The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-04-24

der the United States warehouse act
IL n OF the systems which prob
ably might be OF great service 10
the sheep men Of New Mexico. These
bonded warehouses. as you all know.
Of the wool. whether In "A secured
state or la the grease and n careful
estimate ~ made as 10 tho shrink
age, II II II In the grease With these
bonded warehouse receipts, tho sheep
grower will have the best collateral
to offer for loan that can be offered
In this section and there IL no ques-
tion at all that the sheep erower
would have 40 trouble In getting adj
vnnced all the money on said wool
that the market conditions and the
financial worth OF the owner Olmited.
Of course, by the provisions OF the
banking actD observes.
Huge Livestock Loans
The majority OF the banks In New
Mexico are m the federal reserve dis
trict OF Dallas. and 1 have IL on the
authority OF h manager OF the ~
Pnso branch OF the Dallas district
that at least &C per cent OF the paper
that they have discounted are notes.
the proceeds OF which have been used
by the livestock Interests OF the ter
rltory In which they do business. The
banks are always ready. anxious and
willing TO loan FUNDS upon approved
security hut with the limitations that
are thrown around them you can
readily see why tho banks OF New
hexic0 arc unable TO give additional
aid In the way OF handling the wool
business. since "a bank cannot pur.
chase It's own acceptances except
when treated as direct loans to draw
ers, n can only accept drafts in n
total amount equal TO one-half Of
respective unimpalrsd capital
and surplus. The bank with which
1 am connected earnestly e~ndeavored
To find a market for these wool ac-
ceptances during the year 1890 and
correspondence with several
large eastern banks 10 see II by any
possibility help could BE- secured In
that direction n 1 shall read an az
tract from u OF these letters which
shows me feeling entertained by east
ern banks.
1t is true hat a wool grower may
ship his DOL into "A warehouse and
make draft on AIS bank, which the
bank can accept, but these accop-
n have no rank az an emor-
gency credit ana viii only he taken
at the federal reserve bank a. a
Dan direct "a the draw er OF the draft.
n a bank cannot accept drafts for
a greater moun than so per cent
OF It's capital and surplus. The only
chance for the disposal Of these drafts
is In the open market and IL is doubt
ful " drafts Of that kind, being ac-
oeptances OF the smaller banks,
could b" floated TO an extent that
would prove of any real benefit to.
the wool grower"
MOrc business Management Nccsicd
] want 20 assure YOU all that the
board OF directors Of the bank With
which / am connected are unani-
mously with me in the belief that
when We help the livestock business
We are helping our own business A
vast majority Of our loans are made
To the sheep men N cattle men and
never have We offered one OF thes.
notes 20 the federal resorye bank for
discount and had u rejected. IL IL
this help h a has enabled ~ TO carry
"a customers through the emer-
geuoies OF these trying times with
out forcing them Ia sacrifice their
herds In order To %liquidate. We feel
that upon your prosperity depends
our existence aud growth and well
fare, and that u IL Incumbent upon
us 10 protect q WIN your g.GgG.OOO|
OF sheep and the cowmen with
more than 1900. 600 head OF cal.
lie. and a. said at the outset, our
interests are 20 interviewer thar you
VAL pardon me should ] offer you a
Few words OF advice. The sheep MAJ
should study everything connected
with his business. lie should better
prepare his sheep for market. look
well into the T.. s. warehouse act an
VI u u found 60 advantage To have
warehouses established under this act
Interest yourselves In having them
established AT every important ship
ping center In New Mexico. Get nc-
lively and energetically behind your
sheep sanitary board and give them
assistance as Will make that
work Of value 10 each one OF you.
cooperate with every agency that ID
established 20 promote your interests
banker often, aud no matter
that Will give YOU n long lease and
protect you In fencing lands leased.
ana above all. cooperate with your
hanker. There Is no banker worthy
OF the name but who de-
sircs 10 promote tse legitimate in
terests OF his customers and Ia dad
TO discuss with them the problems
that confront them and In aiVlue
them the benefit OF his experience I'M
them. My advice is 10 consult
your banker often, snd no matter
how serious your problem a., tell
Tn" banker y truth, the whole truth
HvAlAhh hNt the truth. There
are hut two persons whom you never
should try 10 deceive, one il your
banker and the other your wife. SO
Tar as your wife IN concerned, II may
often times be the better part OF
discretion to keep mum" hut don't
Try TO deceive her, FOR YOU can't. You
can the more readily deceive your
When a banker calls upon
you Tor a statement. don't think Il
~ mere curiosity IN his pay. that
prompts him 10 make the inquiry.
lto ~ endeaVoring 10 get an accurate
on your affairs 80 that he may
give YOU the credit to which YOU are
entitled The comptroller OF tho car
r"ncy n tho federal reserve banks
insist that the bankers At all times
Keep an alphabetical file OF the H.
nancinl statements 81 their borrow.
ers ana the sheep men and the cattle
mon being customers Of tho hank
should cooperate In making these
statements as complete aud as accu-
ratio as possible,
e bright Future
In conclusion, my friends. can
say trnthfully that a. 20 the future I
am an optimiEt or course. no one
can predict accurately what tho nl-
ture has IN store for MS. We can onl,
nudge the fIturv hy the past and In
the lIUlt of our sNUari0ura No.. -.