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Circular No. 41 Series 1918 D IR E C T O R S O F F IC E R S W . F . R A M S E Y , C H A IR M A N AND R . L . V A N Z A N D T , GOVERNOR J. W . H O O P E S . D e p u t y g o v e r n o r L Y N N P . T A L L E Y , C A S H IE R R . R . G I L B E R T , A S S IS T A N T C A S H IE R P A U L G . T A Y L O R . A S S IS TA N T C A S H IE R R . B . C O L E M A N , A S S IS T A N T C A S H IE R F R E D H A R R IS , A S S IS TA N T C A S H IE R Federal reserve bank OF DALLAS EL PASO B R A N C H SA M R . L A W D E R , M ANAGER J . M . P R O C T E R , Ca s h ie r P A U L S. M I L L E R . A S S IS TA N T Fed er a l r eser ve Ag ent D allas, T exas, fed er a l r eser ve Ag ent W . B. N EW SO M E, . D E P U T Y C H A IR M A N J. J. C U L B E R T S O N , . . P A R IS , T E X A S F R A N K K E L L . . W IC H IT A FA L L S , T E X A S B . A . M C K IN N E Y . . . D URANT. OKLA. M A R IO N S A N S O M . . F T . W O R T H , T E X A S JNO . T . SCO TT, . . H ouston, Texas E . K . S M IT H . . . . Sh r e v e p o r t , L a . H . O. W O O TE N , . . A b il e n e . T e x a s C H A R L E S C. H A L L , A s s is t a n t ' FEDERAL RESERVE A GENT W . C . W E I S S , ................................ A u d i t o r CHAS. C H U F F . . . . . COUNSEL August 6, 1918. Advances for Crop Movement Purposes From W a r Finance Corporation TO THE PRESIDENT OF THE BANK ADDRESSED: Dear Sir: In order to assist the banks in this District to extend credit freely to deserving- farmers and merchants where necessary to insure the prompt movement of crops, the W ar Finance Corporation of the United States is willing to make advances under Section Seven of the W ar Finance Corporation Act, to solvent and well managed banks, bankers and trust com panies, located in this Federal Reserve District, whether or not members of the Federal Re serve System, up to seventy-five per cent of the loans made by such banks and trust com panies to merchants and farmers, or up to one hundred per cent in cases where the bor rowing institution itself furnishes additional collateral amounting to thirty-three per cent of the advances. The advances are to be made upon the promissory note of the borrowing institution, secured by the note or notes of the merchants or farmers, together with any security there for. Such collateral notes offered must be paper evidencing financial assistance, given after April 6, 1917, directly or indirectly to a person, firm, corporation or association, conducting an established and going business in the United States, whose operations are necessary or contributory to the prosecution of the War. As these advances will be made for crop moving purposes ONLY, loans to banks will be limited to not more than four months, and the rate of interest will be six per cent per annum. The security must be notes evidencing loans wThich have been made by the banks to farmers and merchants at this time, or have been previously made, for crop moving pur poses, and a statement from the applying banc to this effect must be furnished. Written applications, following the necessary resolution of directors of the borrowing bank, must be made to the W ar Finance Corporation through its Fiscal Agent, the Federal Reserve Bank of Dallas, Texas. The collateral note form and directors’ resolution must contain a clause agreeing to fur nish additional security whenever required by the W ar Finance Corporation, and banks de siring to take advantage of this offer should apply to the Federal Reserve Bank of Dallas for blank applications, notes, and form of resolution. Upon receiving a properly executed application for an advance, we will investigate same promptly and transmit it to the W ar Finance Corporation, with such recommendation as may be proper. If the W ar Finance Corporation approves the application the necessary funds will be placed with this bank, as Fiscal Agent, to be paid to the borrowing institution in such man ner as the latter may designate. Yours very truly, Governor. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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