The Leon reporter. (Leon, Iowa) 1887-1930, 1916-01-06
RURAL CREDITS BILL ATTRACTS
ATTENTION..
New Measure Providing for Farm
Loans to be Fully Considered.

New Measure Providing for Farm
Loans to be Fully Considered.
Washington, Jan. 1.-The rural
credits bill which has lately been
completed by subcommittee of the
joint committee of congress on rural
mally endorsed by the joint commit
tee and introduced in both houses
when the session resumes, promises
to attract the widest attention in con-
gress and throughout the country
this winter. The bill will be introduce
ed in the senate by Senator Hollis, of
New Hampshire, and in the house by
Representative Glass, of Virginia. 1t
will go to the banking committees
and will be considered in detail by
those committees. 1t is expected the
administration will back the bill and
a strong effort will be made to pass
it this session, though the wide diff
ference of opinion in congress as to
what should be the nature of rural
credits legislation may prevent enact
ment of law.
The details of the new bill became
fully known today. 1t is known as
the federal farm loan bill. Admins
tration of the proposed law is to be
under newly created board, known
as the federal farm loan board. This
board is to be established in Wash
ington and to consist of five members
named by the president with the ad-
vice and consent of the senate. Not
more than three are to be members
of the same political party. The
members are to devote their whole
time to the business of the board and
are to receive salaries of $4,000 a
year and travelling expenses. The
term of each member after the board
is fully established is ten years. The
board is clothed with large powers
and ample provision is made for the
necessary force of attorneys, experts,
assistants, clerks, laborers and other
employees and for registrars and ap-
praisers. The president is given dis
erection but is not required to put
these employees under the classified
service.
The federal farm loan board is to
divide continental United States, ex-
Guiding Alaska, into twelve federal
land bank districts, apportioned with
due regard to the farm loan needs of
the country. They may be readjusted
from time to time and their number
may be increased by the board. In
no case shall a federal land bank be
established with less than 100000
capital.
In each federal land bank district
a federal land bank is to be establish
ed which may establish, subject to
of the board, branches with
of directors of every federal land
bank, apart from the temporary or
is to consist of nine mem
bers, each holding Office three years.
Six are to be local directors and to
national farm loan asso-
Citations. The remaining three are to
be known as district directors, ap-
pointed by the federal farm loan
board.
Section five deals with the capital
stock of federal land banks. Every
federal land bank shall have before
beginning business a subscribed
capital of not> less than 100000.
Shares are $40 each. II within nine
ty days after opening the books, any
part of the minimum capitalization is
the government is to
take it.
Section seven provides that corpor-
atoms to be known as national farm |
loan associations may be organized |
Dy persons desiring to borrow money
On farm mortgage security under the |
.erms of the act. Every farm loan |
association is to elect a board of not |
less than five directors. Ten or
more persons who are the owners, or
are about to become the owners, of !
arm land qualified as security for |
loan under the act, may
association. They prepare articles |
If association which are forwarded |
% the federal land bank of the dis
riot and on approval of the directors I
# such bank charter is issued to the
association. Members of such asso-
cations will be allowed to borrow on
and mortgages in accordance with
he act,
The bill goes into much detail as
o the nature of the loans and mort
,ages permitted. The theory is that
Oans may be made payable back in
nstallments for as high as thirty-six
ears at reasonable interest rates.
The maximum loan to any one bor-
over is $4,000
In addition to providing for feder-
! land banks, the bill provides for
ONT stock land banks and provision
5 made for farm loan bonds or joint
took bonds, secured by first mort
ages on farm lands, such as the
Measure cOntemplates