The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-07-27
Federal Reserve Banks
to Give Oil Mems Paper
Greater Consideration

The ultimate outcome of the recent
conference between oil men and bank
ers of the southwest and the directors
Of the tenth district federal reserve
hoard, which was conducted at Kansas
City, Mo, July 23, is expected to be
the start Of greatly increased financial
assistance TO the members Of the pc
troleum industry in this territory as
well as TO the citizens in general. The
next step 10 be taken in furtherance
of the effort 10 bring about a better
understanding Of the situation will De
the presentation TO the members OF the
board Of letter compiled by a cem-
nittee Of oil men who were appointed
at the Kansas City meeting. The let
ter will contain in most explanatory
form the condition Of the petroleum
industry just as Il is at the present
time, and the needs Of the oil men
point out ths stability Of the industry
IN an effort 10 demonstrate that oil
mems paper deserves much greater
consideration by the federal reserve
banks than it has been getting in the
past
In speaking Of the meeting which
was held at Kansas City Governor
Miller of the federal reserve board
stated that IL had been called for the
purpose Of finding cut what the board
could do further than 1t has already
done for the oil industry. We are
anxious. OF course" said Mr. Miller,
TO do all We can TO help"
The members OF the committee ap-
pointed ~ draw up the letter OF sugges-
ton TO be presented TO the board in
clude Writ Franklin Of Ardmore. Har.
ry II. Rogers OF Tulsa, chairman, r.
p Brewer Of Tulsa, L. E. Philips of
sartlesville, G. L. Davidson Of Wichi-
%.
Virtually none OF the oil paper is
eligible for rediscoant AZ the present
slime states Mr.. Franklin. our pur-
pcse Is TO make oil paper as eligible
as is that Of any industry.
Paper on oil storage IS eligible. Of
course. but that does not give Us the
relief we need Comparatively few op-
orators have oil in storage. that which
IS IN storage Is there for speculation,
sc that the relief Is available where Il
IS perhaps least deserved.
The committees efforts will be bent
toward persuading the federal reserve
hank to recognize as quick assets the
materials and supplies which the pro-
ducrr has on hand and his settled
production
We maintain that oil paper on
materials and supplies and settled
production IL as safe and frequently
safer than paper on any other indus
try.
Take the cattle industry. A droaeh;
may come along, dry Up the grass
and cattle die off By scores. but set
tied production Is hot affected by
drvushi,, By cold or any weather con.
ditions. II goes on.
The oil Industry Is facing critical
situation. Within a few months the
price has dropped from ss.so TO 81.
Virtually all drilling has shut down
with the exception OF that required
by leases and By the law in the case
cf offset wells.
tion In production that the price
is bound sooner or later to so up. But
the shut down viii continue Until either
! the costs Of labor and materials so
down or prices 60 up to point where
II ls profitable to produce. There are
approximately 100000 oil wells In this
country. OF all these they average
abovt 40 harrclq adar n IL tho
sinai wells that must be taken care
Of now. for they are the basis Of pro-
suction of the country."
The sound basis on which the oil
! industry IL being maintained oan well
bs demonstrated ty reference 20 the
local celds. The long life which the
sands of the Healdton and Hewitt
fields are Slowing. the lack Of salt
vasu and other detrimental effects
I