Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-04-11
CATTLEMEN'S NEEDS
SIMILAR To SOUTH'S
nv EDWARD G. LOWRY

SALT LAKE CITY, Utah, April
s.-Two matters of public interest
are beginning to engross the atten-
ton OF all Of this western country.
One of them is whether the powers
of the war finance corporation,
which expire by law on July l. next
will be continued in the present or
sanitation or whether some substi-
sutA ssency will be set up. The other
-, whether the forest service will
De transferred from the department
It agriculture to the department of
the interior, as suggested by Secre-
tary Fall.
The matter of the continuance OF
the war finance corporation Will
provide an interesting and important
debate. Everywhere that we have
been, from Des Moines right round
the circle, through the middle west
the west, the southwest and the Pa
cific coast, the question has been
asked by stock-raisers and farmers:
Will we again be able to borrow
money from the government when
we need it? They have wanted to
know whether the war finance cor
uoration will be continued with Its
present organization or whether
some agency of the government
such as the farm loan board or the
federal reserve system. would be en-
(. uowered. in times of emergency, to
make advances to the agricultural
and live stock interests. That is
question for congress to decide. An
Urgent demand will be made upon it
to decide in the affirmative. Wheth-
er it is the part Of wisdom to make
such affirmative decision is a matter
for consideration and discussion.
The Next Step
If the agricultural and live stock
interests are to be relieved WIN
government money in times OF
stress. the next step will. be to re-
lieve the lumber and mining inter
ests when they come to PERIODS OF
depression and trouble. There can
not be much doubt that the revival
of the war finance corporation mas
served O useful purpose and met a
legitimate need. The wealth OF 1ree-
ly.offered testimony all over the
country from the Mississippi river
westward cannot be dtsregarded.
One has not encountered a single
dissenting voice. The war finance
CORPORATION will not have concludeu
it's work by the first Of July. 1t Will
: require time to clean up and brlnS
! to an orderly conclusion the opera
tions in which it has been engaged.
], Under the present law, it is EN-
powered to new loans for a period
of two years from the date OF the
1 original loan, but an organization
will have to be maintained Tor IN
spection, examination and other rou'
tine matters of adjustment. Inc
whole transaction and work OF the
E corporation cannot be abruptly and
prematurely terminated. That is per
fectly clear.
"a The large question that congress
( will have to determine is Whether
] in the permanent financial system
of this country, there should not De
incorporated SOL agency, or pow
ers given to existing agencies. When
the banks are unable to help the
producer and he is forced to sell
Z his products and herds at rulnous
prices. The livestock men, includ.
2 ing both sheep and cattle raisers, Of
: fer a special problem. They require
1ong-term loans. In general, both
interests require timing of their
loans that will adjust itself to the
period of raising and maketing
gocop, whether it be cotton, grain,
Z beef cattle or sheep. It takes three
years from the time calf is born
until it becomes ready for the mar
ket as beef. A three-month loan, or
! even a six-month loan, is no good in
such a case The period of financing
I. must accommodate itself to the
s period required for production and
marketing, and this ranges, rough
-.ly, from six months to three years.
Reserve System
\, The Federal Reserve System Is
z5now adjusted to take care of manu-
= featuring and business finance. 1t
: Is not adjusted to the financing of
livestock and agricultural products,
where the slow and orderly proc
+resses of nature must be taken into
consideration. Community banks,
except in special cases, prefer short
loans to long onas, and liquid col
= lateral that can be turned readily
! into cash. We may come to some
system of branch banks that can
- take care of these large national in
Is terests that for the moment have
iobeen rescued from ruin, according
80 their own account, by the War
Finance corporation. All of these
S<NA 41. I'D
to banking facilities that will be ac-
commodated to their needs as are
the business men, manufacturers
land other industries of the country.
AS has recently been proved, they
!. have strong hold upon the atten.
i, tion and sympathies of both
branches Of congress. So in the end
they probably will get what they
want.
The danger to be avoided is Civ
? ing them more than they need OF
more than is right and proper ant
sound in an economic sense. In the
long run it will not be any great helI
to these people il they come to have
feeling in any time of trouble tina
they can call, Of a right and withou
reserve, on the United States treas
ury. They should not be made t.
= pay the usurious rates Of interes
, they have been forced to pay in part
of this country out here at times
. and they should not be forced to sac
!, rifice their herds and products o
. the earth because of an industrial
stringency in the east over which
s they have no control. To do tn
right thing will require careful con