Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1923-05-12

manent betterment or agricultural
conditions than cooperative farm
marketing"
In order to gather the best informa.
ton obtainable on successful co-opera-
tive marketing projects, the State
Bank Division has sent a question
naire to bankers In every part Of the
country. Information is asked as to
whether the local associations are or
ganized on the commodity basis,
handling one product or few similar
products, or on the regional basis, do
ing all buying or selling; whether
they serve local needs only; whether
they are combined or consolidated
with other locals to include some spe-
cial phases OF marketing. such as
processing and packing. and whether
they are combined with large num-
Der Of locals to form a sales organiza.
ton.
James r. Howard of the Americ
Farm Bureau Federation says: THE
volume OF credit necessary to market
any given crop comparatively would
not be greater than that required for
homeopathic marketing. ! seri-
ously question whether or not as
large volume OF credit would be
necessary. since cooperative market
ing implies orderly marketing or the
feeding Of the market consistently
throughout the period OF consumption.
1t certainly would remove the neces-
sity of whatever funds are used In
speculative transactions. The farmer
is concerned with consumptive and
not speculative demands"
The form OF contract between the
Burnley Tobacco Growers Cooperative
Association and its members is cited
by the Bankers Association as an
efficient instrument for putting the
idea into operation. Under this con-
tract the Association agrees to buy
and the grower to sell to the co-opera-
tive all his tobacco for five years, ex-
cept such as Is not under his control.
on account of existing mortgage or
contracts.
The tobacco is TO be delivered at
the earliest reasonable time after cut
ting or curing The Association makes
rules and standardizes and grades the
tobacco, the grower agreeing to be
bound by such rules. Tobacco OF like
type. grade and quality delivered in
the same crop year is pooled. the As
ISOLATION classification being conclu-
sive. The tobacco is handled In one
major pool; minor pools are made by
type and grade.
The Cooperative Association sells
the tobacco at the best prices obtain
able, and pays the grower the net
amount received, less freight. insur-
ance, interest, and deductions to cover
all costs of operating the association;
also to create funds for credits and
other general commercial purposes.
not to exceed one per cent OF the
gross sale price. The surplus from
these deductions is later prorated
among the growers.
The Association agrees to accept
drafts drawn against it by the grower
upon delivery Of tobacco. and to assist
the grower to discount his drafts, Sc
cured by the warehouse receipts,
through the most advantageous bank
ing system. II also co-operates with
him in many other details of his bust.
ness.
Eugene Meyer, Jr.. managing direc
tor OF the War Finance Corporation,
SAYS: Generally speaking, the Ameri-
can farmer has been forced to sell his
crop hurriedly and at the time of
maximum supply. But the co-opera-
tive marketing associations are gradu-
ally overcoming this situation. In the
hands of the individual farmer, his
products have often been little more
than an Offset against debts contract
ed in order to carry on his producing
operations. In the hands of the CO.
operative association. they can be as
sembled in quantity graded and
warehoused, pledged as collateral for
loans. and marketed in an orderly
way"
Fred l. Kent, chairman of the Com.
merce and Marine Commission OF the
American Bankers Association, says:
when bankers refuse to extend cred
its to cooperative organizations that
are not being developed so as to as
sure the safety of all concerned. it IS
just as much to the interest OF the
farmers to have them do so as It Is TO
the bankers When, therefore, 8
farmer finds that some cooperative
organization. in which he may be q
member, is unable to obtain credit.
he should look into 1t at once and
ascertain the reason, and then either
take means to correct such errors OF
organization or methods as exist, or
withdraw his membership at the first
moment that he can fairly do so. II
the farmers and bankers work to
gether in this manner. cooperative
m n rtafinC can ba msda a most WaIu-