Lincoln County times. (Jerome, Idaho) 1911-1919, 1914-03-26
RURAL CREDIT SYSTEM.

Probably the most urgent and i'm
portant measure now before con-
gress from the standpoint OF the
farmer and wage Garner is the bill
providing for the establishment of
Farm Loan Banks to benefit the
farmers While it is conceded on
all hands that the great wealth OF the
country must originally come from
the lands. It is also pertinent fact
that the credit of the farmer is be-
low the standard OF any other avo-
cation. This is proposed to be rem
edied by the establishment through
out the country OF farm loan banks.
which will enable the farmer to bor-
row money on easy terms. To this
end bills are now pending in both
branches OF congress. and 1T would |
not be a bad idea for our readers to
write the Idaho representatives in
the house and senate. urging that
they exert their efforts in behalf of
this bill.
! The introduction of the bill fol-
, lows the report of a special commit
tee sent to the European countries
n TO investigate the workings of a
J similar measure in those countries.
/ The commission found that under
l the workings OF the rural credit sys-
tenn great strides had been made
: along agricultural pursuits. and that
: the farmers we're enjoying a reign OF
r prosperity.
! The purpose OF this new bill is to
l.. encourage agriculture by establish
i ing associations to enable farmers to
= borrow money on first mortgages or
o first deeds OF trust on their farm
: lands. either to complete the pur-
chase of the agricultural lands mort
o gagged. to improve and equip such
e lands. or to pay and discharge debts
J. secured by mortgages and deeds of
e trust on said lands.
Is The bill permits the establishment
lie of national farmland banks by any
o group OF not less than ten person:
d who will provide a capital of not les:
IL than $4,000. Half of this may be
i'd paid in and the remainder paid in /
a. per cent monthly installments. Cap
d. ital may be increased or reduced Will
III the permission of the commissioner
er but the minimum is $4,000.
II Each of the banks must have no
X less than Ave nor more than nine di
rectors. Three-fourths of the direc
X tors of any bank must be actual resi-
rd dents OF the state in which 1t is 10
RS Gated and must continue their resi-
at dence during the dictatorship.
n Having organized according t
on the laws the bank may accept an
RS pay interest on deposits pot to es
on ceed so per cent of it's combined car
he ital and surplus. The bank must re
re tain specified reserves on all classe
at of deposits. 1t may buy and Sc
sse silver and gold bullion, handle co
TX lections on notes, drafts and e'
as change, discount commercial pape
deal in bonds of similar banks an
he transact the business now exercise
re- by national banks.
ds, No bank is permitted to lend an
I'VE single borrower an amount In exec
as OF One-nftn OF lts actudi pdiu-up ""
all ital and surplus.
The bank may loan on first NOR
zen cages or first deeds of trust for
rd. period not to exceed five years. SUI
n.y. loans always must be made for Il
ing encouragement of agriculture al
led not to exceed fifty per cent of q
be- value OF improved lands nor 40 p
ect. cent in other cases
ex- The bill does not prescribe de
sets mite interest rates to be charged
I'M mortgages, and the rate will vary {
ned cording to the rate in the sever
ace sections of the country. Profits a
and expenses of administration of t
the bank, however, are limited by
lies, bill. Provision must be made In
get cry mortgage whereby the loan mi
ract be paid OFF in whole or in part at a
OF interest period after such loan !
continued five years. Borrow
pre- may discharge their loans in adval
ness by buying bonds of the same bal
the which are taken In at par in paym'
hich on the mortgage.
srif- II the bank can sell Its bonds p