KEPORT OF THE SECRETARY OF AGRICULTURE. 43 



bonded warehouses which handle certain agricultural products was 

 given to the Department, and the indications are that, with the 

 return of normal conditions the operation of the act will re- 

 sult in the better storing of farm products, the stabilization of 

 marketing processes, and the issuance of more easil}^ negotiable ware- 

 house receipts. The agricultural extension machinery, the greatest 

 educational system ever devised for men and women engaged in their 

 daily tasks, had very large and striking development. The Fed- 

 eral aid road act, approved shortly before this country entered the 

 war, resulted in legislation for more satisfactory central highway 

 agencies in many States and the systematic planning of road systems 

 throughout the Union. To-day each State has a highway authority, 

 with the requisite power and with adequate funds to meet the re- 

 quirements of the Federal measure. The Federal reserve act, which 

 has benefited every citizen through its influence on banking through- 

 out the Union, included provisions especially designed to assist the 

 farming population. It authorized national banks to lend money 

 on farm mortgages and recognized the peculiar needs of the farmer 

 by giving his paper a maturity period of six months. This was 

 followed by the Federal farm loan act, which created a banking 

 system reaching intimately into the rural districts and operating on 

 terms suited to the farm owners' needs. This system began operations 

 under the troubled conditions of the world war, and its activities were 

 impeded by the vast changes incident to the entry of this country 

 into the conflict. But, in spite of these difficulties, it has made 

 remarkable headway, and there is little doubt that, after the return 

 of peace, its development will be rapid and will more than fill the 

 expectations of the people. 



FURTHER STEPS. 



PERSONAL CREDITS. 



It still seems clear that there should be provided a system of per- 

 sonal-credit unions, especially for the benefit of individuals whose 

 financial circumstances and scale of operations make it difficult for 

 them to secure accommodations through the ordinary channels. Or- 

 ganized commercial banks make short-term loans of a great aggre- 

 gate volume to the farmers of the Nation possessing the requisite 

 individual credit, but there are many farmers who, because of their 



