Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1917-01-26
FARM LOAN BOARD
MAKES STATEMENT

division OF the country INTO u ulS-
tricts and located in IL cities the II
federal land banks which are expected
to become the great centers Of farm
finance OF the future. This task it
has accomplished with success. Very
little criticism has been uttered as to
the manner in which the country has
been divided, and it is an open secret
that the members of the board are
we'll satisfied with the result.
The board has now taken up the
next phase of it's work, the organiza
ton of the | > banks. This it regards
as even more important in its influ
ence on the future of the farm Dor
rowers of the nation than the work
just completed. This task is the APP
pointment of the men who will man
age the II banks.
Great pressure is being eXerted on
the members of the board to appoint
men with backing" men of 'influ-
ence' in both parties especially the
democratic party, since three of the
members are democrats and two re-
publicans. There are 60 directors to
be appointed by the board, five for
each of the - banks. These are good
plums, since from the directors will
be selected for each bank a presi-
dent, a secretary, a treasurer and
vice president, who will be the man
aging officers of the land banks and
receive good salaries. In addition to
these directors, there will be for each
bank registrar, to act as the fiduci-
airy agent of the government in the
matter of holding the mortgages
taken and conducting the important
business relating to the issuance of
investors, and a force Of appraisers
who will actually view and appraise
the farms offered as security for
loans. These men also will receive
as a matter of course, and
if the jobs could be given out as po-
litical plums the Federal Farm Loan
Board would have anywhere from
$50 to 200 to hand out.
1t may be stated without qualifi-
cation that these jobs will not be
handed out as political plums. The
only consideration which will be
taken into account is that of merit,
and ability. There is no
division of opinion among the mem
bers of the board as to this principle.
The whole future of the farm
loan system" said one membe of the
board, depends on the personnel of
the banks The federal land banks
really nothing but great system of
farm loan companies. To be sure,
the government will furnish a few
millions to start with, but the gov
ernment's money will soon be re-
turned to it. and then the whole sys-
TEN will be owned and operated by
the farmers themselves through
their national farm loan associations.
We are really charged with the duty
of appointing the management of
great cooperative loan com panies. as
agents for the farmers for whom they
will work. If we should be so unwise
as to appoint these men for anything
but merit, the farmers would con-
denim us for inflicting on their loan
system II political machines; and
when they secured control they would
Dust our appointees, as they should.
I'VE must, if we do our duty, APP
point just such men as any good COM
mittee of business men would APP
point to run loan companies. No
other appointees will commend them
selves to the farmers. What are the
of men who are expect
ed to do successfully the work of man
aging these land banks? First, they
must be good farm loan men. Sec
ond, they must be such loan men as
will commend themselves by their
and wisdom to the farm
ers themselves. To appoint any other
class of men would be destructive of
the system itself.
There is another class of men
whose ideas must be consulted.
There are the investors from whom
the farmers must borrow money
through the land banks. The banks
must do exactly the same amount of
business with investors as with farm
ers. For every thousand dollars lent
to farmers. the banks must sell farm
loan bonds to the same amount to in
Festors. II the investors look on
the farm loan bonds as perfectly
sound, safe, prime securities, they
will buy them and accept a low rate
of interest on them; and if they do
This the farmers will get a low rate
Of interest on their loans. There
fore. the management of the federal