DEFICIENCIES IN FARM FINANCE 67 



of agriculture differed from those of industry 

 and commerce, moving more in seasons and 

 cycles. There are many more hazards in agri- 

 culture which cause peculiar credit variation 

 from year to year. Direct loans to farmers 

 represented about 18 per cent of total bank 

 loans and finally and by nd means of least im- 

 portance the members of the Federal Keserve 

 Board find themselves soon growing out of im- 

 mediate touch with the agricultural situation if 

 they are not vitally connected with it by lively 

 business interests. 



When this bill was finally passed by Congress, 

 there was immediately widespread interest 

 among farmers in the selection of a man to 

 fill the place, the farmers themselves being the 

 most insistent that he be a man with a broad 

 acquaintance with agriculture and not merely 

 a farmer in name only. 



The findings of the Joint Commission of Agri- 

 cultural Inquiry pointed clearly to the desir- 

 ability of meeting the need for additional rural 

 credit by adapting existing banking agencies 

 to the requirements, provided it is clearly set 

 forth that the new form of credit will be provid- 

 ed by the new machinery. 



This matter of short-time rural credit had 



