The Mt. Sterling advocate., 1922-10-10

use of their resources which was war
ranted by the removal of the danger
spots"
Finance Corporation is essentially a
temporary agency designed to meet
an emergency, Mr.. Meyer expressed
the opinion that its highly centraliz
ed form of organization, with concen-
trated power and resources, is entire
ly unsmted to the permanent bank
ing structure of the nation. "If we
can find a solution for the permanent
financing of agriculture through bust
ness channels, relying upon the gov
ernment only to authorize the proper
machinery and to provide the neces-
sary supervision and regulation, it
will undoubtedly prove to be the bet
ter and more practical way"
In discussing the question of live
stock financing, Mr.. Meyer pointed
out that the industry involves a turn
over of two to three or three and
half years and that there is no home"
today for livestock paper of that du-
ration. $50 far" he stated, "the in
dustry has not been able to make
successful appeal on a broad scale to
bdhhClo luc uN6SlOCh Ter
ritory who are out of contact with
the business, like those in New York,
Boston and Rhiladelphia-great bank
ing centers that stand ready to fur
nish capital at reasonable rates on
good security No matter what form
of organization for livestock financ-
ing may be developed. it is essential
that the industry reconstruct it's
N do
ance of safety which will induce the
bankers of the financial centers of
the country to ankle loans on live
took as readily as they do on other
commodities.
when the War Finance Corpora
tion sought agencies last fall through
which 1t could place it's funds safely
and without delay, it found that new
livestock loan companies with fresh
capital were necessary. Such COM
panies were organized by the bank
ars and business men in a number of
the western livestock centers and
through them the corporation made
large loans on livestock. Their capi-
tal in large pare, came from banks,
and, as result, it has been brought
home to us that an amendment to
the national banking act permitting
national banks to subscribe to the
capital of livestock companies might
not be out of order. This would not
be an entirely new idea, because a
somewhat similar amendment was
in the Edge law.
Il believe that livestock loan CON- |
panies, organized and owned locally. |
are the best agencies through which |
livestock loans con be placed. They |
will, in my opinion, prove to be more |
helpful than loan companies operat- |
ing over unduly extended areas. and |
they should be able to attract capital
from the more distant points on |
sound basis and at reasonable rates."
Mr.. Meyer pointed out that there
has never been a satisfactory market
for mortgages on land that is devot- |
ed to stock raising. The farm loan |
sytem has not adequately met the sit |
uation In the western states because
OF the limitation which prevents the !
land banks from lending more than
$4,000 to any one borrower. But re- |
Gently number of additional Joint
stock land banks which are authoriz.
ed to lend from $37 500 to $50, 900 on
one holding of land, have been form
ed in the west and are meeting a def
mite and pressing need. Further
more, with the general Improvement
IN the financial situation, private in l
Vestors and great lending institutions,