The state herald., 1921-10-07
VIDE FEDERAL LOANS
TO SAVE THE LIVESTOCK
INDUSTRY, SAYS MEYERS

from his western trip Eugene Meyer,
jr., head of the war finance corpora
tion. gave out an optimistic inter
view. Here are some Of the high
points in 1t:
The live stock situation is the big
one insofar as credit is concerned.
Adequate financing of the stockman
involved not only corn and forage.
found the west full of feed. The
best way to market II is through live
stock. | found bankers discouraged
and growers discouraged. but l met
them, anyalyzed their problems, and
| belive left them confident that we
have found the way out. Farmers
and bankers have been worrying over
real troubles, but told them that we
had ample funds to save the situation.
1t is now time to look forward rather
than backward; things are getting
better. Since Monday the live stock
market has shown Improvement and
| look for still further rises.
have tried to sound the following
keynote under which all committees
have been instructed to work Do not
worry over the exceptional and diffi.
cult cases but go out and look for the
places in which to put our funds. Put
in a million here and million there.
That will relieve the situation that
will prevent young stock from going
to market permaturily and breeding
stock from being sold so as to en-
danger future supplies.
Everywhere in the west found
abundant supplies OF feed. In the
range country our loan committees
are actively at work We shall loan
through live stock loan companies
and through country banks We are
empowered by law to relieve the sit
uation considerably. We lend money
through the country bank ~apd. the
banker knows that II does not have
be repaid in ninety days. or sir
months, or even year. Loans from
the war finance corporation may be
rediscounted for one year. n gain for
another year, and again for the third
year This will permit the producer
TO move his stuff TO market In an
orderly fashion This redlscounting
win bring about more comfortable
situation In the country bank aud
will restore confidence all along the
line
As soon as few millions arr put
into any state the situation will ease
M all along the line. Not only will
the direct borrowers be benefited. but
this aid viii tighten the pressure In
the banks and make loans available
to other industries. At Omaha after
our meeting man said TO me that
he would buy 5OO-meaning 500
steers put into the feed lot.
There are two fundamental troubles
In the live stock industry as | see
II. Lack OF money. 2. Lack OF con-
fdonce. The war finance corporation
has a good deal OF both.
We are now ut the worst. The change
which our credit facilities effect will
be helpful The object of the war
finance corporation il TO put money
into your industry, not 20 walt. We
shall pour Il IN through n diversity
OF channels. There Is no limit TO the
size Of the loan: large or small we
can take care OF tLtm II they are
sound business loans Both the law
and our policy permit ms 10 do that.
There Is minimum OF red tape con.
nettcd with securing war finance
money. General pessimism always
follows ard never proceeds depres.
sion In Industry. The depression IN
the live stock Industry ean be stop
ped
The war finance corporations bil.
lion dollars viii be used extensively
and promptly. There Is a change In
Eighl IN the whole situation. Insofar
as inadequate finances iF responsible
for the depression am confident
that We can roach biz situation In
a bic way.
The corn belt Is different from the
western country Iowa calls for a
lager number OF loans IN smaller
amounts Tho corn belt can use
large amounts Of money to buy feed.
era aud In this way get something
for l,s corn. We car loan farmers
enough money to handle from one to
three carloads " feeders.