Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1916-08-10
FEDERAL FARM LOAN
BOARD MEETING
Forty Cities to Be Considered Tor
Banks-May Be Next Spring Be
fore Loans Can Be Secured.

for q land bank credit system as pro-
vided for the act of congress crearing
the board. a
The first work of the board, arter
effecting organization, will be TO IL
vide the United States into II federal
land bank districts. Before this Is
done, the board probably will hold
hearings in various parts OF the coun-
try to ascertain the views OF farmers
on, the question.
Forty cities have either applied OF
been recommended for banks, includ-
ing many Southern and Middle Wst-
ern cities. 1t is expected the claims
of these and other cities will be pre-
sented during the hearings
Secretary McAdoo, eN-offico mem
her of the farm loan board, who Will
be at the head Of the system, predicts
that it can not be in operation for at
least six months and probably loans
can not be made before next spring.
To Aid the Farmer.
In operatiion the system to some
extent will do for the farmer what
the federal reserve system does for
the business man. The farmer Will
be givn opportunity to secure money
on his most available commodity, his
land. Just as the merchant and manu-
facturer has been enabled through the
federal reserve system to have his
paper, based on commercial transac-
tions, find ready market.
The new scheme has many points
of resemblance to the federal reserve
system, but in many essential fea-
lures it is entirely different In no
way will the, banks created under 1t
do commercial banking, and while 1t
Is possible that in years to come they
NAV have funds to loan that Will
amount to several hundred million
dollars. 1t is not believed probable
that the system evr will have the
resources of the reserve system.
How Loan VIII Be Made.
q The banss will not, except In spe-
elsl cases, loan -direS6to saI%srs, 71 but
z5zsIzs-Sz-ssSse sW.faIs{{ -anaiaur riia
loan associations, which may be or
ganized to any unmber in land bank
pective owners Of farm land who de.
pective owners Of farm lands prop
erty. Applications for charters fol
these associations must go up to the
farm loan board and may be refused
by IL. No association will be char
tered unless it is shown that signing
members desire loans totaling at leas,
$4,000.
J In applying for membership in an
association, a farmer must take pei
cent of the face value of the desired
loan in stock Of the association.
Land Value Main Consideration.
Applications for loans are to be
passed upon by loan committee OF
the farm loan association. Loans will
be made only on first mortgages OF
farm property and the value Of the
land will be the main consideration
The land will be subject to inspection
by an appraiser of the farm loan
board. Loans will he made only fol
purchase of land, foor its improve
ment, or for purchase Of livestock
equipment, fertilizers, or to provide
buildings on q farm or to liqidate
Indebtedness existing when the first
association is formed in the county
where land is located.
No loom will be made Of more than
$4,000 nor less than 800. Interest
will not be charged greater than 6 pei
cent The loan itself will be re-
duced throughout an amortization plan
providing for reduction by annual OF
semi-annual payments on the princi-
pal. No mortgage shall run for more
than 40 years no less thain five, and
there are the necessary provisions In
the law for satisfaction Of overdue in
terest or amortization payments.
Bank Directorates.
In the beginning the fedeal LAND
banks will be governed by directors
appointed by the farm loan board but
after subscriptions from loan associa
tions to any federal land banks capi
tai stock reach 100000, an elective
system will become effective, with
three directors chosen by the board
md six by the lean associations. The
board will approve compensation paid
directors and officers Of these bans
The loan associations will be directed
by unpaid off'cers expect secretary
and treasurer, or Secretary-treasurer
Banks and lon associations will be
subject to The customary examination
by persons appointed by the farm loan
board and the law provides penalties
for infrinsementS Of its provisions OF
counterfeiting Of farm loan bonds.
Norris is Head.
George Norris. Of Philadelphia, was
reSignata.l tv President Wilson toda!
as far loan comisioner, executive
head Of the farm loan bang system
created by the new rural credits act