The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1922-10-10
BANKERSLEARN
Of PROBLEM Of
FARM MARKETS
War Finance Head Re-
lates Necessity for Ex-
tended Crop Loans for
Orderly Movement.
written Specially for The Tribune.)
By Robert Fuller.

BY ROBERT L ulleT.
NEW YORK.-Banker of the Unit
ed States are wide awake to the i'm
portance of working out more liberia
platform for agricultural and live
stock financing. Already preliminary
steps have been taken and unity o.
action assured which experienced econ
omists predict are the foundation
stones to an era of unprecedented ma
tional prosperity.
Summed up, the American farmer
played stellar role in the annual con-
vention Of the American Bankers as
ISOLATION, held this year and attended
by 10000 Of its members. First. Flu
gene Meyer, Jr., managing director OF
the War Finance Corporation, put the
issue squarely up to the bankers in his
address, Financing Agriculture
Then followed the principal fight OF
the convention over the branch bank
issue. Here again, agriculture came
to the fore, as it was the small town
banker, the farmers banker, opposed
to the branch bank idea of the city
bankers.
Farmers and the stock raisers may
expect to see these developments.
Longer termed financing which will
permit gradual marketing of crops.
In other words, loans which can be
rediscounted or extended to permit
holding of crops until favorable mar
ket is offered
A supervision of live stock loan
companies in line with that exercised
over state and national banks
Must Market Our Products Slowly.
The need for more gradual mar
keting of agricultural products through
longer termed financing as presented
to the National Bankers association
by Eugene Meyer, Jr., received their
closest attention.
"Unquestionably," said Mr. Meyer,
lit would have been advantageous,
even under pre-war conditions, to mar
ket our products more gradually. I'm
der present conditions is is more than
a matter of advantage-it is an abso-
lutte necessity.
Paper, based upon the security of
non-perishable commodities, Mr.. Mey-
er stated, Should be made eligible for
rediscount for the length of time ne
cessary to market a seasons produc.
before the next harvest The view
seems to prevail in some quarters that
paper, in order to be liquid, must have
maturity of sixty or ninety days.
But sharp distinction should be
drawn between short-tme bank paper
and the question of the liquidlty of the
security that underies bank paper.
long or short.
longtime paper may be more
liquid as to security than short time
paper. During the past year It was
clearly shown that commercial paper
depends for its liquidty on the or
derby buying of the manufactured
goods, and that this orderly buying.
in turn, depends largely upon a pur-
chasing power based upon the orderly
marketing OF our basic agricultural
products"
Crop Loans Most Desirable.
Indeed, if our late experience es-
tablished any definite differentiation
between the liquidity OF commercial
paper and Of paper based upon staple,
non-perishable agricultural commodi-
ties, properly warehoused, it estab-
lished that fact that the latter is de-
cidedly more liquid under adverse
conditions than the former. At no
time were such commodities SO en-
tirely unmarketable as were certain
lines of manufactured products upon
which the so-called liquid commercial,
paper was based.
While 1t is important continued
Mr.. Meyer, ito safeguard the Federal
Reserve System by proper restrictions
regarding eligible paper, it is equally
important to safeguard business and
agriculture by avoiding discrimination
against paper which may properly be
considered as eligible"
Branch Banks Weaken Farm Loans
The strongest point scored by the
state bankers as opposed TO the Ma.
tional branch bank idea, was the claim
that branch banks, if extended to small
towns and agricultural districts. would
be manned by outsiders unfamiliar
with local conditions, thus making
loans in many instances unsound and
weakening our whole financial struc.
ture The Branch Bank idea was vot-
ed down as detrimental to the best in
terests OF the nation.
-O-
UTAH TEAM IS GIVEN