The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-06-12
BURSUM GIVES
CLEAR OUTLINE
OF RELIEF PLANS

J. R lIerndon president OF the
State National bank, has Just received
n letter from senator o. %. Hursum
which presents the ciearen outline
yet given of the status OF the propos-
cd relief measures for the financing
Of the livestock industry The letter
was written IN response 10 a letter
from Mr. Herndon In which the Al
huQuerque banker transmitted let
ter from Judge namsey Of the Dallas
Reserve hank. giving the latter's view
as To- the relief measure to be- sought.
senator Bursums letter shows that.
as II his custom, he II seeking the
most practical and speediest action In
iehalf % the livestock industry. and
that while he has formulated n spec
ifir plan which he believes To be the
right one, he II working actively In
support OF the principle Of the re-
RcIicf mig Object
1T IN immateria 60 mo-" Senator
Buraum writes "as 20 the details or
pcthods by which the relief which
conceive " needed by the livestock in
dustry Of the country. IL secured ;
whether ID be- by the utilization OF
the surplus of the Federal Reserve
which in effect means the earnings,
or whether Il be by amendment "a
the general federal reserve act. or
hNfNAAf'A ~ w ANAAf 80 NHfft' 'NfNHa
Anticipating that there would be-
objection to merging this relief into
the general fund the hin which ! In
troducrd provided FOR sctting aside
the profits OF the federal reserve
which now amounts to Approximately
1905 900. aud creating n rcyuiv-
ing fund out of which long time loan'
might be- mndo. based upon livestock
f~curities. which should be guarnpteet
ly the hanks Internationally; and
90 -o providing that each bank might
dtscount ~ much ~ three times ths
amount Of capital and surplus. In TIM
class of loans; no loans 10 be- for les'
than months nor more than 2 years
with the privilege OF renewal. II
his hill the loans were To be mad'
throughout the federal reserve. but oul
af this specific find
III has now been suggested alss
that IL should be handled through th'
farm loan banks. To this proposition
the farm loan bank management 81
iss'sd aud am inclined 10 aKre" viii
Them that u ~ q little out of line viii
the proper functions OF the farm LOAF
hanks which primarily pertain "a
loans upon farm lands. and which In
stltution la dependent upon the plnc
ing Of securities with tn" public II
the nature OF bond issues, For tn
farm lnMn NAnhh ~ ANAAAN ~ if't
aonnl securities might tend To impai
the market Tor their bonds Tor IN
reason that Notwithstanding this !
n separate fund. the average invcsto
Ia the country would not undorstanl
IL, and might believe that the securi
ties Offered were partly based upoi
liveHock. which everyone knows
not % proper basis for an issuance O
Iong time bonds.
Confcrs With Mellon
Il have had this matter up wit
Secretary Mellon | suppose a dozel
times. have discussed u with m
president and also with MI. Gil
bort. who Is the expert In the treas
ury department; all with view {
agreement on some concrete proposI
tion. Secretary Mellon finally agree
that in principle this relief IN nec-s
sary. The secretary objected 10 IN
conversion OF the surplus or earning
saying that was taking money out q
the treasury. The cattle loan CON
nantes wanted the money placed VII
the war finance corporation 10 max
direct loans 10 banks and cattle con
panies. The trouble has been In gel
ting together on tho method OF r.
lief on. view. viii Oppose any Pre-
(ContlnHsd on pag~ two.)