Monte Vista journal and Monte Vista graphic-reporter., 1923-05-04
(QEDT RANKS NnL Be
"a HELP TO THE FARMER

The Extension Department of the
State Agricultural college calls at
tsntion to the benefits Of q new law
which will aid agricultural develop
aent in Colorado.
Better credit facilities are being
provided BY the government for the
bsnefit Of the agricultural industry
under the terms Of q law passed dur
ing the closing days OF the recent
session Of Congress. The most Inn
'Dortant part Of the new enactment
- that which creates intermediate
credit banks to be conducted under
the direction OF the Federal Farm
Loan Board. the same board which
has charge Of the land banks. The
credit banks are separate and dis
tinct from the land banks. tho they
will be located in the same twelve
cities and serve the same territory
~ the twelve district land banks.
These credit banks are being
started with 4 capital stock OF S5.-
100000 each. subscribed by the
United States treasury and to be
owned by the treasury permanently.
ysChis will provide a total working
4 esDital Of S0,00O.000. The loaning
bover OF the banks Is fixed At $780,
Z 100000 in addition to the &s0,o00.-
900 capital. This is a big sum. more
money. in fact, than the War Fin
ance Corporation was called upon to
advance Is emergency aid to the az
Ttcultural industry. The new system
b . permanent part of the federal
banking machinery and it is so plan
ned that loans can be made on crops
or livestock with q maturity vary
ing from six months to three years.
This Is one Of the important fea-
lures of the law. namely the time
Of maturity of loans. which Is fixed
In accordance with farm turnover
and not on 4 commercial basis.
Credit legislation was put thru A.
compromise. At. the last minute
under pressure Of the farm bloc In
Congress. There were three measures
up which had to do with financing
the farmer. One was the Lenroot.
Anderson bill. embOdying many OF
the suggestions made by the Agri-
cultural Inquiry Commission: an
other was the Capper bill. providing
for the creation OF private farm
financing corporations under federal
supervision. and the third. known As
the Strong bill. contained among
other things. an amendment to the
Federal Farm Loan law. raising the
limit Of individual loans on land
mortgages from $4,000 to }25.O00.
The combination bill retains this
feature Of the stro.x bill. 20 that
Federal Land Banks now may lend
- much ~ &25. 900 to one individ-
ual. This provision was not alto
gether favorably considered In the
West. because the land banks have
been OF greatest service in this re-
zion to the small farm owner. II
Was feared that an increase In the
loan limit would divert funds to the
farmer whose land holdings sre
large snd who has less need for the
favorable terms Of an amorti1ed loan
At the low rates granted by the fed
eral land banks. Those who favor
the increase contend that II will he
beneficial. because the greater the
demand for money. the larger the
flow OF Investment cash for lending.
and consequently. farmers Of all
classes will benefit.
Just what tho effect OF the reten.
tioa OF parts Of tho Capper bill will
be 10 not yet clear. This will de-
pend upon whether private credit
corporations take advantage OF the
Law. Such corporations would be
under the supervision Of the comp
troiler Of the currency. They are to
have . minimum Of e3se.oeo capt.
tai and they are authorised 70 deal
n agricultural paper having . ma.
turity Of not lees than six months
Provision b made. also. for the or
eanisation Of sediscount corpora
tioas with capital Of ei.oes.eeo
Or more. TO rediscount agricultural
paper for the leaning corporations.
These new facilities for farm
credits will have . favorable effect
on the farming business and will be
Of great help. not only to individual
farmers but 10 cooperative sssocia.