The Farmington times., 1916-07-07

askeo regarding the Dill
LESSON
Q.-What is the Gardner Land
Bank Bill?
A measure passed by the last
Legislature and signed by the Coy
ernor, to establish Missouri state
land bank through which farmers may
borrow money at low rates Of inter
est.
Q.-Why is it to be submitted al
the November election under the
initiative and referendum and be
come effective December |, 1916?
A.--To let all the people vote on it.
settle all questions of constitutions
ality and avoid litigation.
Q.--How is the bank TO be started?
Alt is to be incorporated, with
out shares of stock, and the state
is to appropriate as a loan out of the
state treasury one million dollars
($1,OO0,O0O) as working capital The
assets are to be exempt from all taxes
Q.--How will the bank be man
aged?
Economically, by using state
machinery now in existence.
Q.-Who will be the officers?
A.-The Governor, Attorney Gen
eral, Secretary of State, Auditor and
State Treasurer. For special serv-
ices, county officers will be called
upon at no additional expense.
O., Who will be The managing di
rector?
A.-The State Bank Examiner, al
ready under salary.
Q.-Where will the bank be 10
Gated?
A.-At the state capital, in con
nection with the Bank Examiners Of
flee. His clerks would do the clerical
work along with their other duties
If additional clerks are required they
would be paid out of the banks funds
Q.-Would there be any salaried Of
ficers?
A.-No, except the appraisers. AL
officers who handle funds would be
bonded. The state would be divided
into districts as economically as pos
sible. and appraisers appointed aS
needed. These men would pass OF
the cash value Of the land, with the
assistance of the county officers
and would draw $4,000 year salary
and travelling expenses.
MAKING THE LOANS.
Q.-How are the loans to be made
to the farmers?
AIN amounts not in excess O
half the cash value of the land, the
bank taking notes secured by deeds
OF trust or mortgages on the prop
erty.
Q.-What are the limitations of the
loans?
A.-No loan shall be for less thar
$3.50, nor more than $4,000, and fol
periods of not less than five year,
nor more than twenty-five years. Pref
erence would be given to the smallei
loans to develop small farms.
Q.-Must the borrower use the mon
ey in a certain way?
A.-Yes, 1t is not for speculation
The purpose of the loans is to max,
the land more productive-to max,
mprovements-to pay off liens or in
cumbrances (probably where ex
horbitant interest has been paid here
tofore), and twenty-five per cent C
the loan may be used for buying stool
and machinery
Q.--Could the loan be repaid at an.
time?
A.-AlI or part of the loan may b.
repaid at any interest period.
Q.--And Whit about the interes
charges?
A.--The interest would be four ant
three-tenths of one per cent, one hal
of one per cent Of which is to g
to create sinking or reserve fund
PAYING OFF THE LOAN.
Q.-What about the annual pay
ments on interest and principal? Say
for instance, on the $100 basis?
A.-On $100 for five years the an
nual payment on both principal an
interest would be S22.40. For tel
year loan. s12.4O year, and so o.
up to twenty-five years when tn
yearly payments on principal ant
everything would be s6.5
year, on the $780,
Q,-Why is this system of payment
best2
A.-Because It permits the farme
to gradually pay off the loan from hi
profits and not from his capital.
Q.-How would the bank get at
ditional funds after the appropriation
from the state is loaned out?
(Adve