Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1922-10-20

bankers are considering their loans
using them for rediscount purposes
with regard to the requirements o.
eligibility. We must not overlook
the fact that, while the system hai
greatly enhanced the desirability OF
non-eligible paper, even though thai
paper may be satisfactory in every
respect from the standpoint Of Sc
curity."
Difficulties Involved
Mr.. Meyer urged that our national
policg-should not only look toward the
further development of the Federal
Reserve System, but that it should
recognize the fundamental importance
Of welding into a closer and more
ments that go to make up our banking
structure. "We are at a parting OF
the ways" he said, "and now is the
time for us to determine the direction
in which we are going. We must decide
whether we shall continue the more OF
less haphazard development Of our
banking machinery, or whether our
action shall proceed along lines based
upon comprehensive view of the
needs Of the country, bringing our en-.
tire banking structure and resources
into q more harmonious and unified
organization"
Loans OF War Finance Corporation
Describing briefly the work Of the
War Finance Corporation, Mr. Meyer
stated that, up to September Is, 1922,
the corporation had authorized nearly
1000 loans, aggregating $1S3, 900,
to approximately 400 banking insti-
buttons in the agricultural sections of
the country; $50 loans, totaling $72,-
100000, to live stock loan companies
and advances aggregating $4,000, 900
to cooperative marketing associations.
Altogether, the loans approved for ag-
ricultural and live stock purposes, in
Guiding exports Of agricultural prod
ucts, amounted to $470,000,000.
'The task Of the War Finance Cor
poration," Mr.. Meyer pointed out, Gin
volved a great deal more than the
mere lending OF money The psyche
logical aspects Of the work were of
even greater consequence. It was
necessary to furnish financial assist
anee quickly to large numbers OF
90 r,,,orc o,d c+oolyr,,op h,1f n wac
even more vital to replace despair
with renewed hope and to change the
inaction of a discouraged people into
the energy Of restored confidence.
1.-THE loans Of the corporation not
only helped directly the borrowing in
stitutions and their farmer custom
ers; they had a much more far-reach-
ing effect upon the banks to which the
corporation made no loans at all.
The longer term rediscounts offered
by the corporation to the over-extend-
ed banks, and the restoration OF mar
ket values following relief from forced
liquidation, encouraged that more nor
nal operation of the stronger banks
and that more liberal use of their re-
sources which was warranted by the
removal of the danger spots"
Necessarily Temporary
Emphasizing the fact that the War
Finance Corporation is essentially a
temporary agency designed to meet an
emergency, Mr.. Meyer expressed the
opinion that it's highly centralized
form of organization, with concen-
ptrated power and resources, Is entire
~ unsuited to the permanent banking
structure Of the nation. IF we can
find q solution" he said, 'for the per-
manent financing of agriculture
through business channels, relying up
ON the government only to authorize
the proper machinery and to provide
the necessary supervision and regu-
lation, it will undoubtedly prove to
be the better and more practical way.
Live Stock Financing
In discussing the question Of live
stock financing, Mr.. Meyer pointed out
that the industry involves turnover
of two to three or three and half
years and that there is no "home" to.
day for live stock paper of that dura.
ton. $50 far" he stated, "the indus.
try has not been able to make sue
cessful appeal on a broad scale te
bankers outside Of the live stock ter
ritory who are out of contact with the
| business, like those in New York
| Boston and Philadelphia great bank
/ ing centers that stand ready to fur
nish capital at reasonable rates OF
good security. No matter what form
Of organization for live stock financ
ing may be developed, it is essentia
/ that the industry reconstruct its meth