Loan Operations of the Commodity Credit Corporation

A comfortable margin of safety is one of the ordinary requisites for a "good" bank loan. If the Commodity Credit Corporation, however, dealt only in "good" loans as thus defined, its activities would probably lose significance. The distinctive function of the Commodity Credit Corporation is to bear the risk of loans extended on such favorable terms as to support the prices of agricultural products and facilitates the withholding of price-depressing surpluses from the markets.The general aim of this study has been to present a history of the lending and price-supporting activities of the Commodity Credit Corporation. This is not the first governmental lending agency, however, which has endeavored to promote "orderly marketing" of farm products, and therefore the credit operations of the War Finance Corporation, the Federal Intermediate Credit Banks, the Federal Farm Board, and the Banks for Cooperatives are briefly reviewed. Also it seemed desirable to five a general view of the organization, capitalization, losses, and borrowing activities of the Corporation.