Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1936-02-20
Farmers EQUITY INCREASE
IN Farm CREDIT ADMIN.

IdCAuC NORTHWEST farmers nave
an ownership investment of $S,119,
0000 in the cooperative lending in
situations which make up the Farm
Credit administration OF Spokane,
1t was disclosed this week by Gener-
at Agent r. Brown. This represents
an equity increase OF several hu.-
dred thousand dollars during TIA.
past year, spread among more than
$4,000 farmers in the four north
west states who are being served by
this cooperative credit system.
although the Farm Credit
Administration is commonly =.
thought of as a government
organization lending gover.2-
ment money, this impression
is fundamentally Incorrect"
Mr.. Brown explains.
"Basically, the Farm Credit ad-
ADMINISTRATION of Spokane represents
a farmer owned and farmer direct
led system connecting local goups
of stockholding borrowers with the
investment markets so necessary
funds can be obtained on sound
cooperative basis from the investing
public.
These loan funds are deriv-
cd from the sale of Land bank
>. Bonds and intermediate Credit
bank debentures, secured by
the mortgages and notes which
farmer members give to their
local credit associations, and
which the local associations
submit to the Land bank and
intermediate Credit bank with
a mutual guarantee of pay
mont.
"In this permanent cooperative
system. farmers acquire voting CAPT
tai stock in their local credit organ
izations equal in amount to appro-
xfmately 5 per cent of the sum they
borrow, and thereby share all saw
ings and losses. In the case of the
through which farmers obtain Land
bank mortgage loans, the NFLAs
invest a corresponding amount in
the capital stock of the Land bank,
which at present totals nearly &c.
100000 subscribed by nearly 49,
900 northwest farmers in their To-
cal mortgage units
Between 1924 and 1882 the
national farm loan associations
Owned the entire capital of the
Land bank, but as a depression
aid the federal government adj
vanced additional capital to
the bank. However, this is be-
ing retired in the same way
the governments original caui-
taf subscription in 1917 was re
tired. Last year, for instance,
the bank paid back $171,55O
of the governments capital ad
vance.
purely as an emergency funct-
ion to assist with ref1nancing of de-
not be entirely reached by regular
Land bank first mortgage loans,the
bank was made agent Of the Land
bank commissioner for the handl-
ing Of special first and second mort
gage commissioners loans out of an
appropriated fund. But this temper
airy assignment has in no manner
disturbed the normal cooperative
character of the Land bank or trans.
versed upon its normal practice of
connecting the local farm loan as
sociations with the investing public
to OBTAIN loan funds on a coopera-
tive basis.
"'The local cooperative produc-
ION associations, which make sea-
scnal operating loans by discount
ing their members notes through
the intermediate Credit hank, are
similarly set up as farmer owned
| and farmer directed ORGANIZATIONS.
Temporarily the federal. govern
ment has supplied them with nec-
essay capital, through the purchase
Of non-voting stock nv tho Produc-
ton Credit corporation of S,arore
But the peas are operated bv. thei~
| own local ,-,ar,ha~s and as thev 90
"I,mn'ate o@on,'ntn caritnl resonrc-
es of their OWN the district corrora-
tons stool, wi be retired Alreodv
| their 10 600 r-ar,Ners have arn,r'r-
ed an Ownership interest nj. 81 ar :
200 in association voting capital
stock
"Just rs individual f"r-verr
share in the ownership Of these
credit facilities. coo~era+'--A
marketing and purchasing as
sociafions which borrow thru
Ifrtv.Sr hor,lr Por DAovnro