The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-03-26

ration before the convention
few Mexico Cattle a. Horse
ERR convention in LAS Vegas
week. After some preliminary
N and references to an adj
Eugene Meyer, Jr.. manng-
ffctor Of the War Finance
f4tion, Mr., Hcrndon said
uth. 1919, the War Finance
fntion was granted authority
aRr advances to the extent OF
bn dollars to American eN-
Afhnd bankers who chose 20
Id credits to foreign buyers.
wAs discontinued in May. 1920
feqaest - tho secretary OF
frnsury. Plans at that time
sunder consideration. by the
TORI Of the corporation, for
luinR the expectation OF large
titits of agricultural products.
lad the War Finance Corpora
cohtinued to function at That
III all probability. many of
hafdships the agricultural Ia
4 has had to endure. would
hten materially mitigntcd
tongress In January, 1921. or-
d the corporation to resume
af8ons. and when President
ding came into office, he
nptly took steps to restore the
SnFation to effective activity
70 investigation both at nome
abroad. brought out The fact
J tredit to forPiRn buyers alone
3}d not solve the problem.
EWith foreign exchange fluctudt .
III such a wide range. IL was
koAsible FOR the foreign buyer Ia
trmlae whether he would gain
4oec by any Transaction, there
thc real problem was to pro-
Tor the more orderly market
o. the products. for prolonging
period during which the mar
4ng took place.
Cotton Advances
f1n July. 1921, through the
Nm cooperative marketing Az
kiions. the machinery for H.
ing one million bales OF cotton
prtt into operation and further
noes were provided, II needed.
Idcnce was restored and buy
both at home and abroad as
bed purchases at greatly %inctous-
briea&-
fAt Mat time. attention WINS
kelv concentrated on cotton, hut
er produces Of the farm sucn a.
Ia ard canned fruits, wheat, to-
leo aud meat were financed.
During all this time. the live
Tx situation was becoming more
q acute. tho matter was
nented to the War Finance Cor
Eation and their study OF tn"
blcm convinced them Of the
3essity OF doing something on a
had scale for the general agricul
situation.
8Reaiizing that Il would take
ID time for congress to act.
Netary Mellon called on thc
lcrs OF the eastern money mar
to cooperate with the western
kkers In raising an emergency
TO help the stockmcp The
Growers Finance Corpora
OF Chicago was then organized
some twenty millions Of dollars
his fund were loaned before
legislation enabled the War
nee Corporation to como 10 Tho
uc Of the stock industry. TINS
|on did immense good and OF
81 fund. New Mexico received
= four millions ~ dollars, thus
PING 90 save our herds from ne
ghter house.
with the passage Of the AIfi-
urai Credits Act at the END OF
ust. 1891. II was necessary tof
corporation TO devise methods
machinery FOR bringing the
a resources at It's command, IN
Effective operation on n cOmpre'
aiVc scale.
a The magnitude of the nation
task can scarcely be described.
Involved the creation Of an
Hilary banking system for Tie
cultural territory.
Thirty-threc agencies were Cs'
ished IN important agricultural
rists to receive applications, Ia
&pon security offered, and "a
recommendation to the
4 OF directors at Washington
a. agencies are In charge OF
bness men and bankers who are
hing without compensation oi
u kind. Not only did the agcn-
have to be established, hut the
Fmlttecs selected To- take care OF
IN, had to he educated a. Ia
h we're their duties, ond then
bankers shown what o%pportuni-
we're offered them Ia use tao
kurcoa Of the corporation.
New Mexico situation
IThe National Bank Act pre-
5es that no person, corporation
<irm can borrow from = national
X more than 10 Per cent Of Its
Impaired capital and surplus.
4 banking laws OF New Mexico
3vide that a state bank can loan
Zper cent OF It's capital and sur
to any one person. firm OF cor
alton.
The capital and surplus Of this
Ks in New Mexico are. AK a
very small. and ms most Of tho
ha needed by our livestock m
sta far excited the limit that our
III. under the law. are permitted
make. you can readily under.
4 why the creation Ct an AJAX
banking system vas mecca
Hon. Eugene Meyer. Jr, mandR-
A director Of the War Finance
poration made "a trip through
"a west To obtain frst-hand M
81 ntion rs to conditions and
>. One OF the most important
IL Of this trip was the formn-
Iof a number Of livestock loan
sanies, organized at his sug-
on. each organized by Local
Ters, stOckmen and business
1ThsHt apltai OF these new com
les. Subscribed during the past
Amonths. exceeds, In the aegru-
the total amount Of capital IN
n IN all the livestock loan com.
y that existed previous II
Der 1. 1921. These companies
|ocated In a number % states
bare financed and managed 10y
stock holders
Hhcre ls no legal limit IA TO the