It is exceedingly important that the Federal land and joint-stock land
banks should furnish the best possible service for agriculture. Certain
joint-stock banks have fallen into improper and unsound practices,
resulting in the indictment of the officials of three of them. More money
has been provided for examinations, and at the instance of the Treasury
rules and regulations of the Federal Farm Board have been revised. Early
last May three of its members resigned. Their places were filled with men
connected with the War Finance Corporation. Eugene Meyer being designated
as Farm Loan Commissioner. The new members have demonstrated their ability
in the field of agricultural finance in the extensive operations of he War
Finance Corporation. Three joint-stock banks have gone into receivership.
It is necessary to preserve the public confidence in this system in order
to find a market for their bonds. A recent flotation was made at a record
low rate of 4 per cent. Careful supervision is absolutely necessary to
protect the investor and enable these banks to exercise their chief
function in serving agriculture.