Daily capital journal. (Salem, Oregon) 1903-1919, 1916-04-21
COMMITTEE OUTLINES
RURAL CREDIT PLANS.
Amendment to Constitution
Proposed to Make Sys-
tenn Possible

Stltuuohal amendment providing for
system of rural credits has been com
pleted by the committee appointed by
the state credits conference at Salen.
las month and will be submitted to
the voters at the election next 10.
Vmbcr.
Members Of the committee that draft
I'd the measure are: c. L. Sp. nee, mas.
ter of the State Grange; J. o. Brown,
o''sident of the Farmers UiLcp and
:. II. Buchard, president Of the Ore
gon Federation Of Lapor.
The essential particulars of tha hll
are as follows: Administration OF the
/ rural credits system shall be ~ The
hands of the State Land Board, con
sisting of the governor, the secretary
OF state aud the state treasurer. The
board is authorized to issue bonds not
to exceed two per cent of the assessed
valuation Of the state in denominatians
ranging from S25 to $4,000, and in
series of 100000 each. The bonds are
to run from 10 to 80 years to bear
four per cent interest They are to be
exempt from taxation and to be Sc.
curity for all public funds. The in
tegest and principal are guaranteed by
the state.
Loans on Property Provided.
Loans are to be made ON property,
approved by the board, and on first
mortgage Of trust deed security, but
no loan shall exceed 80 per cent of the
appraised value of the land, nor $50 on
any one acre, nor $4,000, il the aggre.
gate, to any one individual
An amortization plan is provided to
liquidate the debt in from 10 to 30
years. The equal annual payments are
to cover interest, principal, apportion-
ments to a reserve fund and operating
expenses.
Interest on the loansD shall be one per
cent higher than the interest on the
bonds, thus providing the reserve fund
and operating expenses. 'phe reserve
fund is to meet losses and its funds are
to be invested in the state $ own rural
credit bonds, the proceeds from which
again are to revert to the reserve
( fund.
Amount Of Interest Specified.
Applicants for loans must pay one.
half of one per cent Of the principal
! that they apply for. this novmopt ia
cover the cost of nrcriminorv mycsti.
cations.
j The text Of the bill in full follows:
In addition to tbe riohts confcrrcd
upon the legislative assembly to lena
the credit Of the state found in section
seven of article eleven Of the constitu.
tiOn of Oregon, the state land board ia
berobv amneu,orod a. o,,J I,Ii "t'ti.-t DG'tI 10
svefo, of farn, '',' ''''li Io'',.'.o''
boroipoftor .a,.;SaJ 'e''' Tl Ti,,,ol llo Terms
board sbotI ;sa,,o U, iueI' ,,I an NY S.u'o lanu
oral oblioatiom III, e ", pi'uEu gen.
Orooon * ba fio' ino'n poru' % ..n lnc S.a'e OF
oro5;t 49,, N,'0"n 40 O'osoh Iarm
aaoi Doliua Al az! amount NOT TO eN-
80 w P9i Ieuu VI lue assessed Valua-
M 1,G,a ~ az tIe property IN tne STATE.
it.o iioao po,lus s, slall DC issued IN denomin-
@,,ooS mn9o Vi w. TloU' $ouO, $LOOo and
qio'UoV' ana III series or Tl0OOOO or
multlples thereof. They shall be drawn
TO mature IN from 10 to 30 years, and
sIlail pear interest at the rate Of four
per cent per anngm, payable annually.
Ihey snail be exempt from all iuScs
leVieed by the state of Oregon or any
OF It's subdivisions, and shall be secur-
n.y. lor all public funds
Ihe interest and principal Of Oregon
laim cf' at Bends shall be uncOEiit1n.
any guaranteed by the state of Oregon,
Each series of bonds shall be issued and
sold or pledged only upon receipt Of ap-
lfroyel applications for like amotmt
Z INF NNA 1taAA To-. 1.