Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-08-08
EDITOR
THE NEW RURAL CREDITS LAW.

Announcement that President Wilson has ap.
pointed a farm loan commissioner. under the new
rural credits act lends interest to the provisions OF
the act, which was made law when the president or
July Il affixed his signature to the bill just passed
The new law may be briefly outlined az follows:
Provides for creation of Il Federal land banks and
permits establishment OF jointstock land banks for
the making Of loans at reasonable interest Tor long
periods farmlands
Federal Farm Loan Board has control over banks.
Federal land banks empowered to lend on first mort
cages farmlands in amounts of 500 to $4,000
No loan be made for more than so per cent OF
the value Of the land motgaged and 20 per cent OF
the value Of the insured improvements.
National Farm Loan Assocations-local organizations
composed exclusively OF borrowers-a1e authorized
These associations must be stockholders in the land
banks in proportion to the amount their members
borrow.
banks are prohibited from charging more than per
cent e..
Mortgages allowed for periods OF from to 40 years
Small annual or semlannuai payments On pr1nepal
required feature. H.. ..Ef... l..
The passage of this legislation ends fight which
has been waged by farmers oranges and some banks
n the south and middle west for nearly two de-
cades Ill.,. III ... -. -. -. 1....z-..s
The United States is to be divided into u farm
loan districts and Federal land bank with sub
scribed capital stock of not less than $75ll0o0-
each share $-wilI be established in each district
Each Federal land bank may establish branches in
its district Within thirty days after the capital
stock is offered for sale it may be purchased at par
by anyone. Thereafter. the stock remaining unsold
shall be bought by the Secretary of the Treasury for
the United States. 1t is provided, however, that
the government shall not receive any, dividends on
its stock. E.,...-. 49,. ...< ..~.@.. IT,
The act provides for the creation of local National
farm loan associations through which it is conten-
plated that the banks shall make their loans. In
mt
in any locality within year the Federal Farm Loan
Board may authorize Federal land bank to make
loans on farm land through approved agents Ten
or more persons who own and cultivate farm land
qualified as security for mortgage loan under the
act or who are about to own and cultivate such land
NAV form an association, provided the aggregate
of the loans desired by the membership is not less
than $20,0O0. Each member must take stock in his
association to an amount equivalent to ) per cent
of the amount he wsbessto borrow. e'r' r..
The districts are likely to be divided as follows
First-To include all of New England
Secand-New York, Pennsylvania, New Jersey
and Delaware. MI. ~:
Third Michigan, Ohio and West Virginia.
Fourth-v Virginia, Maryland. North and South
Carolina. q Isl So :.
~ Fifth Kentucky. Tennessee Arkansas, Louisi
ana Mississippi Alabama, Georgia and Florida
Sixth--Illinos and Indiana. = -
Seventl--Iowa ard Missouri.
Eighth Minnesota and Wisconsin. ~ < * {
Ninth-Montana, Wyoming, North Dakota. South
Dakota. H. !. : r..
Tenth-Sebraska. coloraGosand Kansas, ~
Eieventh-New Mexico. Oklahoma and Texas.
Twelfth Washington, Oregon, Idaho, Ctah, Ar,
IONA, Nevada and California.
s - fb,
from Washington that the Democrats are going to
tax huge fortunes. -sF " .@-.'.
Seven DAYS late, but welcome nevertheless, Judge
Stuart's resignation has breezed into the White