The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1916-07-28

Rural credit for the American farm
err is now fact. Congress has passed
land loan bill and President Wilson
has signed it. In order that the farm
ers of Missouri may be familiar with
this important legislation, W. l.. Mel
son, assistant secretary Of the State
Board of Agriculture, briefly explains
this Federal rural credit law, as fol-
lows:
A Federal farm-loan bureau under
control of what is known as the Fed
eral farm-loan board, which shall cons
sist of five members including the Sec
rotary of the Treasury, is provided
for.
No member of the farm-loan board
shall, during his term Of office, be en-
gagged in banking or in the business of
making land mortgage loans or sell
ing land mortgages.
There are TO be twelve Federal land
bank districts in the United States,
for the purpose of making long term
loans on real estate on the amortiza-
ton plan.
BY the amortization plan is meant,
the application FOR the purpose of the
payment Of a part Of the principal, Of
a certain per cent of each payment,
until at the end Of the loan period Che
interest has not only been met but all
the principal has been paid.
Twelve Federal land banks, each
with capital Of not less than $780,
900, are provided for.
No loan made by a Federal land
bank shall be for less than 500 nor
more than $4,000.
Loans, as made by Federal land
bank, are limited to the following pur-
poses: (a) To provide for the purchase
of land for agricultural purposes; (b)
to provide for the purchase of equip
ment and live stock for the proper and
reasonable operation of the farm;
(c) to provide buildings and for the
improvement of farm lands; (d) to
pay off the Indebtedness of the owner
of the land mortgage existing at the
time of the organization of the farm
loan association.
Loans may be made to the extent of
so per cent of the value of the land
mortgaged and 20 per cent of the val
ue of the improvements.
of less than 5 years or more than 40
years, and under no circumstances
shall the interest rate, exclusive Of
amortization payments, ever exceed
six per cent per annum. 1t is thought
that it will be much less.
No person not actually engaged in
the cultivation of the farm mortgaged
or who is shortly to become SO en-
ployed, shall be granted loan through
the Fedaral land bank. The benefits
of the law are not for spectators OF
non resident owners, but for actual
farmers.
After the subscription to stock in
any Federal land bank shall have
reached 100000 the officers and d.
rectors shall be chosen. Six directors
known as local directors, shall be
chosen by the national farm loan as
ISOLATION. Three directors known as
district directors, are appointed by the
Federal farm-loan board. Thus do
the borrowers who own the stock in
the bank control the same.
A national farm-loan association, as
provided in the law, must be composed
of not less than 10 men in any COM
munity or county within a Federal
land bank district, who desires to Sc
cure loans. These 10 men elect not
less than directors from their mem
bership and also elect secretary
treasurer. Three members are con-
stituted loan committee to make APP
plication to the Federal land bank.
The aggregate amount of these loans
cannot be less that $4,000. Upon APP
proval of the application, following
proper investigation and appraisal by
the Federal land bank, the 10 or more
applicants for farm loan association