Albuquerque morning journal., 1922-10-15

required ana JuStl1leQ-demand
in fact-some emergency, tempo
rary assistance to the producers OF
the country. Congress sustained my
view and ordered the resumption
of the war finance corporation.
Story OF Corporations Work.
1.-THE story of the corporation
work you are familiar with. il
has approved loans totalling some
$4S0.000,000, including about $780,
100000 on livestock. Some ad-
vances have been made to finance
exports largely of agricultural
products, but the greater part of
the corporations loans, aside from
the livestock loans, and loans to
cooperative marketing associa-
tions, were made to about 4400
banks. state and national, which
had made advances to farmers and
stockmen. So that, substantially,
our work has consisted of loans
to banks and livestock loan COM
panies to finance livestock, loans
to banks to finance farmers, and
loans to cooperative organizations
to finance the orderly marketing
of our great staple agricultural
products. We have received very
larger payments on our earlier adj
vances of all classes. Practically
all the loans made to co-opera-
tive organizations during the past
season have been liquidated. / have
received word since / left Wash
ington that the last loan, a loan
OF $4,000,000 to the Burley To-
sociation with Headquarters at
Lexington, Kentucky, would be re-
paid within a few days.
Authorized Advances.
'eWe have authorized advances
aggregating about $110,000,000 for
the coming year to cooperative or
ganizations engaged in marketing
cotton, wheat, rice, tobacco, and
other staple commodities. Our
bank loans, which We're running at
the rate of about 81 100000 to $2,-
100000 a day during the winter,
are being paid off gradually. In
fact, throughout the west, in the
normal course of orderly liquida-
tion, there has been a substantial
reduction in our bank loans. We
have also received large repay
ments on our livestock loans, made
principally through the new live
stock loan companies organized
locally.
'In considering the problem of
the future, we must determine
what is necessary in order to fl
nance the orderly marketing Of
our staple agricultural products,
what rediseount facilities shall be
made available to the banks in the
agricultural districts so that they
may render the service that is ex-
pected of them, and what can prop
erly be done to place the financ-
ing Of the livestock industry on
a sound basis. I can see that with
adjustments, along sound lines, of
the eligibility rules of the federal
reserve system, cooperative mar
keting organizations may have
available, through the system and
its member banks, ample resources
for financing the orderly market
ing of our staple agricultural prod
ucts during one season. / have ex-
pressed the opinion that agricul-
tural paper having a maturity of
not to exceed nine months and Sc
cured by on-perishable agricul.
tural products, properly ware
housed, should be made eligible
for rediscount in the federal re-
serve system when issued as part
of program of orderly market
ing, and that the paper of Coop
erative marketing associations, evil
doncing advances for agricultural
purposes, should be given all the
rediscount privileges of agricul-
tural paper. In other words, with
out any additional new machin-
cry, these changes would provide
an easy and quick way OF finance
ing our great non-perishable staple
commodities, when properly ware
housed, inspected, and supervised.
Notwithstanding the fact that
more than 1900 state bankers are
now eligible for membership in the
federal reserve system. only about
1000 have Joined. 1t would be
helpful, am sure, IL some way
could be found to encourage a con-
siderable number of the $500 elig-
ihle non-member banks to enter
the system. so that its great re-
discount resources would be avail.
able, 10 them. The fact that So