Omaha daily bee., 1921-06-11
B a n kers
Pledge Aid
To Farmers
Plan Under Discussion tc
Furnish Additional Credit
Facilities to Live Stock
Men of Country.
COOPERATION Promised
By GRAFTON S. WILCOX,

ny GkAFION 5. WILCOX.
Chicago Tribune-Omnha Bee Leased Wire
Washington, June l0.-Evidences
OF cooperation between the admin
istration and the banking interest.
OF the country developed in tive
quarters today.
Announcement was made thai
President Harding has received as.
surances from the leading interna,
tional bankers that henceforth they
will obtain the governments sane.
ton to all foreign financial transac-
tions.
A further indication OF a desire
on the part of bankers to assist the
administration was given at a con-
? ference over the question OF
financing the pressing needs of the
live stock industry through banking
channels.
The conference was called by Sec
retary OF the Treasury Mellon.
Those present were ]. P. Morgan
OF New York City, Benjamin
Strong. governor of the federal re-
serve bank OF New York; Vice
Gov, F.. B. Platt and John R. Mitch
ell of the federal reserve board. and
Eugene Meyer. jr., managing di-
rector of the war finance corpora
ton.
If it proves possible to raise suf-
fcient funds to furnish additional
credit facilities for the stock rails
ing industry. the plan proposed by
the federal rserve board for legisla-
ton to make available to the war
finance corporation S50,000000 to be
used in live stock loans will be
abandoned
Opposes Special Legislation.
1t developed that President Hard
ing is anxious to avoid, if possible,
special legislation providing finan-'
oial assistance to any industry when
the matter can be handled by the
bankers OF the country.
The arrangement by which the
international bankers will cooperate
with the government in their foreign
transactions is one of voluntary
nature entirely. The administration
does not desire to exercise control
over the situation through any legal
power. but it was stated today that
President Harding feels greatly
pleased over the willingness, ex-
pressed by the bankers to seek the
informal approval OF the govern
risent before any further large for
cign transactions, such as the recent
French loan negotiated In this coun-
ffy, are entered into, According to
the 1 assurances given President
Harding, the international bankers
will abandon any plan to which the
government may object to.
The agreement between the ad-
ministration and the bankers, it was
stated, does not mean that the gov
ernment will in any way stand back
of such foreign loans. as may be
negotiated ip this country, nor does
it mean that the bankers have agreed
under all circumstances, to insist
that proceeds OF loans OF this charac-
ter be expended in the United States.
As result of the representation by
the international bankers that the
United States might benefit through
a roundabout transaction by which
a foreign country used money OBJ
tanned from American bankers for
purchase of goods in another coun-
try, which country in turn bought
manufactured goods from the United
States, the administration is appar-
entity content to trust to the best
judgment of the bankers on this
point.
Investigation Planned.
The conference held today at the
instance OF Secretary of the Treas
ury Mellon relative to forming a {,
pool among the banks to finance the
live stock industry did not develop
definitely whether such a plan is
feasible. According to an announce
rnent by Secretary Mellon following
the conference "a short investigation
will indicate whether or not adequate
financial relief for the live stock in
dustry may be obtained through |
private banking channels"
Although the proposed legislation
would provide $50,000,000 from the
treasury for live stock loans, it is |
Secretary MELONS belief that so |
great an amount may not be neces-
sary. AS result Of today's confer
enee, further canvass will be made
Of some Of the leading bankers OF |
the country to determine Just how |!
much money could be raised without |
governmental assistance.
The special need for additional |
credit facilities for the stock raising |
industry is due to the fact that live
stock paper running longer than six
months is not eligible for rediscount
1t federal reserve banks. Loans for |
,he purpose of feeding and fattening
cattle are thus more easily obtained |
han the longer time loans for breed |
ing cattle.
Governor w. P. G. Harding Of |
tire federal reserve board, is now
n the west making special investi-
cation Of the live stock situation. |
The plan for legislation TO authorize |
the use Of S50O0O,0O0 in treasury |
funds by the war finance corpora
tion was the suggestion OF Governor |
Harding.
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