What Live Stock Includes

The term "live stock" is held to include not only beef cattle, but also horses and mules.

Notes Of Cattle Dealers Merely Mercantile

Notes made by mule and cattle dealers are mercantile rather than agricultural paper.

Notes Of Implement Dealers Not Agricultural Paper

A note made by a dealer in agricultural implements is not agricultural paper.

Agricultural Products Or Implements

The purchase or sale of an agricultural product, or of implements or other commodities used in agriculture, constitutes a commercial transaction. A note made by a merchant, the proceeds of which are used to purchase seed, to be later retailed or sold, cannot be treated as given for agricultural purposes and cannot be discounted by a Federal Reserve bank, if it has a maturity at time of discount of more than ninety days.

Notes Or Bills Of Packing Companies

The bill or note of a packing company, the proceeds of which are used for the purchase of live stock which is slaughtered upon purchase, is not "based on live stock" and is, therefore, not eligible for rediscount if it has a maturity in excess of ninety days.

Eligible Agricultural Paper

General Statutory Provisions

Agricultural And Live Stock Paper

Notes, drafts and bills drawn or issued for agricultural purposes, or based on live stock, and having a maturity not exceeding six months, exclusive of days of grace, may be rediscounted in an amount to be limited to a percentage of the assets of the Federal Reserve bank, to be ascertained and fixed by the Federal Reserve Board.

Regulations Of The Federal Reserve Board Relating to Eligible Agricultural Paper

Conditions Governing Eligibility

To be eligible for rediscount. six months' agricultural paper, whether a note, draft, bill of exchange, or trade acceptance, must comply with the statutory provisions, regulations of the Federal Reserve Board, opinions of counsel and rulings reviewed in the subject of "Classes of Promissory Notes Eligible for Rediscount," which are the same in the case of the rediscount of drafts and trade acceptances.

Opinions Of Counsel And Rulings Relating to Eligible Agricultural Paper

Cattle Mortgages

Mortgages on cattle are not required, and the question whether paper secured by cattle is self-liquidating is a legal one to be determined by the Federal Reserve Bank.

Notes For Fertilizer

A farmer's six months' note for commercial fertilizer, discounted and indorsed by a member bank, is agricultural paper eligible for rediscount with the Federal Reserve bank.

Notes For Dairy Cattle

Notes signed by a farmer, the proceeds of which are used for the purchase of cows to be used as dairy cattle.

are eligible for rediscount at the discretion of the Federal Reserve bank, notwithstanding the fact that the cattle are not primarily purchased for "breeding, raising, fattening, and marketing of live stock."