The Cordova daily times., 1923-04-03
FARMERS AID
 PROMISED BY NEW CONGRESS

the Secretary of Agriculture, Henry C. Wallace, says soon will be function ing. MT. Wallace, in describing the the new act, says: "On the last day it was in session Congress enacted the Agricultural Credits Act. This act is designed to give the farmer the sort of credit he needs to produce efficient ly and market in an orderly way the products of the farm. It is an effort by Congress to meet need which has been felt for at least fifty years. The act may not be perfect. Experi- ence may show the need of amend ments from time to time. But it furn- ishes the basis for system of inter- mediate credit adapted to farm con- ditions and farm needs. Also it should bring about reduction in the interest which farmers pay for money bor- roWed.
 "The act is divided into two parts. In the first it provides Government agencies for handling agricultural loans. In the second it 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.
 "The Government loan activities will be carried on in connection with T1a ov1r i1n eI.t time the country is divided into twelve districts in each of which there is Federal land bank that makes land mortgage loans. These twelve banks are directed by a central Fed eral Farm Loan Bureau in Washing ton. In connection with each of these land banks there is to be es- tablished an intermediate credit bank, located in the same city with the land bank and under the supervision of the officers and directors of the land plies each of these intermediate credit banks with a capital of not to exceed $5,000,000. These intermedi- ate credit banks are authorized to dis count farmers notes which have been taken by banks and other financial institutions, and then can carry such notes for a term of from six months to three years. The banks may also loan direct to farmers cooperative as- sociations under conditions set forth in the act.
 "These intermediate credit banks may issue debentures which will have back of them the farmers notes which the banks have taken. The idea is that these debentures may be sold to people who wish safe investment. They are exempt from taxation, just as are the bonds issued by the Federal land banks. The interest charged by the intermediate credit banks may not exceed by more than one per cent the interest paid on the deben- lures issued and the farmer who bor- rows must not be charged an interest rate of more than one and one-half per cent above the interest charged by the intermediate credit bank.
 "No doubt some time will be re- uuired to get this machinery in smooth working order It will be just like building np a new business. It should not be very long, however, before the benefits will be apparent and the farmer will find that he can borrow needed capital for period up to three years without having to pay an un- duly high interest rate, without hav- ing to renew his notes every ninety days or six months, and without being in danger of having to sacri- flee his crops or live stock because of sudden financial furry.
 '"The second division of the act au- thorizes the organization, under Federal charter, of national agricul- tural credit corporations, these to be organized by private capital. They will be under the supervision of the Comptroller of the Currency, just as
 
 tions. They must have a capital stock of at least $250000. They may issue collateral trust debentures up to ten times their capital and surplus. Such corporations will probably be organ ized in the western states where the livestock industry is important and where cattle loan companies now are in operation.
 ''In addition to the provisions of the act designed to furnish the farmer much needed intermediate credit, cer- tain changes have been made in the law under which the Federal land banks operate and in the Federal Re. serve Act. Provision for the estab- lishment of the so-called permanent organization of the twelve Federal land banks is made by providing that