The Washington herald., 1921-06-27
CATTLE LOAN POOL
BEING, ORGANIZED
TO AID INDUSTRY
Will Have Permanent
Headquarters In
Chicago.
TO BEGIN ON JULY 1
Bankers Live Stock Loan
Corporation to Have
Capital of s56,OoO,OoO.
TO BEGIN ON JULY 1
Especial Correspondence Of The washingtor
Herald and the n. z. Evening Post.)

ESPECIAL Correspondence Of The Washington
Herald and the n. z. Evening Post.)
CHICAGO, June 26.-Bankers are
working out the details for the
$50, ,O0O. 900 live stock pool formed
in Chicago by Eastern and Western
bankers last week. The head
quarters are to be in Chicago. The
Bankers Live Stock Loan Cor
poration is to be formed to handle
the business. There is to be q
board of directors elected by the
subscribing banks and representing
a number OF cities and an execu-
tive committee and executive man.
ager. The latter is expected to be
NJ. l.. Mcclure, a director of the
Kansas City Federal Reserve Bank.
The executive committee will di-
rect the making of loans and will
be assisted by an advisory commit
tee of bankers. In making loans
bankers and established live stock
loaning corporations having large
capital are to be utilized. Loans
will run for six months and may
be renewed for successive periods
up to thirty months. provided the
collateral is satisfactory and
properly guaranteed. 1t is ex-
pected the corporation will begin
business July l.
With the Bankers Live Stock
Loan Corporation having s5o,o0o, 900,
the farm loan banks another $780,
900. 900, and the Federal Reserve
Banks to favor the farmers with
another $50. 900 loan. there will
be $50, ,000, 900 available for loans
to the agricultural interests, who
are being favored more than any
other class. Whether the grain
farmers will be benefited by such
assistance remains to be seen.
Should grains be held back and
prices materially advance the grain
growers will be benefited at the ex-
pense of the consumers. The con-
sumer does not take this view OF
the situation favorably.
Farmers Are Reckless Borrowers.
DEVELOPMENTS in the past two
years have shown that farmers Will
borrow all the money that bankers
will loan them. This is demon
strated by the excessive borrowing
on their notes to buy high-priced
farm lands that cannot be made
to pay a return on the investment
except when grain prices are at the
extreme war level. There Is no
limit to the amount of money they
will borrow except the sky. The
American Farm Bureau Federation
has received replies to numerous
questionnaires from farmers in
Minnesota, New York. Ohio. Nebras-
ka. Vermont. and Kentucky. To the
question, Do you favor increasing
the limit on Federal Land Bank
mortgage loans from $4,000 to
s25,OOO? 2S,931 farmers voted yes
and S,169 no.
There was a great excess of votes
favorable to every one of the six
teen questions asked, which in
voIved financing and legislation
that only the most progressive and
highly educated farmers are able to
answer intelligently. Among the
questions asked were, Do you
favor legislation making Illegal the
practice of short selling in agri-
cultural products? There were 3s,-
SS4 who voted yes and 1852 who
voted no. Were a majority of those
who voted to make short selling
Illegal asked to define what short
selling" really means, it is safe to
say that they would be unable to
give a satisfactory answer.