The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1916-08-31

Ine IeneIal IdTn loan ACT was dp-
proved July II. 1916. 1t endeavors
to provide funds for actual farmers
for use in agricultural development
similar to the way the federal reserve
system, adopted some time ago,
serves merchants and banks in bene-
fitting the industrial interests of the
country.
The federal farm loan act is to be
: administered as a department of the
United States treasury under the
supervision of federal farm loan
board This board consists of a sec
rotary, w. G. McAdoo, who IS ex
oficio a member and chairman
Charles E. LobdeIl of Great Bend,
Kansas; Geo. w. Norris OF Philadel-
phia, Pa W. S. a. Smith of Sioux
City. Iowa, and Herbert Quick of
Berkeley Springs, West Va. No one
serving on this board can in any
manner be identified with any bank
or anyone engaged in the business or
making or selling farm mortgages.
This board is TO prescribe the rules
and the procedure for carrying out
the provisions of the act 1t is now
engaged In dividing the continental ter
ritoSy Of the United States into
twelve federal land bank districts.
Thu system contemplates twelve
national farm loan associations. Each
of the twelve federal land bank dis,
tricts shall have q federal land bank
The te uporary organization Of
federal land bank may be conducted
by five directors who are appointed
q1y The federal farm loan board, but
as soon a the federal Land bank has
100000 OF capital subscribed the
directors ttnd officers then become
elective. sHx of the nine directors
are elected by the national farm loan
association within that land bank dis
trict and ate called local directors.
Three other directors are appointed
by the federal farm land board and
are called district directors. No di-
rector Of a federal land bank can
during his term OF office be asso-
ciated. directly or Indirectly, in the
banking busiIiees or in the business
OF making or selling farm mortgages
Each federal land bank shall have
. capital OF not less than $4,000,
divided into shares OF $500 each
These shares may be subscribed by
individuals. national farm loan aseo-
Citations. by the state or federal gov
eminent. After the stock books are
opened, II the minimum cadtaiiza-
ton above named is not subscribed by
individuals Within thirty days, 1t is
made the duty OF the secretary OF the
treasury to subscribe the balance
thereof The United States govern
rnent fs 10 receive no dividends on
any stock It may OWL Dividends, II
earned, viii be paid on the other stock
issued to individuals or ta<m loan
associations.
National farm loan associations
can h, oreauized only by bonafide
farmers desiring to borrow money on
farm mortgage security and are or.
ganized within the federal land bank
district. Each Of these loan assocdar
lions must have not less than dve
directors, q loan committee OF three
members and the other usual officers,
the principal one OF which Is the sec
retary-reasurer. The secretary-treas-
rer need not be etockholder and Is
charged with the keeping Of the REQ
ords OF thu association and with the
transaction OF practically all OF It's
business
These farm loan associations must
be organized by at least ten persons
each Of whom must be DESTROYS OF
making loan of not less than 800
and not more than $4,000 with an
aggregate OF not less than $4,000.
Each OF whom must subscribe for
five per centnm OF the ahrcunt Of the
loan desired IN stock In the farm
loan association. No person but
borrowers On farm land mortgages
can be shareholders In the national
farm loan associations and each share
OF stock Is OF the par value of $500.
The association may in its articles
of association provide for an increase
IN membership and VIII have the
right to accept or reject applications
for membership.
Zach national farm loan associa-
ton must endorse and become liable