Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1924-02-01

COOPERATIVE associations will
~ market considerably more farm
products in 1923 than they did last
year. 1t is indicated in reports to the
Department of Agriculture. While it
is impossible to estimate how much
business they will do, the fact that
new associations are being formed
and old ones enlarged is ground for
years crops to be marketed CO.
operatively will exceed all former
figures. A big factor in promoting
cooperative marketing is the i'm.
provement made In credit facilities
recently.
First steps toward better credit ac-
commodation for temperatures were
taken in 1921, when Congress en-
,arged the powers of the War FL
nance Corporation. Up to date that
organization has authorized advances
TO co-operatives amounting to more
than $190,000.000. Although only $685.
100000 of the money has been actually
used, the fact that it was available
has been a powerful beneficial infu-
ence say officials of the department.
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 in
stitutions will function much as the
War Finance Corporation has done in
giving confidence and loosening up
additional outside credit. They have
already authorized advances of about
s5,000,000 to farmers cooperative as
sociations handling cotton, wheat,
wool, tobacco and canned fruits.
1t is pointed out that the real SER
vice of the intermedite credit banks,
like that of the War Finance Corpor
alton, cannot be measured merely by
the volume of their discounts or adj
vances Their chief value is seen in
The fact that the credit made avail
able by them often induces or encour-
ages private financial institutions to
offer credit accommodation, when
otherwise they might stand aloof
Some cooperative marketing associ-
ations in the last two years have been
offered adequate credit from private
sources only after they had obtained
pledges of accommodation from the
government agencies.
the intermediate credit banks seem
likely nevertheless to operate soon
on bigger scale than was expected.
Each of the IL institutions was pro-
vided with capital Of $1,000,000 from
the treasury Immediately it was or
ganized. Five of them have since
called for additional capital to a to-
tai amount of $5,000,00O so that the
present paid-in capital of the IL banks
is $17,000000. Moreover, an issue of
debentures to the amount of 100000
900 has been sold in anticipation of
a large demand for discounts and ad-
vances in the coming marketing sea-
son. Discounts Of agricultural paper
for banks have been made to the
amount of $1,0o00O0 by the interme,
diate credit institutions.
For the present the Federal Farm
Loan Board, which supervses 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
necessary. Reliance on renewals
from the intermediate credit banks,
according to officials Of the Depart
ment of Agriculture, has a stronger
justification than is the case where
loans of commercial banks are con-
cerned, because the latter are always
under the obligation of protecting
their deposit liabilities.
Although financing Of cooperative
associations probably will call for
considerably more money this year
than ever before, managers of such
associations are confident all neces-
sary accommodation will be avail
able. They report that bankers all
over the country are readily taking
cooperative paper. One cooperative
organization leader In Arizona says