New Britain herald., 1923-04-11
NEW CONGRESSIONAL
ACT PROMISES AID.
Farmers to Gain by Credit
Legislation, Says Wallace

4 "ac 81 bb5SiCh SVHbENbH GiluCLtu tHt
agricultural credits act This act Il
designed to give the farmer the sort o.
credit he needs to produce Efficient,
and market In an orderly way the
products Of the farm. II Ia an effort
by congress to meet a need which ha,
been felt for at least fifty years. The
act may not be perfect. Experience
may show the need OF amendments
from time to time But IL furnishes
the basis for system of intermediate
credit adapted to farm conditions and
farm needs. Also 1t should bring
about reduction In the interest
which farmers pay for money Dor.
rowed.
THE act Is divided into two parts
In the first II provides government
agencies for handling agricultural
loans. In the second 1t authorizes the
organization of private agencies under
government supervision for making
loans on livestock security and on
farm commodities on the way to mar
ket
Federal Banks
1.-THE government loan activities will
be carried on in connection with the
federal land banks. At the present
time the country is divided into twelve
districts in each of which there is a
federal land bank that makes land
'no' .sae. ,ns nse 49,. 1919
az ~ ",.,a
,ean ooI" ~
Meo'oi, .y,, . 49,
- " 49,.
u IL. LIN, ~ H., ,J 80, - ,,r
y ,.,..a s ~, ase.. 80.
ael 'no oupe. ISL - ny M. a.,
ur.oeo's =, .n u lam s 49,
;,,.a. s,,ta o.od;t ,,,,,,. ,rit,, ! o.r;1
-, .a. =. "s .s noo ooa T Hap
os,. t,,,,s ,,,,ho.
ineerineuia.e oreu.. panns az au un.u.
,Aeu ~ ue 80 80.
nave neei .ahen os oann' anu o'ne.
l'haloia. o' ".a 49,.
oa'.s SUI 49, 80. ~. NJ .an,,s
SIX iio,.hs ~ 'i.ee seai'. ny Jams
may aiso Ioan u.ico. ~
opera.'Ne aasuo.a'' ~,
eiohS SCI ioi.h III ''e "e''
Tax Exempt.
These intermediate credit banks
may issue debentures winch VIII nave
back of them the farmers notes
which the banks have taken. The IDEA
Is that these debenturcs may De SOLO
to people who wish safe invest
ment. They are exempt from TAXA
ton, just as are the ponds issued by
the federal land oanks. Inc ihleree.
charged by the 1ntermeoiate cIeol'
banks may NOT exceed py more tnal
one per cent the interest," pau on .ne
nepentures issued. anu one
VINO porroWs must n.y. pe oha 81
interest rate OF more tha,i one anu
one-hail per eeh' ao III s,t
sna,seu NoS NY 1s'
jam 80 .; n,;,, 10 70
nv uouoe 'o ,,;,,r,, =,
luiteu ~ ~ 10 r. n,i,l No net
',ioo.n ,, W.. ms NOV, hnsiness II
,,a,,,d not he yerv long however. be-
iou. ~, toets ,,.;,, he .nnarent and |
=. - Iii s,,d th.t he can bor-
aaao, oa,,t.l for . neriod IN to
!, NV W. u.ars without having TO nav an
,,s,,,,, t,;g,, interest rate without
a,,;ns 10 renew his notes every min
-, aays ~ civ months. and without
e;,r IN danger of having to sacrifice
- irons or live stock because of
udden financial furry.
.Drhe second division of the act au-
J, or;zea the organization, under a
odoroI charter. Of national agricul-
,r.l credit COMBINATIONS. these to be
10, nized nv priyate capital. They
iii he under the supervision of the
an ntrolyer of the currency, Just as
70 other national banking institu-
ons. They must have a capital stock
Z AZ least so50.0oo. They may issue
o,,ateral trust debentures up to ten
NOS their canita, and surplus. Such
will probably be organ
ed in the western states where the
yestocls industry is important and
here cattle loan companies now are
oneration.
I'm addition to the provisions of the
# designed to furnish the farmer
nch needed intermediate credit. GER .
in changes have been made in the
Wv under which the federal land
,nks onerate and in the federal re-
rye act Provision for the estab-
shment of the so-called permanent
,ranization of the ~ federal land
nI.s 10 made nv providing that three &
n of tbe seven directors for each
INK are to be elected by the bor-
wers from the bank while three are
Z no anno,nted nv the federal farm
an bureau. The seventh director
-, 49, -.s. - 49,