RECOI^D 



Published monthly by the Illinois Agricultural Association at 165 So. Main St., Spencer, Ind. Editorial Offices, 608 So. Dearborn St, Chicago, IlL 

 Application for transfer of second class entry from Marshall, III., to Spencer, Ind., pending. ' Acceptance for mailing at special rates of postage pro- 

 vided in Section 412, Act of Feb. 28, 1925, authorized Oct. 27, 1925. Address all communications for publication to Editorial Offices, Illinois Agri- 

 cultural Association Record, 608 So. Dearborn St., Chicago. 



Number 4 



APRIL, 1932 



Volume 10 





I 





F 



6 



arm Dureau 



Lead 



ers 



opt Policies 



450 to 500 County Presidents, Directors and Advisers Meet with I. A. A. 



^:-^''■'■^■■;^. ';v-;':'''^"'-:'-'^' Representatives at Decatur ^':^;;\/;^''' '•'^■'^,v;;:^:;■■ /':>■'■ : 



LET the government take the $100,- ing crop as security. Such loans may pher, office and other expenses even if 



000,000 allotted to agriculture by not be used for taxes and hired help, no losses were sustained. The following 



the Reconstruction Finance Corpora- Loans are limited to $15 per work ani- explanation may be helpful, 



tion and use it to get rid of crop sur- mal. The borrower will be virtually Funds for making loans through 



pluses now depressing farm prices, barred from securing credit from pri- credit corporations are obtained by the 



Loaning this money to buy farm seeds, vate sources since his entire crop would latter from Intermediate Credit Banks, 



feeds, fertilizers, spray materials, etc., be mortgaged. Debentures floated by such banks have 



will only result in more production to Possibilities of relief through the for- been selling to yield 4^2% interest. The 



aggravate the surplus problem. And mation of agricultural credit corpora- 



the extension of further credit will only tions were viewed with more or less in- 



drive farmers deeper into the mire of difference when advantages and disad- 



debt. vantages of such organizations were money it costs 5^2%, and if the farmer 



Such was the sentiment expressed weighed. It was pointed out first that borrower is charged 7%, the local 



and later adopted at a closed meeting stock in such corporations must be sold, credit corporation receives a spread of 



of 450-500 Farm Bureau presidents, and $1 in cash deposited for every $4 ^YiYc- Six times $25,000 (the capital 



secretaries, directors, advisers, and I. A. of stock subscribed for; that farmers subscribed) is $150,000 and 1^2% of 



A. officers, directors, and staff held would be forced to pay 7% interest on $150,000 is $2,250. 



March 2 5 in the Orlando Hotel, De- loans; that the credit corporation could Where larger agricultural credit cor- 



catur. not safely count on loaning more than porations can be organized, the stock 



The government must stop subsidiz- six times its capital stock and if such sold, a substantial volume of good loans 



ing more farm production, cut out its corporation were capitalized at $2 5,000, made, and able management secured it 



reclamation work, and confine its as- only about $2,2 50 annually would be was believed that such institutions 



sistance to helping farmers build a more available to pay a manager, stenogra- might be of service in communities 



Intermediate Credit Bank must have 

 1% to pay its overhead. Thus when 

 the local credit corporation gets the 



satisfactory mar- 

 keting system in 

 which every pro- 

 ducer shares his 

 part of the cost. 

 This summarizes 

 the opinion ex- 

 pressed by a num- 

 ber of speakers 

 from the floor and 

 platform. 



It was reported 

 that limitations 

 surrounding the 

 loaning of R. F. C. 

 money to farmers 

 greatly" weakened 

 the \yalue/ if any, 

 from sucn aid. The 

 borrower is limited 

 to a maximum of 

 $400 per farm and 

 must give a prior 

 lien on the grow- 



BOARD OF DIRECTORS OF L A. A., 1919 



Left to right: Back row — I. F. GUlmor, Mercer County; C. V. Gregory, DuPage county; 

 John P. Stout, Sangamon; D. O. Thompson, secretary; Howard Leonard, Woodford, treasurer; 

 J. W. Morgan, Henry; Henry T. Marshall, LaSalle; A. A. Hill, Macon; G. C. Johnstone, McLean. 



Front row — J. W. Kirkton, McLean; J. R. Fulkerson, Jersey; J. W. Robinson, Edgar; 

 Harvey J. Sconce, Vermilion, president; J. W. Thier, LaSalle; Z. M. Holmes, Peoria, vice- 

 president; and John Gummersheiraer, Monroe. 



where private cred- 

 it sources are no 

 longer available. It 

 was agreed that the 

 policy of the I. A. 

 A. in offering legal 

 aid and informa- 

 tion, but not urg- 

 ing the organiza- 

 tion of credit cor- 

 p o r a ti o n s, was 

 sound. 



Following a dis- 

 cussion of agricul- 

 t u r a 1 legislation 

 now pending at 

 Washington, by 

 President Earl C. 

 Smith, the meeting 

 went on record 

 unanimously call- 

 ing on Congress to 

 strengthen the Ag- 

 ricultural Market- 



i • ■ 



