Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1915-03-12

this profit of twenty million dol
lars net was enjoyed, which figures
out less than two per cent on the
gross. This is small profit indeed
compared with the profits of many
other lines of business but it is great
in the aggregate and more than half
of it was disbursed to the stockhold-
ers. while the balance was placed in
surplus, thus strengthening the busi-
ness. 1t would certainly appear that
the average profit made by these
packers of between one-fifth and one
fourth of cent for each pound of
meat handled does not justify the ac-
cusation that the public is not being
treated fairly in the price or distribu-
ton of meats.
"Each year sees a closer relation
ship between the banking and live
stock interests and instead of the in
tangible and inconclusive arrange
ments upon which in the past loans
and other transactions were made, one
can now get as close to the risk and
obtain as full information on the in
dividual s credit and the security be-
hind the loan as any other legitimate
bank undertaking. Instead of placing
his money upon herd of cattle NAM
ing over section of the west as large
as a New England state, the banker
now places his funds upon cattle eth
er in pasture or feed lots and can Sc
cure accurate information concerning
the financial, physical and moral con-
dition of the borrower, the purchase
price of the cattle, the condition Of
the land and improvements, including
the fences, to say nothing Of the very
definite description Of each animal;
indeed not long ago it was suggested
that moving picture of the particu
lar herd under mortgage would be of
great value in determining the
strength of the risk.
"The purchase of cattle paper is
yearly becoming wider and banks
which not very long ago scomed to
accept cattle loans now number them
among their most discriminating i'll
vestments and are in the market at
all seasons of the year for the pur-
chase. Men connected with the cat
tie industry point with justified pride
to the fact that during the recent
paralysis of business brought about
by the European war, live stock prov
ed itself a commodity liquid In CHAR
acter in a far greater degree at that
time than any other, such as cotton,
grain, copper and oil, as well as the
list Of the New York Stock Exchange.
"The outlook for the future is IA
vorable, and while I have every reas-
on to believe that money rates will
be low for long time to come,l feel
sure there will be decided stimulus
in the live stock business and that
both those who borrow and those VINO
loan may feel entire confidence i'll its
progress. A decided impetus has been
given to cattle loan paper by its certi-
fcation under the federal reserve act.
As you will remember, certain classes
of transactions are made IA basis for
rediscOunt, viz: notes, drafts and bills
Of exchange arising out OF actual com
mercial transactions; that is, notes,
drafts and bill Of exchange issued or
drawn for agricultural, industrial or
commercial purposes or the proceeds
of which are used or are to be used
for such purposes, the same to have
maturity at the time of discount of
not more than ninety days. This
would constitute a most liquid form
of security for the purpose and there
is added to it, under the terms of the
act, the further inclusion of notes,
drafts and bills drawn or used for ag-
ricultural purposes or based on live
stock and having a maturity not eX-
ceeding six months. What better
could be asked in the way Of security |
and are we not justified in being
proud that this business is at last rec
ognized as occupying the same high |
plane as the most liquid obligations
in the world?"