Julyy 1931 



THE I. A. A. RECORD 



Page Thirteen 



I. A. A. Directors Study 

 — Agr. Credit Corporations 





Adopts Statement Outlining Policy 



and Suggestions Governing 

 f .. ;; Their Organization 



State- wide interest in the organiza- 

 tion of agricultural credit corporations 

 is indicated by scores of inquiries re- 

 ceived from farmers' local organizations 

 and County Farm Bureaus. 



At a recent meeting of the I. A. A. 

 Board of Directors the subject of credit 

 corporations was discussed, and a state- 

 ment prepared by the Finance Commit- 

 tee was adopted after careful considera- 

 tion. 



The I. A. A. is of the opinion that 

 "the interest manifested and conditions 

 within the community itself should de- 

 termine whether or not an attempt be 

 made to organize an agricultural credit 

 corporation. 



"Its stock must be subscribed entire- 

 ly, or in greater part, by local people, 

 and its operations confined to the locali- 

 ty. The institution must conduct its 

 business on a basis providing profit suf- 

 ficient to take care of its operating ex- 

 penses, possible losses and make a fair 

 return to its stockholders. Such a busi- 

 ness must expect sooner or later to ex- 

 perience losses in its loans. It must be 

 organized and conducted 'for profit.' 



"As we understand it, the Federal 

 Intermediate Credit Bank of St. Louis 

 offers its services, or its services are 

 available, in assisting communities to 

 form Agricultural Credit Corporations. 

 Its promotion in the community, with 

 this assistance, should be undertaken by 

 the community, through its citizens, as 

 a community institution, needed at 

 least in the present emergency. Local 

 organizations, as a part of the com- 

 munity may in our judgment take an 

 appropriate part in the program, but 

 each and every person subscribing for 

 stock and becoming a stockholder 

 should, on his own responsibility, make 

 his own appraisal of his contemplated 

 investment, and after becoming a stock- 

 holder, look solely to his Board of 

 Directors, officers and management of 

 his Agricultural Credit Corporation to 

 conduct its business according to estab- 

 lished practices, minimizing its hazard 

 of losses, and returning to its stock- 

 holders a fair return on their invest- 

 ment. 



"Such an institution, as established, 

 will take its place in the community 

 as one of its business institutions and 

 can serve the community as indicated 

 and within the limitations of its re- 

 discount opportunity and limitations." 



Agricultural credit corporations are 

 advisable where additional credit facili- 

 ties seem necessary in a given com- 



munity and where a cornpetent banker 

 or a conservative appraiser of farm col- 

 lateral can be secured perhaps on a part- 

 time basis to manage the credit agency. 



If the corporation is to function 

 without loss it must be operated as 

 ably as any well-managed bank. It must 

 restrict loans only to those offering ac- 

 ceptable credit. It can be no more lib- 

 eral than any well managed bank. It is 

 not a co-operative but functions under 

 a regular corporate set-up. It can pro- 

 vide money no cheaper than most banks. 

 The rate it charges is governed by the 

 interest at which bonds of the inter- 

 mediate credit banks can be sold. A 

 spread of 3 per cent is allowed the credit 

 corporation. Thus, if the Federal Inter- 

 mediate Credit Bank bonds are sold to 

 yield 4 per cent, the local credit cor- 

 poration may charge as high as 7 per 

 cent interest of its customers. 



The value of this new agency lies in. 

 the opportunity to bring new money 

 into the community to take over the 

 financing of worthy risks and thus re- 

 lieve merchants, storekeepers, and others 

 who are carrying their patrons. 



Goodbye Canada Thistles, 



Chuckles Mr. Winings 



For several years a patch of Canada 

 thistles has grown unmolested along the 

 railroad right-of-way near the farm of 

 V. I. Winings, Lake City, Moultrie 

 county. Each year Mr. "Winings tried 

 to get the section foreman to destroy 

 the thistles, but without success. 



This year he was again confronted 

 by the patch of noxious weeds and 

 again went to the section foreman. 



"I've instructions from the company 

 not to mow any weeds this season," was 

 the reply he got from the foreman. 



Being a good Farm Bureau member, 

 Mr. Winings went to Farm Adviser J. 

 H. Hughes with his problem. Hughes 

 wrote to L. J. Quasey, I. A. A. director 

 of transportation, and Quasey wrote 

 the general manager of the railroad, re- 

 ferring him to the law requiring these 

 weeds to be destroyed. 



A few days later Winings noticed 

 the foreman and his crew grubbing the 

 Canada thistles. The foreman appeared 

 greatly perplexed as Mr. Winings ap- 

 proached. 



"Just got orders from headquarters 

 to grub these weeds," he commented, 

 wondering why his previous instruc- 

 tions had been reversed. 



Mr. Winings only chuckled. 



Editor I. A. A. RECORD 



I Tv^ish to congratulate you on 

 the I. A. A. RECORD this year. It 

 seems to me that the first six months 

 of this year, the RECORD is the 

 best that it has ever been. 



L. T. Oxley, Morgan county, 111. 



PadiMe^^ 



^i- --_*♦ 



EJdsar L. Bill 



Illinois radio listeners now have a new 

 farm program hour from 6 to 7 o'clock 

 each morning over 

 station W M B D 

 Peoria, recently pur- 

 chased by Edgar L. 

 Bill, former p u b - 

 licity director of the 

 I. A. A. and former 

 director of station 

 WLS. Robert Boul- 

 ton is in charge of 

 this program. 



Mr. Bill has in- 

 vited officers and members of the I. A. 

 A. staff to speak on WMBD's morning 

 farm program when they are in Peoria. 



H. E. Young Goes 



To Purdue University 



H. E. Young, prominent in Illinois 

 agriculture for a number of years, has 

 accepted a position with the Horticul- 

 ture Department of Purdue University 

 and will take up his duties at once. 



Mr. Young, for 12 years secretary of 

 the Farmers' Institute at Springfield, 

 was recently editor of the Illinois Farm- 

 er. Several years ago he was editor of 

 the Farmers Review in Chicago, and at 

 one time he was connected with the 

 Indiana Farmers Guide. 



McLean County First 



Tn Bureau Membership 



The total membership of the McLean 

 County Farm Bureau on June 23 was 

 1,647, of which 1,585 were reported 

 signed on June 11 setting a record for 

 the number signed in one day. 



Clean-up membership drives planned 

 for July and September are expected to 

 make this the largest county Farm Bu- 

 reau organization in the world. This 

 distinction is now held by San Pedro 

 County, California, Farm Bureau, 

 which last year had 1,950 paid mem- 

 bers. 



The drive on June 1 1 was put on by 

 377 volunteer solicitors. The supple- 

 mentary campaigns also will be made 

 by volunteers with a membership of 

 2,000 as their goal. 



In 1930 about 12,000 co-operative 

 marketing associations in the U. S. did 

 a business of approximately $2,000,- 

 000,000. 



During 1930 the farm population in- 

 creased for the first time in 10 years. 



