Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-01-28


of it's district it shall subscribe for
and pay for in cash, capital stock of
said Land Bank as collateral security
for the payment of said loan"
This system of procedure must Of
necessity work a hardship, inasmuch
as the individual farmer must pur-
chase for cash five per cent Of his
loan in stock of the local association,
and then as member of the associa-
ton must stand his per capita Of the
purchase by the association of per
cent of the amount of his loan in
stock of the Federal Land Bank.
The National Farm Loan associa-
lions are divided into two classes,
limited and unlimited. and known as
Division A and B. Division A
Shareholders shall be held individu-
ally responsible and not one for
another" and Division B-"Members
shall be held Individually responsible.
one for another" So called benefits
are equal in both divisions, the only
difference being in limited and I'M
limited liability.
Funds transmitted to Farm Loan
associations by Federal Land banks
to be loaned to its members shall be
in current funds, or farm loan bonds
at the option of the borrower or Of
the Farm Loan association"
OF what use are bonds to a farmer
If he must sell on the open market
to the present Napoleons OF Finance
who govern the expansion or contrac-
ton of the present commercial cur
rency?
Section 10, fourth paragraph, re-
lates to the powers of Federal Land
banks, and they shall be empowered:
"to receive and to set apart for ex-
penses and profits the excess of in
terest payments on Endorsed mort
cages above the interest payments on
farm loan bonds for which said mort
cages are held as collateral security,
said excesst Of interest in no case to
be more than one per centum of the
amount Of principal remaining unpaid
on said mortgages"
Why are the profits of this Land
Bank specifically provided for? Has
not the farmer been exploited these
many years to secure profits and divi-
dends for bankers and money lenders
under the present commercial sys-
tenn? Are we to receive under the
cloak Of semi-governmental bank
ing institution relief in the shape Of
more profits" for the capitalist?
Seventh paragraph: ITO accept de-
posits of securities, or of current
funds from farm loan associations
holding it's shares, but to pay mo-
interest on such deposits"
Why should such an association tie
up its liquid securities with q Land
Bank or any other bank, and not re-
ceive reasonable rate Of interest
for same? These securities would
not be available elsewhere for credit
purposes.
Section 20: THAT II there shall b
default under the terms Of any i'm
dorsed first mortgage held by Fed
eral Land Bank under the provisions
of this act, the National Farm Loan
association or agent through which
said mortgage was received by said
Federal Land Bank shall be notified
of said default. Said association Or
agent shall thereupon be required,
within thirty days after such notice.
to make good such default, either BY
payment of the amount unpaid there
on in cash. or by the substitution Of
an equal amount Of farm loan bonds
with all unmatured coupons attach
ed"
Is this particular section intended
to benefit" the little fellow who h
struggling on his few acres to main
tain home and family? He must be-
come member Of the Farm Loan ~
ISOLATION and land bank and his prop
erty is liable az security for any
brother member who defaults. How
does this question Of unlimited lia-
bility strike you, Mr.. Farmer?
Section 80: That every Federal
Land bank and every National Farm
Loan association, including the capt.
tai stock and reserve and surplus
therein and the income derived there
from, shall be exempt from federal.
state and local taxation, except taxes
upon real estate held, purchased or
taken by said bank or association
under the provisions of Section n
and Is Of this act"
Why should the capital stock and
reserve and surplus Of . semi-priv-
ate banking institution be exempt
from taxation, especially state and
local?
In conclusion, will state that there
are many general objections to this
bill, and II 1t should become law
it would retard the growth Of agricul-
ture. in place Of assisting to promote
same, and would work hardships upon
the little fellow" who is the back
bone of the nation. and whom our