The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1916-08-11


l,.s..5 an thase MORTGAGES, sell such
bonds IA the 0Ien market aud use the
money thus obtained 70 lend on othef
mortgages.
+ This process ~ hndlns 60 MORTGAGES
and Selling bonds II issues 81 $500
ma IL repeated until bonds 20 the
amount o. twenty times tie hank
paid up capital are oSastanding. II
each bank shcuid have only is re
qulret minimum paid up capital OF
$4,000 this plan VIII provide eyentu-
ally. IL ali the authorized bonds q
the twelve banks are sold. over slsp.-
OoO.oDO 70 lend ON hrst mortgages on
farm land. The hanks, however, can
Increase their capital stock above The
required minimum and 80 increase the
amount o. bonds they can sell and thus
increase the total amount q money
available for loans On farm nortSages
To make these bonds attractive 10 In
yeStor. the bonds. together with the
mortgages upon Nhsch they are besed,
are EXEMPTED from federal state. mo
uIcipaI and local TAXATION and are
made leEHI investments fer ndnea.Fy
and trust funds he caIttAI stock o.
the federal and banks Is also exempt
from taxation. Peierai rs-e-ve banks
and member tanks % that system are
empowered u buy and ssii these bn1sis
TAey arr % t-e sssErd IN dencrpinAiAnns
q so. so SOU. 500 and SlJpO
orssniIstien o. BSnkA
ne temporary nanasrmeut q TIE
ctsierai lAnd tanks : 70 - IN the
bands q nvs directors aVpstnted by
the ft-Hr-al farm loan boani As soon,
hywe1yr. a. the satsrrirtions rrotn the
loan a<~pciAtSpn- total tlGnnD regular
director an % = appu'ntt-4 ~ ~
Fo~s Thr- ii-rr1-t f;r-rUrs. rrsSdeni
in TIE ii-sFtc1. stall - s9lstBtri By
the nslierHi farm ksn tnsrd 70 rfSN
s1t TIE p--.Or inter--l and 81 b+-l
dsncto-N. rrrsieni n The ci-frtrt. ss-all
he elss-t-d ~ t,r farm kan ss-s-ia
ttuuS Who must ts stuckbui6rr- a. TIE
tank Tn .e.trral cGrIn han huari
shzIl 5sziEElaf- czDs u tts sTS-JsniJ-- a.
sct .. Chairman Tne st r-Euircs
that Il least ono x the tilrss iistrtri
tirr-turs shah - eKT%rfeDss-i IN ftrui
INK and scfr4ily engaged AZ the tins
II hts afsuintDOn; in farming opera
lions w4thin tn iisrrtr+ Ary cofn
per.-t'nr resi u ths tfr-ct-- must
he spF-Dv-i ~ the ,s-is-al farm han
tos-l
Each loan R=ro.tarina rnust hAvr a
haard q directors and se-rtAry
trvsSureE TIE dir-csgrs shA1 serve
without pay. TIE secr~iary -,reasarvr
shall r-Sive such eU1tp-nsation a.
may - determined by the bard % as.
recfo-A The Association muss app5tat
an appraisal committee for the pur.
pose q vaIuinE lands orer~i a. -
curi,y for loans. No member % soch
committce shah have Ahy interest ~
the property upoa which ~ passe<
To prvvsie funds Tor cuTeat II
pense- The lcaH Es-ociarr1 mar ~
tain a. = eosnmission from zach inter
- payrneaf not q eIcr--l our-elrhth
% per cent senianuuaily upon The
unIsid prinriral % the laaa This
eumHissssn Is 20 y defBcse-i fron tn
dfvf5ends payHhNs 70 ruca farm. sasa
association by the federal land hank
II the commissions are oof a5eJ1Ais
and an as~o-iatinn dos NJ wish C.
sssess mesniers Cor currrnt e1P-1zes
II may borrow q; 8 pr cu1; frurn tbe
s-ter1l lard hank % an aE1Oun, no &c
exceed n The aggregate ono fourth %
is hank stock
Ine law rHFuirys both the land
bznks ard thc farm Kan associations
20 make TruvtSs0n for csr7ain reserves
before 'hey can ray sny dfv1aenis
In secftn1s where local conditions Do
u-ct make the formation % as~s4ations
T-aet'csble the farm loan hos-i may
surhU-tze the federal land hank 70
make iosns through agrufs approved
hy the board Tbe=e aEpnts Gre 20 -
banks trust COMPARES mo-Eaee com.
psnies o. savings iastttutsuns chartered
by TIM state They mar rys~ire n
c"rnrenssti0n the actaal eKg---.e n
vn,vES n t-Nn~s~ttrsg ,f- han and n
adttlgn tis-e-o sim nj % eIresd
r-s-half - pr cv-r, ~ .rnum %
the unT..1 Trfn-i?al q IRE ir.ns made
-Aru-Zn ,t~-n whrn tn farrn loar
board d~c:ip~ tlat = tsrlf-y = .8e
Tusfeiy $--rs- ~ farm irsn sSSccia
Gus ~ sH7ir- han. s-e % u mad
thrurgb sFv-its
IN sdfirSp % ~ s-seza e tv-.-
'esirENl ha-d tsnfs mi ~ rsr.c-aI
aArTn SH1 s~n1ssSre = t.-reryrs
~ At rr-Es-S N sHnbyhAusei, -
fszt stsCt NA1n hzrAs ans ssst~f-,~
tim - csrTy % o. r-S-fn~-s - ls-7pd-
tx f.rr-f1 . hrr-sr ~ sarn
znr,E.sS rec1u4-y aud i.S.a,AS farm
Nua rSsA Ts h.rs. nru-t havr .
csIsrsl - No 49, han F-nO0 rsry
sre rnsrg IN ~-tp~rr1-aT-n % ~ fri
erli -srn lasn l-.ri b-Y, ~ gwen,
ra-rf ds-s us l--ri thssn any nrnn-i.i
s<ss.tar-rp,
I3srs-sI p-oSSstvns-
Tee hN'. tsrrnrh fNe farm Ioan
hnerd- E--Vvties he ucc-ssary ns~hin
erT for frrQarnt sxsminatiunS .. ,hs
fSnss and ttc es-ciatias .tr me
r-scr cancellatsop ~ mortgages ana
faF TIE safe custody n rnortsas-- ~
serel as s.--uriir fo- hor.as w,,c,