The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-06-09
LEWIS DIRECTOR
FARM LOAN BANK
MOSCOW MAN VICE PRESIDENT
OF BANK-INTERMED
CREDIT BANK

senator M. II. Lewis returned nome
Friday from Spokane, where he at
tended the organization meeting of
the board of directors of the FEEDER
al Farm Loan Bank of Spokane, of
which he is a recently appointed
member. Mr.. Lewis was elected vice
president of the bank. His connect
ion with the bank, however, will take
but few days of his time and will
not interfere with his local business
enterprises, with the exception of
necessitating his resigning as direc-
tor and vice president of the First
Trust & Savings bank, which position
he has held since 1907
The Spokane Farm Loan bank has
been operated by the temporary or
ganization, consisting of five direct
ors, until the law of 1928 went into
effect June /. This law provides for
seven directors. The Spokane bank
territory includes the four states of
Montana, Idaho, Washington and
Oregon, divided into three districts.
The local farm loan associations in
each district elected one director, the
four states elected one at large, Sc
lecting ID. G. O'Shea, president of the
bank since its organization, and the
federal farm loan board at Washing
ton, ID. c., appointed the other three
Mr.. Lewis is appointed for the two
year term
At the permanent organization
meeting, held in Spokane Thursday,
Mr.. O'Shea was reelected president;
Mr.. Lewis, vice president; A. B.
Thomas, of Oregon, secretary, and
M. Dreher, of Washington treasurer
Control intermediate Bank
The board of directors of the farm
loan bank, also controls the federal
intermediate credit bank, which is
operated in connection with the Fed
eral Land Bank of Spokane The
federal intermediate credit bank is
a bank of discount, created by a re-
cent law in order to make available
short time loans for farmers. The
intent of the law is to make it pos
Sible for the farmer to hold his grain
so as to market it to the best ad-
vantage, but will not finance him for
The purpose of holding grain indefin-
tely for speculative purposes.
The intermediate credit bank will
only discount paper taken by banks
'or loans for agricultural purposes.
or paper from farm organizations.
The paper is discounted for from six
months to three years and the dis
count rate has been fixed by the
board at five and one-half per cent.
The banks taking the paper original
y are allowed to charge the borrower
per cent interest. The paper must
be guaranteed to the intermediate
credit bank by the original holder.
The security behind the paper, as
liked by law, is warehouse receipts
or grain in bonded warehouses, or
livestock, secured by chattel mort
rage. The discount limit is rs per
A,,+ f1f L.
Mediate credit bank has the right to
all for additional security, or to sell
portion of the property to protect
tself if the market declines. The
arm products upon which loans are
made are grain, tobacco, cotton, wool
md peanuts.
Will Authorize Limit
At the present time, according to
Ir. Lewis, the bank will not discount
'aper beyond the nine months period.
The three-year limit will be author
zed, in all probability, within the
ear.
In putting it into effect examina-
ion of state laws governing livestock,
uarantine regulations and the
of diseased cattle are
involved. These investigations will
be made within the year.
The law creating the intermediate
redit bank changes the federal re-
erve bank law, extending the dis
cunt period to nine months.
Mr.. Lewis was selected as di-
ector in the Federal Farm Loan
tank of Spokane because of his broad
usiness experience and his familiar
" with the conditions obtaining in
he four states comprising the Spo-
ane bank district.