Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-19
BANKS TEAMWORK
HELD VITAL NEED
Farm Loan Board Member
Sees PitfalIs-0utIines
: Duties of Directors.

=.
Der of the Federal Farm Loan Board.
stressed the importance Of efficient
officials and directors in every finan-
cial institution, in his address at the
Joint Stock Land Banks Convention
IN Detroit So much of what he said
is not confined to the land banks that
portion Of his remarks is printed
here. Speaking on Seasoning OF
Land Banks he said, in part:
1T is conceded that the success OF
anv financial institution depends very
largely upon the ability Of the manag-
ing officials and its directorate. IT IS
also conceded that there are certain
essentials that, if lacking, will cause
the failure of An organization. even
though the individual personnel be
made up Of the most capable oncldiS.
The outstanding Of these essentials
nrobablv is that Of common everyday
teamwork. This lacking Of teamwork
prevents the proper seasoning OF one
or more functions Of the institution,
and the result finally must be its
breaking down at it's weakest point.
Here applies the old saying that the
chain is only as strong as is It's weak
est link.
"A great responsibility rests upon
those charged with the duty OF the
selection Of officers for these impor-
tant Observation-Disclosures who are
capable individuals and competent
teamworkers, seasoned loan men. or
men capah,e Of becoming seasoned;
better still. with enough executive
genius 10 be able to apply the proper
seasoning to their colleagues. Men OF
this caliber should have the proper
seasoning added to their salaries. to
such an amount as would at least
make the salaries palatable. These
salaries should be fully common
surate, and not more, with the re-
snonsihilities assumed and the serv.
ices rendered.
Outlines Duties Of Board.
"a director Of a Joint stock land
bank is named by the stockholders. II
is presumed. because Of his experience
peculiar to the loaning business. or
because of his practical experience IN
the selection of capable offlcials. or
probably because of his ability In both
These accomplishments coupled with
honesty Of purpose and clean record
as to past performances. possessed by
those selected to secure bank officers.
assure the stakeholder a successful
institution and also assure him. as
stakeholder. Of having performed his
duty in protecting the banks interest
in making such careful selections.
Nothing short of this should give nm
a clear conscience in the services ne
is rendering. This being done, the
stakeholder. for the time being at
least. steps out of the limelight and
the director himself comes to the fore.
accepts the honor and assumes the
attendant responsibilities.
Some of these responsibilities are
within his personal control. while
others are not fully within his power
10 guide. but the sponsibilitics.
nevertheless. remain fixed and sta
tionary. and he cannot present any
alibi because he stands pledged for
the. actions of the directorate. and
must share it's responsibilities.
Incidentally. it should be borne III
mind that. although, directors are
chosen by the stock holders, the obliSa-
tions TO the stockholders. peculiar AS
II NAV seem, are secondary to their
RESPONSIBILITIES to the bondholderS.
The importance of the paying OF
dividends to the stockholders is. there
fore secondary to that of the paying
Of interest on outstanding bonds AND
assuring legal requirements AS To up
DERIVING securities therefor.
Accuracy of Statements Vital.
'"rhe board of directors should be
assured of the accuracy of all state.
ments issued by the banks. whether
they be policies promulgated. local or
general advertisements. or financial
statements either to the Farm Loan
Board or statements in connection
with tho sale OF either stock or bonds,
the latter being of vital importance
TO success Of the farm loan system.
No attempt of exploitation should be
permitted or tolerated, but at the
same time proper salesmanship
should he employed in the sale of
both stock and bonds.
The importance of absolutely &C
c,rate statements is most vital, and
should he adhered 10 at all times by
all Of the banks. The discovery of
oven "A technical error or inaccuracy
in any public document issued by
hank has its direct reflection. more
ar less. on all similar banks. Espe-
ciallv i this true in the farm loan sys
tem. Any set of figures. statements
or reports emanating from banks
should reflect the actual condition
therein.
'''The banks officials and field men
are being seasoned in the art of i'm
parting information and advice tina;
Is sound and acceptable to their Dor
rowers and excellent results are being
obtained. The borrower is rapidly
coming To the realization that the
hank is his friend and desires To as
eist rather than TO destroy. The
hank s communications With the Dor
rnwer are Of such frequency and of
euch nature as to convince him OF
The complete sincerity of the bank.
md the psychological effect alone is
well worth the time and effort.