Evening star., 1931-11-06
LAUNCHES
FARM CREDIT PLAN
Minnesota'S Rural Financing
!, Operations Are Followed
by Dominion.
BY DANIEL ROCKFORD.

Special Dispatch to The Star
NEW YORK, November 6.-Credii
corporations have become the financial
6,showed the way by organizing the high
T1y successful Agricultural Credit Corpo-
ration at the instance of Frederick E
Murphy, publisher of the Minneapolis
s,Tribue, and it accelerated the rate OF
bank failures in the Northwest and
then stocked the farms with better live
stock in a revolutionary farm Selective
diversification program. There was the
laboratory test for credit corporations
Then came the National Credit
Corporation at the instigation OF Presi-
dent Hoover, who in 1928 had hand
in starting the Agricultural Creol'
Corporation in the Northwest.
~ Northwest Plan Copied.
Now follows Canada with its Do
minion Agricultural Credit Co. which,
Mr.. Murphy pointed out here, Is
an exact copy of the Agricultural Credit
CORPORATION of the Northwest. Mr..
- Murphy predicted a great success for
1t in reducing Canadian wheat acreage
and lifting the level of Canadian farm
prosperity by stocking farms with bet
ter live stock.
Details of the new Dominion Agri-
cultural Credit Co. were MADE pupnc
here today by representatives OF the
Canadian organizers.
The chief Canadian banks, rallroads;
Assurance companies, ana lnouStlla!
and commercial groups have subscribed
Its five million dollars capital ana Ine
fund is to become active In the very
near future.
ang fund for loans to enable Cal1aolaIl
grain and cash crop farmers 70 nuy
live stock dairy cattle, sheep ana SWINE
and shift from wheat to selectlVe 0l-
Versification in farm products. Inc
four States Of Minnesota, the Dakotas'
nnd Montana increased their farm m
come seven hundred million dollars
An eight wears, an average OF $1,67S per
farm from 1921, by the Minnesota
plan. They were financed In the sniit
IRON grains by the Agricultural CreoLs
Corporation of Minneapolis, ORGANIZED
IN io2s bv Publisher Murphy with the
co-oneration of President Coondge,
Eecretary of Commerce Hoover, Eugene
.AEever of the War Finance Corporatlon'
sThonnas P. Cochrane OF the y. r.
.H1orcan Co. of New York and a group
of Western bankers and railroad men
led by C. T. Jaffray and E. H. OecAet
of Minneapolis. .. p,o,,
THE success OF Jk1C 3NAAAAAScS~
attracted the interest of the Saskatche-
wan provincial government and the
rnethods were applied there with con-
Siderahle success. President f.. w.
Reattv of the Canadian Pacific Railway
Sfhen proposed the creation OF Jana
dian financing group copied aiter ne tae
Minneapolis corporation ana ennSteu IaI
,co-operation the Canaolan Canodas NaSaOH.
hanks. and such business groups as i
"Eaton Co, Mutual Life Assurance OF
Canada. Cockshutt Plow Co., 1nterna-
ufional Harvester Co., General MoIors
"fCorporation, Ogilvie Flour Mills Co.,
Canada Cement Co., Canadian Mestmg-
Rouse Co., Canadian Car q FounoIy
Co. Southam Publishing Co, Steei 70
uof Canada, Canadian Industries, Ago
ma Steel Corporation, Northern Electric
ACo.. James Richardson & Sons, ano
Others.
Hopes for Success.
The Minnesota plan was widely pub
1icized by leading Canadian newspapers
this mast Summer and Fall, and When
6n ner cent of the $5,000,0 900 had been
nIedced Mr.. Beatty effected the organl-
ozation of the permanent company:
II am very hopeful" he said this
week. that the results Of the Dominion
Agricultural Credit Co. Will be as sue
CeSS1ul as InoSe VI SAAe SoSe'
sofa plan" :. A..
Although most of the loans OF the
new company are expected to be MADE
in the western Provinces, most OF the
capital has been raised In the East
Lieut.. Gov. j. D. McGregor OF Manitoba
who. like Publisher Murphy, Is himself
a practical farmer on large scale, mas
been named president Of the Canadian
Credit Co. H. o. Powell, formerly with
the Weyburn Security Bank. has beer
named vice president and managing dl-
rector and will open headquarters fol
the fund at Regina, in Saskatchewan
Directors include James Richardson O.
Winnipeg, A. e. Whitmore of Regina
Allen S. Bond of Winnipeg, Thoma:
Wood of Elm Greek, Manitoba; Robert
Cruickshank of Moose Jaw, Rober
Shannon of Saskatoon, Col. j. H. Woot
of Calgary, C. M. Bowman Of Waterloo
Ontario and ]. w. Spears Of Montreal