The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-08-03

SPOKANE t sS oto1, Idaho and Montana
c5n, Nas4NL -seayIy SS.OOO,O00 to farm
has loaIleu ., -.t marketing institu-
e. handling W|heag ,c.ot M abies cold cold
tons canned fruits yege'a aad ,o1f oIia
3nd, c frrits. beans, honey ana aIL jd59
pack i .;Tcs it was estaohSheq On, IN I2 ~
seed slLT Gos'rg cent Ward M.
ri,5G]o. -; -. vice president and mana
BucSes ~ in an address here TO-DAY
ger '.a Nv American Institute OF Co.
before '.0 Not only have we met |
0qela'lo1. IF these marketing assocI-
the ns' S,,+ we have advanced the
aiio1' a- a low rate Of interest ana |
fllas ,,rio5, in excess Of SIX months
tot per- PEI could carry out their pro |
50 tos' If orderly marketing. Zach |
grams - shown an expansion in the
gear Ia, ,,.b;cb this bank is rendering
service pla:fi. Northwest both as to
in InT loaned and associations serv-
cd ,.,ed;ate credit is furnished by
I treiye institutions capitalized by
n. ffo5fral government in 1873, nay
the 1nroltfntial lending power Of $50
NE "a. d dollars which lend directly to
MINI a'r,,ers' CO. Operative marketing
me l t@ti and Indirectly to farmers
ASHER .soiT notes given to banks, agrl-
Oh uni credit corporations and live
CuI' y. Ion companies. These local in
stitgtions take notes, endorse them i
s"i discount them with the FederaI
IMMEDIATE Credit Bank, much as
l II. members of the federal reserve
~. ..,+om discount paper with the fed
s.oI reserve banks.
eI @pr i 10 the establishment of the
I. .,J Intermediate Credit Bank, it
diffic,llt for cooperative market
Wa os.ociations to obtain necessary
rus even at comparatively
I t,I'' rate of interest" explained Mr..
Dsauas "This was not entirely due
pun t5o fact that some commercial
ILL., " we're not in sympathy with the
yam, ,or,ont but partially due to the
E.t that many of these large assocl-
lion. lasy we're operating in communities
eso+ did not have adequate financial
Utilities ;la TO handle their requirements
n1J # was out of the question to go
a. the larger centers for the reason
tSor were not known and had no eS'
tabiished credit. :. o,:4
'' %TIo Federal intermediate Credit
nj, er.+em has, so to speak, brot
- p"t tbp Ioor of properly organized ard
u,onerly managed cooperative assocl-
p pt;1ras all the necessary f1nanclng
p%;s5 such associations require and al
nrch lower rate Of interest IMAM
has e,tr prevailed heretofore fcr
If Is not the purpose Of tie Fed
o,,i Intermediate Credit Bank to en-
c@raUe Withholding a COMMONLY
from market nor to encourage specu-
istioo ii the commodity, but 1t IS lC
animate the necessity of dumping
commodity on a distressed market
Hereby demoralizing prices at a tlIne
Vbeo there is an abundance OF the
commodity. with the result that the
nrcp is urduly enhanced when the
commodity is scarce and is IN the
hands of a few people. 1t Is the tune
fon of q cooperative ASSOCIATION u
market its commodity in an orderl!
manner and it is one of the functions
If the Federal intermediate Credl
Banks to assist in this PROCLAIM :.
Mr.. Buckles told those ATTENDING
the institute that an association Dor
rowing from the Federal Intermediate
Credit Bank must be 'SimOn-pure,
that is. ORGANIZED on a non-prOflt bas
is with a pooling arrangement TO
h9ndlino the cOmmOditV
"The membership contract is prob
ably one of the most important FAC
tois of the entire organization" n
continued. During the last f1v
years the trend Of thought has chang
ed somewhat as to requirements ths
should be included in those contract
It used to be that a certain percent
age Of a commodity in the cOmmmt
should be signed up and that the COZ
tract should be for a definite periO
and renewed at the end of that per1o
but now it is generally conceded tn;
In order to be successful it is not al
SOutely essential, except pOssibl
with certain commodities, to hay
any large percentake of the cOmmod
" under contract. The contract,
course, must be so drawn as to pa
ute to the commodity from the i
diyldual to the association so that Il
association can borrow money on tt
same and pledge it as security. 1t
essential that sale and resale for
Ol contract should be used rather tn;
an agency contract, if it is desir
70 borrow money to finance the mel
bers. "
/ am coming to believe that co
uaGIlng or indefinite contract with
|ll{Jndrawal privilege is the prefe
Joe form for in that way it is lie
uHIlcult to maintain the cOntinui
VI Ihe organization. 1t is hare
probable that any great percenta
VI members will withdraw on a Civ
I;aSe OF the year and if definite o,
tOu Is determined for which the CO
o JSclS shall lun the association is tn
contract.
Before making a loan we ascert;
paIucularly if the association
Ueen continually successful over
beIlOG OF years or if it has had
on T'i "a and fractional troubles to we;
Al Us operations, we try to determ
taT,n causes. We do not care to
San npt TO finance an association VIII
m mos, because Of its membership or
t saf;1nagement, not been able to ma
AZ" a. friendly spirit of co-operat
snl 'ilS IN our opinion will weal
co a'G break down the structure Of
fS.UspeIatlve association more ouic
''a s[1 any other thing.
pbo we feel that too strong an
n nnpsls cannot be placed on the
obte;ncc{e, OF employing the best I
Of bi ;na 9 for manager and requil
VIE mn the HIGHEST standard of