The Meridian times. (Meridian, Idaho) 1909-1938, 1917-03-02
FARM LOAN ACT.
II. How the Farmers May Take
Advantage of 1t.
% IIdHh II. WIIsOIl, IOa
reau, Washington, D. CT

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reau, Washington, ID. C.y
Only farmers or prospective farmers
who wish to borrow money may join
the national farm loan associations
provided under the federal farm loan
act. 1t takes ten, or more to make
up one of these associations. If a
farmer wishes to borrow he should
find out IL such an association. has
been formed In his community. If it
has, he should make application to
the secretary-treasurer for member
ship. If no association has been
formed, he should attempt to get ten
or more farmers who 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 beer
received a meeting of the prospective
borrowers should be called and these
articles. of association should be adopt
ed, signed, and acknowledged by each
member. Each member will indicate
the amount he wishes to borrow and
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he wishes to use Is security.
This association elects five or more
directors, and these directors then
elect a president, a vice president, a
seeretary-treasurer, and a loan COM
mittee of three members.
This is as far as the association can
60 until after the federal land bank
of that district is established. Then,
upon application, the federal land bank
will furnish the local association with
a blank application for charter, which
should be filled out and filed with the
federal land bank, along with the ar
ticles of association.
Lands of Members Valued.
These documents should be accom-
panied by a written, unanimous report
of the loan committee placing a valua-
ton on the lands, of each of the men,
bers.
Then the appraiser of the federal
land bank will come to inspect the
lands of the members and o. X. or
reject the valuation prepared by the
loan committee.
No one farmer may borrow more
than $4,000 nor less than 500. No
national farm loan association may
E start with less than $4,000 of loans.
Each member joining the local asso.
n citation must buy stock In the associa
n ton equal to 5 per cent of the amour
h he borrows. If he borrows $1,000 b,
will get $3.50 in cash and q certiicat
If of stock for $50. Or he may make hi
N loan $1,000 and thus have a net loa
n of $1,000, taking as long a time t
ID repay the $50 invested in stock as O
D. the thousand borrowed. This inves
ment is for the purpose of providin
the increasing capital Of the feder,
land bank, and the local associatio
k invests it in the land bank stock. Th
l. borrower will get his money bacl
when he pays off his mortgages, an
+ will get what dividends it earns Will
!, it is invested.
> Why They Are Grouped.
Now, what is the object of requiring
the borrowers to thus group themselve.
! into loan associations?
, Primarily, that the loan associations
: may eventually own the federal land
! banks.
h is a cooperative banking sys-
, tenn, and machinery must be provid-
ed for the government Of the banks.
, Each of the local loan associations has
: a vote in the election of the directors
; in II of the federal land banks. The
loan committee, provided by the local
; association, is the agency for the valu-
alton of the lands. The board of di-
rectors of the local association admits
, or rejects new members, according to
their wishes. But most important of
, all, since this system is cooperative,
the borrowers must provide the money
for the increasing capital of the bank
! and they do this by investing in the
? local associations.
Loans made under this system may
: not exceed 80 per cent of the ap-
praised value of the land used as Sc
! curity, and 20 per cent Of the APP
: praised value of the permanent, in
: sured improvements thereon.
: Non-land owners may become mem
bers of an association by indicating
in their application what land they
! expect to come into possession Of and
against which the mortgage will be
l placed.
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Paintings Under Wbitewzsh