El Paso herald. (El Paso, Tex.) 1901-1931, 1920-09-07

BANKERS of FL Paso and Of the southwestern states
y included in the 18th federal reserve district have no
intention Of bearing borrowers whose money re-
orents are for urthering production Of necessaes OF
life or carrying essential industries But anything that
looks ike speculation viii be firmly discouraged Men who
have borrowed for speculative purposes VII De asked 70
en- down their loans quickly and radically, and those Dor
rowers who trying 10 carry through the banks an over
load Of stored products Of any kind whether grain OF nay
wool OF ohair cotton other commodities ana eatteen
who holding their steers for better market and bear
ing too heavily bank while doing so, VIII oe
sd to turn loose part Of their holdings, take their
share Of the losses forego part OF Their expected Pro
and thus contribute to general easing Of the money
market
This is the gist Of remarks made at dinner Monday
night rendered by the Fl PasO bankers TO the members OF
the federal directorate Of the 18th district hIe nom
Dallas for the opening Of the Fl Paso branch bank and to
banker guests from Arizona and New Mexico
One after another Of the speakers remarked upon the
great strain that Is being put on the lending resources OF
the banks at this tine while everyone recognized the 1acI
t the underlying conditions sound enough IL was
pointed out that hundreds Of millions Of dollars worth OF
commodities that the world urgently needs are ready Tor
market OF VIII soon be ready in the 18th federal reserve
district and that only ts peculiar conditions OF the rI
national market and Of American finance and industry IN
pose upon the producers the necessity OF carrying uon o.
fig great stock Of valuable commodities beyond the usual
marketing period The banks all through the district are
doing everything that be asked Of them to help the
producers carry through and avoid loss but IN ORDER 70
protect the producers themselves and to protect going con-
Germs in all lines the banks must keep enough OF their re-
sources LIQUID to take care Of al legitimate requirements
Of the business community -,
Many Of the speakers emphasized the tact that Ior te
GOOD Of all speculative must be Hquidated Money
that has been borrowed matter how good the noVoual
credit and the collateral AID general security tor the pun
pose Of making speculative Investments that have no direct
relation to increasing the production Of neceSsaes OF
carving on essential industries and enterprises must os
returned to the banks, the individuals concerned
mus. chalk NJ loss on Their operations OF COME e.
ucsd proft This applies also to those carrying an over
load Of commodities awaiting normal market
There was not IN any Of the talks single note OF as
courgemenf As Judge Ramsey the federal reserve agent
md chairman Of the 18th district board put It, If those
European countries with their terrific losses IN war the
ruin Of industries the devastation, the DEATH the political
upheaVals the fighful burden OF oeD the currency os
basement the destruction Of foreign trade and Of shipping
the breaking Of normal trade connections WORLDWIDE tne
loss Of industrial power the shortage Of raw materials ana
fuel and fosd and shelter the uncertainty Of the tute
they can keep body and soul together and find the energy
and the VIII to apply themselves to the work OF
as they are doing surely Americans with an our natural
resources and man-power uniareo win our lanoS
md our railroads our industrial plants and shipping as
servioeabe as ever with tremendous production Of
everything We need and the world needs with the strong
est system Of banking finance and currency In the Eoria
with the greatest stocks Of gold the greatest production o.
all essential commodities the greatest ayaiaos suppnes q
materials extra good crops full employment OF hnor
sound credits public and private, and TREMENDOUS energy
Organized for great accomplishment never beorurey
we can afford to be 'inteligently optimistic
An the visiting members OF the 18th district board
referred IN some detail the various ways In which the
federal reserve hank is assisting producers OF necessary
commodities AID those responsible for the carrying On O
essential industries to tide the difficult period OF Teao
iustment 1t is recognized thct the war IS partly response
BE for present conditions indirectly and business men
generally are asked patriotic duty to pitch IN and nel
sraizhten cut the financial puzzle certain amount o.
liquidation Is necessary, but the federal reserve oak
taking advantage Of every legitimate nshod, with the Co
operation Of the federal board at Washington to make ne
vav as smooth az possible. Through the mterleekins
feature Of the federal reserve system the district bank car
command the resources Of al the other district banks IN
measure The 18th district bank has been especially con
erativs N its interest rates bank redseoun ana II
nov Charging less interest to member banks than most o.
The Other district banks throughout the country Thu
makes It easier for the member banks to take care OF then
customers, and they doing it.
visiting bankers spoke Of the heavy production ant
General activity IN their sections and only asked continued
cooperation u financing the and livestock and WOO
urtii they could be absorbed by the markets.
The old days when some folks looked upon 5sneIs q
note shavsrs and money gabbsrs long past The bank