The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-09-11
Senator Bursum Tells Bankers in
Their Convention of Working of the
Agriculture Relief Measure

hill which hnE passed. II In possible
for cooperative associations ~ pro-
duccrs to borrow money direct at
rate of Interest equivalent to nv
that is I y q above the charge made
by the Federal Reserve. which Is %,
In this district. Local banks are not
allowed. under the new measure, to
charge more than 2 per cent In exccll
OF h rate which they pay the War
Finance Corporation for the money.
II the prevailing Federal Reserve
interest rates. the farmer and cattle
man will be able to borrow money
At o Shtc. IL is likely that q
little later the Interest rate will be
even lower.
But hat provision cannot very
well apply to livestock because 1t b.
difficult to organize a cooperative as
sOciRtion. II can well be done with
reference To other farm products. such
us grain, beans, corn. wheat and cot
ton. For instance. "a loan Of five mil
lion dollars was made TO the cotton
PRODUCERS only a short time ugo by
lie War Finance Corporation. and
that 10 one Of the things which tend
cd To- stimulate the market aud pro-
ducc better prices. Loans may Dc
made direct to banks or trust com
panies or M other kline OF financial
corporations with sufficient
TAXING as collateral tng sguuIIIef
based upon livestock.
MIR. Meyer. who IN chairman of
the Wal Finance Corporation. do
clared that he expected to loan money
on the basis OF 1879 OF the market
value Of the livestock. II / were
handling the funds Of a private cor
poratiun. 1 would not hesitate TO loan
up to 1905 on livestock. because
prices have now reached bottom. he
said, However. ~ an agent of the
government. l will not loan TO cX-
coed as "a
These securities Of the livestock
men may be taken to,thc banks and
the banks will set t. money from
the Nar Finance Corporation, using
the livestock SCI fifty as collateral.
The loans may made for one year,
with the privilege OF renewing FOR an
additional year. within yyo years all
Of the loans must be liquidated.
Emergency Legislation.
"of course, this IL an emergency
matter and u is expected that the
crisis will be over within two yeurH
and that the markets will be far bot
ter aud the country Ia u more pros
perous condition. Mr.. Meyer said to
me, W" will fIN your country up. We
viii ia the whole country up and
stand behind the conditions down
there II this Is donc there wall be
no trouble. There are no limitations
such us you had with the federal
RcsyrNc There In mo- limitation as Ia
the amount provided the collateral e.
rendered. and the rate Of interest
charged by the War Finance Coupou-
alton To the bank will be concurrent
with that charged hy the Federal Re-
afrN", ami probably AN added one
half Of one per cent FOR udmnistrd-
tun. This rate mny possibly rome
down. The tendency, | think. is Geo
pay less, The rate In New York at
the present time. or was u few days
ago, was GA q, In hat district. but
In this district II IN The govern
mont will be called upon within tho
near futurc to refund and sell bonds
to clear the public debt. "A good por-
non OF ~, at least. Necessarily, that
refundlng must be done on a rrrsoH-
able rate of Interest and the tendency
Is Co reduce th, rates uI interest The
industry aud lis future are entirely
in your hands II Be- "a great rcspuu
sibility. II h true, but the banks have
always assumed great FguuHlbilitips
300 this country whenever 90 CIsiN ht.
come. You are the -CElyN Thrush
which these responsibilities can be
carried out. You are tho agency upon
which the public depends. and Nuu
enjoy the confidence Of TIA. cuuurry
and, therefore, the responsibility upon
you is an The greater You are IA,
trustees Ion tho tuturo Of our indus,
tries iu this state particularly. and
hope that YOU Will stand up as YOU
always have done IN times Of need
and do yuur very heE Co preserve o.,
livestock industry bon his state. Gen.
ucmen, ] thank you
The SoNonth-lUy Ady'utists haN,
-ai churches BOO the United Stut,-
The National Geographic societ,
has q membership OF 100000.