The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-07-20
HERE IS A BILL
To HELP FARME Rs
DEALS WITH ORDERLY MARKET.
ING AND FINANCING OF THE
LIVE STOCK INDUSTRY.
PROVIDES LONGER CREDITS
Measure Which Has Been introduced
IN Congress Has the Backing Of the
Federal Reserve Board and the
Finance Corporation.
BY JAMES P. HoRNAoAY

~ SN"EO r F1OhNADAH
NaShlngton-A bill which has the
backing of the federal reserve board
and the finance corporation has been
| introduced in congress dealing with
the orderly marketing of agricultural
/ products and the financing of the live
stock industry. To promote orderly
marketing, the bill provides that notes
drawn for an agricultural purpose. or
based on live stock, shall be eligible
for rediscount with the federal reserve
banks with a maturity of not exceed.
ing six months. This is in accordance
with the present law. The bin pro.
yides further. however. that where NO.
ricultural paper is secured nv ware.
/ house receipts covering readily market.
able and nonpershable agricultural
products, it may be eligible for redfs-
count for maturity not exceeding
nine months.
Loans on feeder stock, as dlstln.
guished from loans on breeding herds.
are also eligible for rediscount with
Il maturity not exceeding nine months.
Under the bill the federal reserve
board may limit the amount of paper
of six and nine months maturltles
when any federal reserve bank may
discount, and may prescribe regula-
ions designed to insure that nine
months warehouse receipt paper dis
counted by member banks Is issued as
part or program of orderly market
/ ing, ana not FOR speculative holding
Inc Dill also seeks to clarity the
elglDlllty Of notes of cooperative mar
ketlng association.
IN order to encourage state banks to
take advantage of the federal reserve
system, the bill reduces the minimum
| capital necessary to render n state
/ Dahk eligible for membership, but with
/ the provision that within three years
the capital will be increased to the
/ present statutory limit The idea I'M
/ uerlylns this part of the bill Is that
/ new agencies should not be created
! where existing machinery can safely
! carry the load and that the rediscount
facilities of the federal reserve sys
TEN should be used where possible.
To Finance Live Stock Industry,
The financing of the live stock in
dustry, involving as 1t does a turnover
only once in two or three years in the
case of breeder herds, should not, ac
cording to the finance corporation. b,
handled through the federal reserve
system, and new machinery must b,
set up. In order to put live stool
financing on a sound, permanent basis
il is proposed, under title Of the bill
that a system of regional rediscoun
corporations be established to b,
known as FEDERAL I'VE stock finance
nan 49, ,,a iain, ata,1. Ia,I 49, .'
Anu 1.-Two stocI, nop,,,ny v,I,h @ naid
- onnit,1 40 Stoooon ~, MANA =
aii.,,,Ia far r,o,rhar.hI, II, tho '.,ston,
and 10 entitled r., radisrount nri,irocos
Laina roa,,irol 80 s,h.criho' an ~,
aa,,a1 49, D. Nm cont 80 is .nnIdi,, .n',,
t,ni to .no conitol 40 TIC fodoroI Iir,
stncl enonce corn,rotion
Any nnrhor live stool, comn,ny :,
or+i,Iod "a rodiycount nonor IN .,
on,orrt NOT evcoadinr Gva tros n,
nnidI IN oonit,I stocl socrrad ~. chot
tol ,,ort ,,n,,os an 1.-Two ytocp bo,irg
nar,o+ TaI,o ot Ions, "a nor conn +,
ayooss 30 tho r,co or,ornt If t,a motto
Tbo 1.-Two stock must me insnec,ed il
ooaordo,oo vim rogrIottong draw, -,
~ tho fodor,i farm liam hnnrd an,
Tho n,ror NAV boyo , maturity If M
n,ora ,i,,r oro ,o.r vim nroyisi,n fo
rorouol nm ~ thrno yoars from a.
or,,,i,,I dato
.
O'ner r'o''e'o'S u VIC ON
The bill makes other provision
safeguarding the capital Of the mem
Der loan companies, authorizing TN
federal farm loan board 10 appoin
three Of the seven directors of eacl
federal live stock corporation; rcgulut
ing the rediscount rate, and the rat
which may be charged by live stool
loan companies, limiting dividend
which may be paid by federal liy,
stock finance corporations, and pro
yding for the issuance Of bonds, witt
maturity Of not more than tire
years, which shall be tax exempt Onl.
II issued before June 30, 1928,
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