The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-10-17
HEAR|Ae NEXT MONDAY
Of Fam LOAN BOARD
Vhxfn1a ThxmeEs Ara Invited to BE
Present At Meeting In the Fed
e1ul Court.
WILL AID AGRICULrURIsrs.
Ffauk h Wilson, Advance Agent for
Lnan Board. Holds Conference With
Chamber OF Commerce Committee.

Chamber Of Commerce Committee.
Final arrangements for the Virginia
hearing Of the Federal Farm Loan
Board IA tho Federal Court here next
Monday were made yesterday at
meeting of the Chamber Of Commerce
Agriculture and immigration Com
mittee in the American National Bank
! building.
This committee is composed OF o.
J. Sands, chairman: A. L. Adamson,
r. l. Blanton, James D. Sheahan. B.
Morgan Shepherd and s. w. Temp
kina Frank r. Wilson. advance
agent for the loan board: T. NJ. Car
rington, g. w. Crenshaw. J. r. Pas
chall and Commissioner of Agricul-
eure George w. Koiner were also
present 1t this meeting a-----.,
This hearing next Monday Is for
the purpose OF getting direct informa-
ton from Virginia farmers regarding
the needs and to discuss plans to To-
cate ono of the loan banks in this
section
Mr.. Wilson asked the cooperation
Of the Chamber OF Commerce to the
extent OF sending out invitations to
farmers throughout Virginia to at
tend this meeting. w. IT. Dabney.
business manager of the Chamber
told Mr.. Wilson that the organization
would be very glad to do everything
in its power to help matters along.
and announced that invitations Will
be sent out to 1000 farmers. The
names OF these farmers were furnish
ed BY Commissioner Koiner. It was
! also stated that a large number OF
prominent people will be asked to
attend and testify At the hearing.
Many VIII Testify.
Those who have been asked TO give
Testimony are: Governor Henry c.
Stuart. James Belwood. r. NJ. Car
sington. Dabney Crenshaw. George c.
Gregory. George w. Ko!ner, j. r.
Paschall. II. c. Beattie. A J. Terrell,
George Ransom. M. c. Borswell, ], F.
Mcdonald. D. Egg!eston. ~ H
J4frsss, Miller Brosh4rs w. D,
Bsattis. Sterling Hutchinson. Henry
Wood. 3. p. EgE'eston. d. W Owens,
Scott. A. b. Thornhill, J. B. Watkins
and Weskmoreland Davis.
Tho Foderal Farm Loan Board Is
ths oomuaission named by the Presi-
dent 70 administer the new rural
credits legislation. known as the Fed
orl Farm Loan Act. It Is composed
Of william q. McAdoo. Secretary of
the TfsAsuy: Geo. w. Norris, Farm
Loan Commissioner: Herbert Quick.
,Lobdell The Richmond hearing will
b tho flrst ono OF tour of South
nrn cities.
The Farm Loan Act. passed by the
last Congress and Agned by President
Wilson. provides for the supplying of
cheap money to the farmers for land
purchase and agricultural develop
msnt. Il n the long-taiked OF rural
credits bill which the farming inter
ssts Of the nation have been seeking
Mr.. Wilson explained today that
under the terms OF this bill farmers
. may borrow money at low rates OF
interest for tcrmc OF from FIVE TO
forty years. the debts to be paid of in
small yearly or semi-annual Install
ments. Farmers will be required TO
organize National Farm Loan Asso-
cianons-Sroups OF farmers OF one
community composed OF ten or more
prospective borrowers. These groups
elect officers and apply for a charter
which is supplied them by the Fed
eral Farm Loan Board az Washing
ton and after they have organized.
these associations borrow in bulk
from the Federal Land Banks. twelve
Of which are TO be established In the
United States. Only borrowers may
belong to these associations
Government Supplies Capital.
The loans Will be made by these
twelve Federal Land Banks each with
an original capital of $3.50. 900. sup
piled by the government. These banks
are permitted to lend twenty times
their capital. They get additional
money for lending by selling their
bonds. Each borrower Is also re-
Quired to invest back In the institu
tion ave per cent. OF the amount OF
hts loan SO that when the bank lends
$1,000 its capital stock increases $50
70 that 1T can lend another 81, 200.
Thus Its capacity for lending money
automatically increases SO long as 1t
can sell its bonds.
Tho rate OF interest to the farmer
will depend upon the rate at which
tho bonds will sell. The law provides
that the interest rate shall not ex-
ceed tho bond rate by more than ore
par cant. this margin to pay the cost
Of operating the banks II the bonds
se11 for per cant the rate to the
farmer VIII therefore DO 8 or less
Il u prsdiotsd that the banks may
b epsraesd Tor ons-half Of one per
Tho sass Of the loans II limited to
$4,000 % that the law may not be
uesA for speculation and land monop-
oily. Only actual working farmers
may borrow. Landlords are excluded.
The 6tll - designed to help tenants
ct farms Of their own Farmers
81 peospsctivs farmers may borrow
up % 50 Per cent OF the value OF the
land and 30 per cent Of the value
Of tho permanent insured improve
mo0tg.
Controlled by Farmers.
Tho Federal Land Bank system will
be . cooperative banking system
owned and controlled by the farmers
who borrow from it. The local Farm
Loan Associations. composed OF ten
or more borrowers. are the organiza-
tons which have the voting power to
govern the banks. These local groups
also provide the machinery for the
exclusion of bad accounts and for val
uation OF lands.
1t 10 expected to have the banks
established by January and to have
/, them to lend money by February /.
Farmers may now go ahead and or
ganixe their local associations to Dor
row from these banks 40 thew will