Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-05-19
RURAL CREDITS MEASURE
PASSED BY THE HOUSE
Glass Bill Is Approved by Vote
of 295 TO 10 Late
Monday
rEy Associates Press.

| WASHINGTON, May 16.-Rural cred
! its legislation was a long step nearer
enactment today because OF passage by
the house late yesterday of the Glass
bill by a vote Of 295 to TO- Differences
between this measure and the bill al
ready passed by the senate probably will
be ironed out soon I'm conference. The
house bill contains provisions more lib
eraI for borrowers than the senate meas
ure.
Both measures would provide for a fed
eraI farm loan board and twelve land
banks wich would loan money TO farm
ers at a per cent maximum rate
through local land associations, on
mortgages running frCm 5 to % years.
I The banks would make these mortgages
basis for insurance of farm loan bonds.
/ There are many differences between
T the senate and house bills TO be ADJUST
4 d. The senate measure would capital
I ize each farm loan bank at 100000.
the houses at s75O,0OO. The senate
would authorize loan associations with
unlimited liability; the house would
not The senate would limit loans on
lSnds TO so per cent, with no recogni-
ton of improvements; the house pro-
poses TO grant so per cent on land val
ues and 20 per cent on value of perma-
nent insurable improvements.
MUST BE UNANIMOUS.
| The senate proposes that no loans
shall be made If the three members of
the local loan committee are not unani-
nous in their appraisement; the house
would require a majority report of the
committee. The senate makes the min
imum loan 5000; the house of 500.
The senate would charge borrowers 10
per cent interest on all defaulted pay
ments; the house would charge only
contract rates. The senate would re-
Quire local associations to make good
| all. defaults within thirty days after
notice from a local bank; the house
would provide a special reserve to pro-
tect associations.
! The senate bill requires advance pay
ments on the principal in sums of 500
or multiples. and the house $25 or null
| t.ples The senate makes the actual
earning power of the land a principal
factor and the house makes the agri-
cultural value the principal basis of APP
praisement. Under the senate bill local
associations would be required to hold
] 25 per cent of net earnings as reserves
\ and might refuse to declare any divi-
i den6s to borrowers, while the house
\ would require all net earnings to be
paid to borrowers as dividends.
i GEORGIANS FAVOR 1T.
4 Members of the Georgia delegation
! were active in perfecting the bill. Rep
i resentatives William Schley Howard
\ Dudley NJ. Hughes and ]. Randall
Walker offered amendments and made
\ speeches in support of the measure.
j Mr.. Howard proposed to require 80
i per cent of the deposits in the postal
i savings banks TO be invested I'm bonds
! o. the federal farm loan associations
/ Representative Hughes wanted the gov
Il eminent TO guarantee absolutely the
bonds. in addition to providing all the
Y other safeguards incorporated in the
4 measure. Both amendments failed.
! Representative Walker dealt with the
/ general phases of the subject, and pre-
dicted that il would go far to remedy
the dangerous increase Of farm ten
ancy.
Mr.. walker pictured the suffering
that comes to southern farm home:
when the purchasing power of a bale
OF cotton is cut from $40 to, say, So q
bale. Under those circumstances the
farmers family must go without ever
some of the necessaries of life.
In a stirring tribute to Georgia's pro-
gressive farmers. he said the state
ranked fifth in value Of farm prod
ucts, being exceeded only by Illinois
Iowa, Texas and Ohio, with their vast
grain yields. Her annual crop produc'
ton, he said. exceeded that of Mis-
souri,. Kansas. New York and Indiana