Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1916-07-27
Provides System for Lending Money
at Reasonable Interest for ECsa-
lively Long PeriOds-AmOrtI
zatiOn Plan for Easy Pay
ment Prescribed.

ident and made effective Monday, jH.!
II.
The primary purpose Of this Act j.
to promote agricultural prosperity "y
enabling farmers tO borrow ma'.y "u
farm-mOrtgage security at Il rya~1t-
able rate of interest an dior relatively
long periods of time. To attain .'Hf
object, two farm-mort"a@r %y>tea@
are provided: CD \ system 0perati#s
through regional land banks; and c.
Il system operating through joint
stock land banks.
To attract money to the farm I"IH
field, the Act pprovideS 4 method
whereby those who have m"ucE %
lend can find safe investments in the
form of debeuturcS or bonds. Of ~ma!
and large denominations, issued by Ike
banks and based on the security Of
mortgages on farm lands
- These two systems are to hc uaGcr
the general supervision oof Fedora.
Farm Loan Board in the T?oasHrv
Department, composed Of the SCcrc-
tary of the Treasury, as chairman -
Office, and four members appointed
by the President. This board has de-
thcrity TO appoint appraisers exam
iners and registratarS. who will l." pub
lie officials.
Land Bank System.
Under the Federal land bank sy-
TEN the Act provides for Federal Lane
banks which make loans, for the first
II months, exclusively through local
national farm loan associations com
posed of borrowers. These associa-
tions shall be shareholders in the
banks and in that way the. members
Tho are the borrowers. will share, III
the profits of the !, bank. The money
fer the loans Is to come parity from
the ital ,e a. ,:s.I, - =. =.
from the siie-Ay the bagI DO ''... %
secured by first mortgages on 1"ri1
lands. The Act defines strictly the
purposes for, and the conditions M
der, which loans are to he Iaad". ana
requires that the ate of Interest
charged on farm loans shall no, On
cecd six per cent pcr amnrm.
The United States SHALL j." di-''t,'
into II farm. loan districts and Fed
eral land bank with Il subscribed cap
ital stock of not less than $s@"."".l
each share 81. shall be cstapJi~Acl ia
each district. Each Federal land ta.'.
may establish branches in lis district
Within 80 days after the capita, ,..".
is ofrprcr for sale it may ne p"n.ii..'
at par by anyone. Thereafter. ...
stock remaining untuld >"". ."
bought 10y the Secretary Of th" 'r".
ury for the United States. IL - '.'-
vided. however, that the Goycfnmr"
shall not receive any dividends on lis
stock. Ultimately, it is intended ilat
all the stock in the banks >ha'' hv
owned by the associations III "'rr'"-
ers. and provision therefore Is made
IN the law for transferring Tie orr.
inal stock ut parr to these a,S""'H, l"'i.
Farm Lean Associations.
The Act provides Tor III "r""..'"
of local national farm l"". "a ..
tions through which il j. r'4,. .s'..-
make their loans. In tn u.v-t .3a.
peuIloI lou ;! u"nG!o">," u""l .....
in any locality within Il %"&r. i-' '..r
eral Farm Loan Board na. @.,".....
Oh farm land through &.'-'.
agents. Ten or more persons -l.
own and cultivate farm Hand IA~'''. -.
rs security for mortgage loan M.".
the Act. or who are about t. 0'.a Hh2
cultivate such land. may form S''l "..
association, pprovidcd the afvrc!@ie 20.
the loans desired by the mrHh""~.!.i
is not less than $4,000. Each @"-r
ber must take stock in his a%sr.i"..'.
to an amount equivalent {" a|. ''.
cent of the amount IL Wj>hos 1" '.t
row. This stock the a-s"";a;;"' ...'.
in trust :rS security frr ;''n '".-. ..
Individual loaE. Til" ;~-..': ... .
turn. when applyiu" for "Hr. .
the bank. must >IIi-'r.n' ....
the banks to ;3u @U"H. ,....r