Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1918-12-13
THE FEDERAL LAND BANK
fBy President D. G. o'shea)

five service to the farmers, and be-
I,aying it Is honestly striving to give
hat service at minimum of cost,
one may be pardoned for asking why
anyone has featured a recital of the
things it is said to have left undone
without ascertaining the things it has
dome. and truthfully publishing
those For the information of the
farmer it may be no harm to con-
slider some of those things.
in the first place, it should be
understood that the Federal Land
Bank is designed to make business
loans involving the taking of security
and the collection of payments. 1t
Is not distributing gifts or bounties
II has nothing to give away but its
service. 1t was organized with a
capital provided by law, without sur
plus and without appropriations, to
conduct loaning business and be
self-sustaining, earning its expenses
out of it's operations and selling it's
bonds to the public, who will buy
only If the security be shown to be
adequate, the interest paid thereon
and the principal returned. The
Twelfth Land Bank District COM
prises the four large states of Idaho,
Montana, Oregon and Washington,
an immense territory, with every va
riety of soil and product; a territory
that has been exploited by promoters
and spectators; much of it newly
settled by persons struggling to Sc
cure homes, with land values fluctu-
ating and variable, and affected by
seasonal and changing conditions.
Interest rates in these North
western states were high, the persons
engaged in making farm loans were
numerous, active and organized.
They have fought the Federal Land
Bank with every means at their dis
posal to misrepresent and discredit
1t; we expect and look for their OPP
position and fear it not, but we want
to serve any of those who profess to
represent the farmers.
'If there were nothing to the bust
ness but the distribution of money to
all who asked for it, the operation
would be simple. To make loans,
however. involves the taking of Sc
curity, the collection of interest and
the ultimate return of the principal.
1t involves also the collection of in
formation, the gathering of reports
and reasonable conformity to useful
and proper business regulations. If
every applicant got from the land
bank what he asked for, the doom
of the system would be sealed ere
this, and the farmers of the North.
west would be permanently commit
ted to the good old 10 and IL per
cent interest rates, plus commissions,
fees and renewal costs. That some
have been disallowed and others got
less than they sought naturally
causes disappointment. If the kicks
of those disappointed persons be reg
istered, and no reference made to the
thousands who have been beneficially
served, tho record is assuredly in
complete and misleading.
"The Federal Land Bank began
business without precedent to guide
1t, and without form to follow. It
has organized and chartered 40S Ma
tional Farm Loan associations in
widely extended territory. 1t has en-
deayored to conduct technical bust
ness through persons, the great ma
Jorlty OF whom were unframed in the
work. 1t has had not only to organ
ize, but to do business as we'll, in
competition with men highly trained
and spurred by personal gain; and it
mas had to consider many problems
TOO numerous to mention in brief
letter, which problems were aggra-
waited by serious crop failures in
much of it's territory.
1T has conceived 1t to be its first
mission to establish itself on a Sc
cure, lasting and firm foundation, re-
gardless of individual disappoint-
ments, and to demonstrate it has
done so, we ask brief consideration
Oh some of the things we have done
as we'll as the things that were left
undone.
We have had examined and ap-
praised to date 10000 farms, and
paid railroad fare, travelling expenses
and salaries of the appraisers. All
such applications were not approved,
ana many others were approved in
iess amounts than asked for. We
nave had our legal department ex-
anime over 10000 abstracts of title,
ofaw mortgage papers, cure defects
ana correct titles that were imper-