Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1916-09-08

values on the farms OF those mem
bers who are asking for loans.
The report of the loan committee
should also give any other informa-
ton which would help the land bank
to understand conditions in that
community.
Mainkg an Affidavit
With the list of proposed M en-
bcrs, the articles of association, and
the report OF the loan committee, an
affidavit must be made out and be
sent to the federal land bank. This
affidavit must be signed and ac'
knowledged by the members. 1t must
also be signed and acknowledged by
the secretary-treasure whose resi-.
dence and post office address must
also be stated on the affidavit. This
affidavit, thus signed and aclnowl-
edged by the members and the score
each subscriber is the owner of farm
land, or is about to become the own
er of a farm. That is, a person in
the com munity may not be in actual
possession of farm, but expects to
be in a short time, by purchase, the
owner of the particular farm de-
scribed in his application; in that
case he could legally join the associa-
ton and become a member. The
affidavit should also state that the
desired loans added together amount
to $4,000 or more.
Farmers Only Can he Members
The national farm loan associa-
tons are to be organized and run by
farmers and for farmers. Persons
rot farmers need not apply for men,
bership; they could not legally be
admitted. For the law says that no
one except farmers shall be mem
bers, and no one except members can
borrow. The lowest sum any farmer
can borrow is $10G; the highest is
$4,000. These are the limits fixed
by law.
The associations will grow by the
admission of new members. After
the affidayits, showing that the loans
am cunt to $4,000 or more, has been
sent to the land bank and the farm
loan association has become a cor
porate body through a charter being
granted to it by the Federal Farm
Loan Board, a farmer who wants to
borrow only 500 can be admitted to
membership. In fact, there is no
ton after the first 10 or more have
become chartered association. Any
farmer may be admitted to member
ship who wants to borrow on farm
mortgage any sum ranging from
500 to $4,000. In this way the
national farm loan association will
grow in numbers.
fhFInefS as shareholders
But farmers can not join without
buying shares in their association.
The value of the shares is fixed at
the low price of So each. Every
farmer who becomes a mem Der of
national farm loan association also
becomes a borrower and a share
holder at the same time. For the
law says that he must subscribe for
stock to the amount of five per cent
of his desired loan. If he wants to
borrow 500, he must take one share
of stock; if 5000, two shares; if
$1,000, 10 shares; and if $4,000,
100 shares.
The borrower may pay in cash for
his stock at the time he applies for
mem bership, or he may wait until his
loan is received and then pay for his
stock from the loan. He may, if he
wishes, even add the value of his
stock to the amount of his loan, pro-
viding this does not increase his loan
above the 80 per cent of the APP
praised value of the land and 20 per
cent of the permanent improvements.
This plan of buying stock makes
the national farm loan associations
cooperative in character. When the
farmer borrows money, the shares of
stock he has to buy are held by the
association as part security for his
loan. But if the association pros
pers, dividends on his stock must be
paid to the owner. When his debt is
paid off. the stock owned by the
borrower is Cancelled That is, if a
farmer has held two shares of stock
he is paid $40. the stock cancelled,
and the farmer is no longer a mem
Der of the association. The payment
of a debt automatically removes a
farmer from membership in a ma
tional farm loan association.
Each farmer is liable for the debts
of his association to twice the par