, 1923-10-24
Market More Farm
Products in 1923
Coz Operative Associations
Making Good Use Of
Credit Facilities.

Z EtpufeO Dy tne Untted Statea department
of Agriculture.)
cooperative associations Will mar
ket considerably more farm products
In 1923 than they did last year, 1t is
Indicated In reports to the Department
of Agriculture. While 1t is impossible
to estimate how much business they
will do, the fact that new associations
are being formed and old mes en-
larged is ground for the belief thai
the amount of the years crops to be
marketed comparatively will exceed
all former figures. A big factor in
promoting cooperative marketing is
the improvement made In credit facii-
tiles recently.
First steps toward better credit ac-
commodation for c~o-operatives were
taken in 1921, when congress enlarged
the powers of the War Finance cor
poration. Up to date that organiza-
ton has authorized advances to CO.
operatives amounting to more than
S19O,000,000 Although only S3S,500,OoO
of the money has been actually used,
the fact that 1t was available has been
a powerful beneficial influence, say
officials of the department.
Opening Lines Of Credit.
Many cooperative associations are
opening up lines of credit at the new
intermediate credit banks, because the
War Finance corporation will cease
making advances on February 20 next.
1t is believed the new institutions will
function much as the War Finance
corporation has lone in giving conf
dence and loosening up additional out
side credit. They have already au-
thorlzed advances of about $5,000,O00
to farmers cooperative associations
handling cotton, wheat, wool, tobacco
and canned fruits.
1t is pointed out that the real serv-
ice of the intermediate credit banks,
like that of the War Finance corpora
ton, cannot be measured merely by
the volume of their discounts or ad-
vances. Their chief value is seen In
the fact that the credit made available
by them often induces or encourages
private financial institutions to offer
credit accommodation, when otherwise
they might stand aloof.
The intermediate credit banks seem
likely nevertheless to operate soon on
a bigger scale than was expected.
Each of the twelve institutions was
provided with a capital of S1,000,OOO
from the treasury Immediately 1t was
organized. Five of them have since
called for additional capital to n
total amount of S5,000,OOO, so that the
present paid-ln capital of the twelve
banks is SIT, 100000. Moreover, an Is
of debentures to the amount Of
ton of a large demand for discounts
and advances in the coming marketing
season. Discounts of agricultural pa
per for banks have been made to the
amoun of 100000 by the intermedi-
ate credit institutions.
Limiting Loans.
For the present, the federal farm
loan board. which supervises the
banks. is limiting loans and discounts
to terms of nine months. Borrowers,
however. have the practical assurance
that the terms will be renewed when
htteSSuis. INtlluhNt ph IthtN ulS lIpll
the intermediate credit banks, accord
Ing to officials of the Department of
Agriculture, ms a stronger justifica-
ton than Is the case where loans of
commercial banks are concerned, be
cause the latter are always under the
obligation of protecting their deposit
liabilities.
Although financing of cooperative
associations probably will call for con
siderably more money this year than
ver before, managers Of such asso-
Citations are confident all necessary ac-
commodation will be available. They
report hat bankers all over the coun-
try are readily taking cooperative pa
per. One cooperative organization
leader In Arizona says many assocla-
lions In that state have o needed
to borrow from the War Finance cor
poration or the intermediate credit
banks. because ample funds have been
available to them from private bank
ers on very favorable terms.