St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1917-02-03
MAYOR ORDERS|FARM LOANS AS
ARRESTOFOLllE APPLIED TO THE
ORD, KEEPER OF NEW FARML0A
IMMORAL HOUSE BANK SYSTEM
Information That Will Give
An Insight Into Work
ing of Loan Plan.
Established Under the Farm Loan
Arf
(By Frank r. Wilson, Federal
Farm Loan Bureau.

ACGs
(By Frank r. Wilson, Federal
Farm Loan Bureau.}
The Federal Farm Loan Act,
adopted in June, 1916, and signed by
President Wilson shortly after,
creates a comprehensive, co opera
tive banking system to lend money
to. farmers and prospective farmers
for purposes Of land purchase. farm
development, and the refu1din5 of
indebtedness.
The system consists of two main
division ms: A money-assembling
agency, through which the accumu-
lations and savings of the country
are gathered in, and m0ney-lend-
ing agency, through which the mon
ey is distributed for agricultural
uses.
The farm loan act, in BRIEF, pools
the farm mortgages of the nation;
issues a collateral trust security
against those pooled mortgages, and
sells these securities in the open
market.
The establishment of this CO.
operative banking system was made
necessary by reason of the fact that
banks in most parts of the United
States haze not possessed the facili-
ties to properly take care of farm
loans because these loans required
too long a time to run; because in
terest rates to farmers have been SO
high, ranging fro per cent per
annum to 5 per cent per month; and
because private money-lending agen-
cies had not realized the reflex ad-
vantages to themselves OF q long
time, amortized loan to the farmers.
The machinery provided in the ap-
plication of the farm loan act has
three main divisions.
First-The Federal Farm Loan
Board in Washington, D. c.. COM
posed of the secretary of the treas
ury, William G. McAdoo, chairman
ex-officio; George w. Norris, farm
loan commissioner; Herbert Quick,
Captain W. S. A Smith and Charles
E. Lobdell.
Second-The twelve federal land
banks throughout the United States.
Third-The national farm loan as
cations, each composed OF ten or
more farm borrowers, with associa-
tions secure loans for the members
from the federal land banks.
The Federal Farm Loan Board is
in charge of the entire system. It's
first important duty was to divide
the country into twelve bank dis
tricts and locate one federal bank In
each. This board also provides the
banks with temporary governing
boards during the process of growth.
Later a system of cooperative self
will be inaugurated un-
der which the associations OF farm
ers will direct those big financial in
stitutfons under the supervision OF
the Federal Farm Loan Board.
Each of the twelve federal land
banks starts business with a paid up
capital of $750,OOO, subscribed by
the government, il private investors
do not subscribe it within thirty
days after the books are opened.
These banks have the right to lend
Continued on page s.
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school board their services, for the
purpose Of a medical examination of
he schools in Covington. carried.
Amended to read, that the teach
srs as well as the pupils be examined
~ above board of physicians. Car
led.
Supt. E. E.. Lyon thanked the ply
'icians for their interest in this mat
e.
CONTINUED on page ~