The Marietta journal and courier. (Marietta, Ga.) 1909-1918, 1917-01-19
THE FARM LOAN ACT.

son, OF the FeQeral dII Lodh Ia
reau. of Washington, d. c. 1t IS
from the Atlanta Constitution OF
January 10th.
Only farmers or prospective far-
mers who wish 20 borrow money may
ioin the national farm loan associa-
ton provided under the federal
farm loan act. 1t takes ten Or more
to make up one of these assocla-
tions. If farmer wishes to borrow
he should find out if such an asso-
citation has been formed in his
| community. If it has, he should
make application to the secretary
treasurer for membership. If no
association has been formed he
should attempt to get ten or more
| farmers VINO wish to borrow to
meet for the purpose of organizing.
The process of organization is very
simple. One of the members should
write to the Federal Farm Loan
| Board, Washington, D. c., for blank
| articles of association. When they
have been received a meeting of the
prospective borrowers should be
called and these articles of associa-
ton should be adopted, signed and
acknowledged by each member.
Each member will indicate the a
mount he wishes to borrow and the
value and description of the land
he wishes to use as security.
This association elects five or
more directors and these directors
then elect a president, vice presi-
dent, a secretary-treasurer and a
loan committee of three members.
Application for Charter.
This is as far as the association
can go until after the federal land
bank of that district. is established.
Then, upon application, the federal
land bank will furnish the local as
ISOLATION with a blank application
for charter, wnich should be filled
out and filed with the federal land
bank, along with the articles of as
ISOLATION
These documents should be &C
companied by written unanimous
report of the loan committee plac-
ing valuation on the lands OF
oac, cf tho NOM harc
Then the appraiser of the federal
land bank will come to inspect the
lands of the members and o. K
or reject the variation prepared by
the loan committee.
No one farmer may borrow more
than $4,000 nor less than 500
No national farm loan association
may start with less than 100000
of loans
Each member joining the local
association must buy stock in the
association equal to per cent OF
the amount lie borrows. If he Dor
rows $1,000 he will get $3.50 in
cash and certificate of stock fol
$50. Or he may make his loan
ST $50 and thus nave a net loar
of $1,000, taking as long a time tt
repay the $50 invested in stock as
on the thousand borrowed. This
investment is for the purpose OF
providing the increased capital Of
the federal land bank, and the loca
association invests it in the lane
bank stock. The borrower will get
mis- money back when he pays of
ais mortgage, and will get what di
vidends it earns while it is invest
ed.
Now, what is the object of re
quiring the borrowers to thus group
themselves into loan associations?
Primarily that the loan associa
lions may eventually own the fed
eral land banks.
Cooperative Systems.
This is cooperative bankins
oLClil, anu machinery uluSI Dt
provided for the government of The
banks. Each of the local loan as
sociations has a vote in the election
of the directors in enc of the FEEDER
al land banks, The loan commit
tee provided by the local associa
ton, is the agency for the valua
ton Cf the lands. The board of di
rectors of the local association ad
mits or rejects new members, &C
!; cOrding to their wishes. But mos
important of all, since this system
is cooperative, the borrowers mus
} provide the money for the increas
; ing capital of the bank-and they
do this by investing in the local as
sOciatiCns.
Loans made under this system
may not exceed 80 per cent of tn,
appraised value Of the land used a!
security, and 90 per cent of the ap
praised value of the permanent in