The Washington times., 1914-01-10
FARM BANK BILL
IN WILSON'S HANDS
Measure to Provide Rural
Credits and Supplement
Currency Act Ready.

To provide for agricultural credits and
simplify loans, thus suPplementing
ne new Glass-Owen currency law by
eating special banking facilities for
armers, q hill has been prepared by
he United States Commission Of Agri-
IlturaI Credits. 1t is now in the hands
President Wilson and has been laid
INCIDENTALLY before the Senate Com
littee on Banking and Currency. The
i'll provides for the establishment OF
national farm land bank system.
The commission which drafted the bill
was appointed by virtue of an act of
,,ngress. and consists of Senators Dun
an L. Fletcher of Florida and Thomas
l.. Gore of Oklahoma, Congressman
Ralph ". Moss of Idiana, Col HaTvie
Iu.uan of Atlanta. Ga, DR.. John Lee
cutter of the Census Bureau. DR.. Ken
IL L. Butterfield of the Massa chu-
us Agricultural College and Clarence
Owens of the Southern Commercial
puEress.
To control the new department Of the
treasury. a commissioner OF farm land
I.1rks is provided in the bill. He shall
I e!form his duties under the general dl-
lion OF .he Secretary Of the Treas
3.r. The office is appointi.'e by the
President, and the commissioner shall
7oid office for a term of five years, at
a salary of $500. The officer has
0uthority to issue charters or certifl-
les Of incorporation for the establish
.ert of national farm land banks. and
.s exercise supervision and control over
Cd, nd make examination of all the insti-
utions so authorized
Must Publish Tables.
The bill provides that the commission
snail from time to time prepare and
publish amortization tables, covering
periods Of from six TO thirty years. at
aryfng rates of interest, to meet all
ne requirements of the banks. Such
:abIes shall be adopted and used by the
psnks as the basis Of all repayment Of
Jng-term mortgage loans
The words National Farm Land
Sank shall be a part OF the title of
every institution, except those formed
On cooperative principles, which snail
ne titled National Farm Land Bank,
1o-operative" No stockholder shall
hold or own more than 10 per cent OF
he capital at any time. and the shares
If stock shall be Of the par value of 500
md IS, respectively
In providing for the distribution OF
rarnings. the bill says that stockholders
may be paid dividends in the form OF
interest at the rate prevailing IN the
community where such bank is located,
and the balance of the net earnings
shall be distributed among the patrons.
Powers of Banks.
The measure sets forth specific powers
with reference 20 deposits and loans of
every National Farm Land Bank as
follows: r~ -s
"A. To accept and pay interest on
deposits to an amount not exceeding
- per cent of the amount of its conf
lined paid up capita! and surplus.
"B. To make loans upon farm lands
anywhere within the State in which
such national farm land bank is op-
Grated; provided:
Il. That such loans are made for
not more thaa thirty-fve years.
''2. That such loans are secured by
2 first mortgage or first deed OF trust
or 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.
IS That such loans do not exceed
% per cent IN amount in the case
- improved and occupied farm lands
and DO not exceed 20 per cent iI amount
IL other cases of the value if the came
1ands. to be determined by appraisal
as provided in this acE
Il That every such farm land loan
contain a mandatory provision for the
amortization of such loan or TedUc-
ion of the same by annual or Semi
lnnuai payments on account Of prln-
cipal: provided, that the loan extends
over a period of not less than five
Years.
IS. That every such loan may. be
yaid Off IN whole or in part by the
borrower. upon reasonable notice. - in
accordance with rules. ~ be prescribed
by the commissioner of farm land
psnks at any interest period after
such loan has continued for five years,
10y the payment Of the whole or 4
part of such loan, with interest TO suCn
date, after crediting the amortization
Eayfnents of the same as and when
they were made q;
For Annual Payments.
Referring particularly to The borrowey,
the bill states tiIat payments by mort
sagDr must be made annually or semi
annually, and must be sufficient TO pay
tie Interest charge on the loan With
efeTence 70 the purchase of real estate,
lhe banks will be empowered to ac-
quire such only in satisfaction Of debts
o. 10 obtain debts due. but no bank
shall hold the title and possession Of
my real estate for d longer period than
i've years.
At least 80 per cent Of the capital
stook Of every farm lsni bank shall
be paid in before it is authorized 10 do
Jusiness, and the remainder of the capi-
tai stock shall be paid in in installments
" at least 10 per cent each on TIE whole
q mount of the capital.
In conclusion the bill again takes r.p
ihe matter Of loans, saying that any
borrower shall be entitled to pay or
The amount of his mortgage or any por-
ion thereof by presenting 20 the hank
On ANY interest period national farm
and bank bonds in the sum of his mort