New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-14
New Cattle Loans
To Be Eligible for
Federal Discount
Bankers Announce Machin-
cry for Extending $50
600, 900 Credit; 80 Max
imum Charge to Growers

The medium through which New
YORK and Chicago bankers will make
u reservoir of $5o,00o,0o0 available for
the livestock industry. in accordance
with suggestions made by the Treasury
Department at Washington. will be the
Stock Growers Finance Corporation,
an organization with a nominal capt.
talization. The executive committee
OF the new corporation has been named,
1t was announced here yesterday, and
has already begun at Chicago to take
up the question of specific loans.
:. M. l.. Mcclure, president of the
Drumm Commission Company, of Kan
sas City, Me-, has been appointed presi
dent and general manager, and besides
himself the following are members of
the executive committee: M. H. Tray
lor, president of the First Trust and
Savings Bank, Chicago; John r. Wash
burn, vice-president of the Continen-
tai and Commercial National Bank,
Chicago: John Fletcher, vice president
of the Fort Dearborn National Bank,
Chicago; S. 7. Kiddo, president of the
Live Stock Exchange National Bank,
Chicago, and Frank II. Conner, of the
firm of Clay, Robinson & Co., Chicago
All of the foregoing will be repre-
sented on the board of directors, which
will consist of fifteen men. The other
directors have not yet been chosen.
Subscribing banks have not yet been
called upon to contribute funds, but
certain New York and Chicago banks
have temporarily made advances which
will enable the new corporation to
make loans forthwith. When a round
sum is required the subscribing banks
will be called upon and the tenn
porary advances will be paid off After
July !, 1922, no additional calls can
be made on subscribing banks and no
new loans made. Loans to borrowers in
the livestock industry may run for as
long as thirty months, and the maxi
mum rate that can be charged is 8 per
cent. The subscribing banks are to re-
nish, and the difference in rate is to
be employed to cover overhead charges.
The paper received from livestock
men will be acceptable for rediscount
at the Federal Reserve banks, it was
indicated. The procedure will be for
the Stock Growers Finance Corpora
ton to receive livestock paper from
borrowers to whom it lends cash. 1t
will take this paper to the Federal Re-
serve Bank of Chicago, which will act
as custodian. The actual paper will be
collateral behind the receipts, bearing
6 per cent interest, which the corpora
tion will issue to subscribing banks.
New York participating banks, it is
said, will be able to take these receipts
to the Federal Reserve Bank of New
York and have the collateral at Chi
cago discounted. In such cases the
New York member bank will have to
write letter which will be equivalent
to it's Endorsement on the particular
livestock paper held in Chicago against
it's advances, and the Chicago Reserve
Bank will thereafter hold the paper as
trustee for the New York Reserve
Bank.
In the matter of making loans the
board at Chicago will have full power.
The Eastern bankers. led by J. P Nor
gan, in response to a request made by
the Treasury, agreed to furnish up to
S25.000,000 for the pool if the Chicago
bankers would contribute an equal
amount and lend on paper they consid-
cred safe.