Evening star., 1924-08-14
CREDIT FIRM LOANS,
OVER S4,0O0,0(Q
Corporation to Aid Banks
and Farmers Makes ~
First Report. 10

The Agricultural Credit Corporation,
formed by private capital at sugges-
ton Of the Government to aid the
farmer and general business in thar
Northwest, has made "loans and in
vestments totalling over $4,000. .0oe4,
aHeoting more than 200 banks" ac-
cording to a report of it's activities
as of July IL, made today. nor
Ine organization reported that its
nrst stroke had been the checking
OF bank closings." in which it had
worked quietly and without publicity,
except as desired by the banks in,
question. This first policy is now be-
ing followed up. by assisting indiyia-
ual farmers to increase their earn
ings, through the purchase of profit
able live stock
Idea Proved Sound.
The corporation. which organized
with an authorized capital of $4,000
900, and operated for the most part
out of-St. Paul and Minneapolis, real
1zed, 1t was said, that no one device
OF this kind will cover for all time
the difficulties of the farmer any more
than any device can be invented [,
remove all difficulties in the opera
ton of any other line of business.
I'm view of the results which have
thus far been obtained" continues
the report, ''it would seem that the
soundness of the idea originally ad-
vanced by President Coolidge has
been demonstrated, and the effect of
the work which has thus far been done
by the corporation will result in a
permanent benefit to many thousands
of people in the Northwest, and indi-
rectiy be of benefit to the entire
country"
IN ha
there are 43S subscribers. ranging
in amount from 5000 upward. The
subscription list, it was reported, com
prises business interests centering in
and around Minneapolis. st. Paul.
Duluth, Milwaukee, Chicago. Detroit.
Cleveland. Pittsburgh, Philadelphia.
New York, Hartford and Boston.
Much Financial Help.
Help was extended to banks with
a total of approximately s45.000,000
deposits. THE safeguarding of these
deposits it was said. has unques-
tionably been of direct benefit to
many thousands of individuals, very
large percentage of whom are en-
gaaed in agriculture, live stock rails
ing. dairying, and businesses depend
ent thereon.
In a great many cases the loans
the means of saving the investment
in the financial institutions of the
very people who can be counted upon
to do the most in bringing back
values and promoting the profitable
conduct of business in their respec-
tive communities.
Investments by the corporation in
banks in the States affected were re
ported as follows:. Minnesota, l.
banks, S404.000; North Dakota. 9S
banks, s1.2i2,0OO; South Dakota. 81
banks, s1.547 900; Montana. % banks,
$SS6.000. and special outside cases,
banks, S17S,00o.
Aims of Directors.
One of the first principles laid down
by the directors and officers of the
corporation was that the aid rem
dered by the corporation should be SO
handled as to benefit the community,
and not used to pay off other credi-
tors, such as large city correspondent
banks. Federal Reserve Bank, War
Finance Corporation or any other ex-
listing agencies which were able to
carry whatever loans they might
have. The corporation has as
sisted in peopening nine banks, which
is not a large number considering the
number which have been closed with
in the last two years.
1T has preferred to assist the going
| bank rather than to revive closed
bank, which if revived. would only
add to the difficulties of the territory
later by bringing on unbusinesslike
competiti in the struggle for Suf
fcient business on which to exist"
While it was recognized by the sew
eral State banking departments and
the controllers office at Washington,
the corporation pointed out, that the
l H.. has H.
territory did not cause the general
| troubles of the country. these banks
did. however. add to the difficulties
and place an additional barrier in the
way of restoration of sound basic con-
ditions"
The interest rate charged was per
cent, "generally conceded to be a low
rate in the territory of operations"
AS no commissions or lending charges
| were made. the corporation said. lit
will readily be seen that the invest
ment return to the subscribers after
| operating expenses and inevitable
losses are deducted wilt at best be
very small.
The corporation co-operated in
many instances with local committees
in establishing credit. 1t relieved
some farmers of excessive interest
charges on their past due taxes and
1t is intended to assist great many
more as soon as 1t can safely do So
and not be in conflict with existing
laws and rulings in some of the
States"
Local Trading Light.
Trading on the Washington EX
change today was light, with prices
firm. National Mortgage and Invest
| ment preferred provided the most
active feature, 10 shares selling at
c ierL
easier, five shares going at 93 q and
15 at 93A. The only activity on the
bond side was in Washington Gas 6s
with $1,000 selling at 101 y.
Quickly Pay for stock.
Although payments for the Ameri
can Telephone and Telegraph Com
pany's recent $150,000,000 stock Of
fering to stockholders could have
been spread over period of eight
months, more than S130.000,000 in
cash. representing about Sc per cent
of the total, already has been re
ceived Most of the stockholders took
advantage of the provision to pay
Ib cir subscriptions in full on August
/, at price of 1925 share.
Given Bond Authority.
The Lehigh Valley Railroad has re-
ceived authority of the Interstate
Commerce Commission to sell not ex
i.ceeding $4,000 of general coRsol-
idated mortgage 5 per cent bonds at
not less than 96.5 per cent of par
Fewer Surplus Cars.
Surplus freight cars in good repair
and Immediately available for service
totaled 322,530 on July 81. according
to the American Railway Association.
This was a decrease of 22,362 cars
from the number reported ON July
%. Surplus coal cars in good repair
on July 81 totaled 146,S40, a decrease