Newspapers / The Franklin Press and … / May 24, 1928, edition 1 / Page 2
Part of The Franklin Press and the Highlands Maconian (Franklin, N.C.) / About this page
This page has errors
The date, title, or page description is wrong
This page has harmful content
This page contains sensitive or offensive material
PACE TWO ' THE FRANKLIN PRESS, FRANKLIN, N. C. rr- - -THURSDAY, MAY 25, 1S23 "CIVILIZATION BEGINS AND PIDS WITH THE PLOW" . THINGS TO PLAN TO THROUGHOUT COMING YEAR The Farmers' Day at the test farm at Swannanoa on May 17, 1S28. , Poultry loading depot with facili ties for grading eggs. An annual poultry show. . Monthly livestock sales. Fanners' own line of delivery trucks. Porebred sires and seeds. Guernsey cattle association. . A semi-annual seed exchange day. . A Harvest Carnival one day of the bread and butter show. AN AGRICULTURAL CREDIT CORPORATION Does Macon Need It? The Federal Intermediate Credit Bank of Columbia begs to outline the following requirements regarding . an Agricultural Credit' Corporation, when organized for the purpose of rcdis counting agricultural production notes with it. .'...".' 1. Method of organization audits and examinations : It is necessary to organize a business corporation as provided by and in accordance with the laws of the state in which it is chartered. 'The name of the corpora tion should convey the. idea that it is organized to extend credit to farmers for agricultural production, marketing purposes and raising of livestock and the bank desires that it be termed an agricultural credit cor poration, with a distinctive name. The minimum capital is ten thousand (10, 000.000) dollars, fully paid in cash; there is no maximum. The bank requires that ninety (90) per cent of the paid in capital be invested in government or federal farm loan bonds and hypothecated with it as marginal security to protect the con tingent liability of the corporation - by-reasonof its endor sement- of the very clearVand distinct-that- the- ef- - poration- has - power ' to- make-loan to. TsniWrTjiiifi ing of livestock, and to rediscount or sell the notes taken to evidence the loans. This power is the very heart of the corporation and great care should be taken to express the same in language which will not only con vey the thought but which will also be entirely free from doubt. In ap pendix "A" will be found a suggestion t c :l .-.-.,. as 10 a IOrm OI WUHMUK viiui scuin appropriate. It should be always re membered that this bank only has power to rediscount or purchase the notes representing advances made for agricultural and purposes or the rais ing of vjivestock, and that consequent ly it can not , make a direct loan to ate by-laws must be adopted so . as to perfect the' organization of the corporation and -vest in its directors 1 T i '. ' .1 i .iiiinr. f i and oi liters aiiMuinaic . ivyuj w enable thc.m to properly fnctipn, pro viding particularly the procedure to be followed by the corporation in" or . I I i t- tier TO properly rnuuisc mv. and assign the security taken by it, and naming the- officers who shall have the right to make such endorse ment and assignment. ' Consult rp " pendix -"I"- for by-laws - alreeady- ap proved by the bank, which arc recommended as to form and sub stance. The board of directors should authorize the officers to make appli- it will furnish for the rediscount ... ... . . e urii'i rire A tor ho organization oi the corporation has been perfected a representative of this bank will meet Willi V'lii mi v ivi ....v. . - - J thorough investigation regarding the territory the corporation is to serve, as well as the ability, character and standing of its officers and direc tors, and report his findings to the bank. . Each agricultural credit cor poration is required to keep a com plete set of books, which must be noctorl rlailv ftip hank to have the privilege of making an audit of the same at least twice each year and of making an examination as often as it may think advisable. 0 Conirltv nririritv rprtifiratp as to same : In each instance the bank requires a crop mortgage, crop lien or crop bill of sale, as per forms furnished by it, containing a full de scription of all crops, truck or fruit. as well as the lands on which the same are to bee grown; and wherever additional security is taken, such as livestock or other personal property, a detained description must be given in the space provided therefor, so as to enable the bank easily to identi fy all such property. The bank may also require as further security a mortgage of real estate, in which event an attorney's certificate as to ts priority must be furnished. The loan papers must be properly evecuted in every particular and the . crop mortgage, crop lien, or crop, bill of sale duly recorded. Either the Clerk of Court, his authorized deputy, the attorney for the corporation, or some other approved attorney, must certify that the crop mortgage, crop lien, or crop bill of sale is a first lien over CONSULT YOUR KEEP YOUR FARM AND IT WILL KEEP YOU AND YOURS all the crops and property described therein. It is also necessary for the management of the corporation, or its attorney, to certify to this bank that the applicant owns in his own name the property listed as assets in the financial statement, subject to the indebtedness, if any, shown therein. All papers must be drawn in favor of the. corporation, the -note properly endorsed, and the crop mortgage, crop lien or crop bill of sale duly as signed by it to the bank. Maturity of the note must not be less than six months, and not over nine months at the time of the rediscount with the bank. All notes are drawn pay able at the Federal Intermediate Credit Bank of Columbia ,and ' in funds acceptable to it. ' 3. Collections No liability on part of . bank for : No liability is assumed by the bank in thee matter of making collection of items remitted to it . in navmrnt of a debt. It will under take to make collection of checks, drafts and similar items only as the Qwnt nf tlip remittintr borrowers. !.No agricultural credit , corporation or marketing agency or co-operative as sociation has authority to represent the bank.. Funds paid by a borrow er to either of these is not payment to the bank. ... 4. Order on co-operative association and marketing agency when requir ed: Whenever the borrower is a member of a co-operative marketing association, the bank requires that an order be executed in its favor author izing and directing the association to pay over to it- all proceeds of the' sale of the crop, truck or fruit pooled with it, until the note is paid in full. Wherever funds are advanced for the purpose of producing perishable crops, such as fruits, potatoes, peppers, to matoes, watermelons, spinach, lettuce, beans, asparagus, cabbage, etc., the crops must be marketed through some responsible marketing agency approv ed by the bank, and to that end a similar order must also be evecuted in the bank's favor authorizing and directing the marketing agency to pay Jo jt'ali:i)roceedsthe.salcs--nntil ihp note has been" naid In full. This sociation or marketing agency for its acceptance; the original must accom pany the note when offered for de discount; one copy should be retain ed by the co-operative association or marketing agency, and the other 'by. the. agricultural credit corporation. Under all circumstances and condi tions the co-operatinve association or marketing agency wil be and remain the agent solely of the borrower. 5. Financial statement required: In all instances the borrower must furn ish as a part of his application for a loan a financial statement, the form for which well be provided by the bank. In the case of an endorse ment, a financial statement by the endorser is required. This statement should be made out in dpulicate, the original being attached to the note. Every care should be exercised in the preparation of this financial . 'state ment in view of the fact that credit will be extended on the showing as made therein, and that any false statement is a criminal offense under Section 211-(b) of the Agricultural Credits Act of 1923. All rea estate included as assets must be listed' at itsmarketable valuc, af d generally only assets ; which - can be -recalizcd upon should be listed. 6. Loans to sharecroppers and ten ants: In some instances the bank ex tends credit to sharecroppers and renters; .in such cases the 'landrold must become either a joint maker of the note or an endorser, so as to protect the loan by enabling the bank to hold the landlord responsible for its payment. 7. Amount of loan on cotton and tobacco and perishable crops: At this time the bank limits the advance for the purpose of producing cotton in Georgia and South Carolina to a proximately $15.00 per acre or $150.00 per plow. In North Carolina the limit is $20.00 per acre, or approxi mately $200.00 per plow. On tobacco the bank limits the advance to ap proximately $40.00 per acre. In no case will the bank consider apploca tions for loans to farmers who pro pose to cultivatjnorethan ten ' acres of cotton to the plow in heavy land, or twelve acres in light soil. The,re is no restriction on tobacco; but it is assumed that good judgment will be used by the farmer and that he will not overcrop himself. The bank will not advance more than sixty per cent of the actual cost of producing perishable crops, truck or fruit; there fore, it must be satisfied that the grower is financially able to furnish the additional forty per cent. The bank, of course, will not advance to any farmer who does not make prep aration andrt endeavor to grow suffi cient corn, hay and other necessary crops for the maintenance of his farm. Its purpose js to assist only farmers who are willing to properly diversify their crops. In view of the small profit realized by agricultural credit corporations and by this bank, only farmers who are sound financial ly and who have good records from a pkojluction standpoint and enjoy COUNTY AGENT The farm pages of The Press are edited by the county agent in col laboration with the editor. . the confidence of the community in which they, live, should obtain credit. 8. Disbursment of proceeds of loan : From experience the bank has learned that it is not to the interest of the agriculaural credit corporation, or of itself, or' of the borrowing farmer himself, to pay the Tull amount of the' proceeds of his loan to him"; consequently the bank requires that the proceeds be disbursed as follows : The full proceeds of the note will be remitted by it to the corporation, to be paid over to the borrower monthly or weekly and in amounts as actually needed in connection with the production and harvesting of the crops, truck or fruit covered by the mortgage, lien or bill of sale. The borrower must execute an agree nient, the form for. which will be furnished by the bank, in which ho authorizes the agricultural credit cor poration to fix the amounts and . pe riods of payment of the proceeds of the loan to him. This requirement is based upon the bank's actual experi ence and it is imperative. . 9. Payment or renewal at maturity: It can not be too strongly emphasized that the agricultural credit corpora tion should make every proper effort to have all notes rediscountcd by it with this bank promptly paid at ma turity. Should the borrower desire to hold his cotton, he should store the same in a. warehouse apaproved by this bank and forward the warehouse receipts together with a renewal note, form of which will be furnished by trie- bank, by the maturity of his note. The bank can not under the law allow a value for the cotton covered by the receipts in excess of senvety-five per cent of the market value throf, and .in its discretion it may not even allow a value as high as that, all depending upon the market conditions prevailing at the time. In instances of price depression or crop rfailurc the bankvill considerr - ncwajs for a reasonbale time; pro I v i4i-'fcvSl6'vi' the' i&iMr.iM:?-i'' 1 of the products covered by its se curity pgapers. . It will not even con sider a renewal where the borrower has not done so, and this will be fully ascertained by it through oife of its field inspectors before the renewal will be acepted. In connec tion with renewals, there is one thing of extreme importance, viz., action in time to save the T)ank from em barrassment with the registrar, with whom all notes arc pledged as se curity for its debentures. last due notes aer ineligible as such security ; hence when a note becomes past due it must be withdrawn from the regis trar and eligible security pledged in its stead. Should there be many notes past due, the embarrassment referred to arises in the matter of the bank being unable to furnish suf ficient eligible security to substitute for those when withdrawn. The bank does not, in fact' it can not afford to, carry any consideable amount of unpledged eligible security. Its mar gin of only one per cent is so small until it is compelled to keep all of teh notes, pledged for debenture;?, ifrom the sale of which it secures its loanable funds. This turnover is ab solutecly. esential to : its ability to function. Past due paper, therefore, embarrasses it in two very scrionr ways : first, it requires eligible paic to be substituted for it, and second, it stops '. the turnover. The bank will not do business with an agricultural credit corporation which does not have all notes rediscountcd with it cither paid or renewed at maturity. 10. Wronkful disposal of crops: The borrower should be made to clearly understand that it is contrary to the law of his state for him to sell or otherwise dispose of the crop, truck or fruit covered by the mort gage, lien or bill of sale, unless he pays all of the proceeds of the sale promptly on his indebtedness to this bank. Not only that, but he should also be made to understand that he will be vigorously prosecuted criminal ly' should he sell or otherwise dispose of the whole or any part of such cropsj truck or fruit, without paying the entire proceeds upon his. indebted ness to this bank. This cannot be too strongly emphasized. 11. Rediscount amount based on unimpaired capital and . surplus : Should the character of, the paper offered be satisfactory ,the bank will rediscount from five to seven times the paidin and unimpaired capital and surplus of the agricultural credit association. It cannot, under the law, exceeed ten' times the paid-in and unimpaired capital and surplus, No corporation can legally extend a line of credit to any one individual for more than twenty per cent of its paid-in, and unimpaired capital and surplus, and in no event can it ex ceed the limitation fixed by the law of the state in which it is chartered and organized. 12. Rate of rediscount and interest : The act creating this bank allows it to charge not exceeding one per cent more than the interest rate borne by AS YOU WOULD YOUR DOCTOR OR the debentures, and it also fixes the rate the corporation can charge the borrower in addition thereto at two per cent unless a higher rate is ap proved by the farm loan board. ! ' 13. Remittance of collections : The agricultural credit corporation should remit promptly the exact items it actually receives from the borrowers. It has no right to deposit them in any bank and. permit the latter to re tain the proceeds. They belong to this bank and must be remitted with out delay. The bank will not redis count notes offered to it by an agri cultural credit corporation which does not. observe carefully this requirement and it will make sufficient examina tions tov satisfy itself on this subject. 14. Requirements when associated with bank : Wherever the agricultur al credit corporation is organized in connection with a bank, and the of ficers of the corporation are r.lso the officers of the bank, before ex tending the rediscount privilege a rep resentative of this bank must be au thorized by the board of directors of the. former bank to make a complete examination thereof. The bank also requires that the directors of huch bank authorize it to make an in spection of the accounty of borrowers who may be indebted to it from time to time, and also consent' for either the state banking department or the comptroller of currency to permit this I bank to inspect in confidence the per iodical examinations made by either of these departments. 15. Purchase of stock with pro ceeds of loan forbidedn: Under no circumstances will the bank consent for an agricultural credit corpora tion to sell its stock' to a borrower, whose paper is being rediscountcd with it, unless the borrower is in po sition to purchase the stock and pay cash for it without usjng any part of the proceeds of . the loan. During the past the bank has found maiy cases where the borrower was forced to take a certain percentage of the corporation's stock to be paid for out of the proceeds of ; the loan. This is a condition that cannot be - Kpermittedi - - - since it is not good..ur "sounrl-tmHcyr an4-ifc- isn very doubtful X'.r;; ,-ir r-ftrf 5v EfytttS-aof 16. bond or collateral as security for deposits: Where funds represent ing proceeds of notes rediscountcd by the bank or collections from bor roweds will remain on deposit in r bank to the credito f an agricultural credit corporation, either a depository bond acceptable to the bank must be furnished covering the maximum amount of funds that will be on de posit at any one time, or satisfactory security must be hypothecated with it under authority of the board of directors of the depository bank, ac companied by an appropriate assign ment, properly executed, the form of which will be furnished by this bank. The bank has a schedule depository j bond which it prefers and requires when a surety depository bond is furnished. - 17. Bond ot secretary-treasurer: The bank requires the office of the secretary-treasurer of other .similar office to be bonded for faithful performance of duty; and ito that end it has pro cured a form of coverage which is satisfactory to it and under which the office of secretary-treasurer will be bonded. This bond protects both the bank and corporation. The premium, therefore, will be paid by the corpora tion. The coverage is automatic, on ly the payment of the premium being required to continue it of-force, and this the bank will pay and charge the same to the corporation. 18. Forms prepared by bank : The bank as herein stated will furnish certain forms for the use of the agri cultural credit corporation and the borrowers. They will be supplied at acutal cost. The bank for the very best of good reasons desires that- only the forms as thus supplied by it be used in connection with any loan that will be offered to it' for pur chase or rediscount ; not only that, but it requires that the forms be exe cuted as prepared without interlining or erasure. - :v- 19. Laborer's lien must be waived; If an applicant for a loan farms his land 'in whole or in part with share croppers, then it will be necessary that each one of them waive on a form lhat the bank furnishes the laborer's lien in favor of the crop mortgage. On the back of the ap plication is a form which must be filled out and signed by the applicant at the time he prepares his applica tion. If it is not filled out and sign ed, then it will be understood that there are no sharecroppers; and, if there should be some, then Section 21I-(b) of the Agricultural Credits Act of 1923 will apply and subject the applicant to criminaj prosecution on the ground of a false statement. Should the applicant, however, in tend only to mortgage his part of or interest in the crops, and not that of the sharecroppers also, then he should so state at the place provided for that purpose on the back of the application; but even then he must give the names of all sharecroppers. 20. Farm loan board rules and regulations of: The farm loan board in its circular, No. 15, has prescribed THINGS TO PLAN FOR RIGHT NOV That cream check every two weeks. That cannery check every time you come to town. Fat hog sale in June. Bread and Butter Show next fall. '. Encourage the 4-H Clubbers. Big Farmers' day next fall. Local Curb Market. . Breed sows so that the pigs will go on the market in March, April, August and September. certain rules and regulations to gov ern the operation of a federal inter mediate credit bank, which, under the terms , of the Agricultural Credits Act of 1923, have the full force and effect of law. The circular in addition to these rules and regulations, also con tains a copy of the act. The bank or the board will gladly furnish a copy of this circular upon application. Every agriculaural credit .corporation should have one and make a very careful study thereof, so as not only to become thoroughly familiar with the text of the act, but also with tlu; interpretation placed thereon by the board. ' 21. Changes: All policies and re quirements set forth herein are sub ject to change at all times and with out notice.' ivi ' ' j SWINE SANITATION GIVES GOOD RESULTS IN SOUTH Practical tests in the South of the system of swine sanitation, developed by Federal zoologists in McLea county, 111., have yielded encouraging: results. The purpose of the system is 4ocnt roLswino nara Kit ?i hv a obtained in southern Georgia by Dr. E. M. Nighbcrt, of the Zoological Division of the Bureau of Animal Industry of the United States Depart ment of Agriculture, have showin some striking results from the use of the system. In one contrast be tween two .pigs, the animal raised under sanitary conditions was market ed at 4 months and 23 days of age, weighing 173 pounds and topping the market. The other pig was not sold until 10 months of age, and even though more than twice as old as the "sanitary" pig, it weighed only 165 pounds. Doctor Nighbert reports that a num ber of farmers are using the sanita tion system and are making their herds and farms available for ex periment and demonstration. One farmer, in commenting on the results, stated: "It is easy to pick out from my herds the pigs that were raised under parasite control. They all look thrifty and smoother and pre much larger for their age and period of feeding than the others. Of course, that means much better profits from j1 1 H IM inose so nanuieu. T VFSTOCK IN FARM WOOD LOT HINDER TIMBER DEVELOPMENT The farm wood lot is more val uable as a producer of wood than as a- pasture for livestock, according, to C. R. Tillotson, forester of the United States Department of Agri culture. A year's forage production in the averaere wood lot is rsiimatnrl to be worth from 25 cents to $1.25 : an acre. In the same time a well managed wood lot will add from one half to 1 cord, of wood. In addition , there is the convenience of having a supply of cord wood, poles, posts, zni . lumber near at hand. Livestock eat and break down the vouner errowth. bend it. strin it of bark, and tramp it out. .Also by. tramping the soil around the roots of older trees they pack it so tightiv that air and water are excluded from. . the roots, and the trees gradually, die Hogs eat 3he -seeds ofoak and ' beech and thus interfere with the establishment of seedlings. Heavily pastured woods are easily recognized ; they are almost entirely devoid of bushy undergrowth, a sod grass has are beginning to die -in the tops. . Livestock undoubtedly benefit from fhp shpltpr nffnrHprl hv urnnflc Tmn WVfc,WS l W l V- V. I-' 111, dllU LllL um II II or three acres, however, will ordi narily give them all the shelter they need ; the remainder of the woods had better be fenced off to grow a good wood crop. Mr. and Mrs. Colburn Here Mr. and Mrs. Burnham S. Colburn, of Biltmdre were visitors to Franklin Tuesday. Mr. Colburn is an en thusiastic collector of Indian relics and was in Franklin investigating whether or not such relics are avail able in Macon county. YOUR LAWYER
The Franklin Press and the Highlands Maconian (Franklin, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
May 24, 1928, edition 1
2
Click "Submit" to request a review of this page. NCDHC staff will check .
0 / 75