COOPERATIVE AGRICULTURE


terms as soon as advances have been promised and approved
by the intermediate credit banks. An association that has
been deemed a safe risk by an intermediate credit bank
has thereafter a better standing with private financiers.

How can additional information concerning the operation
 of these banks be obtained?
 Information about loans and discounts, or the organiza-
tion of agricultural credit corporations where such are
needed, can be obtained from the intermediate credit bank
m the district concerned.

Does the Agricultural Credits Act of 1923 contain any other
 provisions for the improvement of intermediate credit
 to the farmer besides those dealing with the intermedi-
 ate credit banks?

 Yes. There are four other important provisions:
 1. The Federal reserve act is amended by increasing
the maximum term for which the reserve banks may dis-
count agricultural and live-stock paper from six months to
nine months.
 2. The definition of agricultural paper is broadened to
include loans to cooperate marketing associations for grad-
ing. processing, packing, preparing for market, or market-
ing of any agricultural products handled for members.
 3. The capital needed to make a State bank eligible
for admission to the Federal reserve system is reduced to
60 per cent of the amount required for national banks
in cities of corresponding size to that in which the State
bank is located. It is provided, however, that the State
bank must agree to increase its capital within a reason-
able time to the amount required of the national bank.
Country banks that take advantage of this provision will
greatly add to their ability to aid agriculture.
 4. Privately financed and managed national agricul-
 tural credit corporations may be organized under Federal