The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-12-27
F.C.A.'S CREDIT
AIDS FARMERS
14O Million Dollars Goes
to AgricuIturists Saddled
With Mortgages

WASHINGTON, Dec. 27. CUP.
4 steadily increasing flow of gov
eminent credit to debt-ridden
farmers is noted in a review of
Farm Credit Accomplishments by
its governor, William l. Myers.
FCA, a Roosevelt baby, Is only
seven months old. Already, $l4O,-
100000 have gone out to tighten
the farmers mortgage load. Re
gional banks have been set up to
loan farmers money for produc-
ton, marketing, and purchasing,
the three main functions of rails
ing crops and livestock. These
loans are made through cooper
ative groups.
Governors Of two-thirds Of the
states, at FCA request, have
named farm debt adjustment
committees. These, in. turn, will
form local committees to bring
together debtors and creditors.
CREATED IN MAY
The Farm Credit AdministHa-
ton was created in May to carry
out terms of two major acts Of
Pesident Roosevelt's special ses-
sion of congress: the emergency
farm mortgage act and the farm
credit act. The former aimed to
bring relief to farm debtors; the
latter to create cooperative ia
cilities for obtaining production
credit, also credit for farmers
cooperative marketing and pur-
chasing associations.
Henry Morganthau, Jr., was
called to head FCA and immedl-
ately plunged into the task of CO.
government agencies
for supplying agricultural credit.
The president, by executive or
der, consolidated in FCA the
farm loan bureau, dealing witr
federal land banks, federal in
termediate credit banks, and joint
stock land banks; lending func-
tons of the federal farm board
as established on different
basis; seed and crop production
lean offices of the department of
agriculture, and regional aGrlcul-
tural credit corporations of the
RFC.
RELIEF EXPANDED
Machinery for making farm
mortgage loans on large scale,
and accordingly speeding relief to
farm debtors, was expanded ire
and loan volume began
to rise sharply. Beginning in Au-
gust. volume practically doubled
each month. From June l to De
cember IL. more than $1,000
loans were made. In November
alone, $4,000, 900 in loans saved
many a farm family from the au-
ctioneer's hammer and a poverty
stricken flight from home, Myers
stated.
The FCA has helped fla mers to
oganize their own pre- iuction
credit associations to obtain loans
from federal intermediate credit
banks. By early December, 1872
such associations, with aggregate
capital of S11,143,300, were
ready to make loans. A few loans
actually had been made. Many
more associations will be charter
ed soon.
so MILLION CAPITAL
Each land bank district has a
regional bank for co-operatlves,
with S5,000,O00 capital subscrib-
ed by the government. The CEN
trail bank for co-operatives was
established in Washington in Sep
TENDER with $5O,0OO,000 capital.
By the end of November. this
bank had made loan commitments
in excess of $21, 100000, had
made actual loans of over $751;
100000 and had outstanding
about $10,600,000.
Before Governor Morganthau
was appointed acting secretary of
treasury in mid-November, he
recommended to state governors
appointment Of local committees
to handle debt problems directly,
to avoid foreclosures. Specia