Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-03-26
HAS 4
loan MEASURE
Nsfth D,kot, Senator Re.
pltes BIZ Providing Low
'Rale d Interest

I sgSvu>SNAASNSnS NA~NSA .ff So. NE'N1SuSSV
Gronna Of North Dako,a has intro.
duced farm loan bill, prepared after
careful study, based on his own ex:
perience as a farmer and an associate
of farmers, which he believes will
meet the need for such. an institution
and which will, il enacted, afford the
farmers an easy means of securing
funds at 4 1-2 per cent q year. &. @3 ",
Senator GrOnna's bill provides tor
the establishment Of Il farm loans BIZ
reau in the treasury department; to
be in charge of director, who as
to- be known as the director OF farm
loans. This official is to be appoint
ed by the president and confirmed
by the senate. He is to serve for
a term Of five years and is to receive
q salary Of $4,000 q yeag..s He is to
have an assistant who Is to receive
$4,000 year and the necessary cler.
ical force to carry on tile work of the
proposed division.
| Divides U. s. Into Districts.
Under the Gr0nna bill the country
lis to be divided into districts and,
SO far as practicable, each district is
to comprise one state, but two or
more states may be included in one
district II 1t is found that the business
arising in each state does not war.
rant tho maintenance Of a branch
therein. 'f'.HsH
A branch of the farm loan bureau
is to be established in each district,
and is to be in charge ora competent
manager. who is to receive q salary
Of $4,000 q year. with a, deputy at
$4,000.
/ Applications With Postmasters.
Senator GrOnna provides for the
appraisal and search OF title OF lands
that arc to be covered by. these gov
eminent mortgages, and blank forms
for making applications for loans are
to be placed in the hands of every
postmaster in each district, together
with information as to how the loans
may be obtained. II an APPLICATION
for a loan is approved ny the dis,
trict manager, he Is Ito forward 1t.
with a short statement. TO. the farm
loans bureau The bureau. will then
forward a check for the amount of
the loan to the district manager, who
will turn it over to the applicant up.
on the deposit of a, mortgage cover.
ing the property on which the loan
Is made. II. the district munger de-
MES lean to an applicant the latter
has the right Of appeal to the bu. +
reau in Washington. .,s
Loan Only on First Mortgage.
The provision. Of the Gronna bill |,
relating to loans is as. follows:
. mo loan shall be made On any Sc
curity except that Of a first mort.
gage, and no loan shall be made for
a sum in excess Of so per cent of the
value of the property. Not more than
$4,000. shall be loaned to any one
person or association OF persons, and
applications for loans Of $1,000 or
less shall have preference over ap:
plications for larger loans. In no
case shall a loan be made for less
than 5000, nor on land less that 10.
acres in area. Loans shall be made n
only to actual farmers, who are en-.
gagged in tilling the soil, and no loan |
shall be made on land operated OK.
by tenant: Provided, that
that this shall not be held to prevent
\ loan on land upon which the owner
resides throughout the year"
A, second provision regarding the
oans is as follows: @
Loans may be made only for the
following purposes: First, to pay off
existing indebtedness; second, to i'm.
prove farm property owned by the
applicant; third, to pay any part of
he purchase money for land and the
mortgage in such case cover the land
20 purchased; fourth, to purchase
livestock, seed grain or farmimple-
nents."
Low Interest Rate. \
Loans made pnder the provisions
II the GrOnna bill are to bear inter. !.
est at the rate of 1.2 per cent a
rear. payable annually. They are I;
o be extended over period from +
me year to 20 years. On long term