Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-11-15
. . 0 . o Q . o o o Q . . Q 0 Z

The federal farm loan board wants
! 10 talk 10 the farmers Of New Mexico
when IT holds It's hearing In the Albu
querquo federal building next Mon.
! day November 20, according 10 Frank
! r. Wilson. advance man for tho
| board. who arrived yesterday to com
! plete arrangements for the hearing
THE farm loan act was adopted fol
| the benefit OF the farmer said Mr.
! Wilson. and the board is anxious t.
apply This new legislation so as to best
serve the farmers. For that reason
il wants the farmers of New Mexico
TO attend this hearing and tell the
board first hand, their farm loan
needs. and 10 listen to the explanation
Of the act by the members Of the
board which will administer It"
Mr.. Wilson announced positively
that Secretary MCAdoo viii attend the
Albuquerque hearing, as viii all the
other members Of the board, including
George W. Norris. Herbert quick,
capt w. s. A. Smith and Charles E.
Lobdell
The board will arrive in Albuquer-
que on the morning of Monday, No
vember 20. II Is now on the last lap
Of It's 2j,O00-mile tour Of investiga-
ton about the farm loan needs of va
rious sections. During December it
will digest this great mass Of testi-
mony and outline the twelve bank
districts The banks win be estab-
lishcd I'm January and IT Is hoped that
they will be ready to lend money for
agricultural purposes in February,
West Active for Banks.
Mr. Wilson met with the Albuqucr-
que Chamber Of Commerce commit
tee and approved It's arrangements for
getting this section Of the state prop
Crly represented at the Albuquerque
hearing.
Tho farm loan act has met with a
wonderful response all over the
country" said MI Wilson. The south
and west have been particularly ag-
gressivc in organizing to take advan-
tage Of IT, Naturally the sections
which have suffered from curtailed
credit viii be the first to grasp the
new opportunities provided under this
act"
'rhe government viii establish
twelve federal land banks, each with
a capital Of $3.50, 600, explained the
visitor. "and the government itself
will subscribe the original capital of
these banks Farmers, TO borrow
from these banks, are required to
group themselves into national farm
loan associations, probably one for
each community These associations
must have ten or more members,
made up Of farmers or prospective
farmers who want to borrow These
groups borrow i'm bulk from the
banks
THE organization of these groups Is
required In order to provide the ma
chncry for governing the banks, for
the valuation OF lands, for the crea-
ton Of a local responsibility ana for
the elimination Of worthless accounts
The local associations of borrowers
are the foundation stones OF the whole
system and through them the system
is made purely cooperative, ana
through them its ownership and con
troll are kept in the hands Of the
farmers themselves.
Helping the Tcuants-Big Co-opcra-
tive Machine.
Farmers are permitted TO borrow
UP to so per cent of the value of the
land. and 20 per cent Of the value OF
the improvements and il a tenant de-
siros TO borrow to purchase land, ne
may get the so per cent possible un-
der this act and then he mag give
a second mortgage to tho original
owner for the difference So II is eN-
pcctcd that this act viii enable many
tcnunts to become land owners
After the original capital OF these
banks rs loaned, the banks get add
tional money for lending through the
sale of their bonds, thus II will be
seen that this farm loan banking sys-
tenn Is big cooperative machine,
which collects the savings Of the thrift
ty and then puts this money out for
the purposes OF agricultural develop
ment The whole process Is done I'M
der governmental supervision, without
waste and without profit to any indi-
yidual
Loans are made to farmers on the
amortization, or installmcnt plan
These loans may run from five to ton
years, and they must be paid back In
equal annual mstallments throughout
the period Of the loan. They rccog
nide the fact that farmers need long
time loans so as to put their farms In
shape to pay back the debt out of the
profits from the Investment
Mr. Wilson predicts that the farm
oau act viii rogeuerate those sections |
NJ the country where agricultural de-
yclopment has been retarded by
shortage of capital, and he predicts |
hat the commercial prosperity OF cit |
les viii be augmented as result OF |
his stimulation Of agricultural devel- !
,pWcnt.