
slump in the price. 1t was to this
end that the government established
the federal intermediate credit bank,
and one of the important problems
facing the wheat producing commun-
fty now is the working out of the
plans laid down by the government
for securing the benefits of the credit
bank.
The federal intermediate credit
banks are established in the same
cities as the twelve~ federal land
banks, and are operated under the
direction of the officers and direct
Ors Of the land banks Senator M. e.
Lewis of this city is a vice president
and director of the Spokane Federal
Land Bank and consequently of the
Spokane intermediate Credit Bank,
and when seen by a Star-Mirror rep
resentative today expressed the de-
sire that the farmers of Latah county
meet the requirements of the law
creating the credit bank, so that they
may participate in the benefits in the
greatest degree. To do this, Senator
Lewis stated, it is necessary to or.
ganize local loan associations, for the
purpose Of borrowing or discounting
If loans are to be secured on this
seasons crop it is therefore neces-
sary that such organizations should
be perfected at once.
Lewis Issues Statement
In order that the farmers may ap-
preciate the urgency for immediate
action, and also to outline the pro-
cedure, Senator Lewis has issued the
following statement:
"The Intermediate Credit Bank, of
Spokane, established pursuant to an
act Of congress approved March 4th,
1923, is now open for business It'll
was established for the purpose of
furnishing money for agricultural
purposes on short time loans at rea-
sonable rates Of interest It's object
is to enable producers of farm crops
to hold and market them advantage
ously during the crop year, and
growers of live stock to raise, mature
and market the same during their
period of growth and maturity. No
loans will be made for the purpose
of holding these farm products be-
yond the time within which they
should be sold. or for speculative pur-
poses. For this reason loans made
on grain crops are limited to nine
and loans on live stock to
three years.
s~The affairs Of this bank are CON
trolled by the federal farm loan
board, located at Washington, d. c.
50 far as making rules and regula-
tions are concerned. The directors
Of the bank have control of making
the loans. The rate at which money
ls to be loaned to individuals has 1een
fixed by the board at not over 7To
per annum, and the discount rate at
which the intermediate Credit Bank
discounts this paper has been fixed
IT 546Nc. The bank will take no
paper for discount except where the
money was loaned for agricultural
purposes.
Government Money Used
"The capital of the intermediate
Credit Bank is all furnished by the
federal government. The provisions
Of the law, the regulations of the
board and the actions of the direct +
3rs of the bank, are all directed to-
ward making the loans safe, and
any loss to the bank by |
poor loans Aside from these proper
the bank wants to ex-
end it's usefulness to the fullest ex-
,ent. No loans will be made except
where the paper is endorsed and !
by responsible banks, or
organized loan agencies, subject to
proper inspection by the officers of ;
he bank, and which have been legal
y organized, and whose articles of !
have been approved by
he bank. In addition to this the
oans made by banks or loan associ-
atoms must be secured by proper
collateral, either warehouse receipts
With insurance, ia the case of loans
IN grain, or chattel mortgages, in
Ease of loans on live stock. In addi-
ion to this all loans are limited to ,,
hree-fourths of the value of the
pledged or mortgaged property, and
he bank must also be given proper
to demand additional Sc
.urity if the values decline, or the !
light to sell part of the pledged
at any time it is necessary
o do so to maintain the extra mar
in of safety required.
"The bank does not loan to indi-
riduals, but takes paper from money