Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1916-09-08
HOW FARMERS MAY
FORM A NATIONAL FARM
LOAN ASSOCIATION
What the Farm Loan Act Promises

Farmers want cheaper money,
They ought to have it. The Federal
Farm Loan Act aids them to get it.
The operation of this law is under
the control of the Federal Farm
Loan Board. The board is the head
of the Federal Farm Loan Bureau
which is under the Treasury Depart
ment at Washington. d. c.
The Federal Farm Loan Act pro
vides way of getting mortgage
loans for farmers at low rates of in
terest, at lengths of time to suit the
borrower and on easy terms of re-
payment. All farmers have to do is
to form themselves into national
farm loan associations. The govern
ment will do its part in helping them.
Farmers can easily form loan asso-
Citations as prescribed by the new
law. Let us see how this may be
done.
Farmers Only Need Apply
Ten farmers may unite to form a
national farm loan association. That
is the least number the law allows,
and farmers only can be members.
II more than 10 get together for this
purpose, so much the better. But if
only 10 farmers are willing to join
an organization to borrow ON farm
mortgage, that number satisfies the
law.
Let us suppose these 10 men are
farm owners. They may all be close
neighbors and know each other we'll.
But they may live some distance
from each other, though being in the
same community, or locality, or
district, or county. In that case they
may not know each other so we'll.
But that makes no difference. They
all have the same thing in view.
They want to borrow money on farm
mortgages at 4, or per cent in
terest. They want the mortgages to
run 5, 10 or 40 years, perhaps. They
want to pay the mortgage debt off a
little at time. They know this will
help them and so they get together
Calling Neighborhood Meeting
Now. these 10 or more farmers
in a community call meeting. 1t
may be held in school house, hall,
q church, or in one Of their houses
most convenient for them all.
When the farmers have come to-
gether they discuss the subject in
formally and decide to form them
selves into an association to borrow
money on mortgage. They appoint a
committee to draw up articles of as
ISOLATION. These articles should set
forth the object of the association
and the territory within which it
proposes to do business. They may
follow a prescribed form furnished
by the land bank, or it may be modi-
lied to suit the needs of any particu-
lar body of farmers But nothing
can be included in the articles of as
ISOLATION that is contrary to the let
ter and spirit of the law.
The farmers who thus unite them
selves into a national farm loan asso-
citation then sign the articles. A copy
of them is made to be sent to the
federal land bank of the district
within which the association is stu
ated, When the articles of associa-
tion are received by the land bank
they are filed for future reference.
Appraising by Loan Committee
loan committee of three men,
bers must be appointed to pass on
loans. A written report is drawn
up by them after they have examined
the lands. The committee examines
the farms and farm lands for the
purpose of appraising their value.
The report of this loan committee.
signed by all three members, must
be sent to the land bank with the
articles of association. All three
members must sign the report or it
will be worthless. The land bank
Will not consider the request for
loans unless all three members sign
their report about the value of the
farms. Their report should state dis
tinctly that the said committee had
examined the lands and appraised
their values. The lands and farms
should be described. and the value
of those upon which the members de-
sire loans should be stated.
1t is very important that the loan
committee put just valuation on
the lands. Care should be taken not
to put the valuation too high nor too
low. The former would be rejected
by the land bank; the latter would
prevent the farmer from getting as
high a loan on his farm as he de-
served.
Loan committees should remem-
Der that their advertisement is only