The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-06
PLAN FOR SYSTEM
Of RURAL BANKS
CONTINUED From First Page3

time deposits, for no longer than one
year. on the security Of farm imple'
ments. farm animals. farm products
(while on the FARM standing timber
and on crops liens on growing crops;
such toans not to be made. except on
the endorsement Of at least one re-
sponsible party other than the maker
or except where additional collateral
of sufficient value to cover the loan
is placed with the bank to secure the
same. Where any of the property. on
the security Of which such loans must
10 made. V destructible and Is ordtnart-
ly insurable, such loans must be fur
Their secured by the assignment OF In
surance policies covering such risk.
The forms and conditions Of such loans
shall be in conformity with the rules
and regulations adopted by the Rural
Banking Department And In no case
shall any loan be made on any farming
Implements. machinery. farm animals.
standing timber or any similar prop
erty subject to taxation at greater
rate than 50 per cent of the value at
which It was assessed for taxation.
Mot exceeding eighty 1--WE per cent
OF the check deposits of any Local
Rural Bank, and such portions Of its
capital, surplus and undivided profits
such portions Of the ninety per cent
Of It's time loans as are not loaned
out as hereinbefore provided. may be
loaned out by any Local Rural Bank on
short time commercial paper running
not longer than four months, and Sc
cured by one good endorsement other
than the maker or by easily convertible
collateral: or may be loaned to indi-
viduAls on notes with two good en-
dorsers other than the maker or Sc
cured by easily convertible collateral:
or may be loaned on the credit Of
warehouse receipts for farm products,
but all such loans shall be made sub
ject to such regulations as the Rural
Banking Department may prescribe.
And such money may also be loaned
to such cooperative associations or
corporations as may be hereafter or
gani0ed, under plans approved by said
Rural Bank Department for the pur-
pose Of purchasing At wholesale prices,
seed, fertilizer, farm machinery, farm
supplies or farm animals OF similar
products to be sold to the members Of
such association substantially at cost:
or to such cooperative elevator or
warehouse or similar associations or
corporations ~ may likewise be here
after similarly organized, with the ap-
prevail of such Rural Bank Department
for the storage, handling and sale of
the farm products of members Of such
associations and others. All such loans
to be made under such rules and regu-
lations as such Rural banking Depart
ment may see Mt to regulate
Central Rural Bank In Riehnond.
The head Of the entire system OF
local rural banks IL to consist Of a
central rural bank In Richmond
This bank shall have q minimum
capital stock Of 100000. with powe,
Of indefinite Increase. Its share to b
Of the par value Of IS each, to be sole
at par for cash when the bank 10 or.
Eauizsd- The entire minimum capital
Of $1o0, 900 TO be subscribed and pait
for 1t the time OF organization BY thu
State Of Virginia, . special appropris.
ton being made for that purpose
And tho stock 80 subscribed for shall
b cold and distributes 70 the loca'
rural banks By the Central Rura
Bank, % above outlined. q par - fast
- such local banks sro organised. IN