Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1917-01-19
ASKS STATE TO AID !
FARM LOAN BANKS
GOVERNMENT WANTS BONDS
MADE LEGAL INVESTMENTS
FOR TRUST FUNDS.

to Attorney General w. v. Tanner
an official request from w. G. Nc
Adoo, secretary of the treasury, that
necessary state legislation be passed
this session to conform to invest
ment provisions of the federal land
banks.
The object is to make farm loan
bonds issued by the land banks legal
investments for funds held by trus-
tees and guardians, savings banks
and insurance companies under state
regulation. The bonds are offered
by the secretary of the treasury as
absolutely safe investments for ben
eficiaries Of trust funds, that will
widen opportunity for safe invest
ment by the masses and benefit the
farmers of the state by enlarging the
market for farm loan bonds and
farm mortgages.
Governor Lister has requested the
attorney general to prepare what
ever measures may be needed for
submission to the present legisla-
ture, and it is expected that the
laws requested will be enacted.
Stock Is on Market.
Meanwhile interest in the organi-
cation of the banks is great. Stock
books of all of them were opened to
public subscription last Friday, and
it is expected that within the next
80 days the various banks will issue
to the societies organized in their
respective districts the official
blanks needed for institution Of
their work.
Having completed the work of d.
viding the country into IL districts
and locating in each district a city
in which will be the seat of fed
eral land bank, the federal farm loan
board is now taking up the work of
organizing the IL banks, which Is
said to be of greater Importance in
it's influence on the future of farm
borrowers than the work just COM
|pleted.
This organization of the banks
will include the appointment OF men
who will manage the IL banks.
Great pressure is being brought to
bear on the board to appoint men
with backing" men with "influ-
ence" in both political parties. espe-
cially the Democratic party, since
three of the members are Democrats
and two Republicans. Sixty direc-
tors will be appointed for the IL
banks. These are good plums. since
from the directors will be selected
for each bank a president, a secre-
tary, a treasurer and q vice-presi-
dent. These will be the managing
officers Of the land banks and will
receive good salaries.
In addition to these directors.
there will be for each bank a regis
trar, to act as the fiduciary agent Of
the government in holding the mort
cages taken and conducting the i'm
portant business relating to the H.
suance of federal farm loan bonds
to be sold to investors, and force
of appraisers who will actually view
and appraise the farms offered as
security for loans. These men will
also receive salaries, and II the jobs
could be given out as political plums
the federal farm loan board would
have anywhere from $50 to zoo to
hand out.
Not as Political Plums.
But it may be stated without
qualification that these jobs will not
be handed out as political plums.
The only consideration which will be
taken into account is that Of merit,
efficiency and ability. There is said
to be no division of opinion among
the members Of the board on that
question.
"The whole future of the farm
loan SySV0Iu, Sdlu q hCMOOA VI WV
board recently, depends on the per-
sonnet of the banks. The federal
land banks are really nothing but q
great system of farm loan compa-
MES. To be sure. the government
will furnish a few millions to start
with, but the governments money
will soon be returned to it, and then
the whole system will be owned and
operated by the farmers themselves
Through their national farm loan as
sociations.
1--WE are really charged with the
duty of appointing the management
of great cooperative loan companies,
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 condemn us for infiicting on
their loan system IL political ma
chimes; and when they secured con-