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Undoubtedly the agreement on the part of the officials of the corporation to lend a helping hand * was the one factor which enabled the cotton growers in the territory to go forward. At the time this agreement was made the cotton growers of this vicinity were apparently at the road's end," for with the banking facilities completely congested these people were facing what they thought was the impossibility of financing their growing crop.

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The mere fact that the corporation was not only able but willing to make adput new life into the planters and farmers and at the same time lightened very greatly the burden upon the banking institutions.

vances

When we recall the apparently hopeless conditions which these industries were facing last year, and then consider the vastly improved situation which we find to-day, we must concede a very large measure of the credit for this as due to the timely financial relief extended by the War Finance Corporation.

The most immediate and substantial gains are evident in the sheep and wool industry, which is already beginning to realize on the very satisfactory market prices now obtaining for these products, while the cattle business is making progress, more slowly perhaps but none the less surely, toward a safe and sound condition. The long-time loans, at fair interest rates, provided by the War Finance Corporation (and by no other source) have practically saved the live-stock interests from disaster.

The farmer also is now looking to the future with more hope and courage. His products are bringing better prices, and while there are some big problems still to be worked out in this industry, and particularly in this section, there is no doubt an improved outlook in general in agricultural conditions.

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Here in the West there is quite general enthusiasm over the work of the War Finance Corporation. It seems that the mere knowledge that this powerful assistance is available has helped to create a new and more optimistic mental attitude, in which courage and confidence predominate.

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The farmers are waking up to the fact that your work has been of the utmost benefit to them. Particularly is this true of the live-stock men. There are hundreds of breeding herds in the big live-stock areas that would have been dissipated had it not been for the direct aid which the War Finance Corporation gave them. There is no doubt but that business picked up as soon as the farmer began to get his financial footing established, and no progress was made at this until the War Finance Corporation began to function.

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The minds of farmers and stockmen were relieved of an apprehension of pending disaster. The activities of the corporation * produced a lively hope or expectation of improvement, which rapidly grew to confidence. Farmers and stockmen were encouraged to renew their efforts to recover their losses. The activities of the corporation furnished a stimulus for new operations on the part of farmers and stockmen and these operations naturally accelerated improvement in general conditions.

Creditors who theretofore had been disposed to press the collection of obligations found it desirable and expedient to grant additional time to debtors for the purpose of permitting them to finance their requirements through the corporation. Still later, many farmers were enabled to put in 1922 crops, who otherwise could not have done so. * Pessimists have been fransformed into optimists, courage and determination have taken the place of despair and indifference, confidence has been substituted for doubt-all of which produce a community atmosphere at once constructive and progressively helpful.

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The activities of the War Finance Corporation have had a wonderful effect on the agricultural and live-stock situation in this part of the State. Money advanced to the farmers through the banks enabled a number of them to hold their stock and agricultural products until they could dispose of them advantageously. * Other causes might have helped,

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*but we believe nothing has been more helpful

than the activities of the corporation. * * *

We earnestly believe the War Finance Corporation in coming to the aid and asistance of the farmer has poured oil on the troubled waters of the whole situation, resulting in a better feeling between the farmer, the banker, and the business man.

In the early autumn of 1921 the public mind, so far as two of our basic industries were concerned-beet sugar and live stock-was in a state of panic. * * * The War Finance Corporation, by its activities in loaning funds to foster and encourage, came at a providential time. Without doubt, it has brought these two great industries in this intermountain country back to normalcy.

The War Finance Corporation saved those engaged in the live-stock industry and also saved the State banks. I verily believe that had not the War Finance Corporation come to their rescue, a very large proportion of our State banks, not members of the Federal reserve system, particularly in the rural communities, would have been obliged to close their doors.

The great beneficial results flowing to this intermountain country through the activities of the War Finance Corporation were even greater from a mental and social point of view than they were from a monetary point of view. No man would have had the temerity to have prophesied our coming back to present conditions, except in time measured in years and decades until the War Finance Corporation activities were brought into our midst. Quickly then we measured our return to normalcy in months, and sometimes even weeks. Now that less than a year has elapsed, we can say with confidence that the results which we hoped for have been secured. * * 1 question whether any activity of the Government locally applied has rendered as much common-sense and invaluable ser vice to the citizens of any section of the United States as the activities of the War Finance Corporation rendered to this intermountain country.

Before receiving this advance we were straining every nerve to carry customers and to oppress no one, but had little resources to care for additional needs. Since receiving the War Finance help we have been loaning freely to help the farmers prepare their products for market in a more quiet and orderly way and thereby reliev· ing the strain and somewhat panicky feeling that existed.

The assistance that has come from the corporation in this district has saved many banks from liquidation and has rendered incalculable benefit to farmers and stockmen.

I am more than enthusiastic over the great work done by the War Finance Corporation and the immense good that flowed from it. There is no question that the assistance to agriculture came at the right time, was extremely effective, and that the work of the corporation saved thousands of farmers and stockmen from bankruptcy.

The 7,000 loans made to banks in agricultural districts served to open the avenues of credit and enabled thousands of producers to meet their current obligations without sacrificing the products of their efforts at prices which would have been ruinous. The effect of the loans is so far-reaching as to be beyond accurate estimate. It is by no means confined to those who actually obtained loans from funds provided by the corporation. The influence of the money available from this source resulted in making money easier from other sources and a more liberal policy on farm loans was adopted by practically all agencies.

The net result was that farmers and stockmen generally were enabled to market their products in a more orderly manner at prices which, in the aggregate, returned to producers millions of dollars more than they would have received if they had been forced to dump them on the market regardless of prices offered.

Mr. MEYER. I think it is fair to say that, under the agricultural credits act of August 24, 1921, practically all the difficult situations in the agricultural and live-stock districts during the past 18 months have been brought to the attention of the War Finance Corporation. We have not only endeavored to meet these situations in a helpful and constructive way with the powers and resources granted by the Congress but, at the same time, we have tried to analyze and to understand the causes of the difficulties which led the Congress to pass the agricultural credits act, so that we might contribute, out of our experience, something that would be of permanent value to agriculture and to the banking structure of the country.

When the War Finance Corporation was directed to resume operations in January, 1921, its powers were restricted to the financing of exports, but these powers were enlarged in August, 1921, by the agricultural credits act, which

gave the corporation authority to make advances for agricultural purposes to banking and financing institutions and to cooperative marketing associations. When that act was passed, the corporation had only a small organization in Washington and none in the field. In order properly to discharge the responsibility lodged with the corporation, it was necessary to create an organization throughout the country-to set up what amounted to an emergency auxil iary banking system in the agricultural and live-stock districts-and we proceeded promptly with this task. Thirty-three committees were appointed to aid in making the resources of the corporation quickly and effectively available, We were able to secure the services, without compensation, of representative bankers and business men in each of the States. These men have served not only without pay but in many cases, at considerable expense to themselves, and they have devoted a great deal of their time and energy to the work. In fact, some of the leading bankers in the more important districts gave us at least half of their time during the acute period, to the neglect of their own institutions and their own business interests.

To November 30, 1922, the date of our annual report, the corporation approved advances for agricultural and live-stock purposes totaling $433,447,000 in 37 States-$182,859,000 to 4,400 banking institutions in 37 States; $77,761,000 to 113 live-stock loan companies, old and new, in 21 States; and $172,827,000 to 32 cooperative marketing associations in 20 States.

The loans authorized on live stock in the West totaled $90,001,000; on cotton in the South, $81,848,000; on grain in the Northwest, Middle West, and Southwest, $36,790,000; on peanuts in Virginia, $2,045,000; on tobacco in Kentucky, Indiana, and Ohio, as well as in North Carolina and neighboring States, $40,000,000; on rice in California, Louisiana, and Arkansas, $10,250,000; on sugar beets in Colorado and Utah, $11,438,000; on other agricultural commodities, $1,895,000; and for general agricultural purposes, $159,180,000.

Of the amounts approved, $265,598,000 had been actually advanced to Novemher 30, 1922-$168,258,000 to banking institutions, $73,452,000 to live-stock loan companies, and $23,888,000 to cooperative marketing associations.

Repayments received by the corporation to November 30, 1922, on account of these loans totaled $109,938,000, of which $71,243,000 was repaid by banking institutions, $24,129,000 by live-stock loan companies, and $14,566,000 by cooperative marketing associations, leaving a balance outstanding of $155,660,000, as follows: From banking institutions, $97,016,000; from live-stock loan companies, $49,323,000; from cooperative marketing associations, $9,321,000.

In addition to the loans for argricultural and live-stock purposes, the corporation-from the time it resumed operations in Janaury, 1921, to November 30, 1922-authorized advances totaling $53,374,000 to assist in financing exports; $38,379,000 to banking and financing institutions, $9,733,000 to exporters, and $5,262,000 to cooperative marketing associations. These advances were approved for the most part prior to the passage of the agricultural credits act, when, as I have said, the powers of the corporation were restricted to the financing cf exports.

Of the total amount authorized for export purposes, $5,778,000 represented advances on grain; $3,246,000 on tobacco; $35,759,000 on cotton; $3,120,000 on other agricultural products, and $5,471,000 on manufactured commodities.

To November 30, 1922, $38,654,000 had been actually advanced against these export commitments-$28,469,000 to banking institutions, $7,547,000 to exporters, and $2,638,0000 to cooperative marketing associations.

Only a small amount, it will be noted, was loaned to cooperative marketing associations under the export financing authority of the corporation; for the most part, the loans to such associations were authorized under the provisions of the agricultural credits act.

Repayments received by the corporation to November 30, 1922, on account of its export loans totaled $36,594,000, of which $28,308,000 was repaid by banking institutions, $5,648,000 by exporters, and $2,638,000 by cooperative marketing associations, leaving a balance outstanding of $2,060,000, as follows: From banking institutions, $161,000; from exporters, $1,899,000. All the export advances made by the corporation to cooperative marketing associations have been repaid in full.

Of the loans made under the war powers of the corporation and under its export authority prior to the suspension of activities in May, 1920, there was outstanding on November 30, 1922, only $27,650,187, a total of $83,496,000, having been repaid since the corporation resumed operations in January, 1921.

At the close of business on November 30, 1922, the corporation had outstanding on loans of all classes a total of $185,370,000.

The peak of applications for loans for agricultural purposes was reached in December, 1921, when we received in one week 499 applications from banks and live-stock loan companies for amounts aggregating $13,000,000. The applications averaged more than 300 a week, for amounts ranging from $7,000,000 to $11,000,000. until late in February, and from that time on there was a constant decline both in numbers and in the amounts involved.

The effect of the corporation's activities on the agricultural, banking, and commercial situation is presented in the annual report, and I will not therefore go into it here. I will merely say that by locating and relieving the weak spots in the situation, by removing the pressure for forced liquidation, by putting the banks in position to carry their farmer customers for a longer per.od as well as to make new loans, confidence was restored and the banking situation in the country districts was greatly strengthened. Markets became more stabilized and a progressive improvement set in. That improvement. which began with cotton in the South, has continued until to-day the only seriously affected areas-areas I mean where conditions at all approach the situation that prevailed when the agricultural credits act was passed-are those that have suffered from unusual climatic conditions, such as New Mexico and west Texas, where an extended drought, perhaps the worst in 40 years, has caused much distress to the stockmen, and certain parts of the Northwest, where the farmers are still suffering from the effects of several years of crop failures, although they produced a fair crop this year and are better off than they were last year.

The export situation has not been overlooked by the corporation in connection with its activities for the relief of American agriculture at home. We have not at any time ceased to consider how we might stimulate, improve, or accelerate the movement of our agricultural products to foreign markets. Perhaps the committee will be interested in knowing that during the year ended June 30, 1922, our exports of the five principal cereals-wheat (including wheat flour), oats, rye. barley, and corn-exceeded by 20,000,000,000 pounds, or 240 per cent, the average annual exports during the years 1910 to 1914, inclusive. The exports of dairy products increased from the pre-war average of 24,967,000 pounds to 303,611,000 pounds, or 1,116 per cent, and the exports of meat products increased from the pre-war average of 1,416,546,000 pounds to 1,797,478,000 pounds, or more than 26 per cent.

I would like permission to insert in the record a short table from the report of the Secretary of Agriculture showing our exports of agricultural products over a period of years.

Mr. STRONG. Without objection, it will be so ordered.

(The table referred to is as follows:)