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The Madison Daily Leader
Madison, Lake County, South Dakota
What is this article about?
In Washington on Feb. 2, Secretary Wallace charged that corn belt banks misused War Finance Corporation funds meant for agriculture to pay Federal Reserve debts, denying loans to livestock growers needing to feed surplus corn, and charged farmers exorbitant interest rates up to 25%.
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DECLARE MONEY WAS NOT USED TO EXTEND CREDIT TO LIVESTOCK GROWERS
Washington, Feb. 2.-Banks of the corn belt, it was charged today at the department of agriculture, have discriminated against growers of livestock by using funds advanced by the War Finance corporation, for agriculture purposes to liquidate debts to the federal reserve board instead. Many livestock growers, Secretary Wallace said he had been informed, were in need of livestock which to feed the surplus corn crop, and on applying to banks for loans, had been refused. Large sums already had been advanced to the corn belt by the war finance corporation, it was said, but there was unmistakable evidence, now it was added, that much of this had not found its way to the farmers. The surplus corn crop, unless fed, would have a depressing effect on the price of next year's crop, it was pointed out. Interest rates charged to farmers in many parts of the country have been "outrageous and wholly unjustified," Secretary Wallace asserted, pointing to reports reaching him, which included one of ten per cent. with an additional 15 per cent. to the agent making the loan. Others were reported as 7 to 10 per cent. for five years, and 8 per cent. for ten years.
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What entities or persons were involved?
Where did it happen?
Domestic News Details
Primary Location
Washington
Event Date
Feb. 2
Key Persons
Outcome
banks refused loans to livestock growers; high interest rates reported (10% + 15% to agent, 7-10% for five years, 8% for ten years); potential depressing effect on next year's corn prices if surplus not fed.
Event Details
Banks in the corn belt discriminated against livestock growers by using War Finance Corporation funds for agriculture to liquidate debts to the Federal Reserve Board instead of extending credit; growers needing livestock to feed surplus corn were refused loans; large sums advanced but not reaching farmers; interest rates to farmers described as outrageous and unjustified.