The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-05-23
WAREHOUSE ACT And
CREDIT

On the last day of the 9th. Con-
gress, the agricultural credits act of
1928 became a law. Only a few days
before the federal warehouse act was
amended in important particulars.
Both of these acts should prove high
~ beneficial to the farmers of the
United States. Under the new law, a
federal intermediate credit bank will
be established in each of the twelve
federal land bank districts. These
new banks will be managed by the
directors and officers of the existing
land banks in each district, Besides
these intermediate credit banks,
which will be financed by the gov
eminent, the act also authorizes the
: organization of privately financed
loan and discount companies, to be
known as national agricultural credit
! corporations. Both of these classes
: of institutions may discount agricul-
tural paper and make advances for
4 agricultural purposes.
q The new credit act is intended to
provide the farmer with credit in am
y pie amount and for such periods of
time as will meet his requirements.
Added facilities for production credit,
as well as credit necessary in the err
derby marketing of farm products is
provided for by the new law. In or
der that marketing credit may be-
come available through the new cred
it institutions, the products of the
for-aa xorrr% 10 ~&DroI nn1 xxrouohoreal
in such a manner as to make them
= safe and desirable security for loans
- The United States warehouse act
- was approved August IL, 1916. i
provided a permissive system of Ii
censing warehousemen by the secre
tary of agriculture and applied t.
four of the principal staple crops
of tobacco, wool, cotton and grain. It
primary purpose is to encourage tn,
orderly marketing of agriculture
products by providing for a form o
iS warehouse receipts to be issued Will
III the products are in storage. Tn
lbs terms of the act and the regulation
Ut promulgated Hereunder are such a
7r' to develop a form of receipt whic
should make it acceptable general
o. to bankers for collateral purposes.
Comparatively few warehouse
u.s. were licensed under this act unit
ny about two years ago, when a genera
licensing movement commenced. o
'Te February 1, 1923, there were $50 CO
'y ton warehouses licensed, 227 grai
ay warehouses, 20 wool warehouses, an
62 tobacco warehouses. The capac
ties of many of these warehouses a.
quite large, the licensed capacity fC
cotton being sufficient to store
one time about o~ne-fourth of a no
NAL cotton crop, and for wool abol
! one-sixth of the annual clip. tt
progress made under this act in Il
4 last two years, and the acceptable
,xT to bankers of receipts issued under
N created a demand On the part of pr
IIV ducers of other products for enlar
ing the scope of the act.
One of the most important amen
ted ments of the warehouse act pass
iro- February %, 1928, removes the lii
eX- i~tations with respect to the produC
ties which may be stored. AS the Il
ere now reads. the secretary of agricI
IN ture can license a warehouse for t
use storage of any product which he co
ohi- siders would constitute sound cola
cry eral. Another important amendme
nge provides for a system of licensing
ave spectors and samplers of commo
of ties stored in warehouses, in additi
to graders and weighers. The
ew- was amended in certain other
cent spects. but except for increasing I
only number of offenses which are punii
for