The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-06-24

stock in such corporations, In the
aggregate not exceeding 10 per cent
Of their capital and surplus.
Make Loans On Live stock.
THE National Agricultural Credit
corporation Is authorized to make
loans for agricultural purposes on
ohattels, livestock. growing crops
and personal credit up to a period Of
nine months; except that in the case
OF breeding stock and dairy herds the
period may be extended to three
years, They may issue debentures
against the securities they have re-
oeived. and these may be marketed
up to whatever amount may be de-
termined by the regulations pre-.
scribed by the comptroller.
ITO facilitate the marketing Of the
debentures issued by these corpora
lions, class of re-discount banks Is
provided. A credit corporation may
subscribe up to 20 per cent of its
stock to the capital of the re-dis-
count bank. A minimum tf S1,000,000
paid-up capital must be provided for
q re-discount bank. The re-discount
bank. on the responsibility OF 1t as
own capitalization, will enter tho
general money market, float the de-
bentures that have been turned over
to 1t by the credit corporations. and
thus provide them with new funds
fer further investments. 1t Is simply
another application of the revolving
fund or endless credit chain idea
which we found illustrated in the
case Of the intermediate Credit
banks.
1.-THE utmost care has been taken
to surround these various institutions
with every possible safeguard that
can be- afforded through skilled SUI
pervision. ample responsibility, and
sound methods. 1t is the judgment
bentures will find just is ready an
acceptance among investors as have
those of the Federal Farm Loan
Board.
There is thus created at last a
complete farm credit system which,
drawing together the aggregated re-
sponsibility of the greatest single in
dustry in the land. backed by the
security Of the land. and Of live stock,
warehoused and growing crops, all
kinds Of agricultural equipment; and.
finally, by the character and high re-
sponsibtlity of the men and women
who constitute the great agricultural
community. will be capable OF furnish
ing the American farmers. for the
first time in the history OF agri-
culture in any country. adequate In
vestment and working capital on
terms as favorable as those accorded
to commerce and industry.
Many People sEeptical.
Many people have been inclined to
be skeptical Of benefits which might
follow the enactment of legislation
to give the farmer a better system OF
credit. They have said that the
farmer needs better prices for his
crops and live stock. rather than
easier ways to borrow money. That
is true, but these friends do not seem
to understand that prices OF crops
and live stock are directly influenced
by credit facilities.
I'm the past, farmers have been
obliged to finance their productive
enterprises by borrowing money for
short terms. When times ere good
they have no difficulty in renewing
these loans. but in periods of financial
stress too many farmers have found
themselves under the necessity of
pushing their crops or their live stock
on the market, not infrequently be-
fore the latter Is fully fitted for mar
ket, in order to pay notes which they
had expected to be able to renew, thus
at times flooding the market and
seriously depressing prices. Under a
system of Intermediate credit. ad-
ministered with reference to the
farmers seasonal requirements. they
should be able to market both their
crops and live stock In more orderly
fashion, and this in itself will be a
potent influence in keeping prices
more stable and reasonable.
Il thoroughly agree that what is