The Cordova daily times., 1916-08-15
FARM LOAN ACT PASSED BY
 CONGRESS

WASflNb loAN, aug. lo' Aitoi many years of investigation and de- bate to develop the best method of providing financial aid for the far mer at normal interest rates and on long time, congress has passed Farm Loan Act. President Wilson has named members of the board which will administer it's provisions. and the work of organizing the vast new sys- tenn is about to begin.
 Secretary McAdoo, ex-official mem- Der of the farm land board, which will be at the head of the system, pre- diets that it cannot be in operation for at least six months and probably loans cannot be be made before next spring.
 In operation the system to some ex- tendent will do for the farmer what the federal reserve system does for the business man. The farmer will be given opportunity to secure money on his most available commodity, his land, just as the merchant and the manufacturer has been enabled through the federal reserve system to have his paper. based on commercial transactions, find a ready market.
 The new scheme has many points of resemblance to the federal reserve system, but in many essential features it is entirely different In no way will the banks created under it do commercial banking. and while it is possible that years to come they may have funds to loan that will amount of several hundred million dollars, 1t is believed probable that the system ever will have the resources of the reserve system.
 The act provided for a division of continental United States into twelve land bank districts. with a federal land bank in each. The work of de- signating these districts and select ing the centers at which the loan banks are to be located will be the first duty of the farm loan board, and Is expected to result in just as many bitter contests as preceded the an nouncement of the lines of the twelve federal reserve districts and the To- cation of the federal reserve banks. The only directory provision in the farm loan act says that land banks shall be located with particular refer ence to the farm loan needs of the country. so the board will have wide discretion. Many applications from cities, particularly in the northwest and southwest. already. have been filed in the treasury. but the board will not make public it's conclusions until 1t has travelled over the coun try and held hearings in many states
 Each federal land bank must have a minimum subscribed capital of $750.- 900 before it can start business. If within thirty days after books are opened for subscriptions to the stock nf hon nly fvH {uiA lc nP corporations have not subscribed that amount the secretary of the treasury is directed to subscribe for the United States in the needed sums. Stock in the banks may pay dividends when earned, but the United States as a stockholder cannot participate with others.
 The banks will not, except in spec ial cases, loan direct to farmers, but through the agency of National Farm Loan Associations, which may be or ganized, to any number in land bank district by any ten owners or prospec- tive owners of farm land who desire to secure loans on farm property. Ap- plications for charter for these as- sociations must go to the farm land board and may be refused by it. No association will be chartered unless it is shown that the signing members desire loans totaling at least $20,O00.
 In applying for membership in an association, farmer must take five per cent of the face value of the de- sired loan in stock of the association.
 Applications for loans are to be passed upon by loan committee of the Farm Loan Association. Loans will be made only on first mortgages or farm property. and the value of the land will be the main consider ation. The land will be subject to inspection by an appraiser of the farm land board. Loans will be made only for purchase of land, for its i'm provement or for purchase of live L,.ooi ao,inrnant sartilizars ar to