Belding banner. (Belding, Mich.) 1889-1918, 1916-08-30

operate in connection with the system.
These banks will be organized along
the same lines as the farm associa-
tons, but they will deal more with the
general public. They will lend money
on farm mortgages, and will issue
bonds which will be sold to small In
vestors.
This rural credits legislation should
have very beneficial effect in equal
izing conditions throughout the coun-
try and making homogeneous ma
ton. Hitherto the capitalists would
avoid loaning money in the poorer and
less developed parts of the country
and would place it mainly in the sec
tons that were already rich and pros
porous.
But the Biblical doctrine was car
ried out, and to those that had it was
given, while from those that had not,
there was taken away what they had.
In this way there has been an unequal
and abnormal distribution of agricul-
tural development. Some regions have
been overdeveloped, while others have
been neglected for the lack of little
sprinkling of that wonderful fertilizer
known as cash.
Under the new system the flood
gates which have hitherto kept the
waters of credit damned up will be
raised and lowered in an orderly way,
and money will flow where it is most
needed. The whole system will be
under the control of federal farm
loan board of five members. The Sec
rotary of the treasury is to be an ex-
officio member, and the law provides
that three of the members shall be of
the majority and the other two of the
minority party.
Secretary of the Treasury McAdoo
is chairman of the board. The other
two Democratic members appointed
by the president are G. w. Norris Of
Philadelphia and Herbert Quick of
Sioux City, Iowa. The Republican
members are w. S. A. Smith, also of
Sioux City, and c. f. Lobdell of Great
Bend, Kansas.
Some of the Republicans in the SEN
ate protested against Smiths confir-
nation because he bolted the Republi-
can party at the last election and vot-
ed the Democratic ticket, but he was
confirmed. The law was passed as a
non-partisan measure, and there were
only 10 votes against it in the house
and five in the senate.
The farm-loan board members are
to receive good fat salaries-namely
$4,000 apiece. There has been some
criticism of the board on that ground
that, as usual, there is too much law
yer and not enough farmer in it.
Norris is a lawyer and social worker.
Quick started out as farmer but
was quick to take up the law instead,
then drifted into the telephone bust
ness and finally reformed and became
an editorial writer. Smith started as
mariner but abandoned the sea and
took to farming, and finally to bank
ing. Lobdell is a prominent judge
and banker, with experience especial
ly on making farm loans.
The board are holding meetings
now, for the purpose of shaping up
plans for getting the new system un-
der way. They expect to make tour
Of the country to start with, to decide
what cities the II farm-loan banks
shall be established in. There is
great rivalry among the different cit
les of this honor. Details of the opef-
alton of the system will not be per-
fected for some months, and those de-
string loans will have to be patient a
while longer. Free copies of the act
can be had by applying to senator or
member of congress-