Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1916-06-08

asked regarding the BILL
LESSON J..
Q.-What is the Gardner Lahu
Bank Bill?
A measure passed by the last
Legislature and signed by the do''
ernor. to establish a Missouri state
land bank through which armers may
borrow money at low rates or Inter
est.
O.-W'hy Is 1t to be submitted at
the November election under the
initiative and referendum n De-
come effective December !, 1916?
A.--To let all the people vote on H.
settle all questions OF constitutions
ality and avoid litigation.
Q.-How is the bank to De starteo.
Alt is to be Incorporated, Win
out shares OF stock, and the state
Is TO appropriate as a loan out OF the
state treasury one million uoilais
,Sl.OOO.O 900, as "a working capital. Inc
assets are to be exempt from ah taxes
Q.-How will the bank be man
aged?
Automatically, BY using state
machinery now in existence.
Q-Wno viii be the officers!
A.-The Governor, Attorney Gen
eral, Secretary VI State, Auditor anu
State Treasurer. For special ser''
ices, county officers will he called
upon at 40 additional expense.
Q. Who viii tie the managing Ill
rector?
A-The State Bank Examiner, al
ready under salary.
Q.--Where will the bank be To-
Gated?
AIT the state capital, in con
nect;on with the Bank Examiners OF
nee. His clerks would do the clerical
work along with their other duties
Ii additional clerks are required theJ
would lie paid cut OF the banks FUNDS
Q.-Wouid there be any salaried OF
ficers? -,
A-No, except the appraisers. Al
officers who handle funds would DC
bonded. The state would be divided
into districts as economically as pos
siple and appraisers appointed a.
needed. These men would pass OIL
the cash value of the land, with ths
assistance Of the county ofricers
and would draT $4,000 a year salary
ami travelling expenses.
MAKING THE LOANS.
Q.-How are the loans to be mad
to the farmers!
Ain amounts not in excess q
half the cash value of the land, I'M
bank taking notes secured ~ deea'
of trust or mortgages on the prop
erty.
O.-What are the limitations OF tn
loans?
A.-No loan shall be for less thai
$3.50, nor more than $4,000, m 10
periods Of not less than five year
nor more than twenty-five years. frel
erence would be given to the smalle
loans to develop small farms.
Q.-Iiust the borrower use the moi
ey in a certain way?
A.--Yes, it is not for speculation
The. purpose OF the loans Is to max
the land more productive--to max
improvements-to pay off liens or II
cumbrances probably where 81
borbitaut interest has been paid here
tofore), and twenty-five per cent G
the loan may be used for buying stoc
and machinery.
Gould the loan be repaid at an
time?
ALL or part Of the loan may b
repaid at any interest period.
O.-And WHIT about the interes
charges?
A.-The interest would be four an
three-tenths Of one per cent, one ma
of one per cent of which Is to :
to create a sinking or reserve fun
PAYING OFF THE LOAN.
Q.-What about the annual pa,
ments on interest and principal? ga,
for instance, on the S100 basis?
A.--On 500 for five years the a
nual payment on both principal an
interest would be S22.40. For a tie
year loan, $12.40 a year, n so Q
I'D to twenty-five years when tn
early payments on principal an
Observation-Disclosures be $751;
a year, on the 500.
? Q.-Why is this system OF paymen'
best?
A.-Recause It permits the FARM
to gradually pay off the loan from h
, profits and not from his capital.
Q.-How would the bank get a
9 ditionai funds after the appropriate
from the state ia loaned out?,