The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-03-23
CreditBa1lk
Designed to
Aid Farmer
Merton Corey in Farewell Talk
Tells How 1t Can Reg
ulale Marketing
Profiiably.
Many Already Ask Loans

Asserting that the new federal in
termediate credits bank spells pros
perity for the farmer. and urging the
establishment of licensed warehouses
under government supervision as a
marketing medium. Merton L. Corey
made his farewell address to Omaha
business men at a public affairs lunch
con in the Chamber of Commerce din
ing room Thursday.
Mr.. Corey, who has been general
attorney for the Federal Land bank
here, was appointed Il member of the
farm loan board, with headquarters
at Washington. He will leave for
Washington ON Tuesday.
IF Omaha prospers and fills its
place in the world, it must come to
realize that its prosperity depends on
The farmer. and that of the agricul-
tural wealth of the country 20 per
cent is represented in the territory
served by the local federal land bank,
no said.
Speaking OF the new credits bank.
lie said he had been uncertain how
much of a demand there would be for
loans, but that since early in March
more than 100000 applications for
loans had been made.
More Than Credits Needed.
1t was realized that the farmer did
not need credits alone he continued,
referring to the organization of the
bank He needed also broadening
Of his market and a fair price for
his products. The law will do for the
farmer what the federal reserve bank
system has done for banks in the
commercial world
lie called attention to the period
Of depression some months ago in
which the federal reserve banks call
Cd on the country banks to take up
obligations, which call was passed on
10 producers, who. in order TO liqui'
date, rushed their products TO mar
ket and glutted it, with resultant
chaos.
lie pointed out that banks>otday
are prepared to take care of concerns
with 3o-day. 6O.day or 90-day turn.
over. but that the farmer needs at
least yearly turnover plan in his
financial backing.
Mr.. Corey said the intermediate
Credits bank would give the farmer
credit up TO three years. Twelve
banks throughout tho country, he
pointed out, will offer capital Of
$50 600 900 20 the farmers of the
United states and have power to IS
sue debentures of $500, 900, 600.
Direct Loans to Groups.
Loans Will be made directly to two
groups-co-operative marketing asso-
ciations. secured by warehouse re-
ceipts, and cooperative livestock as
sociations. secured in usual middle
west manner,
What the demand for loans will
be, ! cannot say" he declared. but
II the rural banks call for credit then
the need will have been demonstrated;
II not, then the bank will be ready to
serve in an emergency.
From 75 to 50 per cent Of the har-
vest throughout the big grain coun-
try is marketed within 90 days. and
naturally gluts the market New
credits bank will give the farmer a
chance to market in an orderly
process. feeding out his crop as fast
AZ the market can absorb it. The pos
siblities of this are tremendous.
Il fervently hope there will be
changes in laws and that the farmers
and other agencies viii lend their
help toward establishing licensed
warehouses under federal supervision,
in which the farmer can store his
crop until the market can handle it."
John L. ennedy, president of the
United States National bank. pre-.
sided at the meeting. lie referred to
4 the death OF Chris NJ Gruenther, sec
= retary of the Federal Land bank and
declared that mo man made more
friends in n shorter period Of time"