The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1916-05-26

or two as in the case OF the French
rural credit system. the Farm Loan
Board. the land banks and the local as
sotiaLIoha- Inc act provides for divid-
Ing the continental United States into
I wtlFc districts. IN each OF which shall
be situated one Federal land bank
Ihese Federal land banks issue deben-
lures and thereby reach the investor.
lhe BORROWER comes into immediate con-
TACT with the system through farm loan
associations. which are local assocla-
tons OF borrowers. These borrowers
composc and control these farm loan
associations only borrowers can be
in, mocrs. The borrower makes his an
pAcatiun for a loan through his associa-
tion 10 the land bank. which lends him
me money. TINS money comes. in the
hrst place, from the capital stock OF the
1 cderal land banks which may be sub
scrlucd by private individuals or by the
United states Government. but as the
Ststem becomes established these mort
sage loans will be used bv the Land
banks as the basis OF an issue OF de-
b~entures which viii be offered TO the in
weston. These de h~eutureE run for sns.f-
ned minimum and maximum periods.
mat Is. ihey are payable in say not less
than thirty nor more than forty years
and they are subject TO be retired a. the
option or the land bank a. sny time az
ter ten years from the date OF issue.
The first step provided for in the act
- the appointment OF the members of
the Federal Farm Loan Board. ana the
districtins Of the United States aud the
establishment OF n Federal land bank In
~ ANA NAHHNANN % NnRul. EungEWlTFfnna
viii De taken from individuals. firms
Tor corporations fOr the capital stock OF
these land banks. and such part OF the
capital as is not so subscribed for shall
% ldHen by tuc Government Of the
United States. The act then proytdrs
Tor the organization or the local as.o-
.latlons known ss national farm loan as
H''iailpts. Ten or more natural u.r-
sons who are the owners. or about 10 he
come the owners. OF farm land may
unite 90 form such association. They
IaEE" nHEE-"LMa a.
nud a secretary and treasurer WbI.b
9Ulcers may be united m one person 50
I'ah can De made 90 any person for
more than $4,000. and the aee.rtar.r
in making lts application 90 the lind
hahh mus apply Tor loans aEErsgauue
az i''st 100000. With each ludtviduars
scribe and pay for stock IN ne a...r'.
ton equal to 3 ger cent ~ his loan RI.
ah~-"'lation. IA its application 20 tho land
bank. aubscribes with this monrv f, tr
stock 81 tho land bank. fhue fI. .--
.divldual borrower becomee "a -
Icr IN tho farm loan association ana ne
b1f55 =" s~-7o.iail'h becomes .s share
neld,r DO tho land hanA and an, pro.
'hts lu The land bank prc dflfrfbuf.i t,
tIlN mean. fp The borrowers. Whom tr.
loan De- paid the borrower s-grr.rd.r.
or from the association.
Many of you have IN your banks
%. ,'~iI9Lfiion9 hearinE interest az
ror7fiong in tho United states
10 say. are as sound as No dolertr-t
- the lnrm land banks Will b.. Reside.
federal state asnd local tassffa1 IN
ffni VII make them far more Frrt..Lr.
"a. "ther bonds bearing a higher rate
"ln Europe there cvist private .a.p,
stock bands making farm loans or.
ere independent of fhf rlHII. I4rla
tn0uFh they arc .ud,r close a.,.-u
mental supervision and control fY .-
raj 'r.difT hHI 30 fe Intended fl bring