AGRICULTURAL CREDITS ACT.

Hawera & Normanby Star, Volume XLII, Issue XLII, 9 June 1923, Page 6

AGRICULTURAL CREDITS ACT.

AMERICAN HELP FOR FARMERS

( During the closing days oj the ieceiit session of the American Congress the Bills introduced by Senators Len- ; root and Capper were pufc together ! and passed as an Act under the title of "Agricultural Act of, 1923/ and as , the name implies this Act is intended Ito help the farmer.*: The two Bills were passed together, but they appear to be independent measures, and will be administered sena rately—the Lenroot portion of the Act by the Farm Land Hoard, and the Capper Bill by the Comptroller of the Currency. The Lenroot system establishes twelve Federal Intermediate Credit Banks, as adjuncts to the existing Federal Farm Land Banks. The capital for these Intermediate Credit Hanks is to be 5,000,000 dollars each, supplied by the Treasury of the United States. " The banks will not do business with in-dividual-borrowers, but are authorised to do business with national and State banks, trust companies, agricultural credit, corporations, nicoroorated live stock loan companies, savings institutions, co-operative banks, co-operative credit or marketing associations, and other similar institutions. The Intermediate Credit Banks may discount, or purchase notes, dr.itrs. bills of oxchange and similar documents, to make loans direct to any co-operative association organised under the laws of any State, subject to certain conditions. No loan is to exceed 75 per cent of the market value of the product*;. The credit organisations contemplated My the Capper portion of the Act nee called National Agricultural Credit Associations. The class of business they are authorised to do is practically the same as that to he dono by the ; Intermediate Credit Bank, exeent that while the latter may wke paper ranging in maturity from six months to three years, these associations are restricted to paper running not more than nine months, except where secured by mortgage our live "stock, when the ! paper may run three years. The United i States Government .supplies no capita] ■ for these National .WriVnltnral Credit Corporations, nor is their number j limited. They may be organised anywhere, provided they have a subscribed capital of not less than 250,000 dollars, nt least one-half of which must be paid in cash.