The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-07-30
mary Purpose of Act Is the
|romotion Of Agricultural
Prosperity.
R LONG TIME FUNDS
II REASONABLE RATES
TEN Will Be Operated
through Regional Land
|anks or Through Joint
took Land Banks.

e Federal farm loan act. popular
He'd the Rural credits law" was
I'd by the President and became
Nv on July IL, 1915.
be primary purpose of this act is
fomote agricultural prosperity by
ling farmers to borrow money on
mortgage security a. reason
rate of interest and for relative
Png periods of time. To attain
object. two farm-mortgage sys
are provided: l) A system oper-
through regional lnnd banks,
ca system operating through
stock land banks.
attract money 10 the farm loan
the act provides method where
hose who have money to lend can
safe Investment in the form
ebentures or bonds. of small and
denominations, issued hy the
. and based on the security OF
cages on farm lands.
csc two systems are 70 be under
general supervision ~ a Federal
Loan Board ~ the Treasury be
aent. ~con} posed az THE 'Secretars
be Treasury. rs chairman ex-ofti-
hnd four members appointed by
president. This board has an
ty 20 appoint appraisers, exnmtn-
knd registrars. who will be public
bis
Federal Land Bank System.
der the Federal land hank sys-
the act provides for Federal land
which make loans. for the first
We months. exclusively through
national farm loan associations
|oscd Of borrowers. These asso-
Eas 81 all be shareholders In the
5. and IN that way the members
are the borrowers will share in
brofts Of tho hank The money
he icons j. to come partly from
apitat cf the banks and partly
The Sa,e by the banks OF bonds
cd by FRS mortgages on farm
The ACT defines strictly the
bse for and the conditions under
loans are To- he made. and re-
that The rate Of interest charged
erm loans shall not exceed six
lent per annum.
Twelve Federal Land Banks.
+ United States shall he divided
we've farm-iohn distr,s y. and
raj land bank with hqcrihed
al stock OF not less IA $3.50. 900.
share S.. shall he ,esta.dis 'eea IN
district, Each Federal land bank
establish branches in its district
In thirty days after the capital
is offered for sale it may he
sased at par by anyone. There
the stock remaining unsold shall
ought by the Secretary. OF the
ury for the United States II is
ded, however. that the govern
shall not receive any dividends
stock Ultimately. II ts inteuded
all the stock in the banks shall
vned by the associations of Dor
10, ard provision therefore IS
In the law for transferring the
bal stock at par TO these asso-
ms.
act provides for the creation OF
national farm-loan associations
gh which II is contemplated that
Federal land banks shall make
loans. In the event that a local
association Is not formed in any
~ within year. the Federal
Loan Board may authorize a
nj land bank to make loans on
land through approved agents.
Z more persons who own and Gull
farm land qualified as security
mortgage loan under the act. or
are about to own and cultivate
land. may form such an ASSOC
a, provided the aggregate or the
desired by the membership Is
ess than 10000. Each member
take stock in his association to
mount equivalent to per cent
amount he wishes to borrow.
stock the association holds in
As securi for the mem ber's
dual loan. The association, In
when app ng for money from
bank, must subscribe for stock
bank to an amount equivalent
per cent OF the sum ii wants
Ain for, it's members. This stock
"a in trust by the bank as secur-
the loans 1t makes through the
alton. II a prospective borrow
. no money with which to pay
. association stock. he may bor-
he price of that stock as part
loan on his farm land.
QeI lHIG plan, lbStl, tfcTy Dor
must be a stakeholder in his
association. and every associa-
stakeholder in its district bank.
stakeholder in a association is
for the acts OF that association
twice the amount Of his stock.
How Loans Are Obtained.
member Of q national farm loan
alton, before obtaining a loan.
first fill out an application blank
ed to the loan association by
ederal Farm Loan Board. This
alton blank and other necessary
will then be referred to q
committee of the association
must appraise the property Of
~ security. Such application
Improved by the loan committee
b forwarded to the Federal land
and must be investigated and
led on by salaried appraiser OF
hnk before the loan II granted.
appraiser Is required to investi-
he solvency and character Of the
ective borrower as well as the
OF his land. When a loan Is
bA the amount is forwarded to
brewer through the loan as
lon.
lions Under Which Loans May
De Obtained.
act specifically defines the pur-
for which loans may, be OBJ
Theee ARR; N
10 provtds for the purchase Of
~ aGTi6nltArak uees.
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