The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-08-22

llOu.)
The agricultural credits act of 1872;
approved by President Harding O.
March 4, creates for the agriculture
and livestock interests an independen
banking system of a permanent char
| acter, having as it's main object
longer time credits than commercial
banks generally care to make an,
lower rates of interest. 1t was no
established, as some think, for thu
purpose of opening the floodgates o
credit to the worthy and unworth.
alike, without any thought as to thu
security back of the loans to bt
offered.
Complaints have been heard tina
many worthy farmers have been de.
prived of credit because their loca
institutions were not in a position tC
assist them and that the interest rates
charged were too high, and were dis
crimatory in favor of the merchant
and manufacturer, regardless of the
fact that the farming industry repre-
sents the largest capital investment OF
any in the country, employs more
people and furnishes the raw material
for the textile, leather and food in
dustries.
"a remedy has now been provided
to meet these unsatisfactory condi-
tons, blu tit will require little eff
fort on the part of the individual
farmers to avail themselves of the
facilities offered by this new credit
machinery and a little patience as
well, for an institution of this kind,
without any precedent to follow, can
not become thoroughly operative in a
short period of time but must be de-
veloped gradually.
1t is conceded by everyone who
is familiar with their operations that
the federal land banks have been a
signal success, both from a financial
viewpoint and from the viewpoint of
assistance to the agricultural inter-
ests. They have not only given the
farmer much lower rates of interest
on his farm loan than he was accus-
toned to get, but have given him
much more favorable terms of pay
ment. Had these land banks not been
In operation during these years of
stress, no one knows what rates of
interest the farmer would have been
required to pay, if, indeed, he could
nave obtained loan at any price.
FARMERS are not objects of mercy
and are too self-respecting and proud
10 ask their banks or their govern
ment to class them as such. They
DO not expect financial assistance ex-
cept upon fair and equitable basis,
but they have asked for a method
whereby they can finance themselves
and the federal intermediate credit
bank is the answer. Only loans based
upon agricultural products and live
stock can be considered by this bank
so that it is, in fact, strictly an agri-
cultural institution.
1t has been intimated that the
establishment of this bank is for the
purpose OF making loans that no other
financial institution will consider and
because OF this, it's operations will
result IN initiating our present con-
litlon to dangerous degree. This |
new is quite erroneous for while we |
snail be able to accept loans that |
commercial banks receiving deposits
10 not care to accept, because of the |
ength Of time they have to run. and |
lt lower rate of interest than has
Prevailed in the past, vet we cannot
consider loans of a doubtful or weak
character.
Those who criticise the system on
ne grounds that it provides a method
or helping the farmer to get farther
nto debt but makes no provision TO
elp MIN get out of debt have failed
FULLY inform themselves on the SUBJ
ect. 1T is just as necessary for the
armer TO borrow for his legitimate
eeds as 1T is the merchant or manu-
acturer and it is quite as important
nat he should have as favorable
@rms and as low rates of interest
u thls Will aid him to prosper and
ne prospers, he will be able TO
ct out of debt. We are not helm
" the farmer to get into debt when
assist in financing cooperative
'soclatlons which have for their OBJ
ct oetter marketing conditions and
ore equitable and stable prices for
sricultural products. 1t is not ex- ]
scled tnat loans to farmers will be
1duly increased, but that thew will
transferred to system giving
ore favorable terms. q
The Federal Intermediate Credit 7
INK cannot accept loans from in I
VldualS, but they must be offered '
rough the following four mediums. s
INKS Estate and nationally, livestock C
an companies, agricultural credit O
operations and cooperative assocfa- t.
ms. g
. Loans will be taken from banks t
tn their endorsement in the same F
inner as those taken by the federal !,
serve bank, but the margin of pro- Il
10 the sending bank is not as r.
eat We may accept loans from a
nks IN the amount of twice their o.
impaired capital and surplus, pro
ed that their aggregate liabilities. bi
ether direct or contingent (other al
IN bona fide deposits) do not ex- al
ID this amount and provided the W
vs. governing the state banks do IN
otherwise limit the amount of OF
n liabilities. OF
livestock loan companies must be III
anIzed under state laws and at pc
sent there are such companies in ca
the four states (Montana, Idaho. tlt
gon, and Washington comprising
twelfth district. Some of these by