Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-01-23

law, when let alone, tends to re-
store an equilibrium which from
any cause has been disturbed
Loans to Farmers
In the meantime it is evidently
desirable that the farmers shall
have whatever help is necessary to
enable them to hold their corn
until there is better demand.
The farmers who are fixed with
cribs for carrying it will be able to
carry it more economically than
anybody else. Moreover, if they
are carrying over a lot of corn
themselves, naturally they will be
more interested in bringing the sit
uation back into the normal state
of balance, either by producing less
corn or more livestock, than if they
think some outside agency is taking
care of the situation for them The
balance can be restored only by
their own recognition that the
responsibility belongs to them.
A meeting of Corn Belt farmers
and bankers was held in Chicago
last month to consider what might
be done to relieve the situation, and
was attended by Secretary Jardine.
Arrangements were made to open
two new intermediate banks in
Iowa, under the law passed several
years ago for the purpose of pro-
viding additional credit facilities for
agriculture. These banks, how
ever, are by no means the only
resource, and replies to a ques-
tionnaire recently sent by the Iowa
Bankers Association to it's men,
bers, indicate a general opinion
among bankers that in most locali-
ties no additional lending facilities
are required.
Mr.. George S. Hovey, President
of the Interstate National Bank,
and also of the Interstate Cattle
Loan Company of Kansas, is
quoted upon the subjects of loans
for feeding cattle as follows:
I'VE have always considered the feed
margin a good one. Where farmer
is of good repute and has some collateral
in the way Of tangible wealth or capt.
tai and has plenty of corn or other
rough feed we have for years stood
ready to make loan on his purchase of
cattle at the Kansas City stockyards.
We reckon the feed margin as forty
bushels of corn for full feeding a good
steer.
Where a man Is Of good repute and
has as much as forty FIVE to fifty bushels
of corn per steer which is clear of any
to 100 per cent of the value of his pur-
chase Of cattle on the Kansas City mar
ket. Where the purchaser has less than
the forty bushels of corn to full feed
steer we will make loan up to 80 per
cent of the full cost of that steer on
the Kansas City market.
Our present estimates are that a
good I,o00-pound steer will cost ~
per pound on the Kansas City market.
If corn is worth. say soc bushel, and
the purchaser has from forty-hve to
City bushels of corn per steer clear.
we take the basis of forty bushels of
that corn. under normal conditions. is
required to fit that steer for market.
making his feeding and purchase costs
total $95. and we feel that when finished
on full feed the steer will be well worth |
that much money at market. So that
as loaning proposition we are in the
clear and the farmer has marketed his
corn and kept fertility on his land And |
we believe that steers at 7kc a pound. |
which is the average of prices at this
market at this time. will If fed on forty |
bushels of soc corn bring considerably |
more than $95 per head"
We understand that the local i
banks throughout the corn belt are
ready to lend money for the feed
ing of cattle or to enable the far
mers to carry their corn, subject
Of course to the applicants being
good credit risks. If there is any
scarcity of funds for these purposes
an abundance certainly can be had
by the local banks from their cor
RESPONDENT banks at the centers,
and with the assistance of the re-
serve banks.