COOPERATIVE AGRICULTURE 85

obliged to seek intermediate credit by the makeshift plan
of renewing short-term loans from bankers or merchants


Why does the farmer need intermediate credit more than
 other producers?

 Compared with that of business men. the turnover of
the farmer is slow. Business men frequently turn their
stock two or three times a year. Loans of short maturity
therefore are suited to business needs. But crop growers,
with few exceptions, have only one turnover a year. Loans
obtained by them in the spring as a rule can not be repaid
conveniently until crops are marketed Even credit ob-
tained later in the season may be needed longer than six
months if the crop is to be marketed in an orderly way.
Livestock producers have a yet longer turnover than gram
growers. Farmers need longer-term credit than business
men owing to the nature of their work.


How are the Federal intermediate credit banks organized?
 One such bank serves each Federal land-bank district
They are located in the same cities as the Federal land
banks, and have the same officers and directors They
operate under the supervision of the Federal Farm Loan
Board, just as do the Federal land banks.


What is the amount and source of the capital for the new
 banks?

 Each intermediate credit bank is entitled to capital from
 the National Treasury up to $5,000.000 The secretary of
 the Treasury is authorized and directed by the agricultural
 credits act to subscribe the capital as it is called for by the
 directors of the intermediate credit banks, with the approval
 of the Farm Loan Board Only $1,000,000 each was asked
 for by the banks when they were organized. Several of
 them have since called for additional amounts.