The Johnson City comet. (Johnson City, Tenn.) 1916-1917, 1917-01-25
HOW FARMERS MAY TAKE
ADVANTAGE OF LOAN ACT
Drank r. Wilson. in Bristol Herald
COurierJ

COuflef)
Onlv farmers or prospective IarHi~
ers who want to borrow money may
ioin the national farm loan 9SsoCla-
ton provided under t." 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 if such an association
has been formed in his community. II
it has he should make Application 10
the sccrctary-treasWer for member
ship. If no association has been tuHlu-
ed. he should attempt to get ten on
more farmers who wish to borrow, to
meet for the purpose of organizing.
f. The prpc2as of organization is very
simp'e. Onp of the members should
write to the Federal Falm Loan
Board, Washington, d. c. for blank
articles of association. Nh2n thy
have been received a meeting OF the
prospective borrowers shUlld be call
ell and these articles of aSso,iatior
should be adopted. signod, aid a,.
| knoWledged by each member. Each
! member will indicate tha amount he
wishes to borrow and the }a.ue and
description Of the land he wi hes to
use as security.
This association elects five or
more directors, and these directors
then elect president, a vice presi-
dent, secretary treasrer and loan
committee of three members.
This is as far as the association
can go ntil after the Federal land
bank of that district is established.
Then, pom applications the Federal
land bank will furnish the local as
sociation with blank application for
charter. which should be filled out
and fled with the Federal land bank.
along with the articles 49, of assoscia-
ton.
These documents should be ac-
companied by a written, unanimous
report of the loan committee placing
a valuation on the lands of each of
the members.
The the appraiser of the Federal
land bank will come to inspect the
lands of the members and O. X. or
reject the valatiOn prepared by the
loan committee.
No one farmer may borrow more
than $4,000 nor les sthan 500. No
national farm loan association may
start with less than $4,000 OF
loans.
Each member joining the local as
sociation must buy stock in the asso,
citation equal to 5~p cent of the
amount he borroWs. If he borrows
$1,000 he will lget $3.50 in cash and a
certificate of stock for $50 Or he
may make his loan 81 $50 and thu.
have a net loan of $1,000, taking al
, long a time to repay the $50 invest
ed in stock as on the thousand Dor
rowed. This investment is for tn,
purpose of providing the increasin,
capital of the Federal land bank, ant
the local association invests it in III,
; ahd bank stock. The borrower will
get his money when be pays off hi
mortgage, and will get what dividend
it earns while it is invested.
Now, what is the object of requir
\ ing the borrowers to thus grou
themselves into loan associations?
s Primarily that the loan association
y may eventually own the Federal Ian
: banks.
e This is a cooperative bankin
e system, and machinery must be pre-
IS vided for the government of tn
d banks. Each of the local loan assC
Citations has a vote in the election {
tn edirectors in one of the FEEDER;
land banks. The loan committee prC
\ vided by the local association, is Ii
agency for the valation of the land
v The Board of directors of the loci
II association admits or rejects ne
j. members, according to their wishe
in But most important of all, since tn
system is cooperative, the borrowe
must provide the money for the il
creasing capital of the bank-ar
Is they do this by investing in the loc
e, associations.
le Loans made under this system mi
y. not exceed SO per cent of the a
~ praised value of the land used as S
n curity, and 20 per cent of the a
n praised value of the permanent
d. sured improvements thereon.
Non-land owners may become mel
bers of an association by indicate
in in their application what land tn
ne expect to come nto possession of a
M against which the mortgage will
-, ~ placed
tn
he