6 



borrower. Savings banks are not making any new loans, and 

 are drawing in their old ones, while life insurance companies 

 have exhausted their available funds for some months to come. 

 The third Liberty Loan, perhaps larger than either of its 

 predecessors, will be floated shortly. Our financial institutions 

 must hold themselves in readiness, and are less in a position 

 to relieve the farm mortgage situation, while the needs of the 

 farmer were never greater. 



The importance of the role played by the farm loan system 

 in financing our farmers is but faintly indicated in the oper- 

 ations of the Land Banks. To the first of this month — that 

 is, in less than nine months — the applications for loans from 

 farmers aggregated a total of about $250,000,000. Of this, 

 about $125,000,000 has thus far been approved, and about 

 $30,000,000 has actually been loaned out. Even in this dis- 

 trict, where it was claimed that the need of the system was 

 not apparent, the Federal Land Bank of Springfield has re- 

 ceived applications for loans upwards of $7,000,000, has ap- 

 proved loans aggregating nearly $4,000,000 and, actually fur- 

 nished the farmers of this district $1,126,000 for very urgent 

 purposes. 



Alongside of the needs of American agriculture these figures 

 may not appear very impressive. But it must be borne in 

 mind that the Land Banks are doing pioneering work. As 

 such, we had to face most of the disappointments, bear many 

 of the burdens, and suft'er some of the hardships that fall to 

 the lot of every true pioneer. With the Federal Farm Loan 

 Act in one hand, a charter in the other hand, and the blessings 

 of our friends upon our heads, we set out to construct what is 

 destined to become the greatest system of agricultural finance in 

 the world. Lnlike the Federal reserve system, which had some 

 7,000 well-organized and well-managed member banks to build 

 on, we had to organize not only our own machinery, but our 

 member banks — the National Farm Loan associations — be- 

 fore we could begin business. It was a slow process at best. 

 There have been crossed wires, loose ends and many unavoid- 

 able delays. With all that it is gratifying to be able to say 

 that we have made progress. As we are getting into our stride 

 the various steps of handling applications for loans will be 



