The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-06-06

afford the original borrower an OPP
.pOrtunity of obtaining his loan al
less than rs per cent maximum, as
there should be very little overhead
expense TO the association.
In cases where a bunch of farmers
o. stockmen are not working through
a cooperative marketing association
they can form q cooperative credit
association and through this the mem
bers who have collateral can obtain
loans at very low rates.
It is the expectation Of the state de-
R~artn1aRt of agriculture that loans
can thus be obtained upon farm stor-
age certificates which were author
lied by an act of the last legislature.
The department has made application
to the intermediate credit bank for
approval of two types of warehouse
receipts as collateral for this class
of loans, one being the receipt Tor
grain held in a public storage eleva-
tor, and the other being the ware
house certificate based upon grain
stored on the farm under the new
state law.
The intermediate credit bank has
not yet passed upon this application,
but the department has reasonable
belief that it will be, approved.
Such cooperative credit associa-
tons desiring to establish rediscount
privileges must first have organized
by the adoption of bylaws and the
election of directors and officers and
the filing of articles of incorporation,
and must then file with the informed
late credit bank a copy of its charter
or articles of association, together
with a general statement of it's plan
of operation and a statement of it's
counsel that it has, under the laws of
the state, authority to rediscount pa
per. These must be approved by the
federal farm loan board before the
rediscount privilege is granted.
No paper will for the present be
rediscounted for cooperative credit
associations except that which may
be r~ediEcounted for cooperative pro-
ducing or marketing associations
where the notes or other obligations
representing such loans are secured
by warehouse receipts or shipping
documents or mortgage on livestock,
and such loans may not exceed rs per
cent of the market value Of such pro-
duct or livestock. For the present
the term agricultural product" is de-
fined to mean grain, cotton, wool. to-
bacco and peanuts. Dairy products,
eggs, fruits and vegetables are held
subject to future determination.
That the new plan is not intended
as a means whereby the struggling
farmer or stockman may be enabled
to add to his present indebtedness is
brought out by Commissioner Davis
in the following statement:
1t must be clearly understood that
this short time credit system is not
intended to be a panacea for agricul-
ture; neither is it thought of as a
means of increasing the debt under
which the farmers are already strug-
Cling. In the main, it will probably
not reach the nan who is without
safe and adequate collateral. II
should replace existing indebtedness
with loans at a much lower rate OF
interest and in a form which the
farmer can more readily meet.
"The federal land banks have oper
ated conservatively and wisely in Z
field of longtime credits and havt
done inestimable good for agriculture
The same thing should be said year
hence of the intermediate credit bank
II they are administered with clea.
wisdom and if farmers and friends O
agriculture cooperate in the prope
spirit.
This new system must not b
thought of as a move to extend credi
to men who will not be in a position
Z to meet their obligations. For thi
/, reason it will fail to reach thousand
of cases; as far as it operates, how
ever, it will afford the lowest inter
? est rate on short time loans the farm
r of the United States have eve
seen, and it's competitive inrIuenc
in that direction will prove of inesti
mabIe value"
1t is suggested that communitie
DESTROYS of going further into tn
question of organization to meet tn
requirements Of the intermediat
credit bank should get into commur
ication with Ward M. Buckles, mana
ger Of the intermediate Credit ban
of Spokane, Wash, and with Commi.
sioner Of Agriculture C. C. Davis &
Helena.-Helena Record Herald.