| Show r ARRANGED I ARiI LOANS i FOR FOU THOSE IN I NEED The following letter has half just been received received by br Secretary Wm Vrn N. N Gardner Gardner Gard Gard- ner nee of the Farm Loan t f A sn A sn and will be he of Interest to all who are in III need of money to carry carryon carryon on farming operations It also goes goesY District banks arc are Y to show that the S fast tast arranging to handle the regular loan business and that it will not be belong Y long until all association members y will be taken care of or r- r rY Ya Y- Y J a j May 1st 1917 S t To Treasurers Secretary-Treasurers t I The application for loans pending before this flank Dank as well as much of its ita show that man many r 1 prospective borrowers from the bank financial are in need of immediate aid in preparing for or this season seasons season's s r. crop We wish to announce through you to all such applicants that ample ampIe ampie am am- I pIe arrangements have been made mado whereby loans may be procured I wherever the money is to be used fur furr r such purposes whether notes representing rr enting enUng such loans be secured by agrIcultural agricultural agricultural ag ag- ag- ag products live stock or mortgage upon real estate The Federal Reserve Act authorIzes authorizes authorizes author author- izes the Fed Federal ral Reserve Bank Banic tin fin this district at San Francisco to discount notes dr drafts ns and blur bills drawn or issued for agricultural pur lUr purposes purposes poses or based on live stock and add au having a maturity not exceeding six months The Federal Land flank Dank at I H I ley seeing from the applicators applications for loans before it that many app applications I lions are for purposes of oC immediate ti necessity advised the Secretary of the Treasury on April of or existing conditions This was done with a aview aview view to procuring a ruling as to whether notes based upon real estate estale estateS S mortgages taken by banks which ire are r members of the Federal Reserve System Sy tem tern might be discounted by the tho F Fi Federal Fed Fed- deral deral d- d eral Reserve Bank Dank provided ch notes motes had a a. maturity not exceed x six months Mr 1 McAdoo an answered b- b In substance that the Fe Federal eral Reserve Re Re- Reserve r serve Banks Danks were authorized to tomake tomake tomake fc make such loans and that the Federal Fe Federal Fed Fed- eral Reserve Board Doard would take up with the I Federal Reserve Bank Dank in San Francisco the matter as to 4 whether it was authorized to discount discount discount dis dis- count to an amount sufficient to meet the needs of such borrowers in this Federal Land Bank Dank District embracIng embracing ing lag the States of California California Utah Nevada and Arizona In the same connection Secretary McAdoo on April stated slated as follows follows fol fol- fol 5 lows tc The Federal Land Laud Bank of Berkeley Berkeley Berke Berke- ley by is now full fully organized and is examining applications for loans It ItIs Itis Itis I is ready to make same upon apr ap ap- r Where farmers entitled to credit need money immediately it should be he easy for them to get temporary temporary temporary tem tem- accommodation from banks Banks Danks and bankers will surely do i this both from self interest and as a a useful and patriotic service I am confident that It will be only necessary to call their attention to the fact that such loans can either be rediscounted at a low rate with the Federal Reserve Bank or orI I liquidated within a few months by I loans secured from the Federal Land I Bank I I r Following the tho receipt from the 1 Secretary of the Treasury of the fI 43 foregoing advice Mr John Perrin L. L of the Board Doard of the Federal Federal Federal Fed Fed- eral Reserve Bank of San Francisco J i authorized this bank to state to its t applicants who are in need of money now required for preparing their lands and for seeding that the Federal Federal Federal Fed Fed- eral Reserve Bank will discount the notes of Its member banks where taken for tor agricultural purposes whether secured by staple agricultural agricultural tural products live stock or a first lien upon real estate provided the time of ot maturity of such notes does not exceed six months Accordingly you OU will please advise the members of your association Wi that I If It they fall taU within the class f. f bove mentioned they may apply to any member Bank of the federal Reserve System in their territory territory territory ter ter- ter- ter for fox a loan under the condi- condi ions hereinabove set out If It such Banks Danks as as your members apply to have not available funds for loaning for such purposes they will willbe wille be e enabled to make such loans loans' under the he rulings above mentioned by dis- dis the same with the federal Reserve Bank Dank of San Francisco The foregoing arrangement has been Jeen perfected with the understand- understand ng ng that The rhe Federal Land Bank Dank of or Berkeley will pass upon the ions dons of those members of your As- As who avail themselves of the suggestions with a view of nosing losing the same at as early a date is possible in order that the Federal Federal Fed Fed- I eral Reserve Bank of San Francisco may not be called upon to carry such uch loans longer than six months Briefly If it any member of your As- As is in need of money now or lor or planting purposes he should have 10 ao difficulty in procuring the same rom rom the nearest National Bank Dank in inthis this his district only National Banks are members of the Federal Reserve System tem em If lr he be In position to give such Dank Bank a first lien on staple agricultural agricultural tural ural products live stock or real estate Very truly yours BURREL 0 Q G. WHITE President The Federal Land Bank Dank of Berkeley |
