Evening journal., 1916-07-05
WILL AID FARMERS
By RURAL CREDIT
Measure Proposes Board of
Five at Washington, and
Division of Country
FARM LAND BANK
IN EACH DISTRICT

Financial aid fol farmers, a matter OF
vital interest in such agricultural sec
tions as New Castle county, is the pur-
pose Of the rural credits bill, measure
which, though it had the endorsement OF
the present administration at Washing
ton. was originated under the admins
tration Of President Roosevelt
The rural credits plan proposes a re-
duction in interest rates, long.tims
money with small annual payments,
elimination OF large commissions and
further renewal commissions, loans at
minimum cost, permission for farmers
TO pay of whole loans at any inter
est paying period; it makes farm first
mort cages bankable assets anywhere IN
the country; provides supervision by
Federal government to insure farmer
money at lowest cost; it will make
money always available to the farmers
who have the land.
The rural credits measure is a
companion legislation to the federal
reserve banking act. The banking
and currency law provides for cen
tral board at Washington, known as
the federal reserve board. and divides
the United States into twelve dis
tricts and establishes a federal re-
serve bank in each district And so
the rural credits act establishes a fed
eral farm loan board of Eve members
at Washington. divides the country
into 12 districts and establishes a
federal farm land bank in each dis
trict. Both systems have the backing
of the government and are very sim
liar
The federal farm loan board will
include the secretary Of the treasury
who will be a member and chairman
ex-officio and four members to be
appointed by the president by and
with the advice and consent Of the
Senate. OF the four members to be
appointed by the President, not more
than two will be appointed from one
political party, and all four will de-
vote their entire time to the business
Of the federal farm loan board. They
will receive an annual salary Of s1O.-
O00 payable monthly, together with
actual necessary expenses.
The federal farm loan board Is re-
quired to divide continental United
States into 70 districts. and a bank
with not less than s75O.00O capital
stock is established in each district in
city within said district designated
by said board. At first these banks
are to be managed by temporary di
rectors selected by the federal farm
loan board. but afterward they ar,
TO be selected. in part three by th'
board and In part six by the farm
| loan associations. and in a genera
way as the directors in the presen
reserve system are selected. Th'
capital stock OF these federal lanS
banks may be subscribed to by any
one. but if il is not subscribed withir
80 days, then the United States Cox
ernment will subscribe for the stock
The act provides for the formation
| Of national farm loan associations.
In order for a farmer 70 secure a
/ loan he must become a member oi
one Of these farm loan associations
These are formed by 10 or more Dor.
rowers, who associate themselves
under the act as a corporation, anC
they select a secretary-treasurer who
manages the affairs of the assoc'a
ton. The secretary-treasurer is tn,
business manager Of the association
and will control it, The board Of di
rectors' duty in these asspciati lls
will be largely nominal. AS soon a.
the application for articles of incor
poration is forwarded to a fedora
bank the bank sends an appraiser {,
the locality TO appraise the lands in
cluded in the application. If he find
them eligible for loans. the charte
is granted.
If a farm-loan association has nof
already been formed Il requires a.
least 10 farmers who desire to max,
loans to form one. Each member il
TO subscribe TO an oath saying tha
he is the owner or about to becomi
the owner of farm land, qualified
under the act of being the basis of
mortgage loan, that the loan desired
by each person is not more than $40,
900 or less than 500 and that tn
aggregate loans of each association
are now less than $4,000. The afh
! davit is to be accompanied by a sub
scription to stock in the farm-lanl
bank equal TO per cent. of the mort
gage loan desired. When the lam
ba,E crefe thaea aA7doxrffe fhax forr