Page Sixteen 



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THE I. A. A. RECORD 



May, 



1931 



Tom Campbell Gives 



Farm Board Credit 



"Few people realize the real good 

 -that the Federal Farm Board has ac- 

 complished to date," says Thomas D. 

 Campbell, one of the largest wheat 

 growers in the United States, in a re- 

 cent interview in the New York Times. 

 "It undoubtedly has saved many farm- 

 ers from bankruptcy, and they, in turn, 

 have prevented the liquidation of banks 

 in their community; and industry as a 

 whole has profited from the Farm 

 Board. I firmly believe that had Mr. 

 Legge not supported the commodity 

 market last December there probably 

 would have been a $10,000,000,000 

 crash in one day in the stock market. 



"We are now experiencing the most 

 serious industrial depression in our 

 country since 1873. Still, we have had 

 but very little disturbance. The entire 

 world is disturbed. Most of Europe is 

 in revolt. Two-thirds of South Amer- 

 ica' ha^ changed hands within the last 

 six months. Still the United States has 

 maintained an even keel. 



"There must be some fundamental 

 reason for this fact. It is obvious that 

 it can be credited to one factor only, 

 namely, the activity and foresight of 

 the administration in anticipating these 

 conditions and eliminating their seri- 

 ousness by proper governmental assist- 

 ance at these times, and it is equally 

 obvious that the activity of the Federal 

 Farm Board has been no small factor 

 in the destiny of our economic condi- 

 tion." 



Missouri Grain Men 



Organize Co-Operative 



The Missouri Grain Growers, Inc., 

 organized by the Farm Bureau, Farmers 

 Union and farmers' elevators of that 

 state will soon become a stockholder of 

 the Farmers National Grain Corp. 



R. W. Brown, state Farm Bureau 

 president, was elected president of the 

 new grain co-operative, T. H. DeWitt 

 of the State Farmers Union was chosen 

 vice-president, and M. R. Miller, State 

 Farmers Union secretary, was named 

 secretary-treasurer. 



Credit Corporations 



Aid to Country Bank 



The operation of an agricultural 

 credit corporation as a supplement to 

 local credit facilities will enable the 

 country bank to maintain a more prof- 

 itable loan and investment policy so as 

 to increase the prosperity of the com- 

 munity, according to B. C. Powell, a 

 member of the National Advisory Loan 

 Committee. .' -v ' 



The Greatest Necessity 



"XHE farmer is suffering chief - 

 ly today from a diseased sys- 

 tem of distribution all along the 

 line. It costs him too much to 

 market his products. It costs him 

 too much to purchase his necessi- 

 ties. He sells in a w^holesale mar- 

 ket and buys in a retail market. 

 He suffers because of the distri- 

 bution of the national income 

 and of the tax burden. That 

 word 'distribution' covers a mul- 

 titude of injustices and the only 

 way to solve these injustices is 

 through the complete and thor- 

 ough organization of agriculture 

 so that the farmer can compete 

 w^ith the other organized classes. 

 If farmers w^ould realize that the 

 organization of agriculture along 

 sane lines is the greatest necessity 

 of our times, they would for- 

 get the bunk of the politicians 

 and they would not let the ene- 

 mies of organization stop them 

 until the job was done. Until 

 agriculture is organized, it will 

 continue to be at the mercy of 

 the other organized classes." 



{Editorial, The Farmer, St. Paul, Minn.) 



One Per Cent Made 



On Investment in '30 



An analysis just completed on 2,300 

 records kept by farmers in the Uni- 

 versity of Illinois farm accounting ser- 

 vice reveals that the account keepers 

 last year averaged about 1 per cent on 

 their capital 



This is not as bad as in 1921, when 

 account keepers in central Illinois suf- 

 fered an actual net loss, reports R. R. 

 Hudelson. The rank and file of farm- 

 ers, he believes, probably did have a 

 net loss last year, since those co-oper- 

 ating in the management service make 

 higher earnings than the average of all 

 farmers. Their advantage usually 

 amounts to about 2 per cent of the 

 total investment, or nearly a thousand 

 dollars a farm for central Illinois. 



The average farmer's actual net loss 

 on last year's operation means that he 

 has been allowed only $600 to $720 for 

 wages. He did not earn enough to pay 

 interest on borrowed capital to say 

 nothing of paying interest on his own 

 capital invested in the business. The 

 heavy hog-producing sections of the 

 state showed relatively higher farm in- 

 comes than the grain-selling areas. 



How to Organize a Credit 

 Corporation 



Our first thoughts are not al- 

 ways our best thoughts. 



The advisability of organizing couiity 

 credit corporations is being considered 

 in Iroquois, Adams, and Marshall-Put- 

 nam counties. '''''■■■■^"'. -. '■M''^'--'-.r v."-'';-' ^-i- .■. -' 



The Federal Intermediate Credit 

 Bank of St. Louis informs the REC- 

 ORD that credit corporations may be 

 organized in Illinois under the general 

 law by three or more persons. ,.;.;- 



The successive steps in organizing a 

 local credit corporation are as follows: 



a. Obtain a list of subscribers to the 

 capital stock of the proposed corpora- : 

 tion. 



b. The subscribers meet as soon as 

 sufficient capital has been subscribed, 

 elect directors to manage the affairs of 

 the corporation, and adopt by-laws. 



c. The directors meet immediately 

 after adjournment and elect officers. 



d. After the officers are elected, the 

 subscribers should then pay into the or- 

 ganization the amount of stock they 

 have subscribed. At least fifty per , 

 cent of the amount subscribed must be 

 paid in, in cash. 



e. The directors then sign the Articles 

 or Certificate of Incorporation in dupli- 

 cate and acknowledge the same before 

 an officer authorized to take such ac- 

 knowledgments. 



f. The certificate, in duplicate, is 

 then sent to the Secretary of State at 

 Springfield, Illinois. Upon receipt of 

 this certificate, the Secretary of State _ 

 will attach his certificate to one of the 

 copies and return it to the corporation. 



g. When the copy of Articles and / 

 the Secretary's Certificate are received, 

 they are to be taken to the Recorder of s 

 Deeds in the county of domicile of such 

 corporation for record. /^' L.' ".:'•. • 



h. After these papers are a matter of 

 record, the directors meet again and - 

 upon passing of proper resolution, make 

 application to the Federal Intermediate 

 Credit Bank of St. Louis for the redis- 

 count privilege. The resolution and all 

 papers incident to making the applica- ' 

 tion will be furnished by the bank. The 

 application is to be accompanied by at 

 least Ten Thousand Dollars ($10,000) 

 of United States Government or Fed- 

 eral Land Bank Bonds to be held as 

 collateral by the Federal Intermediate 

 Credit Bank. A complete list of the 

 papers necessary for the purpose of 

 making this application acceptable is to 

 be found under Paragraph Three. It is 

 essential to have the advice of a com- 

 petent local attorney. 



Uncle Ab says farmers fight too 

 much among themselves; milk ver- 

 sus coffee; sugar versus tobacco; 

 meat versus vegetables; yet farmers 

 raise them all. 



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