Ripley County democrat., 1916-06-02

LESSON I.
Q.--Whot is the Gardner Land
Bank Bill2
"A measure passed by the last
Legislature and signed by the Gov
ernor. to establish @ Missouri state
land bank through which farmers may
borrow money at low rates OF inter
est
Q.-Why Is II To be submitted at
the November election under the
initiative and referendum and be-
come effective December /. l9162
A.--To let all the people vote on 1t.
settle oil questions Of constitution
ality and avoid litigation.
Q.---liow Is the bank to be startedf 7
Alt Is to be incorporated. with
out shares Of stock. and the state
Is to appropriate as loan out OF the
state treasury one million dollars
$4,000. .O00) az a working capital. TIE
assets are to be exempt from all taxe,A
Q.-IIow will the bank be man
lgedY
A.--Economically, by USING state
machinery now In existence.
Q.-Who will he tho officers?
A.--The Governor. Attorney Cen.
eral. Secretary Of State. Auditor and
State Treasurer. For special serv.
ices. county officers will be called
upon at no additional expense
O. Who will be the managing di.
rectorY
A.--The State Bank Examiner. al.
ready under salary.
Q.--Where will the bank be To-
Gated?
AIT the state capital, in con.
nection with the Bank Examiners of.
flee. His clerks would do the clerical
work along with their other dutieR
II additional clerks are required they
would be paid out Of the banks funds.
Q.-Would there be any saiaried Of
ficersf
A.--No, except the appraisers. All
officers who handle funds would be
bonded. The state would be divided
into districts as economically as DOS
sible and appraisers appointed as
needed. These men would pass on
the cash value OF the land, with tho
assistance OF the county officers.
and would draw $4,000 year salary
and travelling expensea
MAKING THE LOANS.
Q.-How are the loans to be made
TO the farmers?
Ain amounts not IN excess Of
half the cash value OF the land, the
bank taking notes secured by deeds
OF trust or mortgages on the prop
erty.
Q.-what are the limitations Of the
loansf
A.--No loan shall be for less than
$3.50. nor more than $4,000. and for
periods Of not less than five years
nor more than twenty-five years. Pref.
erence would be given to the smaller
loans to develop small farms.
Q.-Must the borrower use the mon
ey In certain wayi
Ayes, II is not for speculation.
The purpose Of the loans 10 TO make |
the land more productive--to make |
Improvements-to pay off liene or In |
cumbrances (probably where ex.
horhitant interest has been paid here
tofore), and twenty-five per cent of
the loan may be used for buying stock /
and machinery.
Q.-Could the loan be repaid at any
,imef
A.--Ail or part Of the loan may De
repaid at any Interest period.
Q.-And what about the interest
.harges7
A.--The interest would be four and
hree-tenths Of one Lor cent. one half
u one per cent Of which Is to 20
o create sinking or reserve fund.
OFF THE LOAN.
Q.--What about the annual pay.
nents on interest and principalf Say,
or instance. on the 500 basisf
A.--On 500 for five years the an
lual payment on both principal and
interest would be S22.4o. For ten
'ear loan. Sl2.4o year, and 90 on
lp to twenty-five years when the
'cariy payments on principal and /,
nterest--everything- would be s6.5e
year. on the $10o.
Q.-Why Is this system OF payments
esti /,
A.-Becauso \ perm.ta the farmer
0 gradually pay OF the loan from his
rofits and not from his capital u
Q.-Iiow would the bank get ad. 4
itional funds after the appropriation {
rom the state is loaned outf Il