Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1915-02-18
NEW BANKING BILL
MEASURE PROVIDES FOR THE
STARTING OF FARM MORT.
GAGE BANKS.
BEFORE SENATE AND HOUSE
institutions VIII BE Enabled to Loan
on Land In Iowa Amounts Not to
Exceed one-half Of the Actual Val
We OF the Premises.

| Des Moines.--Senator Voorhees, OF
Cass introduced bill in the senate
providing for the incorporation OF
state farm mortgage banks. A SINH
lar measure was presented in the
house simultaneously by Representa-
tive Smith of Cass.
The measure provides for the in
corporation of state farm mortgage
banks under the general banking
laws. These banks will make loans
under state supervision on farms In
Iowa at not to exceed one-half of their
value, but will not be allowed to re-
ceive deposits. The mortgages will
be deposited with the auditor OF
state and bonds issued against them.
Such bonds will be secured in the
first place by the mortgages SO de-
| posted and further by the capital OF
| the banks making the loan. The
farm mortgage banks may not issue
bonds to exceed twenty times their
paid up capital and surplus.
The bill provides for rigid inspec-
ton of the banks and also careful SUI
pervision of the loans. It is copied
to large extent from like institu-
tions in Germany that have been in
operation for 140 years. The bonds
Of such institutions are a favorite
form of investment and command
lower rate Of interest than the bonds
of railroad companies and industrial
corporations, II is said.
In addition to the advantage of
selling bonds instead of mortgages,
the loans are made for a longer time
than is now practiced. Loans may be
made on the mortization plan, that is,
instead of paying the entire loan at
the end of term of years, part of
the principal of the loan in addition
to the interest, is paid annually.
Advocates of the measure declare
that the Iowa farmer, having secur-
ity as good as any in the world,
should obtain as low a rate Of in
terest as other industries. Iowa
farmers are not able at the present
time to borrow money on their farms
at lower rate than about per
cent interest.
The bill provides that banks may
be organized with not less than $780,
600 capital Each loan will be ex-
amined by an expert land man en-
ployed by the state auditor. The
idea is to throw all the safeguards
possible around the making of loans
and the issuing of the bonds so that
the investor will feel perfectly safe
in buying bonds.
cosson Wants State Police.
Attorney General Cosson appeared
before the house committee on police
regulations to max plea for crea-
tion OF state detective force under
his department.
Even If only one or two men can
be employed as state police officers
with power to make arrests the ef-
feet upon law enforcement in Iowa
will be most beneficial, the attorney
general declared. Knowing that the
state is likely to take hand In
hunting down criminals unless they
perform their duty, city and county
officials will be more likely to per-
form their work efficiently.
The attorney general declared that
the officers would not be employed
to enforce the liquor laws alone and
cited several cases in which the de-
partment has taken a hand In the
enforcement of other laws in vari-
tatn
would be able to save their salaries
over and over again to the state, he
said.
The weakness of our handling of
the criminal laws is that the state
proper doesn't assume responsibility
for law enforcement II makes the
laws and interprets them but leaves
the actual enforcement to city and
county officers.
Dry Measure Recommended.
Judiciary committee No. Of the
senate recommended for passage a
bill by Whitmore of Ottumwa de-
signed to aid the "drys' in contest
ing saloon statements of consent.
The measure compels persons to
testify before boards of supervisors
and district judges but exempts them
from prosecution where the matter
sought to be elected would render
them criminally liable.
According to Senator Whitmore,
1t is now difficult to secure testimony
of persons who sign saloon petitions
away from home They will be fore
ed to testify in order that circulators
OF petitions who make affidavit that
the signature was attached in their
presence may be prosecuted.
Term for School superintendents.
Under the provisions of the bill
by Representative Cochrane OF Ad-
ans county passed in the house,
school superintendent may be EN-.
ployed for period up to three years.
1t is expected that under the. new
law, greater degree of efficiency in
school superintendent will follow
and a more equitable arrangement
entered into between the superintend-
ent and the school beard that en-
ploys him or her. The old law, per-
mits a superintendent to be en-
ployed only for period OF one year
Child Labor Laws.
An amendment was offered to the
child labor laws to forbid employment
OF children under 16 years Of age In
hazardous work, and employment OF
children under IA in any sort of daily
labor.