Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1917-01-26
EARM LOAN BANKS.

(This is the first of Il series of five
articles on The Farm Loan Banks.
prepared by Frank II. WilsFon. Of
The Federal Farm Loan Bureau, of
Washington)
Only farmers or prospective farm
ers who wish to borrow money nav
loin the national farm loan associn-
ions provided under the Federal
Farm Loan Act. IL takes ten or more
10 make up one of these associations
u farmer wishes to borrow, he
should find out if such IN associn-
ion has been formed in his commu-
mty If it has, he should make appli
cation TO the secretary treasurer for
membership. If no association has
been formed, he should nttcmpt to
Get ten on more farmers who wish 10
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, ID. c. for blank
articles of association, When they
have been received meeting of tho
prospective borrowers should bc cnn-
ed and these articles of association
should be adopted, signed, and ac-
'nowlcdged by each mcmbcr. Each
member will indicate the amount he
ylshcs TO borrow and The value and
description Of the land he wishes to
use as security.
This association elects five on moro
directors, and these directors then
elect president. vice president,
fecrctnrv- treasurer and loan COM
rLtec of three members
This is as far as the association
AN go until after the Federal land
bonh Of. that district is established.
Then, upon application, The Federal
'ond bank will furnishh the locnl rs
5ociation with Il blank application for
,hmtcr, which should be filled out
md filed with the Federal land bank.
along with the articles Of association.
These documents should be accom-
nanied by written, unanimous re-
NOrt of The loan committee nlacinp n
'aluatiou on the lands Of each OF the
members.
Inspects Lands.
Then the appraiser Of The Federal
land bank will come to inspect the
'unds of the members and o. x. or
reject the valuation prepared by the
loan committee.
No one farmer may borrow more
| han $l0,000 nor less than 500. No
national farm loan association may
atnrt with less Than $4,000 of loans.
Each member joining The local as-
soc!ation must buy stock in the asso-
cation equal TO five per cent, of the
| an0unt he borrows. If he bOrrows
81 900 he will get $3.50 in cash and n
certificate Of stock for $50. Or he
may make his loan $I,050 aand thus
have n net loan Of $1,000. taking as
long time to repay the $50 invested
IN stock as on the thousand borrowed
This Investment is for the purpose Of
providing the increasing canita of
The Federal loan bank, and the local
association invests il in the land bank
stock. The borrower will gct his
money back when he paws off his
mortgage, and will get what divi-
dends it earns while it is invested.
Now, what is the object of reauir-
ing the borrowers to hus group them
selves into loan associations?
Primarily that the loan associa-
tions may eventually own the Federal
land banks.
This is Cooperative banking sys-
tenn, and machinery must be provid-
ed for the government of the banks.
Each of the local loan associations
has vote in the election of the di-
rcctors in one of the Federal lanl
banks. The loan committee, provid
ed by the local nssociation, is tho
agency for the valuation Of the l4nds
The board of directors of the local
association admits or rejects ne,y
members, according to their wishes.
But most important Of a. since this
| system is cooperative, the borrow