The Hood River glacier. (Hood River, Or.) 1889-1933, 1916-06-15
RURAL CREDITS

Rural credits agitation has prevailed
in Oregon for the past several months.
Deliberations are now materializing in
plans to place a rural credits bill, in
the form of a constitutional amend
ment. on the ballot at the general cleo
tion in November. A tentative draft
of bill prepared at Salem several
months ago by committee appointed
for the purpose has prepared tenta-
tive draft of the bill that meets with
the approval of Attorney General
Brown.
Significant portions of the main text
of the measure follow:
The governor, secretary of state and
state treasurer shall constitute the
state land board, which board is hereby
authorized and directed to issue and
sell or pledge bonds.in the name Of the
state to be known as Oregon farm
credit bonds in an amount not to ex-
ceed said per cent Of the assessed
valuation of all the property in the
state and to place the proceeds in the
state treasury in a fund to be known
as the rural credit loan fund"
Said bonds shall be issued in denom-
nations of S25, 500. $500 and $1,000.
and shall be issued in series of $50, 600
or multiple thereof, drawn to mature
in not more than 36 years. They shall
bear interest at the rate of per cent
per annum and shall be exempt from
all taxes levied by the state of Oregon
or any of its subdivisions.
Said state land board is authorized
and directed to loan the moneys in said
rural credit loan fund to owners of
farm lands in Oregon upon notes Sc
cured by mortgages or deeds of trust
constituting first liens on such farm
lands in amounts which shall not ex-
ceed so per cent of the value of such
lands nor $50 per acre on such lands,
nor less than 5000 nor more than $4,000
to any individual. If pending applica.
tions shall at any time exceed the
funds available, preference shall be
gwen to loans not exceeding $4,000 in
amount.
Such loans shall not be made except
to owners who operate and occupy the
lands mortgaged, and shall be made
only for the following purposes: (a)
the payment for lands purchased. (b)
the purchase OF livestock and other
equipment. and the making of improve
ments which. in the judgment of said
board will increase the productivity of
such lands or add to their value as a
farm home in degree to justify such
expenditure, and (c) for the satisfac-
tion of encumbrances upon such lands
which in the judgment of said board
were incurred or assumed by said ap-
plicant for the aforesaid purposes.
Such loans shall be repaid with inter.
est accruing in semi-annual or annual
installments On the amortization plan,
such installments being fixed at such
sums as will cover the interest rate
and will liquidste the debt in period
to be agreed on between said board and
the applicant, such period to be not
less than 10 nor more than So years !;
but any debtor may liquidate any part
or all of his indebtedness in amounts
of $50 or multiples thereof upon any
amortization payment date.
The rate of interest on loans shall be
per cent per annum, provided that in
case any series of said farm credit
bonds is sold at an average of less
than par. the board may charge upon
such faf1n loans as are made from the
proceeds Of the series so sold below