The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-05-15
THE RURAL CREDITS PLAN

In the American Review of Re-
views for May, Paul V. Collins has an
interesting article entitled Farming
and World Crisis" in which he ex-
plains some of the essential features
OF the rural credits legislation that
has been undertaken in congress Ex
cerpts follow:
Each District Federal Land bank
will issue charters to local Farm Loan
associations in it's district: or, in the
absence of such an association in any
neighborhood, may appoint a local
oank' or other agency, to fulfill the
functions of such an association. The
intent, however, is to encourage the
organization of these local Farm Loan
associations of the farmer-borroWers
themselves, in every neighborhood.
which will make them independent of
the local banks, and give the borrow
ers. comparatively, control of the
financing of the farms in their neigh
borhood.
Any ten, or more, farmers who want
to borrow on first mortgages on their
farms, may organize a local Farm
Loan association, chartered by the
Federal Land bank of the district.
Only farmers, who want to borrow.
can belong to a loan association. and.
after such an association is organized.
no one can join unless he is voted in
by the existing members.
1t is the function of each Farm Loan
association to appraise the land of its
members, and recommend the charac-
ters of the applicants for loans; and.
later, to see that the borrowed money
is used only for the purchase or de-
Velopment of land, or the purchase of
machinery or live stock for the farm
of the borrower. None of the borrow
ed money can be used for any outside
purposes. whatsoever; and, if a farmer
undertakes to SO misuse his loan, his
mortgage will become due at once.
Loans are made on first MORTGAGES
only, and may be equal to half the
not less than five years, nor more
than thirty-six years.
After the officers and loan commit
tee of local Farm Loan association
shall have appraised a farm offered as
security (and have agreed unanimous
ly on the value), and have recon-
mended the character of the borrow
er and the use he intends to make of
the funds borrowed, the application
will be forwarded to the Federal Land
bank of that district. The Federal
Land bank then will send out an ap-
praiser from headquarters, who will
investigate and appraise the security
and pass on the loan
The Federal land harl- @Aon ill
lend the money. not to the farmer,
but to the local Farm Loan association
of which the borrower is a member.
IN exchange for the mortgage en-
dorsed by the Farm Loan association,
with certain Federal Land bank stock
to be bought by the Loan association,
as additional collateral, to be here
after described. The borrower then
will receive the money through his
local loan association, of which he
and all other members are stockhold-
ers. subject to double Cor sometimes
unlimited) liability on their stock, ac-
cording to which plan Qimited or un-
limited liability the Loan association
has adopted. Loans are made only to
actual farmers who are farming their
land-they are not open to absentee
landlords who farm by tenants.
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If you haven't the price to pay for
what you eat these days at the res
taurant at Gridley, you don't eat, as
these notices or advertisements in the
Gridley Light indicate: Hereafter
terms will be cash at the Restaurant
We need your trade but we must have
the cash. Owing to so many
strangers during the hay season. we
must treat all alike. Cash talks at the
Restaurant.