The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-10-01
FARM LOAN FRAUDS

FARM LOAN FRAUDS.
Farmers who look uncovetously on gold
bricks, aren't interested in the peregrina-
tions of the little pea, and are excited to a
gentle boredom by the earnest explanation
of the green goods man, need not think
themselves wise in their day and genera
tion until they have learned to. detect the
Farm Loan Fraud
Even before the governments great bill
was passed, well known stock manipuiators
announced their intention to organize Farm
Loan Associations They are now at work
in certain parts of the South, and the matter;
has become so serious that the Farm Loan
Board has issued a warning as follows:
Information has come to the treasury depart
parties are soliciting subscriptions to stock or
carnations under different names, claimed to be
operated under the Federal Farm Loan Act and
asking advance payment of such subscriptions,
especially from farmers.
1.-THE members of the Federal Farm Loan Board
are now absent from Washington engaged in the
work Of organization, holding hearings IN various
cities for the purpose of securing information with
view Of determining the boundaries of twelve
Federal Land Bank districts, and the location OF
one land bank in each district.
THE representation by any person that any
organization is now offering to make loans by
thority Of the Farm Loan Board under the Federal
collect money under such representation is fraud
ulent and is punishable by fine and Imprisonment
under Section 81 of said Act.
ut is desirable that farmers should discuss
among themselves the benefits TO be derived from
the Federal Farm Loan Act and to take prelini-
nary steps for the organization of National Farm
Loan Associations as soon as the Federal Land
Banks have been established but no money should
now be paid in connection Herewith to any person
for stocks or expenses, no matter what the repre-
sentation may be-"
There is no magic in the formation of 1
farm loan association No outside help i.
needed. Nobody not a farmer is eligible 70,
membership. Ten or more men, who wan
| to borrow from 500 to $4,000 each, ane
+ an aggregate of at least $4,000 at six per
lcent interest on time all the way up te
forty years, call a meeting, adopt article
of association, either following the form
furnished by the regional land bank, o
| modified to suit particular requirements
land choose a loan committee of three from
their own number This loan con1mitte,
passes on the land offered as security, an,
submits the proposition to the land bank
FThe land bank sends its own Representative
ITO make another appraisal.
/ There are to be twelve regional Ian,
banks, the location of which will shortly b
determined. The district bank of F1orid
twill probably be at Montgomery.
Farmers can organize at once, but loan
acan not be made until the regional banks ar
festablished
A farmer joining must take shares in til
Iassociationto the amount Of FIVE percent. c
| his loan. IF he wants to borrow 500. h
!. takes SIS in stock, or one share; 500
/ $40, etc
i But he need not pay for his shares unit
he has received the loan He may even ad
i the cost of his shares to the amount of til
loan, providing this does not increase tt
loan above fifty percent of the appraise
tvalue of the land and twenty percent {
the permanent improvements thereon.
i IT therefore any strange person ash
farmers to form farm loan association an
| pay down anything for stock, they shout
4 turn him-over to the police without turtle
hado. q
II