Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-05-09
HOUSE COMPLETES MEASURE
PROVIDING FOR FARM
LOANS.
EASY TERMS AND Low
INTEREST PROVIDED
Farmers Mus. Form Local Loan Asso-
Citations in Order to Take Adva ntase
Of La~-Federal Reserve soard IN
Diree. charse-sil! to Be Reported
to House Monday.
washington. May s.-Ta. ~

washins.on, May She rural
credit bill provifing farmers with q
means OF obtaining loans on easy terms
was completed today by ths Banking
ana currency committee Of the house o.
representatives and VIII be tavoreoly
reported 70 that body next Monday.
The measure, which Is scheduled for
passage al this session O. congress
provides a system % CO. operative farm
loan associations OF farm land banks
organized on -he plan 0: the federal
reserve banks vaioh VIII issue -a-rn
loan bonds. Tie entire system IS 20
be operated uz6e- the supervision o.
the federal reserve board.
Provisions Of the Bill.
TIE provisions OF the Dill are:
TIE administration OF TIE act shall
be controlled and directed ny the TED
eral reserve board created By the CITY
law.
The system Of rural credits shall De
SUPERVISED ny national farm loan
bureau consisting o. farm !oa. com
mission and assistants appointed ana
removable b. tie 1eoera! reserve
board.
Five o. more persons may organize
with the approval O: the commissioner,
national farm loan association aa-
thorizad 20 coaGucI is business IN
designated COUNTY or group OF co1l
ties.
TIE capital stock o. .ach sue. asso-
citation shall &c not lees toan sir'vt'
divided into shares OF SIS each. S1sc3
stcekholder is entitled 70 one vote -oG
each share nut not more 1Aa1 a maxi
mum o. ten votes Shares MAY pe
pu-chase d on ias partial payment or
building and loan association plan
Half OF TIE capital stoc.: OF each as
ISOLATION -1ar ne paid il ca,so and nall
In fiYsr uorIEagss. AZ least % per
cent OF the capital snail De invested
In United States bonds.
Loans Limited 70 Members
Only members may obtain loans.
Each person contracting loan snail
own or take out a. me time stock equal
10 5 Per cent o. the amount o. the
loan and the mortgage given nay
cover bott The loan and the purchased
stock. TIE stock shall os pledged as
part o. the security and d:vicencs
thereon paid co the uo-rsagor EacA
association is authorized TO make loans
OF current funds secured oT hrsr mort
cages on farm lands IL its district, 10
hwy from and sell TO other associations
,ndor.ed hrs- mortgages procured IN
der the act, 20 buy and sell farm loans
and United States bonds. and TO ac-
outre and hold to- not longer than
Ave years parcels o. land in sattsta c.
ton OF debts or judgments.
Every mortgage given ,or loan
shall contain an agreement tor the re-
duction o. the loan thru 5nalai or
semi annual aUcruza-;o payments,
Every mortgage shall run for Al least
FIVE and not more than thirty Years
The borrower may extLngu!sh the loan
at any interest date after i've years
by tender Of cash or farm loan bones.
Legal Interest Rates Provided.
The rate OF interest charged shall! not
e1eeed the legal rate IN the state Il
which the no-tgaged land IS situated.
Loans may be made 20 NQutoats N
debtedness Of the owner OF the lana
existing az the time the frs loan as
ISOLATION Is organized n h!s COUNT. 70
provide for the improvement OF farm
lands. to provide for the purchase Of
equipment an6 livestock. 20 provide Tor
the purchase Of q farm homo,
No loan shall exceed 80 FER ce-- O,
the value Of the land and IS per cent
of the value Of the buildings thereon
as appraised ~ the association and
approved by the federal reserve board
No loan shall ba made 70 any but an
actual or Immediately p-ospsc-!Ts res
fderr on the and engaged n It's cLi-!-
walton No loan shall exceed $4,000 -
an- one borrower or 20 per cent OF me
association capital and surplus.
Borrowers shall pay all taxes on me
land and keep buildings insured 70 the
satisfaction OF me farm loan commits.
sioner. insurance being made paya Die
10 the mortgsgee.
Number Of Land Banks.
The federal rege-ve board Is en-
powered 10 organize and charter 2:
many federal land banks as there are
federal reserve banks and % lay out a.
many land bank districts as there al
federal reserve districts. the home Of
fee Of each land bank being located Il
the city in which is situated ne head
quarters oS the reserve bank.
The federal reserve board IS author
lied to review and alter the interes
rate charged ny farm loan associations
10 regulate the issuance Of farm loeI
bonds by federal land banks, 70 rec
ommend 70 the secretary OF the treas
ury the purchase OF farm loan bonds
and TO supervise the app-a!sement o
mortgaged lands
PLEASED WITH CONDITIONS.