Williston graphic. (Williston, Williams County, N.D.) 1895-1919, 1916-08-31
UNIVERSAL INTEREST
IN FARM LOAN LAW
COUNTY AGENT OFFERS SERV-
ICES TO COMMUNITIES -
BOARD AT FARGO SEPT. l

general interest or called forth so
much comment as the federal farm
loan or rural credit law.
There is much evidence of desire
on the part of land owners and
prospective land owners to learn the
provisions of the law with view to
availing themselves of it's benefits.
The Importance of more and cheap
er capital for development enterprises
is recognized by the Better Farming
organization and County Agent E. w.
Hall makes the following announce
ment:
preliminary work is being done by
the Federal Farm Loan Board in
starting the new federal farm loan
system. The system should be ready
for business by January first, 1917.
Will Help Organization
"Many farmers are too busy to
study this system and find out how
they may obtain the full benefit of
the same and what their part is in
making it success. The county ag-
ricultural agent for Williams County
offers his services to any farmers
club or community of farmers, wheth-
er they have club or not to explain
the law to them and help them organ
ize National Farm Loan Associations.
eff the law is to be success, far
mers generally should take an inter-
est in it and be ready when the sys-
tenn is ready for operation to do their
share in making the farm loan sys
! tenn of use to Williams county.
"Only by having the support of the
! farmer for whom the bill was formed
can the system expect to succeed.
! The Federal Farm Loan Board
holds a hearing in Fargo September
to gather information relative to
North Dakota. The members Of the
board are Hon. VIM. G.. McAdoo, Sec
retary of the Treasury; Geo. w. Nor
ris, Farm Loan Commissioner; Her
bert Quick, Capt. w S. E. Smith,
and C. E. Lobdell.
In statement sent out for publi-
cation the board says:
"The new Federal Farm Loan Act
will do for the farmer what the Fed
eral Reserve Act is doing for the bus
mess man. Under it the Government
provides the machinery for assem-
bling capital to be loaned to farm
owners or prospective farm owners,
on first mortgage farm security. The
loans cannot exceed SO per cent of
the value of the land and 20 per cent
of the value of the permanent i'm
provements. The loans will be made
at a low rate of interest not yet de-
termined, but not over 6 per cent, and
provision is made for the borrower
to pay off the loan and interest in
small annual or semi-annual pay
ments at his option, during a period
of not less than five nor more than
fo ha,
! selves Of the benefits Of the law,
groups of ten or more to obtain A
charter as a farm loan association,
and thereafter application for loans
can be made through it to one of the
twelve Federal land banks. The land
will then be appraised, and if it meets
requirements, the loans will be made.
"The new legislation is expected to
prove q great boon to those sections
Of, the country where development has
been retarded because Of high inter
est rates, and it is predicted that it
will have the effect of making agri
cultural prosperity permanent and
uniform, stabilizing land values, and
Greatly improving general farm con-
ditions.'
Basis of the System
In an explanatory comment on the
new law the Dakota Farmer says:
"The Federal Farm Loan Law does
not create credit. The man who had
no credit; the man who was not en-
fore the enactment of this law will
be in no way affected by it's provision
or by the workings of the machinery
thereby set up.
"This law is designed merely to !;
make more available the credit which ,
man already has, and make the
realization of a loan, based upon that I
credit, cheaper and for longer Pc
riod than it has been hitherto.
Those who already own land may
borrow under this laws provisionsan
amount equal to one-ha]f it's value
together with one-fifth the value of
the insurable permanent improve
mepts thereon.
"Those who wish to purchase q
farm with the assistance of loan t"
be secured through the machinery of
this law, must have cash or outside
credit sufficient to take care of the
balance Of the purchase price of the
land and also have, or purchase with
cash or credit from other sources,
the necessary farm implements and .
livestock, and also have enough cash
or outside resources or credit to car
ry on farming operations until the
farm pays out"
Patronage Necessary
BY the provisions Of the act the
amount of capital the government
can invest in each of the twelve farm
land banks is limited to $4,000. and
the bonds that the banks will float
must largely be bought by private
capital and to induce such invest
ments there must be substantial
Of paying volume of bust
nes. In other words, the new system
TO succeed must used.