Golden Valley chronicle. (Beach, Billings County, N.D.) 1905-1916, 1914-01-30
Farm Finance
Bill !. Next
Can B. Made B.si. fef Rseen'true-
ting American Asrisu'ture-Pr'n-
eiple. That Should Be Incorporated.


chile. That Should Be Incorporated.
Now that the new currency bill has
become law. all parties in espsress
are ready to reassm their pleasaA to
the 'farmeri Thersfere. consse's q
onee will consider shs manifold praAer
lens Of farm 6nanee. House and
senate will je;. ID NE enactment Of
one comprehensive IiA 70 provide for
a system Of national cooperative rur-
!. Il banks-lecal. st.te. federal. The
fellowins principles should be emSod-
ied, writes the editor of Northwest
.farms&ead:
National Cooperative Banks.
Z. Local o. neighborhood savings
and lean assoe;asiens. called national
.eo operative banks. Seven or more
sarmers and home owners may start
such Lank with not less than ST.
'o0c capital, shares s.. one vote to
each member. Such bank may receive
deposits, make loans. and do a general
banking and trust company business.
subject to federal supervision and
control. No speculative loans.
A State Cooperative Rank.
under the proposed federal law. shall
be formed when 80 or more local rur-
al banks have been organized in said
state. Said locals shall invest a suit
able proportion Of their own funds in
said state banks capital. each local
having one vote therein.
When a state cooperative bank
has been organized in u or more
s.ates, they shall subscrihs for shares
in the national cooperative bank Of
the United States, in which each Of
said state banks shall have only one
vote.
Bonds Secured on Farms or Homes.
First mortgages on farms occu-
pied and worked by their owners. or
upon homes occupied by their own
. ers, may be accepted as security for
long time loans by any national CO.
operative bank. Prescribe rules that
shall insure absolute safety Of such
.,. 3oans, including their reduction by
small annual payments upon. princi-
pal,. and upkeep Of property mean
while.
Bonds based, upon the security Of
such mortgages may be Issued by To-
cal, state or national cooperative
banks, suitably guaranteed by the
zame and subject to restrictions. to in
sure inviolate the interest and prin-
<ipai Of such bonds, which shall be
a legal investment, for banks and
, Arust funds.
Shares and bonds Of g said bank.
shall be free from all taxation-loeal
state, federal or inheritance Bond.
may bear interest not more than 20
greater than state or government
bonds. Shares may receive not to
exceed $50 dividends. other earning,
to 60 to surplus until it reaches 500
Of capital. Then divide extra profit,
::.pro.~rata as a dividend equally upon
depo.iss ard loans.
Il Two Separate Departments.
The (s) current deposits and cur.
rent credits Of said local banks to be
q department separate from its (b)
e longtime mortgage department. Thus
avoid pledsing current credits as se-
eurity for permanent credits. and
shus also insure quick assets for meet
ing quick liabilities.
This federal system may supple
nent but not interfere with simils'
;. cooperative peoples banks under the
laws Of the respective states. Said
local. state and national cooperative
banks may be depositar;es Of federal
and postal funds.
These principles have met general
approval from ala whose scientific
studies and practical experience give
weight to their views. including some.
# nor ell, Of the. members Of the
f.tnes,cAu> commission which has in
vestigated European cooperation.
Ile.s. Of course. vary as to details.
Various bills based in part or in
whole upon these principles have been
introduced in congress. These are
now all in the hands Of the house
committee on banking and currency.
It has referred them to a sub-eom-
mittee consisting of the following:
Hon. Robert J. Bulkley Of Ohio. chair
man. Hon. William G. Brown Of West
Virginia. Hon. Claudius U. Stone Of
Illinois, Hon. Harry H. Seldomridge
Of Colorado. Hon. J. Willard Rage
dale of South Carolina, Hon. Ever;'
A. Hayes of California. Hon. Edmund
Plat Of New York and Hon. Frank p.
Woods Of Iowa.
This sub-committee on farm finance
or rural credits has been at work
actively since December !. 1t has
given hearings to representatives. Of
the department Of agriculture, Of the
League Of local building and loan as
sociations and other interests. also to