Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-08-22

land. With the affidavit there must
also be 4 subscription Of stock in the
federal land bank, equal to five per
cent. Of the aggregate sum desired on
mortgage loans. Loans will be made
only on first mortgages on farm prop
erty, and the value Of the land will be
the main consideration. Loans will
only be made for the purchase OF land
or its improvements, for the purchase
Of live stock, equipment or fertilizers
to provide buildings, or to liquidate
indebtedness existing when the hrst
association is formed in the district
where land is located.
| Any person desiring to borrow on
farm land mortgages through a loan
association is obliged to make appiiea-
ton for membership and must SUBJ
scribe for shares of stock in the asso-
citation in an amount equal to per
cent. Of desired loan. For each $1OO OF
the face of the loan, the applicant must
become owner Of one share OF capital
stock in the association. National
Farm Loan Associations must endorse,
and thereby become liable, for the pay
ment Of mortgages taken from its share
holders by the Federal Land Bank OF
the district.
No loans are to be made to any per-
son who is not at the time, or expects
shortly to become, engaged IN the Gull
tivation Of the land mortgaged.
The hearing in Augusta was the
first to be held before the federal farm
loan board and the board intends to
work west to the Pacific coast, Sc
curing it's information first hand and
not relying upon statistics. Secretary
McAdoo stated that the board was
willing to hold another meeting in
Augusta if it was necessary. There
was at attendance Of about 80 at
Mondays hearing.
In opening the hearing Secretary
McAdoo explained the purpose of the
federal farm loan act and the work
which the board is carrying. out by
holding these hearings.
Farm Loan Commissioner George
wv. Norris spoke of the features of the
act and stated that the general plan
of the National Farm Loan Associa-
ton was much like that of the Build
ing & Loan Associations.
William J. Thompson
William ]. Thompson of China,
master Of the Maine State Grange,
gave the first testimony at the hear
ing, saying that in Maine the farm
ers are not suffering from high rates
of interest by the banks and national
banks. The prevailing rate of interest
in Maine is six per cent, according to
Mr.. Thompson's testimony, although
some years ago in one section of the
State it was as high as seven or eight
per cent. And he spoke of the need in
Maine of short-time loans, the chance
to borrow a few hundred dollars for
the season. He thought one reason
why the act is not particularly APP
plicable to Maine was the fact that
we have so few dependent farmers.
Moreover there is great difficulty in
lobtaining a uniform value on farms in
this State He said through the West
farms are more uniform in value and
he stated that he thought that the
farm loan act would be more applic-
liable west and south.
Dr.. G. M. Twitcheil
DR.. G. NJ. Twitchell of Monmouth
testified that the people of New Eng
land are a conservative class and it
is almost impossible to unite the
farmers in any form of work because
farmers as rule are independent.
The need. according to DR.. Twitchell.
is to cultivate a spirit of individual
ity and not a spirit of dependence He
read a clipping from an Ohio paper
which criticised the act as being cum
bersome, to which Secretary McAdoo
hat no
Gle probably was not familiar with all
the details. DR.. Twitchell does not be-
lieve in having the rate of interest so
reduced as to incur or invite more
debts among farmers.
Charles r. FIagg
Charles F. Flagg of Portland, pres
ident of the State Board of Trade, tes-
titled that in his opinion the city peo-
pie ought to cooperate in benefitting
the farmers. He believed that cooper
! alton among farmers was necessary
ard that it may be brought about
through this act. And he stated that
Maine was an industrial State more
than an agricultural. To the question
asked by Secretary McAdoo as to how
large district should be included in
that in which Maine is a part, Mr..
Flaeg answered, "all of New England"
In his opinion the farmers become sys-
tematic and business-like the more
readily as they borrow money because
there will be greater certainty of pay
ing it.
Mr.. Thompson said that Aroostook
county is going into farming as a bus
mess. He thought many mortgages in
Maine were in the hands of individu-
ais instead of at banks.
Bank Commissioner Vernon
State Bank Commissioner Irving E.
Vernon stated that the rates on mort
cages in Maine varied from to 9 per
cent, that most were to per cent.
in western and southern Maine, often
times per cent. in Aroostook county
and per cent. in northern Penobscot.
He believes there is great need Of
cheaper money in Maine for the farm