The Barre daily times. (Barre, Vt.) 1897-1959, 1917-01-08
FARM BANK JOBS NOT
POLITICAL PLUMS
Declares Member of Farm Loan Board
in Describing the Organization
of the Banks.

of the Banks.
Washington, ID. c., Jan. S.--The fed
: eral farm loan board has accomplished
the first of its important labors of or
ganization in having completed the dir
vision of the country into IL districts
and located in II 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 well satisfied with the result.
The board has now taken up the next
phase of its work, the organization of the
IL banks. This~it regards as even more
| important in its 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 l2 banks.
| Great pressure is being exerted on the
members of the board to appoint men
with backing" men of "infuence" in
both parties, especially the Democratic
l paitNs oiuNC tHitt VI lllt ultHuusls DIV
| Democrats and two Republicans. There
are go directors to be appointed by the
| board, five for each of the IL banks.
These are good plums, since from the di-
rectors will be selected for each bank
president, secretary, a treasurer, and
e-president, who will be the managing
officers of the land banks and receive
good salaries. In addition to these d.
rectors there will be for each bank reg
istrar, to act as the fiduciary agent of
the government in the matter of holding
the mortgages taken and conducting the
important business relating to the issu
ance of federal farm loan bonds to be
sold to investors, and force of apprais-
ers who will actually view and appraise
the farms offered as security for loans.
These men also will receive salaries as a
matter of course, and if the jobs could
be given out as political plums the fed
eral farm loan board would have any
where from $50 to 200 to hand out.
1t 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 |
uO VI liG OpIilOH Inv
members of the board as to this prin- |
ciple
"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 great system of farm loan com
panies. To be sure, the government will
furnish few millions to start with, but
the governments money will soon be re-
turned to it, and then the whole system
will be owned and operated by the farm
ers themselves through their national
farm loan associations. We are really
charged with the duty of appointing the
of great cooperative loan
as agents for the farmers for
whom they will work. Ii we should be
so unwise as to appoint these men for
but merit, the farmers would
condemn us for inficting on their loan
system IL political machines; and when
they secured control they would GUST our
ippointees, as they should.
"We must, if we do our duty, appoint ,
ust such men as any good committee of ,
business men would appoint to run loan !
No other appointees will i
'bHlHcuu lutIlrtlNtS u LHt ldI a
What are the qualifications of men who 4
ire expected to do successfully the work 9
If managing these land banks3 First, q
hey must be good farm loan men. See /
md, they must be such loan men as will :
Commend themselves by their conserva- q
ism and wisdom to the farmers them /
elves. To appoint any other class of
nen would be destructive of the system n
tself. Il
"There is another class OF men whose n
ieas must be consulted. There are the .
INVESTORS from whom the farmers must !
orrow money through the land banks. 4
he banks must do exactly the same n
mount of business with investors as I,
nth farmers. For every thousand dol i
hrs lent to farmers, the banks must sell q
arm loan bonds to the same amount to N
lvestors. If the investors look on the
arm loan bonds as perfectly sound, safe, NJ
rhine securities, they will buy them and n
ccept low rate of interest on them; :,
nd if they do this the farmers will get r
low rate of interest on their loans. n,
therefore,, the management of the fed ce
-al land banks must commend itself to a,
lvestors as well as to farmers. When y,
III are oHcitu VII Tic ia
arket, the persons in charge of the -,
anks will be very carefully scrutinized
Y investors. If investors should find in
lsrge of the banks lot of men APP
,inted on account of political pull or ~,
trough personal favoritism, they either ="
i'll not buy the bonds at all, or they M u
i'll require high rate of interest, thus l
aking the rate high to the farmer ne
hey will not find any such political or Tn
.rsonal machines in the management of IN
lie banks. They will find the banks in 70
e hands of men as expert in the farm Gu
an business as any loan companies now IN
'erating. They will find men in charge ge
hose characters will be an assurance tel
at when an appraiser says farm is OF
'od security for loan, it viii be good W
curity, worth at least twice the money m'
las