The midland journal. (Rising Sun, Md.) 1885-1947, 1934-06-01
FARM CREDIT ADMINISTRATION
LENDS BILLION AND A
QUARTER IN FIRST YEAR

| On6 year ago may q IAto \ eei -
Credit Administration was estab-
lished.
Since then approximately $4,000
Federal land bank and LAM Bank
Commissioner farm mortgage
loans aggregating 1871, 100000
have been closed. A total of $1,273,-
O0O, 900 has been loaned by various
institutions and Offices under the
Farm Credit Administration, stated
Governor w. 1. Myers, in reviewing
the year
In addition to the farm mortgage
loans made during the first year,
S372,94O,O0O was loaned hy the
Federal intermediate credit banks,
| including rediscounts for regional
agricultural credit corporations and
production credit associations.
These latter two institutions loaned
sos, 100000 and $27,310,000 re-
Espectively. The central and region
al banks for cooperatives loaned
S34, 100000; $32,560,000 was adj
yanced on emergency crop produc-
ton loans, $7,S90,O00 from the Ag-
ricultural Marketing Act fund be-
fore blishment of the banks for
| cooperatives, and $1,530,00 Land
Bank Commissioner loans to joint
stock land banks.
Farmers Are Refinanced
Nearly nine-tenths of the proceeds
of land bank and Commissioners
loans made during the year was
used for refinancing farmers indebt
edness. AS a consequence of ref
nancing, farmers were enabled to re-
pay tens of thousands OF creditors
who threatened foreclosure, and
were thus able to avoid the loss of
their farm homes. They we've able
to reduce their annual interest costs
because of lower rates carried by
the new loans. During the year the
scale down of Indebtedness volun-
tarily granted by creditors in con-
nection with those loans was esti-
mated at approximately $46,00O,-
600.
Creditors Also Benefited
While farmers received these ma
jor benefits from refinancing, credl-
tors also were benefited by The pro-
gram. Approximately $21S,230, 900
of the total loans closed during the
year repaid farmers debts to COM
mercial banks, including receivers
and conservators of banks, $50, AGO.,
| 600 their debts to insurance COM
panies, $21, 100000 their taxes, and
| 1881, $4,000 their debts to broad
group of farmers creditors not sep
arately classified.
Besides financial institutions in
| funds, so as to strengthen them for
service in their own communities,
these loans have resulted in The dis
tribution of funds in practically all
rural areas of the United States,
which has stimulated purchasing
power and the business of the entire
country.
Bonds In Lieu OF Cash
Beginning March 26 loan proceeds
were distributed primarily in the
form of Government-guara nteed
bonds of the Federal Farm Mort
gage Corporation instead of in cash.
Although there was a necessary
slowing up of business until credi-
tors became acquainted with the
merits of the bonds, the daily vol
ume of loan closings is now near
the level at which it was when loans
were disbursed in cash, or over $5,-
100000 per day.
Production Credit Made Available
During the ~ months farmers
were helped to organize about $50
production credit associations
which, by borrowing on, or discount
ing, notes of their borrow
ers with Federal intermediate credit
banks, are able to provide produc-
ton credit on more advantageous
terms than formerly prevailed gem
orally throughout the country. The
entire agricultural area of the Unit
ed States is served by htese associa-
tions.
These associations are now loan
ing at an annual interest rate of
per cent. Heretofore, production
loans have cost farmers interest
rates of from per cent to 8 per
cent, generally, and in some locali-
ties rates of 9 per cent, 10 Ter cent
and even In excess Of 10 per cent.
were common,