Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1914-02-20
FARM FINANCE BILL NEXT

OONOlhC q AoWt OIL PoA NASo III NOAASA $oo
are ready to redeem their pledges to
the farmer! Therefore, congress at
once will consider the manifold prob
lens of farm finance. House and
senate will join in the enactment of
one comprehensive bill to provide for
system of national cooperative
rural banks-local. state, federal. The
following principles should be en-
bodied, writes the editor of American
Agriculturist.
1. Local or neighborhood savings
and loan associations, called national
CO. operative bands. Seven or more
farmers and home owners may start
such bank with not less than $1,000
capital, shares SIS, one vote to each
member. Such bank may receive de-
posits, make loans, and do a general
banking and trust company business,
subject to federal supervision and
control No speculative loans.
2. A State Cooperative Bank un-
der 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 suit
able proportion of their own funds in
said state banks capital, each local
having one vote therein.
3. When state cooperative bank
has been organized in IL or more
states, they shall subscribe for shares
in the national cooperative bank of
the United States, in which each of
said state banks shall have only one
vote.
4. 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
longtime loans by any national CO.
operative bank. Prescribe rules that
shall insure absolute safety of such
loans, including their reduction by
small annual payments upon princi-
pal, and upkeep of property mean
while.
5. Bonds based upon the security
of such mortgages may be issued by
local, state or national cooperative
banks, suitably guaranteed by the
same and subject to restrictions to
insure inviolate the interest and prin-
cipal of such bonds, which shall be a
legal investment for banks and trust
funds.
6. Shares and bonds of said banks
shall be free from all taxation-loc-
al, state, federal or inheritance. Bonds
may bear interest not more than 1
per cent. greater than state or gov
ernment bonds. Shares may receive
not to exceed 6 per cent. dividends,
other earnings to go to surplus until
it reaches so per cent. of capital.
Then divide extra profits pro rata as
dividend equally upon deposits and
loans.
z. The (a) current deposits and
current credits of said local banks to
be a department separate from its
(h) longtime mortgage department.
Thus avoid pledging current credits
as security for permanent credits, and
thus also insure quick assets for
meeting quick, liabilities.
8. This federal system may sup
element but not interfere with SINH
lar cooperative peoples banks un-
der the laws of the respective states
Said local, state and national coop
erative banks may be depositaries of
federal and postal funds.
These principles have met general
approval from all whose scientific
studies and practical experience give
weight to their views, including some
if not all, of the members of the
American commission which has in
vestigated European cooperation
Ideas, of course, vary as to details
Various bills based in part or ir
whole upon these principles have beer
introduced in congress. These are
now all in the hands of the house
committee on banking and currency
| 1t has referred them to a Sub-com.
mittee consisting of the following
Hon. Robert ]. Bulkley, of Ohio
chairman; Hon. William G. Brown
of West Virginia; Hon. Claude Weav.
er, of Oklahoma; Hon. Claudius U
Stone, of Illinois; Hon. Harry H
Seldomridge, of Colorado; Hon.
Willard Radsdale, of South Caroline
Hon. Everis A. Hayes, of California
Hon. Edmund Platt, of New York
and Hon. Frank P. Woods, of Iowa,
| This subcommittee on farm financ,
or rural credits has been at work ac
lively since December 1. It has Civ
| Ell hearings to representatives of tn,
league of local building and loan as
sociations and other interests, also t.
members of congress who have in
troduced bills. 1t is giving extensive
hearings to the American commission
In order that the committee may ge
right next to the farmers, the hous
may authorize it to hold hearing
during January at points in differen
parts Of the country, possibly Mime
apolis, Omaha, Kansas City, Louis
| vile. Atlanta, in the middle state
fand New England.