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Circular No. 9
Series of 1930

FE D E R A L R E SE R V E BANK
OF DALLAS

Dallas, Texas, September 10, 1930

ORDERLY MARKETING OF AGRICULTURAL PRODUCTS AND LIVESTOCK

To the Member Bank Addressed:
At a regular meeting held on Monday, September 8, our Board of Directors discussed at some length
the matter of movement of crops to market in this district and expressed a desire to be helpful. It was
felt that at this time it would be proper to again remind our member banks that the credit facilities
of this institution are available for this seasonal purpose, and resolution was accordingly adopted
directing the bank’s officers to issue an appropriate circular on this subject, and give it prominence
through the press.
The extension of credit to facilitate the orderly marketing of crops and livestock is a normal and
proper function of a Federal reserve bank. This institution therefore now wishes to reiterate statements
made in previous years that it stands ready and willing to render its services to its member banks in
any legitimate and proper manner consistent with law and sound banking practices.
Notes, drafts and bills of exchange secured by warehouse receipts, shipping documents or other
evidences of title to agricultural products; notes secured by chattel mortgage on cotton or grain stored
o,n the maker’s farm, properly covered by insurance and protected from the weather, and notes secured
by chattel mortgage on livestock, are eligible for rediscount with the Federal reserve bank. It is, of
course, understood that all paper offered must be acceptable from a credit standpoint, and unsecured
paper is equally acceptable, where it possesses the inherent qualities of eligibility and credit acceptability.
It is believed that the majority of our member banks are already thoroughly familiar with our own
requirements and those laid down in the law; however, it will be a pleasure to inform those who are
not, and their inquiries are solicited accordingly.
The purpose of this circular is merely to emphasize our desire to cooperate to the fullest extent in
making available the resources of this institution in any proper manner to permit the orderly market­
ing of crops and livestock.
Yours very truly,

c
Chairman of the Board

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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