Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-12-09
NEW PLAN PROPOSED
FOR RURAL CREDITS
SENATOR McuMsER TO PUSH
MEASURE WHICH HE THINKS
PRACTICAL.
ovERcoMEs OBJECTIONS TO
OTHER PROPOSED MEASURES
Land Owners to Be Permitted TO 5or-
row on Long Time From Special
Fund Of $4,000, ooo-Money Raised
by Bond Issue, Giving Opportunities
to Investors and Borrowers Alike.
Especial Correspondence

Washington. Dec. 9.-Among the
question which viii be considered ct
the short session of congress Is the
enactment of rural credits law T.
is doubtful whether bill VIII be
passed but there will in any event be
capitol. The subject has been under
investigation for years and NUMBER
of bills of different sorts have been
introduced.
A bill introduced by Senator Fletcher
was considered by the sub committee
of the committee on banking and cur
rency during the last session but II dlo
not meet with the approval Of the
president and was not reported out OF
the committee.
Senator McCumher has been spend
the recess OF congress studying TINS
matter and has prepared bill whicn
he viii Introduce a, the opening OF the
session. The bill provides that ou-
reau Of rural credits shall be created
in the treasury department and the
sum Of s10.000.000, or so much thereon
as may be necessary, shall be set ASIDE
for the purpose Of purchasing notes py
first mortgages on agricultural LANDS.
The bill further provides that every
national bank and every state oanh
belonging to the federal reserve sys-
TEN desires 10 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 mortg-
agors.
Borrow on Ten Years Time.
Under the terms OF the bill the owner
of any AGRICULTURAL land in state,
who is living upon the land who de-
sires loan, shall execute note due IN
ten years bearing interest at the rate
of ; per cent per annum. The notes
shall provide that the principal may
be paid on any interest paying aay
after the expii alton Of five years. The
notes shall be secured by first mort
CAGES on the lands and the mortgages
shall be executed and recorded In the
manner provided by the laws OF the
various states The mortgages snall
be accompanied by applications Tor
loans, which application shall state lof
what purpose the loans are desired
market value of the lands. character
OF the soil and such other information
as may be required by the bureau
THE applications shall have attached
| TO them two afYidavits signed by neigh
| bors who are thoroughly acquainted
with the land values TO verify the vaiue
| Of the lands. The notes and mortgages
] shall then be transmitted to the treas
Jury department by the bank makine
{ the loans and upon approval by the
| bureau OF credits drafts shall be SEN
I To the banks 10 be turned over TO the
borrowers. The banks are authorized
/ TO charge j per cent commission ioi
Investigating and reporting on the ap
plication.
The bill further provides that when
ever the bureau of credits SHAH re
ceive mortgages to the extent
81 900 900 1t shall issue twenty yea
debenture bonds in the name OF tn
United States, bearing AZ per cen
interest, with the right OF the unitet
states to pay the principal at the ex
piration Of ten years. Such debenture
shall be Issued In denominations o
from 800 to $780, and shall be sold Y
any person applying therefor. prefer
ence being given to those desiring SINAI
investments. All monies received D
the bureau Of credits from the sale o
such bonds shall be converted into tn
fund of 100000 to be used IN tn
payment Of mortgages as they may b
presented In cases OF default OF tn
payment Of principal or Interest. IN
bill provides that the commissioner
rural credits shall make foreclosur
according to the laws OF the state
which the land is situated.
The purpose Of the act is not ON
IN secure anu facilitate the borrowin
OF money upon agricultural lands
reasonable rates of interest but to al
ford a means for those desiring sal
Investments.
The bill provides that so long as tt
h,reau shall be able to dispose Of II
: bonds at par it shall accept mortgag.
. presented to any extent above Il