The county record. [volume] (Kingstree, S.C.) 1885-1975, 1916-07-20
THE new RURAL
CREDITS LAW.
MACHINERY FOR MAKING LOANS
AND HOW 1T OPERATES---HOW
FARMER JONES MAY GET LOAN.

NQA(hiNEAY EOA UaAnkINO AofAhsS
AND HOW 1T OPERATES---HOW
FARMER JONES MAY GET LOAN.
The new rural cerdits bill has
passed both Houses of Congress and
gone to the president for his sigma
ture, and by the time this reaches
our readers it will in all likelihood
be a law. This is a momentous
piece of legislation. with far-reach-
ing possibilities, and we believe an
explanation of its provisions will be
of value to our readers.
l. The Federal Land Banks. The
act provides for the creation of a
bureau in the United States Treas
ury to be known as the Federal Farm
Loan Bureau. This bureau is to be
in charge of Federal Farm Loan
Board of five members, one of these
being the Secretary of the Treasury,
the four additional members being
appointed by the President for eight
year terms, not more than two to
belong to any one political party.
This Federal Farm Loan Board is
to divide the United States into II
Federal land bank districts. and at
some one city in each of these dis
tricts there is to be established a
Federal land bank, with capital
stock of not less than $3.50, 900. The
Federal Farm Loan Board is requir-
ed to invite and receive subscriptions
to the capital stock of these Federal
land banks, but it is expressly pro-
vided that in case $780, 900 worth of
stock is not subscribed for within 80
days, the United Stated Government
shall subscribe for and take the
amount required to bring the total
up to the $3.50, 900 minimum.
2. National Farm Loan Associa-
tions.-The National farm loan asso-
cation is a group of not less than
ten farmers organized for the spe-
dic purpose of obtaining loans on
their lands. To become member
of such an association. the applicant
must be desirous of procuring a
loan, and must subscribe to the con-
ditions imposed, which will later be
explained in detail.
3.-Joint Stock Land Banks. The
act provides also for the creation of
joint stock land banks, organized for
the purpose of lending money on
farm lands, with minimum capital
stock of $25O,OO0. All this is to be
private capital, though the opera
tions of these banks are to be who'll
ly under the supervision of the Fed
eral Farm Loan Board.
Farmer Jones, let us say, is cot
ton, corn and peanut farmer in south
Alabama, owning 80 acres of land
free from mortgage or other in
cumbrance. However, only 40 acres
of it are cleared and fenced, and
Jones needs some longtime money
with which to clear and fence the
remainder and provide teams and
implements for its cultivation. I'm.
der this new law, how can he get
the money?
Probably his best plan will be to
organize among his neighbors a Ma
tional farm loan association. To do
this, not less than ten members are
required, all of whom are in posses
sion of or are about to come into
possession of the land to be offered
as security, and engaged or about to
become engaged in its actual cult
vation. 1t is required that the total
amount of the loans sought by all the
members of the association shall be
not less than $4,000, and that no
one member shall be granted loan
greater ans10. 900 or less thanS10O.
Now Jones' land is worth 81 600,
we will say, and his residence, which
is fully insured, $1,000. Under the