The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-01-13
FOR AGRICULTURAL CREDITS.

COIlDlCJSO Ill t1C oooPso
currency and banking reform bill The Press
dent is not going to stop at this point, but as ne
stated in his message with reference to the cur.
,ancv bill he desires to have this supplemented
bv a system of rural credits.
The new measure, which is now beng exam
med and studied bv President Wilson and the
Senate Banking Committee, is designed to ere
ate land banks, these to provide special banking
facilities for agricultural credits and to slnpil1y
loans. It IS to create a system Of National Farm
Land Banks.
The salient Tea tures of the proposed measure
are such as to show that the proposal IS to Gre
ate such a farm banking system as VIII De Oh
direct value to the farmers, one which has III IL
provisions which will aid the rural sections OF
this country IN a great degree, and to supplement-
the new currency law with a law which Will
make it the stronger in doing service for the
people.
These salient features Of the proposed bill are:
Farm land hanks to be created in the different
States to supplement the provisions OF the Owen
Glass currency bill which provides for Federal
Reserve regional banks.
The Commissioners of Farm Land Banks, who
is to be appointed by the President, to have
general contract as a Federal official and Federal
fiscal agent to supervise the operations OF each
of these land mortgage banks.
The banks provided for to have Federal gov
eminent charters like the present national banks.
These banks. to have debentures as their direct
obligations. the proceeds of such debentures to
be loaned to farmers on first mortgages.
Farm mortgages to bear higher interest rates
than the debentures and the difference to con-
stitute the profit of the new banks.
Banks to be formed either by private capita-
lists or on the non-proft seeking cooperative
basis. No stakeholder is to be allowed to. own,
more than ten per cent of the share capital.
The securities of these farm land banks to be
exempt from taxation.
The farmers to repay their loans through amor
| tization-that is, in small fixed annual INSTALL
nnents.
In general terms these present the main fea-
lures of the proposed farm bank system. The
specific powers as to deposits and loans which
are to be given to these banks being as stated in
the bill:
A. To accept and pay interest on deposits to
an amount not exceeding fifty percentum Of the
amount of its combined paid up capital and
surplus.
B. To make loans upon farm lands anywhere
within the State in which such National Farm
Land Bank is operated; provided
ID That such loans are made for not more =.
than thirty-hve years.
~ AAoe ou~AA~ IOdAo diC IA - q LIS
mortgage or first deed of trust on farm lands,
or are used to retire existing mortgages Or
deeds Of trust so as to make them a first lien
on such farm lands.
80 That such loans do not exceed fifty
per centum in amount in the case Of I'M
proved and occupied farm lands, and do not
exceed forty per centum in amount in other
cases of the value of the same lands, to be
determined by appraisal as provided in this
act.
"a That every farm land loan contain a
mandatory provision for the amortization Of
such loan or reduction of the same by an
nual or se1niannual payments on account of
principal; provided, that the loan extends
over a period of not less than five years.
90 That every such loan may be paid off
in whole or in part by the borrower, upon
reasonable notice, in accordance with rules
to be prescribed by the Commissioner Of
Farm Land Banks at any interest period
after such loan has continued for FIVE years,
by the payment Of the whole OF a part Of
such loan, with interest to such date after
crediting the amortization payments of the
same as and when they were made.
In this proposed bill the Democracy is aeai
demonstrating that its purpose is to serve Ii
people, and this new measure is one which vi
prove Of real service in all the rural sections
the country.