Equally important for financing the current expenses of farming operations and to make possible the orderly marketing of crops, is the farmer's need for short-time credit. Our banking system has been developed to meet the needs of the business world, and the period for which loans can be made is too short to meet the needs of the farmer, who often requires credit for six months to a year. In some ten states legislation has been passed authorizing the formation of local credit associations, which are really local cooperative banks, but the number of credit associations established in rural communities has been insignificant, thirty-three out of a total of thirty-six being in North Carolina.[32] The tremendous losses suffered by American farmers during 1921 and their inability to secure sufficient credit from their local banks has shown the necessity for better short-time credit facilities, and bills are now before Congress which will enable the local land banks to also handle short-time loans in cooperation with the Federal Reserve Banks. If this is done, the amount of business done by these local banks will be greatly increased and the cooperative principle in banking will be greatly strengthened. Cooperative selling associations have had a rapid growth in the United States during the past decade. In 1919 the federal Bureau of Markets estimated that agricultural products worth one and a half billions out of a total of nearly nineteen billion dollars sold from farms were marketed through cooperative associations, and the total has greatly increased since then. The California Fruit Growers' Exchange, probably the largest cooperative selling association, does a business of over $50,000,000 annually and has one of the most efficient distributing systems in the country. At the present time some very ambitious programs of national organizations for cooperative marketing are being started, such as the United States Grain Growers, Inc., which is modeled after the successful Canadian Grain Growers, Inc. One of the chief obstacles to all such plans of effectively organizing the marketing of various agricultural products is the fact that a strong central organization can be developed only by the federation of local associations whose members understand the purposes of the organization and are loyal to them. The history of all cooperative movements shows that those which have been permanently successful have arisen through the federation of strong local associations, and numerous failures of well-intentioned efforts at large-scale cooperative marketing have been due to the fact that numerous local associations cannot be organized by the parent association with any assurance that they will function effectively. The late G. Harold Powell, for many years the successful manager of the California Fruit Growers' Exchange, in his discussion of the fundamentals of cooperation emphasizes that cooperative associations must be born of a real need: