The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-05-25
FINANCING THE LIVESTOCK INDUSTRY.

EvaE letter Of the governor Of the federal reserve board 70 the
New Mexico Cattle aud Horse Growers association, published u
Yesterday Herald. in which official denial was made of an.
order 10 federal reserve banks er member banks to refuse loans 70
siatsnentby the governor that the federal reserve board is fully alive
= ss 'mPes 1nS Of suppoEting the hyss; 80 industry and IS pre-.
stand At the heart Of the nations banking system would be bad bus
iRs fedora. reserve banks had refused to discount cattle paper sent
them BY member banks, was premature and nnwafranted by the
Nevertheless there are banks and cattle loan companies 10 which
cattle growers have been accustomed to look for money which have
restricted credit to an extent that has embarrassed men who have
contracted to purchase stock from breeders for spring delivery, and
the fixture Of these men 10 complete their contracts doubtless viii
embsrrass some cattle breeders.
There y no reason Tor any restriction y 2 reasonable line OF
animals is a matter Of established fact. There is a market and a de-
to manipulation than to natural conditions and a restriction Of crediAl
Tor production or finishing is an artificial restriction which the
status Of the livestock business does not justify.
As il happens much Of the financing Of the livestock business Of
Of the federal reserve system. Ii has been charged over and over
again nat many such banks are controlled by the packing Interests
the now Of cattle to markets, often to The serious detriment Of the
The whole question Of financing the livestock industry is in
voved in the present situation which is very similar 70 conditions
are accustomed 10 H. Practically every other large industry IN the
n nes"a Of r ANY, "i business operation from lis inception 10 it, completion.
This has even been made possible for farmers through the farm loan
banks But the livestock industry Is the sole exception. Conditions
Of livestock credits ara such that the stockman, unless he be fnan-
enny indspesasni and free Z, Of all n necessity .sss,i,y Of ,s soT,Gw .sI l"nd sh rs Scr
stock breeder and also a loss to the meat supply.
There il needed a broad guage system Of financing for the live
stock industry which viii insure 70 the livestock grower, be he range
man or oiHcfWlHe, loans o a suIiichfn pefiou hu az u rate VI III
terest which win enable HIM 70 complete the operation Of producing
his stuff or Of bringing il TO the point where il will sell to best adj
vantage. The nstional banking regulations are not sufficiently
classic 70 meet these requirements and the federal reserve system,
while IL has helped, has not provided the remedy. The speculative
element is being eliminated from the livestock industry. II IS a. safe
as any farming operation running no more risks OF loss and dam
age from climatic aud weather conditions than are incurred IN farm
ing operations. It is entitled to the same consideration. Livestock
growing remains almost the only major industry that IS limited to-
short term loans and hap-hazard methods Of financing. II is entitled
to a more stable system Of financing and the result will be a more
stable industry. Especially is i. vitality important that there shall
be no powerful financial interest having the right to enforce a man
date upon the livestock industry and to say when it shall or shall
not go 40 market.
This phase Of control or alleged control of the nations meat
industry has never been more than scratched by various investigating
committees and probers. III is the phase of alleged control of market
conditions most frequently mentioned by active stock growers. No
inquiry into control or alleged control Of the meat industry is com
pirte that does not go TO the bottom of control Of the sources from
which the industry, particularly the breeder. secures the funds for
financing his operations Proper regulation Of livestock credits is
as essential as in connection with any other industry, but the power
70 regulate should not rest elsewhere than in sound economic con
diions aud good banking.