East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-02-10

on agriculture paper. The oppOrtu-
nifty soon came and for 4 time it was
with great difficulty that necessary re-
serves were maintained. Probably
the greatest mistake OF all is the far
mer deluding himself into the idea, or
allowing others to do it, that he was
to be placed on an equality with other
borrowers ard that the lower interest
rates that prevailed had come to stay
and that he would continue to receive
the new higher prices"
Offers Advice.
Mr.. Dobbin continued:
IF agriculture and industry hope to
have foreign countries pay at least a
part Of the debt they owe us we must
hold to the gold standard. To expert
ment with any other sort of money
would be nothing short of a calamity.
1t is true our dollar is so big at the
present time that We can scarcely turn
it over but it is far better than to have
one that is of little vaiuc after it is
turned. The thought of loans from
the Federal Reserve bank direct to
farmers. or individuals in any other
line Of industry should be dlspelled at
once. The local banker. whether it be
in the city or the country is far the
best judge as to who and how much
money and credit the people and the
local lines u business need in his COM
munity. II may be necessary to limit
the rate of ;dterest he is to charge on
rates r~ediscounted with the Federal
Reserve Bank but he can give much
more economically than any agency
removed from the locality in which
the loan is made"
long Time Loans.
Probably the most important mat
ter facing the livestock producers is
the question of long time loans at. a
low rate of interest. The breeding of
sheep and cattle to be made secure
must be financed on a basis of twelve
months notes renewable at maturity
for a like period and at a low rate of
interest. Under u present banking
regulations rediscounts through the
Federal Reserve system are on a basis
of ninety days with the privilege OF
renewal in many cases. This is entire
ly unsatisfactory and leads to constant
uncertainty on the part of the pro-
ducers. If the Federal Reserve cannot
finance stockmen on a longer basis,
then some new method must be de-
vised for supplying this service. 1t has
been suggested that the Federal Land
Banks might invest a portion of their
funds in livestock paper under an am
endment to existing law. We hope
that such a plan can be worked out
but, if not, congress should provide
new machinery for financing stock
men. The operations of the war fl
nance corporation have been highly
beneficial. The three year loans which
they are making on livestock have
brought new life to our industry but
we understand that under the resent
law the Looming power of the War FL
nance Corporation expires by limita-
tion on July 1, 1922. BY that time the
financial needs of stockmen will not
have been fully met and we urge that
congress- now extend the life of hat or
ganization for at least twelve months
in the hope that by the expiration of
that date n permanent livestock fl
nancing organization under the direc-
ton of National agencies may be es-
tablished. Present interest rates. are
burdensomelv high and cannot be met
on a basis Of present charges against
our livestock"