Tombstone epitaph., 1922-06-04
SAYS FEDERAL UrVE- STOCK ACT WILL AID
 ARIZONA STockMeN

| senate May 6. by Senator Capper of Kansas. has been received by the Arizona Industrial, Congress from Eugene Meyer. Jr. managing director of the War Finance corporation. who prepared the bill with Gerard c. Hen The bills purpose is expressed as follows in the title:
 "A bill 10 provide credit facilities for the preservation and develop ment of the livestock industry of the United States; to extend and stabilize the market for United States bonds and other securities; to extend the powers of the Federal Farm Loan board created by the Farm Loan act; to provide fiscal agents for the Unit cd States and for the War Finance corporation and for other purposes" in letter to F. G. Salisbury, presi- dent Of the congress. which accom-. panied the bill. Mr Meyer said:
 Tn my opinion some sort of ma chinery of the kind provided in the bill would be helpful to the livestock interests of Arizona. The object is to put the industry on a better bank ing basis. By making i, safer, think larger amount of capital for loan companies will he obtainable as well as larger investment funds in the livestock paper. This ought 10 be possible al reduced cost oommensu- rate with increased safety
 The proposed act would authorize the Federal Farm Loan board to di- vide the United States into from five to ten livestock districts. Upon ap- plicacion of five CT more eligible cat tie loan eligible ap- plying to any cattle loan company having a paid mp and unimpaired cap ital of s1o0.oo0 or more and legiti- maiely engaged in the cattle loan bus iness-a Federal Livestock Finance corporation would be organized in eaSh district. to be governed by board composed of three directors ap- pointed by the Federal Farm Loan board and four elected by the mem Der loan corporations.
 The Federal Livestock Finance corporation would be required 10 have subscribed capital of at least S1,G00,00o and a paid up capital of at least $500 eco. divided into shares of s1c0 each. Cattle loan companies be coming members of the corporation would be required to subscribe to its stock to a sum equal to e5 per cent of their own capital stock. The gov ernment then would be authorized to subscribe 10 the corporations stock an amount equal 10 25 per cent of the total stock taken by tine member cor porations, but not to exceed sl,000,- GOO in any one corporation.
 The Federal Finance Corporation would Tediscount eligible" livestock paper for and make loans to its mem ber corporations which also would be limited to dealing in eligible" paper. Eligible paper" is defined as notes or other evidences of indebtedness se- cured by chattel mortgages convey ing a first lien on livestock which has a current market value in places such livestock is located( equal to l50 per cent of the face value of the paper.
 The two most important provisions Of the bill are tRese.
 Cattle loans could be extended to three years. as against the present pe- riod of six months through the Fed eral Reserve system.
 The Federal Livestock Finance corporation could issue collateral trust bonds up to the value of % times it's paid in capital. hut secured by an equal amount of eligible live stock paper deposited wiah it. This would have the effect of greatly in. creasing the funds available for leans on stock.
 The act provides that no redis- count or advance could be made by the corporation to its member ccr- panies on elegible paper without a Aouo~it canal to n nev cenf nf fbe