The Washington times., 1924-07-02
FEDE RAJ FARM
BANKS DOING
GOOD
Farnn Loan Board Gratified
With Record Made BY In
terRnediate Banks

The Federal Farm Loan Board Il
hiEhIx gratified with the rscord
made BY all Of Federal land and
Intermediate banks. it was an
bounced today following the confer
sncs Of the board with the presi,
dents Of the banks.
Extensive use Of the Federal farm
loan system by cooperative mar
ketihg associations throughout the
country is expected BY the board,
according to Farm Loan Commits
eiOnsr Cooper The board, he said,
was nightly gratified at the recDrd
made by tho banks during the fiscal
year just closed. The meeting with
the presidents, he explained, was
largely devoted to q discussion Of
intermediate credit policies, particu-
larly cooperative marketing asso.
cation loans upon commodity ware.
house receipts.
Reports Satisfactory.
The reports of all the banks
were very satisfactory Commits.
nioner Cooper said. zone year of
operation has demonstrated the
SMQundnesss and serviceabihty Of this
new system Of agricultural credits.
The market for, intermediate credit
bank debentures has already been
veil established, and is sufficiently
broad to take care of all the pros
.pective needs OF the intetermediatc
credit banks throughout the coming
season. The banks and the board
experience no concern as to their
ability to procure ample funds at
low rates for all the loans conten-
plated by the act.
From the reports Of the several
banks, as wen as from the frequent
and thorough examination by the
STAFF Of bank examiners maintained
BY the system, It is apparent that
the banks, while extending the
maximum Of service, have hal due
yegard Tor sound business and bank
Ing principles
Total loans and rediscounts OF
III the banks to May 81, 1924, aggce.
gate $76,6S7, Sic, Of which $27 ,693, ISL
has been paid, leaving loans out
standing as Of May 81, 1924,
&4S,943.75s.
Renewals Considered.
Questions of renewals Of paper
Nare considered. As loans may not
~ made for less, than six months
ana the banks have been function.
Ing less than a year, the question
Of renewals has not, therefore, ex-
tensively arisen. The policy of the
system with reference to co-opera.
tive marketing association loans is
that, in general, the cooperative
marketing association should sell
the. commodity pledged and liqui-
date its indebtedness by the time
the new crop is ready to be
with references to loans to in.
dtviduals farmers through reds
counting agencies, the banks have
timed the maturities Of the paper
with the farming operations Of the
individual borrowers. In general,
agricultural sections maturities have
been fixed at not to- exceed nine
months. Upon live stock breeding
loans the banks have been author.
lied to make loans with maturities
not exceeding one year. Assurances
Of renewals are given only where
the collateral securing the loans
requires longer than one year for
its maturity and orderly marketing.
The Federal Farm Loan Board
n highly gratified with the records
made by all the banks. The years
experience has conclusively demon
otrated that there is distinct field
Of usefulness for this type Of agri-
cultural credit bank. and that this
service may be rendered upon q
sound and conservative business
basis"