Show OUR PUBLIC FORUM otto kahn j on financial farm loans ian every citizen who desires to become capable ini la business busl should study banking and every farmer who wants to see the business of agriculture properly financed should study diligently tho the financial systems of 0 oilier industries 1 all other lines ot oc industry have developed financial facilities adapted to their needs we have all sorts of financial ondi indicates cates authorized by law or custom to deal in a certain line of securities but in none of these financial channels will farm securities travel without a bonus in the way of an excessive rate of interest or heavy dis counts the most powerful financial institutions in america are private banks and they are the most important to the financial life of industry in no line of business does dens honesty efficiency and stability make more imperative demands than upon private bankers whose greatest asset ts Is the confidence of the buying public in his business judgment and integrity mr otto kahn of kuhn loeb company when asked to state the relation of the private banker to the business of the nation said in part i one of the most important functions of the banker la is to be the thel instrument tor for providing the money needed tor for the efficient conduct and development of railroads and other industries he does this by buying securities in bulk from those needling needing capital for which purpose he ha usually associates himself with a large number of other financial houses great and small thus forming what Is called a syndicate having in this way concluded the buying transaction he offers to the public the securities purchased byi by means of advertising circularizing circular izing and through the facilities of the retail houses housea inc include lud in the syndicate many of whom employ ti aveling salesmen of course the banker and the syndicate count on it a reasonable profit for their services vices on the other hand band they run the risk of the securities which they have definitely bought and paid tor for at a fixed price remaining on their banda wholly or in part if the public tor for one reason or another should be unwilling to buy them the selling of securities Is a highly specialized trade traded requiring much experience organization machinery and scrutiny this 10 la one of the reasons why corporations do better in offering ott ering securities to the public through bankers than it if they offered them direct the willingness of the public to buy depends upon their in the integrity and the judgment of the banker who makes the tha offer and ft a banker who attempt attempts a to mislead the public or who to Is deficient in care or judgment would very find himself without customers and therefore thero fore out of business la in many european countries the functions ol 01 0 tho the private banker include tho the placing PlAciD gi of bonds secured by farm mortgages bonds bonda of this nature I 1 are ro issued in large quantities by mortgage banki bank who buy mortgages on garnr farina mind and other real estate and deposit them as aa security for their own bonds which in ahelf turn are sold bold to bankers it to to be hoped that similar institutions will in course of time be b created in america thus placing the fILM farming industry on a par with important ladus trl in macmu to obtain capitel capital i |