ANNUAL REPORT OF FISHERIES LOAN FUND 

 FISCAL YEAR 1957 



For many years commercial fishermen of the United States have been generally 

 under -capitalized and have traditionally depended upon financing fronn private 

 sources. When fishing was profitable, or at least no nnore unprofitable than other 

 industries competing for funds, credit was usually available to vessel owners, 

 from banks, fish processing firms or supply houses. This satisfactorily sustained 

 the fishery until such factors as increased operating costs, decreased prices, 

 and increased imports of fishery products caused unprofitable operations. When 

 this occurred, processors and suppliers found it increasingly difficult to finance 

 their own operation, and banks would no longer make loans on fishing vessels 

 except in exceptional cases. Maintenance of fishing vessels and gear suffered, 

 vessel owners were unable to meet mortgage payments, and supplies were more 

 difficult to obtain on credit. 



Since 1950, many segments of the fishery industry have become so depressed 

 that nnortgages on vessels were foreclosed. This was especially true of the New 

 England groundfish and Pacific coast tuna fisheries. Even the Small Business 

 Administration refused to make loans to vessel owners, because of lack of 

 reasonable assurance of ability to repay the loan from earnings. The industry 

 became convinced that relief from financial problems claimed to be caused by 

 increased fishery product innports could not be obtained through tariff escape- 

 clause actions after the New England groundfish industry had failed to obtain a 

 quota in three separate actions. 



In most foreign countries such as Canada, Japan, Norway, and Denmark, where 

 fish production is important. Government credit had been provided for the fishing 

 industry. The method of handling this credit varies, with several being used in the 

 same country at times. In Sweden, for exaniple, loans are nnade by the Fishery 

 Agency. In other countries, such as Canada and France, Fishery Banks have been 

 established with Governnnent funds, and special Fishermen's Loan Boards, and 

 Credit Societies or Cooperatives have been established to provide credit for 

 fishermen. The nrioney may come -from both revolving funds and direct appropria- 

 tions. Loans are sometimes combined with grants or subsidies for certain pur- 

 poses. As an example, in Belgium, grants are made to pay part of the interest on 

 loans. In other countries, such as Canada and West Germany, part of the construc- 

 tion or operating cost of a fishing vessel is paid by the Government. Loans fron^ 

 fishery banks or private lending sources are guaranteed by the Government in 

 Belgium and other countries. 



Similar programs were not available to commercial fishermen in the United 

 States and conditions in the industry became progressively worse. As a result, the 

 industry renewed and strengthened its appeals for relief directly to Congress. 



STATISTICS OF THE COMMERCIAL FISHERY, 1957 



In 1957 a total of 11,671 vessels of more than 5 net tons, employing 50,109 

 fishermen, operated in the commercial fisheries of the United States and Alaska. 

 An additional 56,434 motor boats of less than 5 net tons and 8,003 other boats, 

 operated by 88,062 men, also were engaged in fishing. The number of vessels, 

 boats, and fishermen employed in the fishery are listed by geographical areas in 

 table 1. 



1 



