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X-1101 August 1, 1918. 61 ~~ ADVANCES TQ BANKS BY THE WAR FINANCE CORPORATION ..... To Banks and Trust Com~anie.s of th0 Federal Reserve District: With reference to our pbjvious statom;mt, and in to inquirios for furth~r particulars relating to advancJs by tho War Finance Corporation to banksj applications for which.are to bo .· forwarded ~o this Bank, as fiscal agent for tho corporation~ ploaso note tho following: answ3·r l. These advanceS will bo rr.ade ~ly in merito.rious. cas.)S · where it is c1oar that funds arc noodcd for agricultu~al or atoc:k taising requ:irJtnc;:nts and can not be ro,,L·,ily soctired at reasonable rates oiscwh~re. It will be nacessary whon applying for a loan to oxplain your inability to obtain it in tho ordinary cov.rse of busin0ss., from the usual bankin'g sources. · · · •. 2. ~bon 3. The bills receivable of tho bank offered as collateral security ~st b~ listed upon the regular discount application form of thie B~nk 1 and all th~ information th.:;rcon called for nust be given. Credit statements of the makJrs of the paper rrust be furnished when required. The bills receivable offered must be paper evidencing financial assistance 1 giv<m after April 6, 1917, directly or indirectly to a person 1 firm1 corporation, or association conducting an ostablish.:;d and going business in the United States, whose operations are necessary or contributory t~ the prosecution of the war. Parties engaged in fanning operations# or in the bro~ing or fattening of live stock1 are held.to bo conducting a business of tho kind above ref erred to. formally rr.aking application for a loan, tho application nust bo accompani0d by a resolution of the bank.., passed at a f onral meeting of the Board of· Directors,. duly authorizing tho loan to be made_, and the pledge of the bills. receivable and oth0r collateral of the bank as security thorofor1 with the agreement to furnish additional security whenever required~. also empowering a sp.:;cif ic oUicor of the bank to execute its note. Tho application must~ further, be aecompaniea by a full statcrr~nt of tho bank 1 upon a for.m which · will bo supplied for the purpose. RcspJctfully yours, FEDERAL RESERVE BANK OF - - - - - - - -
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