Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1916-02-17
STATE LAND BANK
FARM CREDITS PLAN.

In November, 1916, says the Recla
nation Record, the people OF thu
state of Missouri will vote upon tn,
ratification of the State Landbanl
act. The last session of the Missouri
State Legislature passed this law, blu
a 1t requires an amendment of tht
State constitution the people viii
be asked to ratify it to remove al
doubts as to it being constitutional
The act provides ror the creation
OF the Missouri landbank, and the
purpose is to provide capital for
the farmers at the lowest practicable
rates of interest. The bank is to be
operated under the direction of a
board of high state officials, and the
bank is to be made part of the Of
flee of the state bank examiner who
will be manager of the bank. The
bank will have the power to make
loans on farm property in amounts
not exceeding one-half the actual
value of the property. The loans
range in amounts from $3.50 to $10,-
900 each, though for the sake Of ac-
commodating the largest practicable
of borrowers preference is
to be given to applications for loans
not exceeding $4,000 The loans may
run from 5 to rs years The security
to be given shall consist of promis-
sorry notes and trust deeds. In the ma
ture of mortgages ON lands, and
loans shall be made only to apph-
cants who offer first liens on perfect
Zee simple titles.
The state is to be divided into dis
riots and appraisers to be appointed
n each district, theses appraisers to
receive a salary of $4,000 each per
year and expenses The appraisers
'eport. on the value of the farm prop
,rty offered as security for loans and
tiles to the lands involved are pass
ID upon by proper state officials.
The working capital of the Miss |
,uri land bank is to be provided by |
appropriation of 81, 100000 of the
tate funds. When the bank shall
ave loaned 100000 and has on
and notes and trust deeds in that
the bank may sell and issue
ebenture bonds In a like amount
nd the bonds shall state on their
ace that they are secured by deeds
0 Missouri farm lands appraised at
ouble the value of the bonds and
re further secured by the funds of
ne Missouri land bank. When the
econd accommodation of notes and
.,,st deeds amounts to $500. 900 the
econd issue OF bonds may be sold.
The first 100000 shall be loaned
!, farmers at 4.3 per cent and to this t
lall be added charge Of one-half q
per cent for the reserve fund and !
SO an additional per cent sufficient {
return the loan at the expiration t
the period for which the loan is I
ade. On loans running 25 years 2
lder this plan the borrower would
~ a total of about 6 and one-half 9
,r cent per annum to cover inter- 8
It. payments into the reserve fund +
I'd the principal The second $780, +
10 shall be loaned to farmers at the q
ties of interest secured for the Il
,st 100000 issue OF bonds, but, In n
, event shall the interest rate be
excess Of 6 per cent.
To provide for the sale Of the Mis- Il
uri land bank bond issues the law 4
Divides that savings banks may in |.
st In these bonds and insurance Il
mpandes which are required to de- q
sit securities with designated state q
beers may purchase and deposit a
ese land bank bonds in the same II
inner as though they were bonds OF q,
. state of Missouri. 8,
This state land bank act has been D,
zen considerable publicity. Ita pro b,
lions meet with the approval OF IL
my of the leaders IN the farm-cred- i,
movement. 1t appears to be a D,
achcai step toward the realization
reasonable rates Of interest for tn
mers. Other states could with CT
,nt follow the lead OF Missouri III
this work.. d. Old. pr
3 - US