The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-09-26

]
alton has they know that it is
rot a practical working plan and
for that reason is not catering to
TIC plan, but is always prepared
10 make any loan large or Small.e
All the experience those officers
ever hcd in the grain business they
OF in the old line grain trade and
+ it IS little wonder that they are
mot INTERESTED IN PRO
NOTING FARM STORAGE"
But why not give the real rea-
eon2 And is the last clause of /
1Ir. Olson'S statement true? VIII
Iljv. Olson kindly cite one instance
where the Northwest Grain Asso-
cation has loaned money on
lTARM STORED grain? I am
ct saying that they carrot do so.
ut they cannot get the money
from the Farm Board or the In
'tcmediate Credit Bank for that
purpose for the very simple rea-
s5n that they have TO INDINIDU-
IL FARMER MEMBERSHIP.
Whatever member ship the North
west Grain Association has con-
sistS Of elevator associations while
I've Farmers Union Terminal As
scciatioC 5 composed of both Gle
vator associations and many thous-
gnd individual farmers.
The individual elevator or indi-
vidual farmer desiring to borrow
money on stored grain may borrow
that money from any individual or
hank or other organization willing
10 loan it, but the party lending
the money usually has certain
rules and requirements which must
Ne met by the other party. Now
the Farm Board and the Interme-
Hate Credit Bank do not make
loars direct to individual elevators
or farmers, but to the REGIONAL
marketing associations based on
ecuritieS furnished by the mem
hers of the regional association.
II used to be that local banks
would take a chattel mortgage or
: farm stored grain, but that DAY
has passed But the state has pro.
N ,i|ed thpt certain ruhhc office,
!, Brown as Q Grain Inspector may
a issue storage certificates Just as
n snOther officer issues dog license:
Is or marriage certificates. Wher
Mr.. Ehrmanntraut issues a stor
l. age certificate on farm stored
N grain, that ticket or certificate j!
: negotiable paper representing &C
e tual grain in a sealed bin on ;
y certain farm and when a farmer
IN sells that ticket to his neighoor O.
X TO a local banker, the possession
cf that ticket carries with il tn,
aS title TO that grain and the purchaS
% er may haul il away any time h
II wishes to do so, just as if he ha,
20 bought a dozen pigs.
u But if the farmer Just wants
nc loan on the grain, he may put tina
n storage certificate up as Securit
If he can find somebody willint
u loan him the money. II so hap
: pens that the intermediate Cred
ne Bank will loan money on the=
: certificates, but it is a good b,
81 Ike an eighteen year old boy Try
ia ing to buy a horse on time. Tt
al man selling the horse will take IN
o. boys note-IF the boys fathe
.u- viii sign with him.
~, ~, So the intermediate Cred
ne Bank loans the money to the r,
nc aional marketing association While
N turn re-loans the money to il
III individual member, and puts U
the members note and chatt
/, mortgage and insurance policy {
\ security for the loan.
And it so happens that the Fa
merS Union Terminal Associate
Is the ONLY regional grain ma
keting agency operating in tn
RS territory which has been able
meet the requirements of the 1
I'd termediate Credit Bank regardir
loans to be made on FARM ST0l
,f I'D grain. Have | made TIL
-, plain?
In addition to the usual chat
mortgage, the intermediate Cred
- Bank requires that the farmer fu
Ne niSh an insurance policy whi
~ covers loss BY fire, theft or TO
On nadO, and guarantees delivery
ths the grain to some marketing poi
,a~ in case the farmer fails to haul
80 in.
'~nI And it so happens that that XII
Of insurance can be had from CT
+ho tain companies which deal or
- with Farmers Union membe
-. much cheaper than from any OF
-L;s er companies doing that kind
ex business. In fact / know of
4 other concern dcirg it at all.
~ From all of the foregoing
nf must be apparent why the ST.
49, grain inspectors of Montana {
: said to favor the Farmers Uni
, of They were appointed upon the r
ommendatiOn OF the Farm,
ars, Union members of the seve
counties and practically nobody
90 Farmers Union members make
Of their services. But any bo
Tide farmer may join the Farm
Union.
oOtA AND there Is very import
reason why farmers should
fleet their grain at home even if
gels Northwest Grain Association
esiSt rot interested. No earnest 5
the aent of the cooperative movem
'lson weeds to have any explanation
ldan Ard no man is fit To be
Err manager of a cooperative elev
or If he cannot act the part of
ac- teacher amongst the farmers
gen his community, and the day is c,
the inc when he viii be Just that
ton leader of the cooperative thou
arm Of his community.
IN trust that Mr.. Olson viii m
~ more detailed study Of the v
= y Gus marketing agencies end 1