TiTH YEAR:
CHRISTIANSTED.,
V.
1. U. S™A..
FRIDAY,
2irn
APRIL,
1923
ler of the
Currency.
The
name
sounds
formidable,
bat it simply
m>ans
that
any
group
of farmers,
or
business
mzn,
or
bankers,
who
can raise
a
minimum
of
$250,000 for each
bank,
may
set
up
an
establishment
to
make
‘intermediate
loans’’
like
those
maie
by
the
other
banks just deseribed,
on azcicultural
and
live stock
paper.
Th
v
can
raise
more
money
by floatinz th-
“:benture
bonds,
which
are
not to ba
ta.
free.
In
a
gen-
eral
way
these
institut.'ns
wiil
do
the
larg :-scale
loan business,
and
thereis
a
provision for privately
capitalized
redis-
coant
corperations
which miy stand back
of the smaller
ones.
The House members
of the Conference
Committee,
realizing
that
the
law
was
rather comzglicated,
tried
to explain their
intention
as follows:
““While the
two
systems
will furnish
relief t) the agricultural interests
of
the
country,
the Federal inter nediate
credit
banks
will
more
particularly
take
care
of the needs
of a certain
class.
and might
come
nearer
than
do
the national agri-
caltural
ecredit
corporations
in
taking
care of the entire
needs
of
the
general
agricultural puablie,
the
national
agricul-
tural credit corporations
will
make
cer-
tain
th2
caring
for,
in
a national
way,
of the
live
stock
and
cooparative
ma.-
keting requirements.”’
The
law also orovilas
for
the
continu-
ance
of
the
War
FKinance
Corporation
vaui April, 1924, and for certain
chanzes
in
the
Federal
Reserve
and
the
Lanl
Bank regalations
to
make
things
easier
for agricultural
borrowers’’.
It would
seem
that
the
provisimns
of
the law
aim
only
to
provide
adlition |
faciliies
to
cop=2
with
the
possible
in-
ability of existinz
banks
to
supply
th2
required
credit.
[here
seems
to b 2 no
intention
to p-ovide
eredit
on
mor2
en-
tended
ter.ns
than
Canadian
banks
havo
always been
willing to do.
Itis peraaps
pertinent
to
point
out
again
tiaat
the
situgtion
in Weastern
Canadi.
wh:re
the
principal de nand
for agricultural
credi:
arises,
is
not
the
sam2
as
that
waicen
existed in the Western
States
up
to
the
time of the inauguration
of
the
FKaderal
Resaerve
systen.
Exeept
by
re-borrow-
ing it is obvious
thar local
hanks
cannot
loan
more
than
a
certain
proportion
of
their deposits-
The situation
in
“anad:
is quite different.
It is well known
that
advances
in azricaltural
conmunities
in
Western
Canada
have
always
largely
exceeded
total deposits
in
such
districts,
We feel safe
in saying
that
the
existing
THE ST. CROIX AVIS.
18 printed
and
published
daily
(Sundays
and Holidays excepted)
by G. Johansen
at
the Avis Office.
TERMS---50 cents monthly tn aduance,
2 cents
per single
copy.
Entzred
as
second-class
matter
May
26th 1917 at the Post
Qffice
at Christian-
sted,
St. Croiz,
V. I. of the U. S. A.,
un-
der the Act of March 3, 1879.
AGRICULTURAL CREDIT.
For
some
time
‘past
a
certain
amount
of ecriticism
has
been
directed
against
Canadian
banks
in
connection
with the
extension
of credit
to
farmers.
Consid-
ering this fact,
and
the
current
discus-
sion
at Ottawa
relative
to
the
revision
of the Bank Act, the provisions of recent
legislation
in Washington
directed
to the
amelioration
of
the
existing
status
of
agricultural
credit in
the
United
States
may
be
interesting.
The
problem
of
financing
agriculture
in
Canada
is basi-
cally the same
as
in
the
United
States
and it may
well
be
asked
if any
of the
provisions previously existing,
or
recent-
ly
enacted,
might
wi h advantage
be
a lopted in Canada.
To
understand
the
p ‘ovisions of
recent
legislation
we
can
d
no better than quote from
the Litera-
ry Digest of March 17th.—
““The law
provides
for
a
system
of
twelve
‘'Federal
Intermediate
Credit
Banks.
The
Government
puts
up
$60,-
000, 000 for capital.
$5,000.000
{or each
bank.
These
banks
will take
for
redis-
count farmers’
notes
presented
by banks
and
by
farmers’
cooperative
assceia-
tions;
that
is they
will actually furnish
the
eash
for farmers’
bo:rowings
for
loager
terms
than
the
ordinary
three
month’s
loans
and for shorter
terms
than
the
regular
farm
mortgage
To
raise
money
for the
loans
beyond
the
extent
of their capital
they
must
issue
tax free
bonds
up
to
$600,000,000.
These
banks
will be
managed
by
the
Farm
Loan
Board,
and
members
of
the
Board
are
said
to believe that
the
new
institutions
will
be
ecalled
on
for
extending
credit
principally
in the corn
belt States.
Tat
is the part of the law which
the
Eastern
newspapars
pretty
generally
object
to,
as
putting
the
Government
into
the
banking business.
‘the other
part of the Law -Senator
Capper’s
plan-—provides
for
what
are
call>d National
Agricuitural
Credit Cor-
porations
to b> manar2d
by
the
control-
No. 96.
|
legislation in the United States
will
pro-
i
vide
no
better
facilities
than
have
al-
.
ways
been
available
to
Canadian
farm-
ers.
In
interpreting
this
statement
it
must
be borne
in mind
that
land
values
in the United States,
on
account
of
its
older settlement
and
larger
propoirtion-
ate population,
are highcr and
more firnm-
ly established
than
is the
case
in Canada,
which minimizes
the
risk
involved.
To
those familiar wiih the situation
it seems
apparent
tuat
ine
financial
difficulties
of the farmer
have
in many
cases
artsen
from ability ani
willingness
to
boriow
too muuch
money
rather
than
through
the
limitation placed
on his credit.
The
root of the farmers’
present
diffi-
culties
is
the
discrepaney
botween
the
,
price of farm produets
anll
of
industrial
'
and
commercial
commodities:
in
olher
words,
the farm ers,
speaking
generally,
’
have
not
been
able
to seli
their
products
*
at
a profit.
This situatioa
esntains
with-
in
itseif
factors
whieh
will
ultimately
force
a
more equitable prieo relationship.
In the
meantime
relict
must
be
lovked
for 1n economies
of operation
and
distri-
bution. —7he
Royt!l
Bauk
of
Canada,
April Ist.
1922,
:
Ti.\l?
’
@
Puizlication.
T
is
heraby
brough'
to
public
notice
Ithat
a
balanre
of
interest
amounting
to
Frezs
320.00
will
be
on
hand
for
distribution
on
the 26:h
day of May 1923,
from their
Majesties
King
Christi:n
the
Ninth and
Que
n
Leuvise’s
Golden
Wed-
ding
Memorial
Fund
for
the
bencfic
of
worthy indigent
persouns
in 3t. Croix.
Appiications,
containing
the
requisite
information
and
duly certified,
must
be
forwarded
(o the undersigned
within the
18th day of May 1923.
Despatching
Seeretarv’s
Office,
St,
Croix, Virgin Islands,
24 April 1923.
C.
E. RAPPOLEE,
Despalching
Secretary.
eAe
Quebec
Steamship
Co.
THE S.
S. GUIANA
was
expected
to ‘eave
New
York
on
the
96th
inst. and
1s duz
at
Frederiksted
on
or about
the 3rd prox.
ROB'T.
L.
@aERWIN
& 0. INC,,
Ageres,