Warehouse Act of 1916
Encyclopedia
The Warehouse Act of 1916 permitted Federal Reserve member banks
to give loan
s to farmer
s on the security
of their staple crops
which were kept in Federal storage units as collateral
. This Act of Congress
went far in securing the farm vote in the 1916 Presidential election
.
Federal Reserve Bank
The twelve Federal Reserve Banks form a major part of the Federal Reserve System, the central banking system of the United States. The twelve federal reserve banks together divide the nation into twelve Federal Reserve Districts, the twelve banking districts created by the Federal Reserve Act of...
to give loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s to farmer
Farmer
A farmer is a person engaged in agriculture, who raises living organisms for food or raw materials, generally including livestock husbandry and growing crops, such as produce and grain...
s on the security
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
of their staple crops
Staple food
A staple food is one that is eaten regularly and in such quantities that it constitutes a dominant portion of a diet, and that supplies a high proportion of energy and nutrient needs. Most people live on a diet based on one or more staples...
which were kept in Federal storage units as collateral
Collateral (finance)
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...
. This Act of Congress
Act of Congress
An Act of Congress is a statute enacted by government with a legislature named "Congress," such as the United States Congress or the Congress of the Philippines....
went far in securing the farm vote in the 1916 Presidential election
United States presidential election, 1916
The United States presidential election of 1916 took place while Europe was embroiled in World War I. Public sentiment in the still neutral United States leaned towards the British and French forces, due to the harsh treatment of civilians by the German Army, which had invaded and occupied large...
.