but it is a necessary course so long as such paper is subject to call in six months. To give the live-stock producer the same financial service now accorded the merchant or manufacturer, his loans should have a life sufficient to allow a turnover, and a return of the investment from the increase. This is not class legislation. So long as one set of men are given loans under terms that allow a turnover, and another set are denied that service, just so long will we continue to have class legislation that discriminates against those engaged in agriculture.

The question of financing distribution is much the same for wool as for wheat, with the exception that there is, and probably can be, no wool exchange and no dependable quotations for guidance of sellers, enabling the growers to sell in accordance with their judgment rather than because of necessities in good business for the producer and the consumer. We urge that you give prominent consideration to wool when formulating your recommendation for financing the orderly distribution of agricultural commodities.

INSTITUTING A NATIONAL POLICY PERTAINING TO PUBLIC LANDS,

It was stated (p. 9) that the lack of a Government policy toward the use of public lands was responsible in part for the overfinancing of sheep.

It must first be remembered that our country has never adopted any semblance of a plan for regulating the grazing upon public lands outside national forests. Use has been permitted but without provision for avoiding abuse or for giving the users any certainty of tenure that would permit them to develop water, erect control fences or invest in stock and equipment from which returns could only be obtained in a number of years.

The possibility of getting into the business with nothing more than a flock of sheep and a camp outfit has led to financing of men practically without capital and without property-frequently not citizens. In good years these parties compete with bona fide stockmen for range feed and for capital. In times of stress they are insecure; their stock is the first to be forced into liquidation at the slaughter houses with the result of pulling down collateral values and discrediting the standing of all sheep paper.

The unsystematic designation of lands for grazing homesteads has diminished the area of grazing lands and placed many of the homesteads in hands of persons who never can use them for live-stock production. It has forced real stock raisers to lease or buy such and other private lands at figures that do not render possible a fair return on the investment. In other words, we have passed the point where we can continue to reduce the size and scope of stock-raising concerns in the interest either of the country or of the so-called "small man" himself.

To-day we are unable to ask to be allowed to lease or buy Government lands in order to put range stock raising upon a more secure basis. Such requests have been made and refused. The time will return when the stockmen can stand a proper adjustment of the question and its need is always most pressingly called for. Right now a thorough study should be made of the use of public lands and a plan that is fair to all worked out and held ready for adoption as soon as conditions permit.

EDUCATION AND RESEARCH.

Neither the Department of Agriculture nor the land-grant colleges and the experi ment stations have ever regarded the range live-stock industry as a permanent one calling for the scientific study of its economical problems and for the training and education of those to be engaged therein. True, the regular course of instruction in the agricultural college deals with principles of plant and animal life, but no such effort has been made to provide education for the ranchman's son as for the farmer's son. It is time we recognized the fact that a large part of our western lands can serve the country only under a range live-stock system of use. We have been seriously remiss in our attention to the duty of providing suitable education for this industry. Not more than two western agricultural colleges pretend to offer courses dealing with the production, preparation, and handling of wools, and yet we are facing the day when our industrial independence in war or in peace demands a larger and more intelligent and more scientific domestic woolgrowing industry.

The problem of experimental study of live-stock production upon the range is too broad and too expensive in pursuit to permit of proper attention by a single agricultural experiment station. Some of the contingent and secondary matters are receiving worthy attention.

The Federal Department of Agriculture has made a serious effort to handle this regional or interstate question.

At the Jornada Station in New Mexico and the United States Sheep Experiment Station in Idaho facilities have been provided for a practical investigation of production problems of range cattle and of range sheep, respectively. Those stations have hardly begun their work. They have had to train their own investigation and to labor under the handicap of wholly inadequate support from Congress and attention of higher executive officers.

SHEEP RAISERS' ASSOCIATION AFFILIATED WITH NATIONAL WOOL GROWERS' ASSOCIA TION.

American Hampshire Sheep Association, Robert Blastock, president; Comfort T. Tyler, secretary, 36 Woodland Avenue, Detroit, Mich.

American Rambouillet Sheep Breeders' Association, Frank R. Cock, president: Dwight Lincoln, secretary, Marysville, Ohio.

American Shropshire Registry Association, J. C. Andrews, president; J. M. Wade, secretary, Lafayette, Ind.

Arizona Wool Growers' Association, E. Campbell, president; F. W. Perkins, secretary, Flagstaff, Ariz.

California Wool Growers' Association, F. A. Ellenwood, president; E. L. Hart, secretary, Red Bluff, Calif.

Idaho Wool Growers' Association, Hugh Sproat, president; John Ridenbaugh, secretary, Boise, Idaho.

Lincoln County Wool Growers' Association, J. D. Noblitt, president; L. G. Baker, secretary, Cokeville, Wyo.

Modoc County Wool Growers' Association, G. E. Williams, president; John Davis, secretary, Alturas, Calif.

Montana Wool Growers' Association, C. H. Williams, president; C. N. Arnett, secretary, Bozeman, Mont.

New Mexico Wool Growers' Association, Prager Miller, president; Bertha Benson, secretary, Albuquerque, N. Mex.

Oregon Wool Growers' Association, J. H. Dobbin, president; Mac Hoke, secretary. Pendleton, Oreg.

Park Country Wool Growers' Association, George M. Buckley, secretary, Hartsel, Colo.

Saguache County Wool Growers' Association, F. H. Means, president; Alva A. Simpson, secretary, Saguache, Colo.

San Luis Valley Live Stock Association, J. C. Gilbreath, president; W. W. White. secretary, Monte Vista, Colo.

Utah Wool Growers' Association, J. C. Hooper, president; Willard Hansen, jr., secretary, Salt Lake City, Utah.

Washington Wool Growers' Association, T. J. Drumheller, president; J. F. Sears, secretary, Prosser, Wash.

Western Slope Wool Growers' Association, A. M. McAnally, president; James G. Brown, secretary, Montrose, Colo.

Wyoming Wool Growers' Association, Dr. J. M. Wilson, president; J. B. Wilson secretary, McKinley, Wyo.

The CHAIRMAN. Very well, Gov. Strong, you may proceed.

STATEMENT OF HON. BENJAMIN STRONG, GOVERNOR OF THE FEDERAL RESERVE BANK OF NEW YORK—Resumed.

Gov. STRONG. In the course of the statements that I made on Monday and Tuesday before the commission, I referred to various tables and figures and charts, some of which had not yet been prepared. They are in course of preparation, and if agreeable to the commission, I would like to have them inserted in the record, if they appear to be of value to the commission. These charts that have been prepared will be of greater value if the sources from which the information is compiled are attached to them; and we are therefore having prepared, or have had prepared, notes indicating the sources of the statistical information that apply to those charts, and we would like also to introduce them at the proper places.

The CHAIRMAN. Without objection, they may be introduced into the record. [After a pause.] The Chair hears none.

(The tables and charts and data referred to by Gov. Strong were afterwards furnished, and have been inserted in their proper places.)

RESERVE PERCENTAGES OF THE FEDERAL RESERVE SYSTEM-WITH AND WITHOUT GOLD ACCESSIONS.

Actual reserve percentage and percentage as it would have been without any increase in gold reserves since December 30, 1920.

Source of information: Federal Reserve Bulletin and weekly press statements.

GOV. STRONG. We would also like to prepare a chart which would indicate what would have been the position of the Federal reserve system and the Federal reserve bank of New York, if it is possible to prepare such a chart, covering the period from January 1, 1918, to date, had there been no importations of gold during that period. (See this page and also p. 760.)

And as relating to the distinctly war period, after our declaration of war, and especially in the year 1918, I would like to insert into the record extracts made from the minutes of the meetings of the directors of the Federal Reserve Bank of New York, so far as they relate to the general policies of the bank during that period. I have them

with me, and if you would care to haye me read and discuss them I will do so.

The CHAIRMAN. Without objection, you may proceed.

GOV. STRONG (reading):

July 24, 1918. Board of directors.

Mr. Woodward submitted for the auditing committee its report dated July 24, 1918, dealing with the lines of credit extended to the borrowing banks. Discussion followed, during which Mr. Thompson left the meeting. Upon motion duly made and seconded, it was "Voted that this report be received and placed on file and that the committee be tendered the thanks of the board for the careful and thorough study given the subject; and that Mr. Treman be requested to prepare a resolution for adoption by

RESERVES OF THE FEDERAL RESERVE BANK OF NEW YORK.

Total reserves and gold reserves on the last report date each month.

Source of information: Annual reports of the Federal reserve bank of New York and weekly press

statements.

this board at its next meeting after submission to the executive committee for its approval, the resolution to outline the policy of the bank with respect to the necessity for the curtailment and conservation of credit and to contain a direction to the officers to institute among the member banks a campaign of education to bring this about." July 31, 1918. Board of directors.

Mr. Woodward, in behalf of the executive committee, read a resulution prepared by that committee with respect to the necessity for the curtailment of credit. Whereupon, on motion duly made and seconded, the following resolution submitted by the executive committee was duly adopted:

"It is clear that the increasing volume of Government financing makes necessary a far more united and consistent effort on the part of the bankers of the country to conserve and save credit than has heretofore been undertaken. The Federal Reserve Board, accordingly, on July 6 addressed a letter to all banks and trust companies requesting them to exercise 'a reasonable discretion to restrict credits which are clearly not needed for t e prosecution of the war nor for the health and necessary comfort of the people,' and at the same time asked the Federal reserve banks in every practicable way to bring about a better understanding of the necessity for the conservation of credit: Therefore, be it

"Resolved, That the directors of the Federal reserve bank of New York, in full sympathy with the views of the board, hereby direct the officers of the bank, in such ways as may be appropriate, to express to the banking institutions of this district the importance and necessity of conserving credit 'by endeavoring to secure such gradual reductions as may be practicable of loans now carried for nonproductive or nondistributive purposes; by gradually reducing the amount of credit granted for purposes not clearly necessary for the prosecution of the war or the health and necessary comfort of the people; and by educating borrowers of all classes to keep their demands for credit down to the very minimum.'

"Such a concerted campaign of action and education by the banking institutions of this district will surely lead to a spirit of economy in credit transactions, as well as to an actual saving of credit comparable to the saving already effected in food and other commodities, and will enable the Government to command the credit thus saved and use it directly and with full force for the winning of the war.

"It is of the highest importance, however, that nothing should be done to cause undue embarrassment to borrowers or affect necessary credits."

July 31, 1918. A joint meeting of the executive committee of the Federal reserve bank of New York and the New York Clearing House committee was held at the office of the bank at 3 o'clock p. m. this day.

Present: Mr. Treman, acting chairman; Messrs. Jay, Saunders, and Woodward; Mr. Case, deputy governor.

Messrs. Frew, Hine, Pierson, and Wiggin, of the New York Clearing House committee also attended the meeting.

Mr. Treman explained briefly the object of the meeting, namely, the importance of the conservation of credit to insure the success of the Government financing, and Mr. Woodward was asked to explain the matter in detail, which he did, outlining the importance of it as viewed by the directors of the Federal reserve bank.

An exchange of views then followed.

Mr. Woodward read the resolutions which had been adopted by the directors of the Federal reserve bank and the general opinion was that it was advisable to have these resolutions made public.

Mr. Wiggin suggested that an announcement should be made from Washington urging wage earners and others who are profiting by the war to curtail extravagance and assist in the purchase of certificates of indebtedness.

Mr. Case gave illustrations of the ways in which banks were discreetly reducing some of their loans, especially those of long standing.

Mr. Frew, as chairman of the clearing house committee, stated that their committee would meet on Monday next and would give careful consideration to the ways and means in which clearing house banks could assist the Government in the matter of curtailment of credit.

It was agreed to have another joint meeting of the two committees after the clearing house committee had determined upon its plan of action.

August 14, 1918. Joint meeting executive committee and New York Clearing House committee.

It was the consensus of opinion among the clearing house members present, that there was no undue speculation at the present time in the stock market. A dif erence of opinion manifested itself as to the existence of some undue accumulation of raw material.

Mr. Frew reported that the matter of the conservation of credit had been carefully considered by his committee, and the members present submitted their respective views thereon and assured the bank that the New York Clearing House committee would cooperate with the bank in this connection. It was understood that the officers of the bank would draft a letter in this connection to be sent to its member banks, and would send the same to the clearing house committee for its consideration as to the extent of its cooperation.

August 21, 1918. Board of directors.

The chairman read a letter dated August 20, 1918, from the New York Clearing House Committee, on the subject of the curtailment of credit. Whereupon, on motion duly made and seconded, it was voted that the chairman be requested to acknowledge the communication with an expression of the appreciation of this board, and that it then be received and placed on file."

August 26, 1918. Executive committee.

It was decided to give to the press the circular letter dated August 23, 1918, sent by Mr. Jay to the banks in the district on the subject of the necessity of conserving credit.

August 28. 1918. Joint meeting executive committee and New York Clearing House committee.