The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-12-02
sHEEHAN SPONSOR
RURAL CREDIT ACT
Federal Law Sought Which VIII Be
Effective in Stabilixins the
Financial Necessities of
Stoekmen, Ranchers

eliminating efforts to stabilize
and strengthen the livestock and
ranching industries, which have ex-
tended over period Of many
months and have required much
thought and work, Senate Bill No.
4063 was introduced in the United
States Senate a week ago last
Thursday, by Senator Capper, cal
culated to effect the desired end, ac-
cording to Senator ]. Sheehan of
the First National Bank of this city,
who returned yesterday from the
national capital.
Senator Sheehan had journeyed
to Washington several weeks ago
for the purpose of meeting, as
member of committee of western
men similarly interested in the prof.
ect above outlined, to discuss means
of accomplishing the task, to arrive
at definite conclusions, and to so ar
range matters as to make possible
the introduction of the bill. After
many conferences the bill was
drawn and introduced in the Senate
The proposed law is to be known
as "The Rural Credits Act, to pro-
vide credit facilities for the agri-
cultural and livestock industries of
the United States; to amend the
Federal Reserve act; to amend the
Federal Farm Loan act; to extend
and stabilize the market for United
States bonds and other securities;
to provide fiscal agents for the
United States, and for other pur-
poses"
"This act, if it becomes law, will
be a great factor in the upbuilding
of the west" Senator Sheehan said
today in discussing the measure.
"We are not asking for any govern
ment subsidy, but merely to be put
under government supervision for
the purpose of stabilizing livestock
paper-to bring it up to the stand
ard of any other paper handled in
financial institutions as acceptable
bankable paper. Livestock paper
now is generally discredited in bank
ing circles and is very hard to raise
money upon. War Finance Cor
poration assistance is unsatisfactory
only because Of its temporary ma
ture."
Briefly stated, the proposed law
provides for the incorporation of
agricultural and livestock loaning
associations, with a minimum capi-
tai Of $250,0O0, emitting such as
sociations to make loans up to ten
times the capital subscribed. This
means that corporation with the
minimum capital of $250,000 could
loan up to $4,000, 900, with a pro
vision limiting the maximum
loan to any individual borrower to
twenty per cent of the capitaliza-
tion or $4,000. These corporations
would be under the direct supervi-
sion Of the comptroller Of currency
of the United States and subject to
examination as are national banks.
Under the terms of the act live
stock inspectors would be licensed
by the secretary Of agriculture, sub
ject to heavy punishment should
their activities be proven fraudu-
lent. This would have the effect of
making definite the amount OF
property an owner might have OF
borrowing value, and a certificate
of a livestock inspector, as to the
number, kind and grade of cattle
or sheep, would probably be accept
ed as a definite basis upon which
loans, up to 20 per cent Of the ap-
praised value, would be made by
the loaning corporations. Interest
rates on loans would of course con-
form to state laws limiting interest
charges.
The bill further provides for the
organization of rediscount corpora
tions, each with a minimum capital