funds, and may be accepted as security for all public deposits." No language could be more sweeping as to the universality of these securities for the investment of any private, corporate or public funds, or as collateral.

8. Marketability. With such an extraordinarily broad market provided by law, in addition to the demand from individuals, firms, corporations, societies, towns, cities, counties or states, these bonds always should be readily marketable. Effort should be made to have them bought and sold through every existing agency for such purposes, as well as through many new channels.

9. A Unique Feature. The marketability of federal farm bonds is still further vested in the fact that borrowers may pay their debt either in cash or in bonds at par. Hence the shrewd borrower will be quick to improve every chance to buy bonds below par. This proviso exists with respect to no other security.

10. Stability. These bonds should remain at or around par, not only because of their safety, security, non-taxability, and the legal investment feature, but also because there may be a constant market for them

to supply the demands of borrowers who wish to reduce the amount of their indebtedness or pay it off in full.

Summary. Therefore, the bond of a federal land bank, or of a joint stock land bank, may be depended upon to pay its interest regularly, to pay its principal at redemption or maturity, and should be readily ¡convertible at any time into cash without loss and possibly at a profit.

Both principal and income are net and free from every form of taxation.

The apparent certainty of such satisfactory results is borne out, in the last analysis, by this great truth:

That whatever happens, the land remains, the people must be fed, and therefore federal farm loan bonds constitute the ultimate security for sums invested therein.

CHAPTER FOURTEEN

BUYING AND SELLING FEDERAL FARM LOAN BONDS

THE

HE intelligent reader up to this point should be thoroughly convinced of the soundness in theory and correctness in practice of the whole federal farm loan system, provided it enjoys adequate management under competent supervision.

The vital problem now is to provide such facilities for the purchase and sale of federal farm loan bonds that they may always enjoy a quick, ready and available market at relatively steady prices.

How to Do It. This may be facilitated by the federal farm loan board, and by the federal land banks, in various ways, among them the following:

1. Federal farm loan bonds to be listed upon every stock exchange and in every open market throughout the United States. Eventually this security may be listed upon principal foreign markets.

2. Make known their permanent advantages to all investors, small as well as large,

through a judicious system of persistent publicity, based upon the most conservative management and the results of actual experiment.

3. Provide for the purchase and sale of or trading in the bonds through every banking institution, brokerage house and dealer in securities throughout every nook and corner of the United States.

4. The Investor. While cultivating the permanent investor, encourage the use of the bonds for short term investment by institutions, corporations or individuals who may wish temporarily to invest funds that shall yield a fair return, until such time as the securities are sold to enable the money to be used for other purposes. Create, develop and increase the home demand for these bonds in each rural community, town and city in the respective federal land bank districts, as outlined in Chaper Nine.

5. Protect the market or quotations, in times of emergency, by liberal purchase of the bonds through some or all of the federal land banks themselves.

6. The Borrowers. Wisely direct all the borrowing interests represented in the system to the necessity of extending the

demand for the bonds. Show borrowers the considerable financial profit which will accrue to borrowers as a result of such increased demand.

7. Educate bankers and the other moneylenders to fully appreciate the value of these bonds as collateral, thus adding to their attractiveness to a large class of investors.

8. Enable the holder to collect his interest coupons at par without any bother or expense whatever by simply depositing the coupons in his local bank.

9. Reinvestment. When bonds are called in for retirement, offer the holder the privilege of reinvesting in a new issue of bonds. This policy may do much to overcome whatever objections any permanent investor may have to the possibility that his bonds may be retired at a time when he would like to hold them longer.

10. The One Universal Investment. In addition to these and other means of making federal farm loan bonds the most convenient to buy, sell and trade in of any security whatever, authority should be granted by Congress for these securities to be bought and