Henderson daily dispatch., 1936-09-15
CREDIT
FINANCES FARMERS
Corporation Formed Here
In 1888 Operates in
Three Counties

Organized in December, 1888, and
beginning operations in the spring of
1884, the Henderson Production Credit
Association has been remarkably sue
cessful in its business of making
short term agricultural loans. During
this three-year period loans totaling
well over a half million dollars have
been made to its more than 1900 far
mer members in Vance, Granville
and Warren counties.
Recently moving it's main office to
LOT Garnett street and setting up per-
manent outlying county offices in Ok
ford and WarrentOn, the association
is now in a position to serve the far
mers of this territory much more eff
fectively and conveniently than ever
before. With improved facilities for
handling loans and as more and more
farmers learn of the economical short
term credit service offered, it is an
ticipated that the volume of business
will continue to increase at rapid
rate.
Permanent Credit To Farmers.
Contrary to the belief of some, the
Henderson Production Credit Asso-
citation was not set up as a tenn
porary organization to serve in times
of depression and does not use gov
eminent money. Instead it was Or
ganized as a permanent farmer-op-
Grated organization for the express
purpose of extending credit to farm
ers on a basis comparable to the
credit facilities offered to other bust
nesses and professions through COM
mercial banks. The association is a
local corporation, organized under the
Farm Credit Act Of 1888, and although
under government supervision, its af-
fairs are managed by local board of
directors elected by its member
stockholders. Each farmer-borrower
is a stakeholder in the association
and is entitled to one vote in the year
ly stockholders meeting at which
time directors are elected. The money
loaned is obtained by discounting bor-
rowers' notes with the Federal Inter-
mediate Credit Bank which in turn
gets it's funds through the sale of de-
bentures to the investing public.
Loans to Farmers Only.
The Henderson Production Credit
Association is allowed to make loans
only to farmers, which includes in
QlVlQudlS, VI CO1 PO1 a
lions engaged in and devoting certain
time and active management to the
business of farming. Loans are made
for producing and harvesting crops,
production of poultry and livestock,
and for practically any other general
agricultural purpose for periods not
exceeding twelve months. They are
intended to be of Self-liquidatlng
character and to mature at the time
of marketing the crops or live stock
from which the loan is expected to
be repaid.
The present rate of interest on
loans made is five percent year,
and, since the borrower is charged
only for the actual number of days
| the funds are kept, many farmers
have saved on interest costs by OBJ
| tanning their loans in installments
rather than getting the whole amount
at one time.
In making loans at this low rate of
interest it is necessary that the far
mer offer enough security to ade-
ouately cover his loan. The usual Sc
curity for a crop loan is first lien
on the crops of the borrower to-
gether with other additional collateral
| in the form of livestock and equip
ment that is needed to fully secure
| the loan.
Borrowers Buy Stock.
Borrowers are required to own
Class B stock in the Association equal
to SIS for every $1OO or part of $500
| borrowed.
The directors of the association are:
| IT w Allen. president, and D. H. Cur
| rim of Granville county; E. j. Green,
vice-president, of Vance county; e..
H. Pinnell and S. N. Hawks, of War
rem county.
wv. B. Gooding, OBSERVATION-DISCLOSURES,
and Thelma Owen, bookkeeper, COM
pose the permanent personnel of the
main office. The outlying county Of
fices are in charge of c. o. Peed, at
Oxford, and Edward G. Cobb, at War
rentOn.