The Leon reporter. (Leon, Iowa) 1887-1930, 1916-08-03
DEMOCRACY HELPS FARMER.

Added to the many wise acts of
constructive legislation, which have
been of so much benefit to the people
of the United States, now comes the
Rural Credits bill which was signed
by President Wilson last week, which
has peen pushed through by q demo-
cratic congress, and which is of such
pertinent benefit for the farmers that
President Wilson when signing it
said, that IL met with such general
approval that only five republican
senators voted against it and three of
these We're in the recent republican
national convention ct Chicago y
President Wilson in signing it could
not conceal his pleasure when he
said:
"The farmers, it seems to me, have
occupied hitherto singular position
of disadvantage. They have not had
the same freedom to get credit on
their real estate that others have had
who were in manufacturing and COM
mercial enterprises and while they
have sustained our life they did not
in the same degree with some others
share in the benefit OF that life.
Therefore, this bill, along with
the very liberal provisions Of the fed
eral reserve act, puts them upon en-
equality with all others who have
genuine assets and makes the great
credit of the country available to
them.
Il look forward to the benefits OF
this bill not with eXtravagant eXpecta-
tions,. but with confident eXpecta-
ton that it will be of very wide
reaching benefit, and incidentally it
will be of advantage to the investing
community, for | can imagine no
more satisfactory or solid invest
ments than this system will afford
those who have money to USE"
Under this new law twelve federal
land banks arctic be organized, each
of which will have minimum CAPT
tai Of $3.50, 900. These banks will be
organized in a dozen districts into
which the United States is for that
purpose divided. Should the capital
stock not be completely subscribed by
individuals, the United States will
subscribe for the remainder, but the
government is not to participate in
the earnings. Ten or more farmers
in any community may form farm
loan association, which will pass
upon the character of borrowers in
its immediate territory and estimate
the value of the lands given as secur-
ity.
Members of the association may
borrow up to so per cent of the value
of their land and 20 per cent of the
insurable value of improvements, for
a period OF not less than five nor
more than forty years. The interest
rate must be not more than 6 per
cent annually. The borrower, howev-
er, must purchase stock in the local
association equal to 5 per cent of his |
loan, on which he may receive diyi-
dends.
The mortgages held by the federal
land banks will be used as collateral
security for bonds, to be sold to in
vestors, These are to be free from |
all taxation.
The whole system IS to be control
led by board of five directors, in
Guiding the secretary of the treasury,
who will form the federal farm loan
bureau at Washington. The four
members aside from the secretary,
will be appointed by the president
and will be salaried at $500 pear.
1t was pointed out in both the SEN
ate and the house, that this measure
if enacted into law, would encourage
many to buy land who find the under
taking very formidable, if not impos-
sible now, while at the same time it
would open field of safe invest
ment, giving a nice return on the
non-taxable bonds.
The Rural Credit bill will take it's
place along side of the Federal Re-
serve law as one of the measures
which will have tremendous practical
bearing upon the present and future
prosperity of the country.