The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-06-03
Federal Reserve Board Explains
Policy on Cattle Loan Extension

The attitude Of the federal reserve
board with reference to the extension
OF Crcditr to the cattle Industry ia eN-
plainod IN "a letter received BY the
New Mexico Cattle and Horse Grow
efs' association through senator AZ
bert %. FAN who Investigated the
Threatened restriction OF loans on cut
lie TO cattlcmcn.
The federal reserve board VIII cN-
OFT every cnort TO promote the eN-
tofsi0n OF needed credit to UNe stock
iOtci cHts in ordor TO Increase the pro-
dlcticn of highly essential articles.
The letter follows
The federal reserve board is on rec
ord In most u~niulatnkuhio terms IN
utVor OF Increased production of ca-
Hcntinl articlca OF o and clothing
II has roucatcdly stated That there iH
nothing more essential b "a meat
supply aud that thc cattle indnstry is
one Of primary importance and should
be sustained nc an hazards.
Cattle Loans Not ltcstrictcd.
The federal reserve banks In the
cattle raising districts have been ud-
Viscd Of this view OF the board aud
have been told that In restricting loans
fur n~On-Osacntials and less essential
production. they should not restrict
accommodations To cattle loans and
other loans necessary Tor the produc-
ton u fHatNAlAl hlAtllNH OF TOO anu
Tor D destruction OF these articles.
The federal reserve banks OF the
cattle raising districts have been adj
yiscd that should their reserves fail
on, they Will be restored By redis-
counts with other federal reserve
banks, made if necessary by order OF
the federal reserve board. Thus the
OF all federal reserve banks
VIII be placed az the disposal OF n
c|sacntian loans.
4 conference was held 10y the fod-
ernl reserve board on Tuesday, the
eighteenth ulumo. with the federal
advisory council, composed OF one
representative banker from each fed
eral reserve district. and with class
~ bankers OF directors Of the fed
crul reserve banks. Its views as stated
above were explained 60 this confer
ci-s and were unanimously endorsed.
II was developed on this conference
that this credit strain In The west b.
due largely to lack uf transportation
facilities. thus making 10 Impossible
for farmcfs who are hoiding large
amounts of grain and livestock ready
for market to move them
Credit Released.
\ committee was appointed TO wait
ou tho Interstate commerce commits
sion and 10 present tho facts To- that
'""f# H o N'NI H.NNN"'||NNN. NN.N-|N
90 Do interstate commerce commits
sion by the committee appointed at
The federal reserve conference the
Interstate commerce commission. act
ing uu,ic. authority given 10 in the
new law. issued an order directing
that priOritits De given 10 the moNc-
mout Of grain and fuel. Large num-
beers Of empty ears are now on The
way Co the farmers in the west and o.
is expected That the congestion OF
Eruiu la that section VIII soon be- roe
liotod This VIII release u large vol
unt0 of credit which 10 now tied up
ana viii give mcmhcr and nou-mem-
ucr banks available funds To lend to
cattle Interests.
The federal reserve bank cannot
deal directly with iarmcrs and cattle
ruiscrs They can only rcdisCOuut
eligible loans which have been made
20 livestock men and farmers hs mem
her bankh ~ b. necessary therefore
10 call the attention uf an banks 30