, 1923-04-18
American Bankers Association
Bodies Are Lending Their
Active Support to Movement.

movement that promises NOR nelp
toward the present relief and the per.
manent betterment Of Agricultural
conditions than cooperative farm
marketing"
In order 70 gather the best informa-
ton obtainable on successful eo-opefs'
tive marketing projects. the State
Bank Division has sent Q question
nairs to bankers IN every part of the
country. Information IL asked a. 70
whether the local associations are or
ganissd on the commodity basis.
handling product Or . few similar
products. or on the regional basis. Do
ins all buying or selling; whether
they serve local needs snly: whether
they are combined or consolidated
With other locals to include soms spe-
cial phases Of marketing. such ~
processing and packing. and whether
they are combined with . large num-.
Dor Of locals to form . sales organise
ton
James r. Howard Of he Amsfic y
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. l sert'
ousiy question whether or not ~
large . volume OF credit would b.
necessary, since cooperative market
ing implies orderly marketing or the
feeding Of the market consistently
throughout the period Of consumption.
It certainly would remove the neces-
sity Of whatever funds are used In
speculative transactions. The farmer
IL concerned with consumpuvs and
not speculative demands"
The form Of contract between the
Burley 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 son.
tract the Association agrees to buy
and the grower 70 sell to the co-opera
tive all his tobacco for i've years.. e.
cspt such a II not under his control.
on account Of existing mortgage or
contracts.
Tho tobacco 10 to be delivered at
the earliest reasonable time after cut
ting or curing. The Association makes
rules and sta ndArdisss and grades the
tobacco. the grower agreeing 70 b
bound By such rules. Tobsccs Of Ike
typs. grade and quality delivered II
the same crop year u pooled. the A.
s~ociation Classification being eoaelu-
sivs. The tobacco 10 handled In one
major pool; minor pools are Hads ~
type and grade.
The Cooperative Association sets
the tobacco At the best prices obtain
able. and pays he grower The net
amount received. less freight iasur
ance. interest. and deductions to eeveF
all costs of operating The association;
also TO create. funds for credits and
other general commercial purposss.
not to exceed one per cent OF the
gross sale price. The surplus from
these deductions 10 later Droratsd
among the growers.
The Association agrees to accept
drafts drawn against II BY the grower
upon delivery Of tobacco. and 10 assist
the grower TO discount his drafts, 20
cured by the warehouse receipts.
through the most advantageous bank.
ing system. II also c~o-operatss with
him In many other details Of his bust.
ness.
Eugene Meyer. Jr.. managing direc.
tor Of he Wal 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.
in quantity. graded and
pledged as collateral for
loans. and marketed In an orderly
way"
Fred I. Kent, chairman Of the Com.
merce and Marine Commission Of the
Bankers Association, says:
When bankers refuse to extend cred.
It's to cooperative organizations that
are no being developed SO as TO as.
sure the safety Of all concerned. II is
as much to the interest Of the
to have them do SO as II IL TO
bankers. When. therefore, a
farmer inds that some cooperative
organization. in which he may be q
member. 10 unable to obtain credit.
he should look into It at once and
ascertain the reason. and then either
means to correct such errors Of
or methods as exist, or
withdraw his membership at the first
moment that he car fairly do 30. II