Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-12-12

Among other questions which are
expected % occupy, the attention OF
congress during the coming session is
the enactment of some rural credits
law. The subject has, been ulder in
vestigation for a great many years
and a number of bills of different
character have been introduced. A
bill introduced by Senator Fletcher
was considered by the subcommittee
of the committee On banking and cur
rency during the last session but it
did not meet with the approval of the
President and was not reported out
of the committee.
Senator McCumber has been spenu-
ing the recess of congress studying
this matter and has prepared a bill
which he will introduce at the open
ing of the session. The bill provides
that a bureau of rural credits shall
be created in the treasury department
and the sum of ten million dollars, or
so much thereof as may be necessary,
shall be set aside for the purpose OF
purchasing notes secured by first
mortgage on agricultural lands.
The bill further provides that every
national bank and every state bank
Belonging to the federal reserve sys-
tenn which desires to avail itself OF
the privileges of the bill are created
agencies of the treasury department
for the purpose Of securing mortgages
and advancing money to the mOrtga-
gOrs. .e
How Loans Be Made.
. TYpI@~ 49, 4on~, ~ @l,~ It'll fho ~
er of any agricultural land in a state,
who is living upon the land and who
desires a loan, shall execute a note
due in ten years, bearing interest at
the rate of five per cent per annum.
The notes shall provide that the prin-
cipal may be paid on any interest pay
ing day after the expiration of five
years. The notes shall be secured by
first mortgages Oh the lands and the
mortgages shall be executed and re-
corded in the manner provided 10y the
laws of the various states. The mort
cages shall he accompanied by appli-
cations for loans, which application
shall state for what purpose the loans
are desired, market value of the lands
and character of the soil and such
other information as may be required
by the bureau. The applications shall
have attached to them two affidavits
signed by t1eighbors who are thor
oughly acquainted with the land val
ues to verify the value of the lands.
The notes and mortgages shall then
be transmitted to the treasury de-
partment by the bank making the
loans and upon approval by the bu-
reau Of credits drafts shall be sent to
the banks to be turned over to the
borrowers. 4he banks are authorized
to charge one per cent commission
for investigating and reporting on the
application.
The bill forther provides that when
ever the bureau OF credits shall re-
ceive mortgages to the extent of one
million dollars it shall issue twenty
year debenture bonds in the name
J OF the United States, bearing four and
a half per cent Interest, with the rlght
OF the United States to pay the prln'
cipal at the expiration Of ten years.
Such d%ebentures shall he issued in
denominations of from n hundred to
five hundred dollars, and Snail De
sold to any person applying therefor,
preference being given to these deslr'
ing small Investments. All moneys
received by the bureau of credits from
the sale of such bonds shall be Gov
cred into the fund of ten million dol.
lars to be used ill the payment OF
! mortgages as they maybe presented.
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