Fitzgerald leader enterprise and press. (Fitzgerald, Ben Hill County, Ga.) 1921-1964, 1924-11-20
INFERNO DIATE
CREDIT BANK IS
HELP TO FARMERS
Would Be of Assistance to Ben Hill
Farmers If Such an Institution
Were Organized Here

Since the passing of the act creating
the Farm oLan Bank, and the Inter
mediae Credit Bank, for the purpose
of assisting the farmer in financing his
crops, paying lower rate of interest
banking institutions, we have been
greatly interested in the location OF
one of these institutions in Fitzgerald
for the purpose of helping Ben Hill
County farmers i'll securing funds by
which to operate their farms for the
next season.
Mr.. V. L. Collier, Agricultural
Marketing agent for the A. B. & A,
succeeding Mr. G. B. Eunice, who has
seen these banks in operation on the
Carolina Coast, helping Carolina far
mers in the growing Of tobacco and
truck, and himself interested in the
progress of South Georgia farm &C
tivities, especially that section through
which the A. B. & A. traverses, at our
request drew up the following simple
outline of the purpose and operation
OF these intermediate Credit Banks as
he has seen them in use in the Caro-
linas:
Organization
Organization of an intermediate
Credit Bank, an Associated Institution
with the Federal Farm Loan Bank and
created under the same law, first must
have a minimum capital of $4,000
paid in. Chartered under the Banking
laws of the state where located, must
have. regular board of directors, pres
ident, vice-president and secretary with
special loan committee composed
of men who are acquainted with loo
cal conditions and the crop to be fl
uanced, Capital stock must be fully
paid in in ESQ cash before charter is
effective, remainder in cash or APPROX
ed bankable notes, 700 of stock to be
invested in, Liberty bonds or other
approved bonds and deposited with the
Parent Bank at Columbia, S. c.
Operation
| This money can only be used TOR
the production of crops and the buy
ing of live stock (the live stock propo-
eition will not be treated in this ar
ticle) and can only be obtained by
those actively engaged in the work.
The borrower makes out the budget
of his proposed farming operation for
the year on q blank form furnished by
the local bank stating the acreage to
be titled, amounts of fertilizer, seed
and other essentials to be used in the
crop. Attached to this budget on an
other blank form furnished by the
bank is the borrowers sworn financial
statement giving in detail the amount
he is able to put in to the crop in the
way of his own labor, mules, feed, wa
CONS, implements, houses in which to
prepare the crop for market, etc. These
papers are put before the local loan
committee and is approved for the
amount the committee sees fit, then
it is passed up to the Bank at Column
bia approved and the money is sent to
the local bank where it is checked out
10 the borrower according to the terms
of the application.
Terms
| Under the law this money must be
loaned, used, collected and returned
within one year and must be fitted to
the crop to be financed, as the money
is obtained from the sale of short term
debentures or bonds which are salable
at from three and a half to four and
a half per cent of which the bank at
Columbia uses one-half of one per
cent and the local bank uses one per
cent. The borrower gets it at 1N%
above what the investor pays for the
bend. Thus if the bond is sold for four
FER cent the borrower gets the money
at so per cent.
Restrictions
The Loan Committee has the right
to direct the manner and place of sale
and the way in which collections are
i to be made as for instance, take the
tobacco crop. they could specify the
| Fitzgerald market giving the ware
| houseman authority to collect pro-
ceeds. pay the loan and turn the re-
mainder over to the grower, etc.
Benefits Derived
The crop itself carries the burden of
finance, the borrower is educated by
means of this budget, in as much as
he must operate within a preconceived
| plan. He saves the difference between
the time or credit price and the cash
price which in guano alone amounts to
from $500 to $500 per ton. He has
the finances to keep his crop well Gull
tivated. He gets the benefit of cooper
alive effort in harvesting and selling his
crop. He retains his self respect and
gets the reward of his labor and the
town and community gets the benefit
Of the wealth created.