Bank Credit And Agriculture, Under the National And Federal Reserve Banking Systems
Bank Credit And Agriculture, Under the National And Federal Reserve Banking Systems
Ivan Wright
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54e. Digitized by VjOOQIC 174 BANK CREDIT AND AGRICULTURE tile paper has very large turnovers in this district. The indus- trial paper accumulates from the mining and manufacturing enterprises which are rapidly expanding in this section of the country. As in the other districts these latter classes of paper are rediscounted and the proceeds used to extend credit to farmers. This conceals large sums of agricultural paper. The peak of the rediscounts of farmers' paper maturing after 90 days in th...e St. Louis bank in 1915, was reached in May, at $105,600. This is the month when the largest amount of paper providing for the planting season accumulates. The explana- tion for the peak of the year coming in the spring (May) instead of in the fall (November) is perhaps that large sums of the autumn borrowing by farmers for feeding and marketing or storing crops are handled by middlemen, whereas the burden of the spring financing is left to the farmer on his own initiative. In 1916 the St. Louis Agent reported that: **The agricultural portions of the district are in especially good condition.
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