Evening star., 1934-01-19
FARM LOAN MARK
NOW $29D,o)O,0)O
Record Since May | Brings
Daily Rate to Between S..
100000 and S6, 900, 900.

At q rate of between $5,OO00 900 and
$4,000. 900 daily the Farm Credit Ad-
ministration has just closed 100000
loans for approximately s250,0O0, 900
since last May /.
In the first IS days Of January, 23,-
$50 loans, totaling approximately ST.
100000 were made and the whole
month of January is expected to sur
pass December, when 39,427 loans were
made for nearly $100,000,000. These
two months have formed the peak of
activities for the administration, but
officials do not believe the highest
point has been reached yet.
Loans advanced by the Farm Credit
Administration. principally through the
IL Land Banks, are used to reflnance
farm mortgages and personal notes and
to pay farm taxes. grocery bills. doctors
fees and other such debts accumu-
lated during the last few years OF low
farm prices.
Flood Of Applications.
When the Government first an
nounced its credit policy for farmers
and President Roosevelt, by radio. in
vted farmers to seek aid through the
Farm Credit Administration. there was
. flood of loan applications. There
were so many, in fact, that not until
this month has the administration been
able to keep pace with the requests
Since the 1st of January the number
of loans closed approximates the num-
Der Of applications received.
Three steps are necessary to COM
plete loan after an application has
been filed: Appraisal of the applicants
farm, approval of the loan and delivery
Of the check This necessary routine
was too much for the limited force
employed by the land banks. for when
the applications began coming in last
May there were only 2l0 appraisers.
It was necessary. therefore, to train
q much larger force and not until the
number of appraisers passed 5000, in
the week Of October IL, were the banks
able to make appraisals faster than
applications received.
Rush Through Committees.
The next step was to rush the ap-
praised application through the loan
committees and during the week Of
October 25 the number of loans ap-
proved first exceeded the number Of
applications received.
Until August little headway was made
IN granting loans. At that time, how
ever. the staff and activities Of the
F. 9. A. reached the stage Where tne
number of loans completed approx
mately doubled the grants Of the pre-
ceding month Since August the same
proportion of increase has kept up
each month approximately doubling
the proceeding month until January
when the loans and applications are
almost equal.
While this progress has been made
the Farm Credit Administration has
had to establish its regional offices and
organize them. Virtually all loans made
through the land banks and regional
Offices have been long-term financing.
In addition to these, short-term
loans and intermediate-term loans
have been made through the newly es-
ia ablished production credit system.
This system consists of IL production
credit associations, one in each farm
credit district, and the local assoc1a-
tions which they organize, partially
capitalize and supervise. The local
units make the loans directly to the
farmers.
On January Is there were 440 such
associations chartered in 80 States. In
16 Of the 80 States the production
credit associations have included every
county.