The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-10-09

AS soon as a few millions are put
Into any state the situation will casa
up ell along the line. Not only will
tho direct borrowers b. benefited. but
this aid viii tighten Ms pressure on
the banks aud make loans available to
uther Industries. At Omaha after our
meeting a man said to me that he
would buy soo-meaning 500 feeders
10 put Into the fcedlot.
There are two fundamental
troubles In the livestock industry as
see IL. 4 Lack OF money. ,. Lack or
confidence. The War Finance. cor
rorAtion has a good deal OF both.
w are now at the worst. The
changes which our credit facilities ef-
feet viii be helpful The object of
the War Finance corporation n to pat
money into your industry. not TO wait.
We shali pour II In through a diversity
Of channels. There h no limit TO the
sine OF the loan; large or small. we
can take car OF them ~ they are
sound business loans. Both The law
and our policy permit us to do that.
There is n minimum Of red tape con-
nccted with securing War Finance
money. General pcssimIsm always
follows and never precedes a dcpres-
sion In industry. The depression in
the livestock industry can be stopped.
] have taken occasion 20 point out
to the various communities that where
they permitted livestock to be forced
out tif bankers and "a committees
do not protect thc farmers and their
irdustrics) neighborinE states would
set this stock and profit by fecding g.
The War Finance corporations
billion dollars will be used extensively
and promptly. There Is a change In
sight In the whole situation. insofar
aa inadequate finances H. responsible
for the depression. I am confident
that w q reach a big situation in a
big way.
THE corn belt Is different from the
western country. Iowa calls for a
larger number OF loans in smaFer
amounts. Tbs corn belt can use largo
amounts OF money to buy feeders and
In this way get something for its corn.
We a loan farmers enough money
to handle from n to three carloads
| OF feeders.
W. reach the small community
through the small banker. We have
the cooperation OF the whole bank
ing industry.
In order TO secure our help the
rural banker should secure and i'm out
the proper forms and submit his APP
plication 20 the chairman OF our ON
mittee in his district.
'~rhe assurance OF tho feeder that
when his cattle nrc finished, he VIII
-" - NHHHHHN - AAN ~ -
thar we are surely returning 10 normal.
The livestock Industry today l. in a
comparable situation 10 ine cotton in
duEtry n month ago. You can not
name anything which applied to the
cotton situation "a month ago which
does not now apply equally well 10
the livestock Industry today The in
yeetmcnt and money markets are get
ting back to normal. Huge stocks of
goods are now used up. The demand
Is beginning 10 assert Itself. I do not
mean 10 say that thc return In the
livestock industry Will be as rapid as
In cotton. but It wiz be something
similar.
The Improvement IA the cotton
situation helped the livestock industry
materially. 10 not forget that there
are two or three men In the south now
able 20 buy to every ore unemployed
In the north. A month ago this south
ern buyer was living on corn meal and
water and unabie 10 buy anything. The
mule market in Iowa IL better today
because Of the recent rise in the price
% cotton. There has beet "A marked
change In the purchasing power OF
$1,000. 900 people.
Il disagree with The opinion hat
the livestock market Ia bound TO go
lower within the next four weoks /
know that feeders must act promptly
VI they are TO secure the benefits OF
the expanded credit which the War
Finance corporation will provide. /
believe that the only thing 10 do now
ls TO feed livestock, and To buy feeders
quicSy. But no. agricultural nnauc-
ing business viii amouut TO % per
sent OF the total We discount the
farmers paper through the bank The
actual paper comes 90 us, the paper
on which the banker lends the money.
II Is the War Finance corporations
dollar which goes Into the agricultural
loan.
our regional committees are most
ly bankors this ia "A banking
business. Many Of them ure also
farmers.
I'VE are lending Il Ero1t deal of
money 70 the breeder OF livestock, We
can lend for M year aud b. can h,
renewed Tor "a year. and SIN another
year % NECESSARY. fhm is one OF the
fundamental pnwcra that has boon
lacking ga our financial system. This
must be provided % when wc get
down 10 "a permanent financing inati-
tuition. The Wa Finance corporation
charges six per cent TO the bank.
Under the law the bank can ruloud
his money 10 the farmer al o. point
between six per cent d eight per
cent The banker cannot charge more
than two per cent ln addition Co tho
six per cent which hr pays thc war
] Finance corporation.
TO say that n agricultural exports
could b. financed IL would save the
whole situation aa "a driuriuu ana O.
fnnrc. NE have had men lu Europe
rtudyluP This situation. su has the De
nnrtmont OF agriculture. go has The
banker. European business mc do
not want credit now aa they did "a
year or 40 aitn. when they buy Oh
credit they horruw dnllara aud tht
rnods are deliverable nov. when
hoy ssli their goods. however, tnry
must take foreign money, The pres
mt rate uf foreign exchange WItkts
such trunrnctiona impossible with "a
profit u u an uncouselonablc gamble
ior European business men 10 buy ON
credit from America
JpttfIsg RAID STIBIO