The Fallon standard. (Fallon, Nev.) 1920-1958, 1921-10-05
How Funds Will
Be Distributed
Procedure Necessary to Obtain
Loans Upon Livestock Through
War Finance Corporation

With much of the seasons crop
of hay still in the stack on the ranch
local farmers are naturally looking
about for market and just now the
one rift in the clouds seems to be
in the recent announcement that the
government was prepared to loan
money through the War Finance
/ Corporation to stockmen.
Naturally this announcement
arounsed considerable interest, since
the stock industry bears such close
relation to alfalfa growing that they
are interdependent. In fact it is
recognized that the low price of hay
was occasion by the inability of the
/ farmer to buy stock to eat his crop
on the one hand or the stockman to
buy hay to feed his herds on the 9TH
er. Now that the government has
come forward and offered to finance
/ the stockman in order that he may
herds or see them perish, this win
/ ter, ii naturally follows that a mar
ket for hay is automatically created
To this is added the opportunity for
many of our farmers to go in to
stock raising, especially dairying on
their own account.
In Reno last Saturday, before the
Commercial Club an explanation of
the necessary procedure and the linn
itations of the law were made to an
interested group of prospective bor-
rowers under the law. The follow
ing from the Reno Gazette will serve
to enlighten those who are thinking
of availing themselves of the oppor-
tunity to borrow money:
The distribution of the war f.
nance corporations funds to live
stock men and ranchers for emerg-
ency loan purposes depends entirely
on the local banks with which the
corporation deals directly, accord
ing to II. F. Fletcher, assistant sec
retary of the California district COM
mittee, through which loan applica-
tions from Nevada are to be made.
Fletcher explained the provisions
of the measure to an assemblage of
bankers and ranehers at the Cham
Der of Commerce this morning and
answered numerous questions pro-
pounded by many of the men pres
ent.
The money is to be loaned direct
ly to the banks on the security Of
fered to the banks by the borrower.
In securing a loan the individual
must apply to a bank and give to
the bank his note and a chattel
mortgage on the cattle or other
property which in turn the bank for
wards to the war finance corpora
tion. The war finance corporation
requires margin of security of
twenty per cent on all loans and ac-
cepts the banks endorsement of in
diyidual notes as its security and
holds the bank responsible.
Loans are to be made for six
months preferable with privilege of
renewing for another six months. IL
the security is still as good at the
end of the year the loan can be re-
newed for another year and then for
another year. All applications for
loans, however, must be in by July
l, 1922, which is the limit date set
in the amended act, as ii is an emer-
gency measure.
The interest rate to the banks has
been tentatively set at six per cent
and the banks cannot charge the in
dividual borrowers more than eight
per cent.
Mr.. Fletcher also pointed out that
the money was primarily to be used
for caring for live stock, marketing
the products of ranches and such
purposes and could not be used for
making permanent improvements on
ranches.
In response to questions he said
that banks could offer Liberty bonds,
county bonds and other liquid as
sets as security but that the finance
corporation would not accept mort
cages on lands from the banks as
security.
Fletcher. who is a former Reno
resident, will make a trip to vari-
Gus points in the state to explain
the measure to the bankers and to
all persons interested.
All applications blanks needed
will be forwarded to the banks
within the next few days.
THE banks of California are now
loaning money to the live stock men
from their own funds because of the
assurance that they can get money
from the war finance corporation,
said Fletcher. land there has been
a noticeable increase in the loans
within the past few days"