The Leader, enterprise and press. (Fitzgerald, Ga.) 1915-1921, 1916-09-08
THE RURAL CREDITS ACT

Loan act going around, that we
wish to again publish the features
of the new law, so that our read
ers who are interested in this law
may get it straight. The bill
provides for the formation C. To-
cal farm loan associations and it
would be well if ten or more of
our Ben Hill county farmers, who
desire to take advantage of the
low rate OF interest that is charg-
ed by the Rural Credits Banks, to
form themselves into the Ben Hill
County Farm Loan Association.
Farm Loan Board
The rural-credits law provides
a Farm Loan Board OF five ihem-
bers, four Of whom are to be ap-
pointed by the President, the Sec
rotary of the Treasury being an
eX-ofticio member. The expen-
SEES OF this board are to be paid bv
the governmcnt;.and it is to be To-
Gated in Washington. It will haye
general supervision over the en-
tire rural-credits system, much
like the Federal Reserve Board
supcrvises the various ban>s of
the Nation.
Land Banks
The United States is divided in
to twelve districts, in each of
which is 10 be established Fed
cral land bank to make long term
loans on. real estate. Each bank
is to haN< a capital stock Of $780,
900. Unless this stock is subscrib-
ed for by the public within 80
days, 1t is to be subscribed for by
the Government
Federal Aid to the Banks
The sum of 100000 is appro-
priated for use by the land banks
in placing the system in opera
ton. This money is ultimately
to be repaid by the Government
without interest. The Secretary
OF the Treasury is authorized to
deposit as much as $500,OOO in
any land bank, SO that it's opera
ton may not be hampered. In
order to make the bonds and
mortgages issued by the land
banks more attractive to invest
ors requiring low, rates of inter
est these securities are exempted
from all Federal, State and NUM-
clpal taxation. The lower the
rate OF interest paid on the bonds
the better it will be for the farm
er, for it is provided that the land
banks shall lend the money to the
farmer at rate of interest not to
exceed | per cent more than the
interest paid on the bonds. this |
per cent being allowed for the ex-
penses of the bank, and it is pro-
Vlded that in no case shall the far
mer be required to pay more than
3 per cent.
Farm Loan Association
Before farmer can secure a
loan he must be a member of a
national farm-loan association.
These are local associations COM
posed of not less than 10 members
all OF whom must be borrowers.
Zach association elects a presi-
dent, vice president, secretary
treasurer, and loan committee
OF three none of whom shall re-
ceive a salary except the secre-
tary-treasurer, who acts as the
business manager. When an aD-
pllcation for charter for a local
association is filed with the dis.
trict land bank an appraiser is
sent to the locality to appraise
the lands represented by the ap-
pllcation, and if the lands are
found eligible for the loans the
charter is granted. These asso-
c1ations are organized to solicit
loans, pass upon the character of
the applicant for loan, and make
final appraisement of the lands
which he offers for security.
How Loans Are to be Made
The method of securing a loan
after the organization of local
association will be as follows:
he borrower is required to make
application for membership in the
association, his application being
accompanied for subscription
tor stock in the association to the
amount OF ) per cent of the
amount he desires to borrow I'll
a borrower wishes to borrow l.
Ooo, he must subscribe for ten S.
shares, or $50 worth. When tho
loan IS paid this stock money is
refunded to the farmer. The stock
purchased need not be cash
transaction. but the amount NAV
be carried in Tho 1o,,, TT