The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-07-20

IT is generally agreed that the s5000DOOO pool formed by Chicago
and eastern bankers to aid the livestock industry Of the west
ton. The distribution o. $s0O00OO0 is bound to exert a tonic in.
slnencr. Directly n indirectly this money will reach the western
ranges, including those Of New Mexico, and even those who do not
participate in the added credit resources made available for the
industry. will feel the effect in increased demand aud better prices.
There have been the inevitable delays in getting this emergency
financing Organization 10 the point Of actual operations. According
20 the news reports Of the past few days it is just now beginning
actually 10 make loans At best it is 70 more than a temporary ex
pedient II does not meet the real necessity Of the livestock industry,
which is that it be placed ON the same basis Of credit as the mer-
chant aud the manufacturer. SO far as the sheep raiser and the
cattle grower are concerned, permanent financing is essential. This
Is as essential 40 the nation as TO the livestock grower. Without the
livestock industry the western pastoral regions cannot thrive and
when il lacks prosperity the whole country suffers.
A clear understanding Of these facts was shown in the address Of
Senator Bursum before the cattle growers convention in Albuquer
que last spring, and later in his letter TO an Albuquerque banker al
about the time the livestock finance corporation came into being At
sum recognized the $5000oO00 pool as a desirable cxpedient in the
something better can be worked out for The livestock industry
Recognising 4 IS e1pedient and no more. he sought broader and
in which other forms Of business were given necessary loan periods
but from which agriculture and livestock were excluded. That
Senator Bursun, together with other thorough students of the basic
needs of the livestock industry. will continue to insist upon this
broader relief. until il has been obtained, may be taken az a matter
Fifty million dollars sounds like a lot of money. Compared even
with present day BORROWING by sheepmen Of the ives, alone Il IS
insignificant Undoubtedly il will check the tide Of liquidation which
Is sim running aud which would continue 70 n without it, aud thus
nation The *50o0e0O pool, however, is no more than a plaster for
The trade wounds Of The livestock industry The impression that
the managers of The pool will make loans 10 individuals direct appears
70 te erroneous As The Herald understands IT, no applications viii
be received except from banks and recognized loan concerns. Also
The paper must be Of the glt-edged type. valuation of security being
ON the basis Of current prices. The pool managers. we understand
make no secret of their policy with regard to desperate cases; no
hfesasing will be undertaken. The purpose is to return the entire
fund intact, to the subscribers within thirty months.
The feature of the pool that means most to the live stock grower
Is the stated policy OF renewing paper for five periods of six months
each. thereby eliminating the danger Of enforced liquidation with its
inevitable sacrifice and what is more important, the definite recoe
milton OF the long period loan as m essential to sound financing OF
the livestock industry. This indeed Is the most important gain in the
effort, aside from the vital temporary relief and tonic administered
by the pool.
The whole series of events leading mp to the formation of the
livestock pool demonstrates that our present banking system aud
do not meet the needs of the livestock producing indus
try. This is evidenced 10y the large volume Of business done by the
ioaniug companies No other industry finds it necessary ia go beyond
The banking system for normal financial service. The only place
where the element Of personal responsibility of the livestock grower
is taken into consideration is at his home bank. AS long as the home
or Local banker Is able TO carry him along, the livestock grower il
safe, because the local banker understands his needs and the neces.
sty OF ample time. The home banker understands the value Of
the grOwer's real estate holdings o n forest reserve grazing RIGHTS
markets for rediscomnt the livestock grower has been meeting a
blank wall that blocks initiative aud forces liquidation.
No one would contend that the federal reserve banks should
facilitate loans for the purpose of Specializing IN livestock. A sharp
should be made between the actual producer and the
and this distinction can be left with perfect safety To
the local banker whose endorsement OF the paper is necessary TO the
-diseouniing process. The primary purpose should be TO enable the
grower whose financial Resources are tied up in land aud
meat animals ~ course OF development, AN opportunity TO utilize that
capital m the same manner as the merchant o = manufacturer is able
o utilize the capital tied up IN stock, rs represented by Inventories.
The $JOOOO00O pool IL bound 10 prove beneficial ~ temporary
for a sorely harraSed industry. II cannot be expected to prove
more than a much needed braeer The permanent remedy is yet to
be applied. This state is largely dependent upon the livestock in.
Ioriupaic IN having IN Senator Bursun a representative who under
stands The fundamental needs of the industry and the steps that
must be take 20 firmly establish It upon a sound financial basis. aud
who has the courage aud resourecfulness to insist upon those steps
they have been taken. Because Of his equipment aud ability
bould do rs full share 10 return Bursum 10 The senate in order that
may have the opportunity 10 complete the work nlong this vitally
important line that he has SO vigorously begun
"HARD TIdEC'