Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-05
FINANCIAL MD
FOR LIVESTOCK
INDUSTRY URGED
Kansas Man Favors Federal
Action to Protect the Pro-
ducers and Aid in the
Work of Rehabilitation.

all llidntC WI
poration with a capitalization OIL
sl00,000,000 to aid in rehe
of the livestock industry, which isl
now being considered by tho Amer
lean Bankers association, j. II.
Mercer, secretary of the Kansas
Livestock association, believes that
corporations of this sort should be
formed in every market and at va
rious points in each state where
the industry is of any importance.
Formation of a pool in Kansas
which would operate along these
lines has been suggested by Mr.
Mercer in letters to II. G. Grass
president of the Kansas Bankers
association and Fred G. Bergen,
president of the Kansas State
Bankers association.
1.-THE farmer and stock raiser
Is suffering from financial losses
today such as were never before
known in the history of this coun-
try" Mr.. Mercer declared. ut Isl
the duty of the federal government
to come to the aid of the American
farmer, not only for his benefit but
for the ultimate good of the ma
tion.''
Congress should Act.
Mr.. Mercer Is of the opinion that
as soon as congress convenes III
should at once consider the forma-
ton of an emergency finance corpor-
alton or a board which could give
for the purpose of backing foreign
trading in agricultural products,
"In regard to the $30.OO0,OO0
corporation now being formed
for the purpose of financing
the cattle business" said Mr.
Mercer, "it is purelc local
affair, at Chicago, as far as
know. In the first place a thirty
million dollar corporation is too
small to do much good in ma
tional way. Why, one bank IN
Kansas City is holding over forty
million dollars worth of cattle pa
per and l believe that the federal
reserve bank at Kansas City has
about $70.000.000 worth at the
present time.
II understand that the purpose
of this Chicago corporation Is to-
take care of some cattle loan com
munities. Understand me. l am not
criticising this move, for it is
good one. But 1t is not wide
spread enough. We should have
corporations of this sort at every
market and at various points IN
each state where the livestock In
dustry is of any Importance. And
It Is my belief that these banks or
loan corporations should have con-
nections with the small banks so
that the stockman could practical-
Nv all of his business with his nome
hank or through It,
What the Government Has Done.
THE federal government, IN
emergency, has supported the
transportation systems of this coun-
try to the extent of over q billion
dollars and is still supporting them,
and I can see no reason why agri-
future, the greatest industry OF
America. should not receive as
much consideration at the hands OF
our government as our railroads.
In fact, our government has sup
ported and built UP many lines OF
industry in cuba, the Philippines,
Alaska and Panama. AS / see 1t,
II is up to congress to get busy at
once upon some constructive plan
which will stabilize the prices OIL
our farm products to the extent
that they may be held on a planet
with the prices of products OF other
industries.
"The American Bankers asso-
citation will meet in Chicago De-
cember 1911, when it will endeav-
or to form the $100,000,000 cor
poration whose function is pro-
/ posed to be the financing of for
y eign INDEPENDENTLY the expor-
Z tation of our farm products in ex-
change for European goods This Is
n constructive move and should
have the backing Of the govern
ment and the federal reserve sys-
tenn. There are other similar or
CARNATIONS under way--being
formed under the Edge act
and I believe that oil OF them
should have the backing of the re-
serve system"
MERGERS Move Approved.
About three weeks ago. Secre-
tary Mercer wrote to large num-
Der of prominent bankers all oven
the United States also packers and
officers of several live stock and
farm organizations. urging that o.
conference be held with view to|
establishing or financing foreign
trading corporation that the ex-
port of meats and meat producfs
might be increased. Nearly all OF
the men addressed in these letters,
including Governor Harding of the
federal reserve bank. expressed
themselves as approving Mr.. Mer-
GERS move. The American Bank
ers' associations plan Is in accord
with Mr.. MERGERS ideas.
NJ with livestock in some cases
IXflot bringing enough to pay trans
portation charges. and corn selling
at only about double the cost OF
harvesting. it is high time for gov
eminent aid in securing foreign
market, and for a protective tariff
with reciprocal trade agreement
that would permit an exchange
with foreign countries" in the
opinion of Mr.. Mercer.