Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1930-09-05

Of the drought therein, relief from which
may be had along the following lines:
"First-lt is clear to US that the primary
duty in the premises rests upon the local
banker. He Is most familiar with the con-
ditions in his community and the especial
problems Of his customer. He should utilize
first Of all his credit with his correspondent
bank.
"Second-He should offer for rediscount
such eligible paper as he may have or can
make to the Federal Reserve Bank or the
intermediate Credit Bank operating in his
territory.
"Third-Existine agricultural credit cor
porations should utilize their full available
lines Of rediscount with the Intermediate
Credit Banks. II necessary. capital struc-
lures Of such existing corporations should be
increased in order to make available larger
lines of rediscount with the Intermediate
Credit Bank.
"Fourth-Where no agricultural credit
corporations exist and where other credit
facilities are not available. we urge on
bankers, business men and farmers that
they proceed at once to the formation Of
agricultural credit corporations Such cor
porations should be capitalized on as broad
q basis as practicable. and covering con-
siderable areas. In order to attract and
hold good management. Such corporations
will prove to be valuable to the counties
or groups Of counties in which they are
located, not only as an emergency matter
but as permanent institutions in aid Of
agriculture.
While corporations cannot and ought not
to make unsound loans. yet they can per-
form a great service in aid Of farmers and
bankers in afiording lone-tefm loans. and
In expanding the financial resources of the
communities they serve. Through liberal
use Of the intermediate Credit System. this
Federal agency can be Of great assistance
in furnishing the cash under the terms Of
the law to the local agricultural credit cor
porations and through them to the farmers
Fifth Existing cooperative marketing
associations should avail themselves of the
liberal financial assistance which is offered
by the Federal Farm Board. This can be
most easily facilitated through Increased
membership Of the local agencies and by
the creation Of new agencies where none
now exist for any particular crop.
I'VE appreciate that these suggestions
do not offer the full measure Of relief which.
unfortunately. seems to be anticipated in
many quarters. nor. perhaps. will such a
program fully meet the emergency that
exists. We feel, nevertheless. that il covers
the avenues Of assistance now LEGALLY
available. and that no State. no community
or individual should insist on or expect aid
from the private banker or governmental
agency. State or Federal. except on the
terms and conditions within the purview of
existing laws and sound business prac-
tees"
The estimated loss per square mile in
Montgomery county. due to the drought,
was $5.099.59.
The estimated loss in Montgomery coun- |
ty. per capita. according to the 1890 census,
was S54.02.
The committee learned that the estI-
mated loss per farm based on the census
Of 1920 for Montgomery county was-l2i
acres: loss. $l.23LO4.
Speakers at the meeting said there was
no question Of the ability Of Maryland
banks to extend credits desired to solvent
farmers. but there would be difficulties for
the shiftless farmer. II would be undesir-
able to establish a precedent by estab-
fishing a dole. il was explained, while
many industrial employees 10 the city would
be out Of work next winter with no income
to depend on.
Abraham G. Ensor. master of the Mary
land State Grange, said approximately rs
per cent Of the farmers were insolvent
and IL farmers could borrow only on COL
lateral. he did not know what was to be-
come OF the others.
l. W. Heaps. secretary Of the Maryland
State Dairymen's Association. said thou
sands Of honest. industrious farmers must
be helped over the crises or 90 to the
poor house, He asked which would be the
cheaper investment: