The Dawson news. (Dawson, Ga.) 1889-current, 1923-03-27
lash AID TO FARMERS;
| PLAN OF FARM LOANS
h,p7 OF NEW CREDIT sYs-
npu AUTHORIZED BY CON-
cpEss. AVAILABLE NOW.
rApITAL FOR AGRICULTURE
,.,srre Will Enable Farmers to OBJ
t.in Money Through Federal Cred
i Ranks to Expand Their Business.
M Tndiscriminate Shoveling Out.

:. Ranks to Expand Their Business.
M Tndiscriminate Shoveling Out.
Unable to benefit from the cooper
i've methods used by almost every
+ber bic business concern, the Amer
..n farmer, struggling along for
o,rs under various handicaps, finally
"a ga made his voice heard in Washing
an One of the last acts OF the Six
Eleventh congress was the passage
tbe new agricultural credits act,
oonIarIv called the farm loan bill. y
Bart Of the provisions Of this measure
m be in operation within a week or
Ero. according to government othclals.
A Comprehensive Law.
After many verbal battles on the
Aoor congress finally passed the ex-
knsiye farm credits legislation. The
NV is a comprehensive one, including
Fveral plans to improve the credit
.bsition of agriculture.
Il NAV take some time to work out
kme of the details of the plans includ-
in the law, and for this reason the
FAR finance corporation, through
lbch the government is carrying
bout Sl5O000,000 in agricultural
Hans. has been extended to March l,
b24, instead of being dissolved April
VI as originally planned.
#Oficials feel that it may require this
bar to put the new machinery for
Saking loans to farmers into smooth
zorking order. One of the exceptions
N the provisions for liberalizing the
Akesent discount privileges of the fed
lal reserve system for agricultural
sper. which can be taken advantage
B immediately.
No Indiscriminate Loans.
The government isn't going into
N business of shoveling out money
every NEEDY farmer" who comes
Ebng. 1t is intended to supplement his
e Resent dependence upon the local
llnty bank for loans, rather than
81 be substitute. Sound paper, not
AZ bid, either on cattle or on grain,
Hst be presented before either of
alternative plans can be taken adj
8 ltage of.
nquestionably the farmers needed
IN credit sources a year ago Tar
N re than they do today. However,
IA program set up was not intended
n an emergency measure. The aim
Bs to establish a permanent system
bt would help in tiding the farmer
Ter until he could sell his crops at a
|pht, as we'll as enable him to extend
II business operations the same as
III business concern expands.
Four Outstanding Features.
sThe new credit bill is not really one
IN, but several laws in one, largely
kcause advocates Of the different pro-
sas would not take any chances on
.fering any single plan first, fearful
i congress would stop with that
ID not pass the others. AS result it
\ somewhat "hodge-podge" at pres
ID However, there are four main
&ures:
BIT sets up a secondary federal re-
&count system through the II fed
b land banks to handle "intermedi-
Il farm paper of from six months
N three years maturity.
May Use Private Capital.
n It sets I'D machinery whereby pri-
'ate capital may organize farm credit
operations under the supervision OF
a comptroller of the currency to deal
NJ and handle farm paper
Ut liberalizes the present federal re-
Nv laws, making certain farm pa
"A eligible for rediscounting through
a present banking machinery up to
sfe months maturity, more nearly
frresponding with the crop season.
Raises Limit to $4,000.
1T raises the present loan limit of
n federal land banks from $4,000
q $4,000, although preference must
n given to loans of $4,000 or less.
n also revises the present system OF
Banging land banks, giving the Dor
'Rwers and loan associations larger
NC.
There are to be II federal interme-
fte credit banks, located in the same
|fleS as the land banks and chartered,
81 up and controlled by the present
engagement of the II federal land
|ankS, The banks are to have an lniy
n capital of $5,000000 each, supplied
the national treasury.
n turn, as they discount farm pa
Il they are authorized to issue and
s to the public tax-exempt deben-
WeS to the extent of ten times their
'PltaL This makes the credit pool on
4lc1 the banks will operate. The
*, are empowered to discount or
'F'E sc farm paper.
Protect From Gouging.
pr federal farm loan board is to
prove the discount or interest rates
#T,Sod by the intermediate credit
KS. A maximum of six per cent
'aeTeSt Is fixed on the tax-exempt
"A year debentures the banks may
y 10 the investing public.
o prevent banks or loan compa-
i gouging the farmer and then re-
counting the paper at the govern
rs low rate through the interme-
'l credit banks it is provided that
= PAPER may be accepted by the
II > where the interest rate charged
4 'afmer Is one-half per cent above
discount rate of the credit bank
(ne time the loan was made.
a ',Nertlng earnings back to the
lSqry from the banks after a sur
mas been built up, the. examining
'ne banks by the farm loan board,
neaVy penalties for misrepresent-
VI securities or notes presented
sale or rediscount to the new gov
'eilt banks are provided.