Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-14
$10O,0OO,OOO BILL
PORTLAND BANKS
is APPROVED
The Atlanta Journal News Bureau,
62S Riggs Building.
RY THEnnORE TYT.EER

| WASHINGTON, Dec. 12.-Edmund
Plat, viee chairman of the federal
reserve board, Saturday approved the
bill offered by Representative Young,
Of North Dakota, proposing to turn
| over to federal land banks approxi-
mately $100,000,000 for the redis-
counting of notes secured by live
| sible bank. The fund mentioned rep
resents the earnings of the federal
reserve system, and the statement of
Mr.. Plat is the first official express
sion from the reserve board indors-
| ing any of the various projects pro-
posed in congress for the relief of
agriculture in the present period of
price depression.
While the Young bill would cover
| only the live stock industry, rep
resentative Young said today that
the utilization of 500, 0OO,O 900 for this
| industry naturally would lessen the
| financial tension throughout the
whole agricultural industry, since it
| would release other moneys for gen.
eral farm loans.
The. senate today continued the de-
| bate on the Norris resolution to re-
vive the war finance corporation and
| to express the sense of congress that
the reserve board should assist ag-
riculture in every way possible con-
sistent with sound banking.
Discussing the relief of the live
stock branch of agriculture. Vice
Chairman Platt, whose Endorsement
of the Young bill is expected to be
followed by that of Governor Hard
ing, said:
1.-THE bill offered by Representa-
| tive Young provides for relief to
| the cattle raisers and the live stock
industry in general and is. in my
ure.
''It permits the secretary of the
| treasury to deposit in the federal
| and banks in each of the years 1921
nd 1922, fifty millions of the prof
| is of the federal reserve system, to
be used to rediscount the notes held
| in banks based on live stock Securi-
ty, as these notes may be for terms
as long as two years. 1t is obvious
the federal reserve banks cannot re-
discount notes of such long terms
as their resources must be kept
| liquid, the money loaned to member
banks being the money of depositors
and subject mostly to payment on
demand.
Furthermore the loans to cattle
and live stock industries which it is
proposed to carry by this means
stand on a different basis from other
agricultural loans. Immature cattle
are beiI4., forced on the market by the
calling Of loans, or perhaps by in
sistence on the payment of loans on
| maturity which in normal times
would have been renewed.
"The forcing of immature cattle on
the market jeopardizes the future
supply of food, and as the cattle
| naturally become more valuable as
| they mature the security for the
| loans rediscounted increases in val
ue."
Vice Chairman Plat says that
much of the paper taken by banks
and cattle loan companies in the ag-
ricultural' sections was eventually
taken over by banks in the east with
no. direct interest in live stock pro-
| duction and these eastern banks now
| demand their money.
The Young bill. he says, appears
sound from both a public and bank
ing standpoint.
incidentally the relief afforded"
says Mr.. Plat, ito many banks in
the agricultural districts by this
method of taking care of the cattle
paper, with which many of them are
| overloaded, will aid the farmers in
| other ways, for it will set free credit
| which will strengthen their reserves
| and enable extension of future ac-
| commodations on the security of
other farm products. I think the
sum of money proposed will afford
very considerable relief to agri-
| culture"