Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-01-16
mo POLITICAL PLUMS IN
THE FARM LOAN BANKS
Board to Consider Only Merit,
Efficiency. and Ability in
Appointments


first of it's important labors of organi-
cation in having completed the division
of the country into twelve districts and
located in twelve cities the twelve fed
eral 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 sat
listed with the result.
The board has now taken up the next
phase of it's work. the organization of
the twelve banks This it regards as
even more important in it's influence on
the future of the farm borrowers of the
nation. than the work just completed
This task is the appointment of the men
who will manage the twelve bans.
Great pressure is being eXerted on
the members of the. board to appoint
men with backing" me of influence"
in both parties, especially the Demo-
cratic party, since three of the mem
hers are Democratic and two Repub-
licans There are sixty directors to be
appointed by the board, five for each of
OF the Twelve lAeSG are SOOu
plums, since from the directors will be
selected for each bank a president, a
secretary, - treasurer, and vice pres
ident who will be the managing officers
of the land banks and receive good sal
aries. In addition to these directors,
there will be for each bank a regis
trar, TO act as the fiduciary agent of
the government in the matter of hold
ing the mortgages taken and conduct
ing the important business relating to
the issuance of federal farm loan bonds
to be sold to investors, and a force of
appraisers who will actually view and
appraise the farms offered as security
for loans. These men also will receive
salaries as matter of course, and if
the jobs could be given out as political
plums the federal farm loan board
would have anywhere from $50 to 200
to hand out.
NOT. POLITICAL PLUMS.
1t may be stated without qualifica-
ton that these jobs will not be handed
out as political plums. The only con-
sideration which will be taken into ac-
count is that of merit, efficiency. and
ability There is no division of opin-
ion among the members of the board as
to this principle.
THE whole future of the farm loan
SYSTEM" said one member of the board,
depends on the personnel of the banks
The federal land banks are really moth
ing but a great system of farm loan
companies. To be sureg the government
will furnish few millions to start with,
but the governments money will soon
be returned to il, and then the whole
system will be owned and operated by
the farmers themselves through their
national farm loan associations. We
are really charged with the duty of ap-
pointing the management of great Co
operative loan companies, as agents Tor
the farmers for whom they Will work
If we should be so unwiSe as to ap-
point these men for anything but merit,
the farmers would condemn us for in
f1icting on their loan system twelve po-
litical machines; and when they secured
control they would Gust our appointees
as they should e. irH
I'VE must, if we do our duty, ap-
point Just such men as any good COM
mittee of business men would appoint
to run loan companies. No other ap-
pointees will commend themselves to
the farmers. What are the qualfca-
tions of men who are expected to do
successfully the work OF managing
these land banks? First, they must be
good farm loan men. Second, they must
he such loan men as will commend
wisdom to the farmers themselves. To
appoint any other class of men would
be destructive of the system itself.
TO CONSULT INVESTORS.
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 farmers. For every thousand DOL
lars lent to farmers, the banks must
sell farm loan bonds to the same amount
TO investors If the investors look on
the farm loan bonds as perfectly sound,
safe, prime securities. they will buy
them and. accept low rate of interest
on them; and if they do this the farm
ers will get a low rate of interest on
their loans. Therefore, the management
of the federal land banks must COM
mend itself to investors as well as to
farmers. When our bonds are offered
on the investment market, the persons
in charge of the banks will. be very care
fully scritinized by investors. If in
vestors should find in charge of the
banks a lot of men, appointed on &C
count of political pull or through per-
sonal favoritism,l they either will not
huy the bonds at all, or they will re-
duire a high rate of interest, thus MAR
ing the rate high to the farmer. They
win not find any such political or per-
sonal machines in the management of
the banks They will find the banks in
the hands of men as expert in the farm
loan business as any loan companies
row operating. They wifi find men in
charge whose characters will be an as
surance that when an appraiser. says a
farm is good security. for loan, it will
be good security, worth at least twice
the money loaned on it; that the type
of farming pursued by the owner of the
farm is a safe type; that the title is
good; that the loan committee of the
land bank is composed of as good men
as the loan committee of any bank in
any town or city; and that the business
Of the bank is checked up at proper in
tervals by board OF directors who
know no. only the loan business but
the lands on which loans are being
made
There is no member Of this board
who has a personal candidate for any
position to be given out None OF US
have any personal or political debts to
pay and If we had. there Is not a man
of us who would pay any such debts
al the expense of the federal farm loan
system. And ii is a great pleasure to
US all to be able to state that every
senator and congressman who has dis
he he n 10