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At h special meeting of the Federal Reserve Board hold in the office of the Governor on Thuredsy, February 28, 1918, at 11 a. m., PRESENT: Mr. Harding, preiding, Mr, Delano, Zvx. Warburg, Mr. Wil:is, Secretary. Mr. Hamlin, Present also, Mr. Asa E. Ramsey, Federal Reserve Agent at. Kansa5- City and the following represent!,-,ivei of the Cattle Lowl Banks: Ur. Ford L. Hovey, Vice-Pres- ident of the Stock Yards National Bank, Omaha, Nebras4a; Lir. L. L. Lord, President of the Live Stock National Bank, Omaha., Nebraska; Mr. J. L. Freeland, President of the Stock Yards Loan Compani, Kansas City, Missouri; t4r. George S. Hovey, President of th, Interstate National Bank, Kansas City, Missouri; Mr. Wirt Wright, President of the National Stock Yards National Bank, St. Louie National Stock Yards, Illinois. Present also, Mr. William H. Heath, Federal Reserve Agent at Chicago, Mr. Remsey ,said that tile delegation were representatives of the Cattle Loan Banks of the Western .:tutes and that they had visit-id the Board for the purpose of stating the condition of their industry at the present tie.e and its need for loans. It was their wish to facil- itate the operations of the Federal Reserve Banks and of the Government by enlarging or decreasini, their loans on cattle paper, whichever might be deemed most expedient. The cattle loans were mede b;, the cattle raisre and 4 purt of them were placed with banks in the Eastern States. Sor..e were financed through the Federel Reeerve Banks by the rediscount process, and this year a ood deal of fin- ancing would have to be done by the Federal Reserve Bunks. The question further arose how far, they could rely on the aid of the Federal Reserve Banks, Mr. George S. Hove; made a brief statement in which he estimated the probable amount needed to finance the cattle induqtry, - not however including Chicago, Fort Werth, or Dallas, - at about4 A;21 000,000. Federal Reserve Agent Heath said that the cattle lour, companier in Chicago probably needed about the EIRMO their financinz as those in Kansas City. amount for Aboet50,)00,00° would cover their requirements. Mr. Hovey paid that •'350,000,000 to 475,000,000 was needed in the Dallas district, but that there MF good deal of variation between districts so that no ab- solutely positive estimate could be made. Ho thought the rates to the cattle men this year would probably be about 75 and thet the paper would be sold at PAbut 6 Eastern lender. to tho He further stated thut the Kansas City Foder.A. Reserve Bank heA idready assured the cattle men of ell the aid that 'ME needed so far us it could render Lid, but the bankers wanted to be sure of gerAing more .assistance in cuse it should to required. Governor Harding told the delegation that it would be the policy of the Board to do everything possible to take care of the industry, it being undoubtedl. , , an assentiul induotry. Mr. Warburg inquired how mt,.ny banks could te clessed as Cattle Loan Benks.' Ur. Hovey r,:plied that probably 15 to 20 could be so classified. Ur. Warburg called attention to the necessity of sav,ng und careful adjustment of expenditures on the part of the community, and :Ars Hovey said that it ras unfortunately true that there had boon little curtailment of outlay ir the Vlest on account of the War. The Cattle Loan Banks, howeller, hed few or no loans on unessential industries. Mr. Warburg called attention to the fact that there wtt a limit to what- the Federal. Reserve system could do, and that it wee necessary to have the aid and cooperation of the community in order to tarry through the preeent financial requirements of the count y• Hovey said that the bankers did not expect anything Unreasonable but only wznted assurance of due considerati • . Delano called attention to the fact that the high point in iflCOInC and excese profite tvx pe:i me would come eerly in June, thus tending to produce Et period of stringency at that ti( • and h:r. Hovey noted the fact that the peak of the load in the cattle loan borrowing season would come between June 1 and 15. He thought :t wilt; necessary to have all preparations carefully made in ndvance so -that there would be no need of conference, and no doubt as to policy, after the cattle loan period had opened. On motion, at 11:50 a. m., Governor Harding declared the meeting adjourned. APPROVED: Secretery.
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