The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-04-24

" slate ranks tenth among the
states o. the union in point OF mum.
befs u range cattle and eighth Ia
the number OF sheep, when we take
into consideration that tho cattle iH
Ntw Mexico show an increase for ths
scar 1890 over 1919 of 2e.OOO head
4 and hat the sheep show an incrcaas
' uf over $4,000 head. II shows that
the men who are engaged In this
class OF business are certainly At.
tending to their affairs, and although
the decline in the value per head
total loss FOR the year Of approx
matoly 81. 800. 900, yet In comparison
With other states Of the United states.
Sew Mexico Is "A long way n gamer.
tn" banker deals In values and In
securities and when a survey Ia
made Of the decline In The values OF
i've stock paper ana Securities dur
luE the year 1920. ~ makes not only
ths stock men n the sheep men
eat up and take notice but also the
banker. A. preliminary 20 h dis
cussion and at ;he expense OF being
fuW"what tircsome. I desire to call
your attention that the decline In
livestock has been out OF all proper
uuu to almost everything else that
mon deals ia. Could y6u behave
t.Hf during the year 1890 tho total
value OF livestock declined SAIL
1000, or 2G.7 per cent? The total
1tlu" OF livestock at the beginning
and on the first OF january, 1871,
d value OF that property was
s. 23G,569.O0O. This decline, OF
,uutso was partly duo TO the reduc-
ton in the numbor OF head. but more
20 tho value per M
S>hccp Values Drop 10 per cent
~ uA estimated that the decline in
HNs LMNHNa Of Allan VasW hAaI IUaWNa.u
That period Of time Is a trlfle over
80 per cent. or from an average p1ce
o. SiOh2 per head 10 an average
price Of sG4l per head The total
decline In value amounted 20 t2OG.-
10000 and counting the loss In mum
beers aud the decline per head. the
joss hHS been for sheep "a trific less
'hHu ~ per cent. II In estimated
that on the first OF January. 1891.
tho uutuber OF sheep IN New Mexico
.vlH approximately s.2sG. 600 and u
- u,Hu't require n mathematician par
ilDultrly 10 estimate tho loss len this
most important Industry during the
Year 1920. ~ " an automatic truth
That upo tho success OF the custc
m'fH uf any banking Institution de.
Ifudf th" success % that bank aud
when tho livestock man. the cattle
ham aud the sh.op man I'm Ncw
N'NIru are prosperous. then. proper
'.'NNNNfNN hNf Nhf INNhN NNNNNNNl Nls
Many times the livestock men critic
'z" the action 81 the bankers when
u tho ones who criticiza only knew
fU' truuhlcN 81 tn" banker they
would find that tho criticisms are
UNJUST Most Of the actions OF h
tanker are prompted by the r~estrIc-
ituus thrown around him by the
banking laws, both national and
state. n these laws. as you know.
hove been enacted for the protection
a. tank depositors. or olss the hank
on tt rare times might cop the whole
ri'c and vamos for Mexico. Serl-
uusly. most u these laws are good.
Som. may need amending. bun u
mF opinion the federal reserve act
.H tEe wiseat piece Of financial Iegis.
IitIun enacted by congress since the
iTur OF Washington and since the
genius of Hamilton ave US the first
lauking law. / am free 10 say that
the federal reserve bank is not with
out lmpcrfecuoaA However. tho
fundamental principles are sound
and ~ time develops It's deficiencies.
legislation will be enacted To cure tn
defects, H1nd fundamentally, II ~ the
test DDS system ia all the world.
HoW Reserve system works.
one of he benoficent provisions OF
the federal reserve act Is substan-
TALLY that. Upon the Endorsement
OF amy OF its member banks which
shall be deemed a waiver OF demand,
notice and protest By such u hank as
10 To- Own endorsement exclusively.
o and federal reserve bank may dis
count notes, drafts and bills OF eN-
change arising out OF actual com
n ~Ier,iHl transactions: that IA. notes.
dtans aud bills OF exchange issued
ur drawn for agricultural. Industrial
ur commercial purposes, or the pro.
,''ds Of which have been used, or
rr' 90 be- used. for uch purposes.
th, federal reserve board TO have the
right to determine or define the
character OF tho paper thus eligible
for discount, within the meaning Of
this act. Nothing In this act con-
tanned shall be construed TO prohibit
such notes. drafts n bills Of cx-
change. occurred by staple agricul-
tutll products. or other goods. wares
ur merchandise from being eligible
iuI discount. but such definition shalt
not include notes. drafts or bills Cow
,IIur merely Investments or issued
cog drawn tor h purpose Of carry
Iur or trading In stocks. bonds or
other investment securities. except
bonds and notes Of tho government
uf D. United states.
Notos. traits and bills admitted to
discount urdcr the terms Of this par
nrruph must rave maturity at tho
time OF discount Of not more than
IU days, exclusive of DAYS Of grace.
provided that notes, drafts and bills
drawn or ISSUED Tor agricultural
purposes or based on live stock and
having o. maturity not exceeding six
months. exclusive OF DAYS Of grace,
may be discounted In an amour TO
Doe limited to a percentage ~ the
'ussets Of the federal reserve bank.
20 br ascortalncd and lINcd by the
I.drUll reserve hoard.
buu Will observe hat one Of tho
conditions OF eligible paper is that
r must n ~ been issued for agri-
cultural. Industrial or commercial
purposes. and not for the purpose OF
securing funds 20 trade IN stocks.
!. bonds OF TO make investments. and
y that anotho. provision IN that In
order 10 he eligible for discount at
the federal reserve bank u must
have not more than ~ days 10 Tan