The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1916-07-07

objection that may be raised or 10 COT
asked regarding he BILL
LESSON /.
Q.-What is the Gardner Land
Bank Bill?
A cas- passed by the last
Legislature and signed by the Gov
ernor, to establish a Missouri state
land bank through which farmers may
borrow money at low rates of inter
est.
Q.-Why is it to be submitted at
the November election under the
initiative and referendum and be-
come effective December l, 1867
A-To let all the people vote on it,
settle all questions Of constitutions
atty and avoid litigation.
Q.-How is the bank to be started?
Alt is to be incorporated, with
out shares of stock, and the state
is to appropriate as a loan out OF the
state treasury one million dollars
(S1,OO0,0OO) as a working capital. The
assets are to be exempt from all taxes,
Q.-How will the bank be man
aged?
Automatically, by using state
machinery now in existence.
Q.-Who will be the officers?
A.-The Governor, Attorney Gen
eral, Secretary of State, Auditor and
State Treasurer. For special serv-
ices. county officers will be called
upon at no additional expense.
@. Who win be the managing d.
rector?
A.-The State Bank Examiner, al
ready under salary.
Q.-Where will the bank be To-
Gated?
AIT the state capital, in con
nection with the Bank Examiners Of
flee. His clerks would do the clerical
work along with their other duties.
If additional clerks are required they
would be paid out Of the banks funds
Q.-Would there be any salaried Of
ficers?
A.-No, except the appraisers. AL
officers who handle funds would oC
bonded. The state would be divided
into districts as economically as pos
sible and appraisers appointed az
needed. These men would pass OF
the cash value Of the land, with thu
assistance Of the county officers
and would draw $4,000 a year salar.
and travelling expenses.
MAKING THE LOANS.
Q.-How are the loans to be mad
to the farmers?
AIN amounts not in excess U
half the cash value Of the land, tn
bank taking notes secured by deed
ul trust or mortgages on the prOp
erty.
Q.-What are the limitations of tn
leans?
A.-No loan shall be for less thai
$3.50, nor more than $4,000, and TO
periods Of not less than five year
nor more than twenty-five years. Pre-
renee would be given to the smalle
loans to develop small farms.
Q.-Must the borrower use the MOI
ey in a certain wayH
Ayes, II is not for speculation
The purpose Of the loans is to max
the land more productiVe-to max
improvements-to pay off liens or II
cumbrances probably where O.
horbitant interest has been paid herr
t%ofore), and twenty-five per cent
the loan may be used for buying stoc
and machinery,
Q.-Could the loan be repaid at an
time?
A.-All or part Of the loan may b
repaid at any interest period.
Q-And what about the intere'
charges?
A.-The interest would be four an
t~hree-tenths of one per cent, m ha
Of one per cent of which is to I
, to create a sinking or reserve fun
PAYING OFF THE LOAN.
l Q-What about the annual pa
ments on interest and principal? Sa
for instance, on the 500 basis?
A.-on 500 for five years the a
: nual payment on both principal al
; interest would be S22.4O. For a t
: year loan, S12.4O a year, and so {
= up to twenty-five years when Il
7 yearly payments on principal an
. Observation-Disclosures be So.
6 a year, on the 500.
> Q.-Why is this system Of paymen
y best?
! A.-5eeause Il permits the farm
> to gradually pay off the loan from b
; profits and not from his capital.
Q.-How would the bank get a
il dit!onal funds after the appropriate
FROM the state is loaned out?