The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-08-13
THE LIVESTOCK CREDIT OUTLOOK

81 Up TO Monday Of this week the livestock finance corporation, or
$5000ooo0 bankers livestock pool, as il is better known, had
placed loans to the extent Of $50ooooo A total Of s400O000o
81 os. ,1 We s' a., ~ m aSens' Of fi icass would ' proes ssps muss more !" rapidly p1fs
during the present week, and the report next Monday Is likely TO
senator stanseid Of Oregon, and Governor Harding Of the reserve
board, that the operation Of the pool would serve to relieve the live
stock credit situation TO some extent He expressed the view, how
ever, that its resources would not be adequate TO meet the credit re-
quremcns Of the industry.
relief to the livestock interests j. not known, Mr.. Mcclure wrote
10 the officials at Washington. He continued;
~ have been closely allied with this business thirty-dve years
where were Just right. Sometimes the breeders were prosperous and
the feeder was losing moncy, at times some districts were blessed
with plenty Of feed, grass and water, but others had drought at times
other districts violent storms were killing the herds; at times prices
Of feeders were high and fat cattle sold so low the man who fed lost
siBut at the present time most conditions affecting livestock
are re practically a the same, and :; the =, whole msl livestock ,ssss. industry nsuyr is suffer,
ing the breeding growing, and feeding. Everywhere they have the
handicapped in the fact that there is a shortage Of loaunbe credits
partly caused by shrinkage of prices and loss from drought and win
These, with other reasons. have caused a withdrawal of loan
able funds heretofore used in the industry
sicns Of livestock, and vast resources for relief under the adminstra-
lion Of the war finance corporation ! IS true that IN a way this
neniy, nor to the restriction Of individual enterprise and in a credit
situation as desperate as that which has confronted the livestock in.
dustry, as we well know it here in New Mexico, amy source of gen
eral relief is extremely welcome.
From the stockman's viewpoint there is Just one weak point in
The credits act; that being the provision requiring final liquidation
Of loans in two years 1t is true that two years is better than the
SIX months or more common ninety days maturihes that have been
the rule of late. But three years are needed. Senator Bursum made
= determined effort to secure AN amendment to provide for the
three years term. Chiefly because a majority of congressman do not
understand the natural conditions and developments required in
producing and maturing livestock 20 marketable size and weight.
and because a two years credit period was regarded a a radical de-
parture from established banking practice, the Bursum amendment
failed Senator Bursum has announced that 1t simply requires him
to present the amendment as a separate bill, In other words, he
means TO secure the period Of time that is needed. lie will probably
succeed
More important TO the livestock industry than this, however, is
the carrying out of the plan for a permanent basis of financing for
spring The present pending legislation, helpful as it will be. is a
temporary PROVISION 10 meet q crisis. Without e permanent basis