The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-13
RURAL CREDIT BILL
DOESN'T SUIT WILSON
1t Provides for Government
Banks to Which the Presi-
dent Objected.
But TT IS INTRODUCED
Joint subcommittee Insists
That It's Scheme Is Only
Practicable One.
BUT TT IS INTRODUCED

WASHINGTON. May 12.--President Will
son and the members OF a sub committee
that prepared a rural credit bill offered
in the houses Of Congress to-day are
widely apart on this question.
The President wanted a bill framed
that would authorize private capital UNI
der Government auspices to finance a
chain Of rural credit banks. The sub
committee representing the Banking and
Currency committees OF the House and
Senate. prepared a bill providing for Gov
eminent rural credit banks The Presi-
dent objected to such a plan.
Members OF the subcommittee informed
him that 1t would be impossible to pass
a bankers rural credit bill. The President
persisted In his advocacy OF n bankers
rural credit plan. 1t Is understood that
he was then informed that II such a
bill was offered by the sub committee he
would have to assume full responsibility
for IT, They asked that he write letter
outlining his views favorable to the bank
ers plan
While members OF the subcommittee
are not disposed to comment on this phase
Of the matter. 1t Is the understanding that
the President failed 10 comply with this
completed its bill providing for Govern
ment rural credit banks and the measure
was offered in the Senate to-day by Sena-
tor Hollis OF New Hampshire and In the
House by Representative Buckley of Ohio
The Only Practicable plan.
Tho hill, renresants tho re.u,,s ~ nm In.
vestiyation conducted for several months
nv the Joint subcommittee headed nv
senator Hollis and Representative Rink
lev After consideration OF various plans
the subcommittee decided that a system,
Of rural credit banks supervised by the
Government along the lines Of Federal
control that obtains in the case Of ma
scheme that would commend Itself TO Con-
s'rss.
y, opos , ti,t ~ -. "a, ~
ope'a'e" "nu.r u.'e','n W Wv. ~. az
i.eser,, o" .. ~. =! Wv. ,1,, 49, Law
1855, Nv anoxmo,,s n,,,ora ~ ,ha,
W "
Tha uo,,,s-p,,,,o, h,,, nrovid.s for III.
...n,,.s.,, ~, -, ,,,nr,,,,a ,sso-,a
So y,i,h canj,,I N, rnt Loss ,b,,
an ooO earh These associations are an.
,hor,.ed On loan 10 farmers for produc-
1.-Two n,rno.es NOT "a exceed a. 900 to any
ono borrower Thov viii, NOT do any other
husiness and will moi accent deposits
All Loans are 10 no ON the amortization
n,sp for not Iess than I'VE nor more than
thirty wears the borrower TO have tho
on,,or 10 nav either in whole or in part
ON any interest day after Ave wears
These land mortgage associations vii,
sell the mortgages with their Endorsements
ia IN amoun, NOT exceeding twenty times
the capitsI and surplus OF their respec.ive
assoc-ations 70 the Federal land banks 81
,be,r ,esn.c,,vs d,.,r,c,s Twelve Federal
land IN rks are TO he created. the districts
"a no suhstant,aliy The same M the F.d-
ar.I rosor,.o dis,r;c,s ,bo .x,c, itres :, IA.
,n,ar,,,I,ad h,. ,ha E,tora, D.sor,.c rn,,'I
Thasa H., ,.,i ,auou, a,,,o ho,,ra,t.,
'"en. ,"'s .,,', "'' '"''''''
's "e'''' 10 ''''''
'"'"'"" W """""'
The Federal land bank Of each district
will be located by the Federal Reserve
| Board These land BANKS will be capita,-
izcd al not less than $500. 900 each. They
will issue bonds on approval OF the Fcd-
| eral Reserve Board based ON the security
81 the mortgages which they have pur.