difficult since many are hard pressed 

 for personal funds. 



Under such conditions, retaining 

 part of the net return on each unit sold 

 has proved to be an effective method 

 for obtaining capital. When enough 

 money has been accumulated the coop- 

 erative may begin to revolve the fund 

 by paying returns first to those mem- 

 bers from whom the margins were 

 received. This technique is known as 

 the revolving fund method of financing. 



Recognizing the need for credit to 

 strengthen the financial stability of 

 cooperatives, Congress provided for 

 the creation of 13 banks for cooper- 

 atives — 12 district banks and the 

 Central Bank for Cooperatives — in 

 the Farm Credit Administration Act 

 of June 16, 1933. These banks make 

 available to farmers' associations a 

 permanent source of credit on a busi- 

 ness basis. They have been important 

 in helping cooperatives expand their 

 activities and in becoming stronger and 

 sounder business organizations. 



To help develop long-term job op- 

 portunities in those parts of the Nation 

 suffering most from unemployment and 

 underemployment. Congress passed 

 the Area Redevelopment Act in 1961. 

 This legislation is designed to en- 

 courage existing industries to expand 

 and new industries to get started in 

 designated economically depressed 

 areas. Loans and grants are made to 

 qualified applicants unable to locate 

 other sources of financing at reason- 

 able terms. 



28 



