The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-10-28
WOULD IMPROVE
sT0CKMEN's LOT
Eugene Meyer of the War Finance
Corporation Tells of His Idea
of How Best Results May
Be Accomplished

Eugene Myer, Jr., managing d.
rector of the War Finance Corpora
ton at luncheon last week at the
Commercial Club in San Francisco,
addressed representative group
of stockmen from California, Ore
gon, Nevada and Arizona.
Mr.. Meyer stated in part as fol-
lows:
1.-THE War Finance Corporation
has been called upon during the
past eighteen months d deal with a
number of difficult and important
situations throughout the agricul-
tural districts. But no situation, in
my opinion, has been of greater i'm
portance from the national point
of view, or has affected a larger
territory and greater number of
producers, than that which con-
fronted the livestock industry.
Aid Extended
"Demoralized markets for cattle
and sheep, congested and over-ex-
tended banking institutions and
livestock loan companies, featured
the situation year ago. Since then
the War Finance Corporation has
made loans totaling approximately
$90,000,000 for the relief of the
cattle and sheep men of the West.
This aid was furnished on a con-
, siderable scale through banks and
the older livestock loan companies.
The principal assistance, however,
was rendered to the industry
through number Of new livestock
loan companies, formed with the
encouragement of the War Finance
Corporation, and each having CAPT
tai 'and management supplied by
local banking and livestock inter-
ests in the different states.
Changes Essential s
During this period, the Directors
Of the War Finance Corporation
have had an unusual opportunity to
study existing methods of conduct
ing the livestock industry and Of
financing its needs. To pu. the
breeding end of the business on a
sound basis for the future, and to
avoid a repetition Of the disastrous
conditions which confronted us a
year ago, a number of changes
from former practices are neces-
sary. If the industry wishes to at
tract capital at reasonable rates,
these changes must be brought
about promptly by its responsible
leaders. First and foremost is the
matter Of inspection. The inspec-
ton upon which the banker depends
in placing loan is carried on in
an entirely unorganized way. II he
happens to know a man who is
capable of inspecting the stock, who
has the necessary ability and ex-
perience, and who is a man of the
right character, then he is able to
get reliable report of the inspec-
ton. But there is no systematic
supervision of inspection so far as
/ have been able to ascertain. 1t
seems to me that the industry
should organize and license corps
of experienced and competent in
spectors, so that banker making a
livestock loan, if he is not satisfied
with the representations Of the bor-
rover, may be able to obtain re-
liable reports. Such inspectors
would occupy in the field of live
stock financing a position some
what like that occupied by certi-
fed public accountants in the field
of financial auditing.
Another vital necessity is the
reformation and unification, in ac-
cordance with the best practices
that have been developed in the
various livestock states, of the laws
governing the protection of brands
and titles to livestock, including
especially the conditions surround
ing the security of the stock
pledged under mortgage to lenders,
whether those lenders are located
within or without the particular
state concerned.
Administration To Cooperate
"With these changes brought
about in the industry, l am conf
dent that the machinery for provid-
ing the necessary funds can be
satisfactorily worked out. The ad-
ministration is ready to cooperate,
SO far as federal action may be in
volved, in authorizing the necessary
financial machinery, and the super
vision of that machinery with the
view of maintaining it in sound
condition. After carefully consider
ing the many suggestions, including
the organization of government or
quasi-government banking corpora
lions more or less along the lines
of the farm loan system or the joint
stock land banks, believe the best
solution will be found in the authori-
cation by the Congress, through
amendment to the national banking
act, of federally chartered livestock
loan companies. Such institutions
should be subject to supervision
either by the comptroller of the
currancv or tho federa1 reserve