The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-12-06


All rights Of republication OF all other
matter herein are also reserved.
The Farm Credit Set.Up
Things have been moving SO fast
in the way OF agricultural finance
and other governmental efforts that
many government workers themselves,
not to mention the general public,
lack a complete grasp OF all the ac-
tivities which have been inaugurated
in recent months and now are getting
into full swing.
Typical Of this situation Is the farm
credit set-up. not at all complicated
when viewed In the whole, but hard
to assimilate on q piece-meal basis. It
IS the accumulation Of many years
and numerous ideas, rather than an
entirely new development. and SO the
people In charge found 1t necessary
to acquaint their own workers with
Its history, background, purposes and
principles.
This they have done in the current
issue OF the Farm Credit Messenger,
D publication devised to acQuaint the
members Of q far-flung organization
with what the other fellow is doing
and also to convey information to the
public.
This authority says the set-up be-
gins at Washington with the Farm
Credit Administration Governor. now
William ]. Myers, who has three
deputy governors and general coun-
sellor to assist him.
The administration itself Is d.
vided into four divisions, each in
charge Of . commissioner. First Of
these Is the Land Bank Division,
which operates the land bank sys-
TEN. created In 1915. It's purpose is
to loan money to farmers on first
mortgages on land.
Next comes the intermediate Cred
1t Division. established in 1923. Its
job Is to extend credit to banks and
agricultural credit corporations by
discounting notes and mortgages
given for periods from three months
to three years,
A new member OF the system is the
Production Credit Division, devised to
supply farmers with short-term
credit to aid them In production Of
crops.
Fourth member Of the quartet Is
the Cooperative Credit Commissioner.
who supplies credit to cooperatives.
These latter two agencies are new,
having been created BY the last con-
gress.
The production credit division OPP
crates through Production Credit as
sociations, which 1t finances by pro-
tding the original capital These are
formed by prospective borrowers or
persons eligible to borrow. Chattels
arc acceptable security. including
crop mortgages. The local associa-
ton takes the notes Of borrowers and
can rediscount them at the Interme-
diate Credit bank. Thus one branch
Of the system quickly finds 1t nee
essary to make use Of the other. The
intermediate Credit bank finances its
operations by selling debentures to
tho investing public for short periods.
Nhese debentures are regarded as
liquid security and draw low rates OF
interest. the rate in this seventh OF
northwest district just now being two
per cent.
The intermediate Credit bank adds
ene per cent for expenses and loans
the money to the local association at
three per cent. The latter are Linn
tied to boost Of three per cent to
cover guaranty fund. losses and divi-
6endS
The Bank for Cooperatives will
loan only to cooperatives and will
bssist them in their affairs, supply
ing capital to buy real estate o.
equipment, process raw material OF
conduct marketing activities.
Tho management Of each Of the
four enterprises Is on the basis Of
federal districts. Of which there are
IL in the United States Each dis
trict has one q tho four agencies
listed.
Each agency has separate man.
agement and office force within thu
district, 50 their activities are sepa.
rate and apart from each other.
Binding them together at the tor
IN the nation, howeves. u the farm
credit administration governor. and
binding them together at the top b
each Of tho II districts y q farm
credit commissions. 10 has gensra.
charge of ths activities Of I'll Ton,
hnits h his district and his taak 4
% coETelats their activities He act,
With IT, mslidsnts q tho tour sepa.
.tate agencies TO form the advisor,
bommitteo to tho boards q Director
q eash district unit, which cit . Z
body % eonddsg the farm credk cit.
$780, - = ~paAla a1&asrssue> s>saa,,,.o