The Monte Vista journal., 1916-05-06
EDWARD HEATING

rado DistricD'
Lexington, D. C.-April Is
ow draft of what is considered
80 administrations rural credits
|n' has been introduced in the
,ouse by Congressman Moss OF In
Diana 49,
with one or two amendments the
bill should render it possible for FAR
or. in all sections of the country
borrow money at not to exceed
!, per cent per annum. In actual
.oration l believe the rate would
reduced to five per cent.
The system is very simple one;
I'm at the top is the Federal Farm
,o Roard, consisting of three men,
npointed by the President and
.awinp $4,000 year. 1t is their
no;ness to construct, start and sup
lryjse the gigantic system which Will
oretrate to every community in the
,otion They are to show the farm
.ro how. through cooperation, they
NAV keep themselves. In addition
hey must practice such rigid super
Eision as will assure investors of the
|afety of the entire structure.
Organizing the System
The first thing the Federal Farm
,oan Board will do, if the pcnding
Bill becomes a law, is to divide the
kountry into twelve districts and es-
ablish in each district central Fed
raj Land Bank with capital of at
east $75O,0O0. Then it will pro-
iced, through it's agents, with the or
Eanization of National Farm Loan
Associations. These are to be the
ocal units of the big machine.
Ten or more farmers in any COM
hunity may organize an association
ind apply to the Federal Loan
Board for charter. No one can be
member of the association unless
he is farmer and desires to borrow
rom the Federal Land Bank. When
be applies for membership the
armer states the size of the loan he
esires. He cannot borrow less than
200 or more than $4,000, and he
an only offer one form of security
first mortgage on his farm.
Scrutinizing the Loan
When member petitions his as
oclation for loan, the application
referred to Loan Committee"
Fonsisting of three members. AS the
association is local organization
ne Loan Committee" will be made
OF three farmers who live in the
'lclnity of the land which it is pro-
oSed TO mortgage and who are pre-
umably familiar with values in the
peighborhood.
II the Loan Committee" makes a
a'orable finding, and the same is
noorsed by the board of directors of
ne association, the application will
forwarded to the Federal Land
'ahk of that district.
Inc bank will Immediately send an
ppfaiser to view the land and
'neck up on the finding of the
oan committee.
fepaying the Loan
II every thing is found to he O. x
10 .oah Will be made. 1t will run
', from five to thirty-six years and
y" 'e payable on the amortization
An-'hat is the interest and a part
'ue principal will be payable each
fear.
NVans Will only be made (1) to
4'cnase land (2) to buy eouip-
n, sl, or live stock; (3) to provide
nortgage. ~
,. mat the Federal Land
h. "' may get the money to make
l''e loans, the bill authorizes the
,, A' 10 issue bonds to the face
rhaa vi the mortgages on hand.
bo ~ uohds are to be registered by
A.n eueral Farm Loan Board. The
\, ~, y, ISSUE is primarily responsible
b,rl redemption, but every land
NJ III the nation is liable should
ldd,,,. oahk fail to make good. In
,o.S, 'he bonds are not subject
% state or federal taxation.
All ''s VIII Be Gilt Edged
brovo AL the securities should