The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-10-21
Herndon's Address to Bankers
at Roswen Convention Attracts
Attention Throughout Country

and the American dollar the stand.
ard OF value the world over.
When "Watchful Waiting cease.
TO be the policy. and we say 10 the
b%risands across our border: you stor
this murder and piliaging." and W.
place, as We should. our forces In
that strife ridden country. and de.
mand peace. there will be opened 10
right at our doors, a land 10 be d..
veloped as fair and productive AZ the
sun ever shown upon, n our money
and our brains VIII be demanded foI
!hh purpose.
our opportunity has come-nature
mas been good to US. she has shower
ed upon US untold riches In bOunttful
crops. and II Is the duty OF the bank.
er 10 supplement with 5rains and en-
ergy these riches. 40 that the most
may come or our opportunities.
our wheat crop IL The largest on
record, and that. with our immense
corn crop. and other cereals, will con-
niue to assist In feeding the armies
OF Europe, and help swell the large
credit balance In our faVos.
NeN Mexico In coming into her
own-crops OF all kinds have been
good. range conditions better than for
years. n the prices for sheep ind
cattle. "a we'll az all other commo-
dities, the best ever known.
while most OF our eastern banks
are suffering from a plethora Of funds.
and low rates OF interest, New MeaicJ
bankers are having an active demand
at re.nunerntiYe ratos--ip fact, many
Of our banks are re-discounting heay-
ny, and selling some OF their cattle
paper TO their eastern correspondents.
Before the Inauguration OF the fed
eral reserve bank system. The re-d;s-
couating OF commercial paper was
considered almost a sin; now Il s
considered a virtue.
Under the liberal cOnstructlon
placed upon the rules defining eiig
ible paper. b. the federal reserve
board, II indeed must be a poorly
managed banA that does moi nnd Ia
its portfolio a large portion OF It's
notes that are acceptable for rodla-
count By the regional reserva hank,
and ] assure you that In times OF H.
nancial stress, II Is a pleasant feeling
TO know that these banks are standing
as a oulwarX OF safety behind their
mcmter banks.
ivy hAVhAhh VtAAVa NV mas no
terrors for the banker. as he can now
loan to the farmer to meet his obli-
cations to the merchant and he can
realize on such paper with the reserve
banks. and that too. AT a rate which
leaves u margin OF proht. although he
make a low rate TO the borrower.
While New Mexico has no large
crops TO move. such as the south with
MS cotton. and the northwest with iis
wheat. Il has It's cattle and sheep. and
its wool. and loans made for the pur-
pose OF handling any OF these import
ant products OF sur state. are accept
able by the reserve banks, aad the
banker with a large percentage OF
suon paper among his loans need
have no fear OF tho future.
In my opinion tho new banking and
currency law Is one or the wlsest acts
OF legislation enacted by congress for
years.
While IL ia o without impsrfcc-
tions. the fundamental principle Ia
sound. and | am SURE that as time de-
yelops It's deficiencies. legislation will
be enacted to cure ia defects, and
make II the soundest banking system
In the world.
The rates for money viii be staoil-