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the failures or causes of failures as disclosed by this inquiry constitute 
strong enough to condemn the cooperative marketing principle applied 
marketing, as distinguished from the local type. While the success in 
the country has not been so marked as in California, it should be noted 
ym somewhat different conditions, the California associations have 
storical background, the experiences of which are much broader and 
hose of any other section. While producers in other sections have. been 
the results obtained either from selling through the regular channels, or 
organizations, the California producers have been, through a period of 
;, working out a system extending beyond the local market, whereby they 
a determining factor in the orderly marketing of their product and the 
ceived. 
quiry indicates that the success of a cooperative marketing organization 
depends upon, (1) a recognized need for such an organization; (2) an 
e and efficient management; (3) a sound financing and marketing policy 
informed and loyal membership.” 
mmittee takes the position. that the existing facilities for 
1 credit are sufficient and they are capable of development 
tion, through efforts from the local point of view and from 
community needs, to meet the requirements of agriculture. 
ing point of view is that the results so far obtained from 
farm loan system do not justify an expectation that the 
item is capable of such development and adaptation, and 
must be a revision of the federal system before the needs of 
‘can be adequately and properly met. 
‘committee mentions the Federal Reserve System, although it is not always 
part of the federal farm-credit system, a statement of the Reserve system’s 
riculture seems appropriate. The following quotation is taken from the 
Federal Reserve Bulletin, published for the Federal Reserve Board, for 
23. The law has since been amended in a number of particulars, the 
including those of 1927 which materially increased the powers of nationa! 
d upon farm lands, but the statement of 1923 continues to be a usefu 
the general relation of the Reserve Svstem to agriculture. It reads as 
California 
Association 
Prerequisites 
Agricultural 
Credit 
Federal Reserve 
System 
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is the relation of the Federal Reserve System to the economic and credit 
farmer? The establishment of the Federal Reserve System has saved the 
the effects of periodic money stringency which in past years of credit strain 
resulted in financial panic, drastic liquidation of loans, and depression. 
e issuance of federal reserve notes secured by eligible paper the reserve 
wt at the service of the farmer, as well as of others, a currency that is 
any time in amounts limited practically only by the volume of legitimate 
Furthermore, the reserves of other reserve banks are at the disposal 
n which is in need of currency. In a year like 1920, for instance, when 
arge amount of frozen loans there came a heavy demand for currency for 
rd crops, the reserve banks in agricultural districts at one time were 
+ much as $267,000.000 from those in industrial districts. 
Reserve Board 
(Continued on page 17)