Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-08-08
EDITOR
THE NEW RURAL CREDITS LAW.


Announcement that President Wilson has ap
pointed farm loan commissioner. under the new
rural credits act lends interest the provisions of
the act, which was made law when the president on
July II affixed his signature to the bill just passed.
The new law may be briefly outlined as follows:
Provides for creation of II Federal land banks and
permits establishment of jont-stock land banks for
the making Of loans at reasonable interest for long
periods farmlands.
Federal Farm Loan Board has control banks,
Federal land banks empowered to lend on first mort
cages farmlands in amounts Of 800 to $4,000
No loan may be made for more than so per cent OF
the value of the land mortgaged and 20 cent Of
the value of the insured improvements.
National Farm Loan AssociatonS-local, organizations
composed exclusively OF borroWers-ale authorized;
These associations must be stockholders In the land
banks in proportion to the amount their. members.
Reasonable interest rate established. Federal land
banks prohibited from charging more than per
cent
Mortgages allowed periods OF from to 40 years
Small annual or semlannuai payments en- principal
required feature.
The passage of this legislation ends a fight which
has been waged by farmers oranges and some banks
in the south and middle west for nearly two de-
cades. ...
The United States is to be divided into II farm
loan districts and Federal land bank with sub
scribed capital stock of not less than $750.O00-
each share $5-wIl be established in each district
its district Within thirty days after the capital
stock is offered for sale it may he purchased at par
by anyone Thereafter, the stock remaining unsed
shall be bought by the Secretary of the Treasury for
the United States, 1t is provided however, that
the government shall not receive any dividends on
its stock. s.t..... = q -. 49,. .... = =.
The act provides for the creation of local National
farm loan associations through which it is eohte
plated that the banks shall make their loans. In
the event that local loan association is not formed
in any locality within year the Federal Farm Loan
Board NAV authorize Federal land bank to make
loans on farm land through approved agents. Ten
or more persons who own and cultivate farm Hand
qualified as security for mortgage loan under the
act or who are about to and cultivate such land
may form an association, provided the aggregate
OF the loans desired by the membership is not less
than 500, 600. Each member must take stock In ms
association to an amount equivalent to 8 per cent
OF the amount be wishes to borrow. = s -
The districts are likely to be divided as follows
First--To include al of New England. =.
Second-New York Pennsylvania, New Jersey
and Delaware. ~ -..-,.E ~. +. :. ..t<=1
Third Michigan, Ohio and West Virginia.
= Fourth Virginia, MaEylauds IN orth and South
Carolina. : tItts p SO r. = >* -;
Fifth Kentucky, Tennessee, Arkansas, Iouisi
ara. Mississippi. Alabama. Georgia and Florida: ?.
Sixtt-Illinois ard Indiana.
Seventh-Iowa ard Missouri. -'H. .......*
Eighth Minnesota and Wisconsin. Z
Ninth Montana, Wyoming North Dakota, South
Dakota. ~: 4. ..t .s-~.
Tenth-Nebrask;l, Colorado and Kansas. n"
Eleventl--New Mexico, Oklahoma and Texas,
Twelfth Washington, Oregon, Idaho, Utah. Arr
IONA, Nevada and California. H.. -~=
.#<~ --
Sopahou. NO feel no excitement over the news