34 ANNUAL REPORTS OF DEPARTMENT OF AGRICULTURE. 



their commercial credit. A limit of $3 an acre on not more than 100 

 acres was fixed. The farmers agreed to use seed and methods ap- 

 proved by the Department. They signed a promissory note for the 

 amount of the loan, with interest at the rate of 6 per cent, payable 

 in the fall of 1919, and executed a mortgage giving the Government 

 a first lien on the crop to be grown on the acreage specified. Further- 

 more, provision was made for a guarantee fund, each borrower agree- 

 ing to contribute 15 cents for each bushel in excess of a yield of 6 

 bushels per acre planted under the agreement. A maximum con- 

 tribution of 75 cents per acre was fixed. The object of this fund is 

 to safeguard the Government against loss. If it exceeds the loss it 

 will be refunded pro rata to the contributors. 



The demands for assistance were smaller than had been repre- 

 sented or anticipated. Estimates and suggestions for appropriations 

 ranging from $20,000,000 to $40,000,000 had been made. Approxi- 

 mately 1,835 applications were approved in the Northwest for a 

 total of $371,198, and in the Southwest 8,806 for $2,025,262, or a total 

 of 10,641 applications, involving $2,396,460. The number and 

 amount for each State are : 



It was recognized that there were farmers in the Northwest who 

 would probably be in even more urgent need of assistance for their 

 spring operations. As soon as it was seen that there would be a con- 

 siderable unexpended balance from the fall planting activities, an- 

 nouncement was made that it would be expended for the spring 

 planting of wheat. Since the cost of seeding spring wheat is 

 greater than that for the fall, it was indicated that the loan would 

 be made on the basis of $5 an acre, with a limitation of 100 acres. It 

 appears from a survey of the situation that the remainder of the 

 fund will take care of the urgent cases. 



The spirit of the farmers in both sections was exceptionally fine. 

 Only those seem to have sought aid who could not otherwise remain 



