The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1917-02-22
!. FARM LOAN ACT.
II. How the Farmers May Take
Advantage Of II.
Iy Frank II. Wilson. federal loan BIZ
roau, Washingtonl .. CO

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Uy Frank r.; Wilson. federal loan BIZ
reau Washington, D. c.
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. II a
farmer wishes to borrow he should
find out If such an association hus
been formed In his community. If 1t
has. he should make application to
the secretary-trensurer 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 loun board,
Washington, D. c., for blank articles
of association. When they have been
received Il meeting Of the prospective
borrowers should he called and these
articles OF association should be udOpt-
ed, signed, and acknowledged by ench
member. Each member will indicate
the amount he wishes to borrow and
the value and description Of the land
lie wishes to use as security.
This association elects five or more
directors. and these directors then
elect Il president, vice president, IL
secretary-treasurer, and, lonn com
mittee Of three members.
This Is rs fur as the association Gun
go until after the federal land bank
or that district is established. Then,
upon application, the federal land bank
| will furnish the local association with
blank application for charter, which
should be filled out and filed with the
! federal land bank, along with the ar
ucles Of association.
| Lands of Members Valued.
! These documents should be accom-
| panied by written. unanimous reDort
Of the loan committee placing valua-
tion on the lands Of ench Of the mem
bers.
Then the appraiser Of the federal
land bank will come to inspect the
lands Of the members aud 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
start with less than $4,000 OF loans.
Each member Joining the local asso-
| citation must buy stock In the associn-
ton equal to per cent of the amount
he borrows. If he borrows 81 900 he
VIII get $3.50 In cash and certificate
or stock for $50. Or he may make hi.
loan $1,000 and thus have net lonr
Of $1,000, taking as long q time t,
; repay the 500 invested in stock as o;
the thousand borrowed. This invest
ment Is for the purpose of providin
the increasing capital Of the fedora
: land bank, and the local association
. invests 1t In the land bank stock. Tn
borrower will get his money bacl
when he pays Off his mortgages, IN,
VIII get what dividends 1t earns whil
1t is invested.
Why They Are Grouped.
Now. what Is the object of recurring
the borrowers to thus group themselves
into lOnn associations?
Primarily, that the loan associations
mhy eventually own The federal lnnd
banks.
This is cooperative banking sys.
TEN, and machinery must be provid.
cu Tor the government OF the banks
each OF the local loan associations has
Il vote III the election Of the directors
IN one OF the federal land banks. Th,
loan committee, provided by the local
ASSOCIATION, is the agency for the yaI-
alton Of the lands. The board of di.
rectors of the local association admits
or rejects new members, according 10
their wishes. But most important of
all, since this system Is co-operutiye
the borrowers must provide the money
Tor the increasing capital Of the bank
and they do this by investing in the
local associations.
Loans made under this system may
not exceed so per cent OF the M.
praised value Of the land used as SO.
curity, and 20 per cent Of the M.
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-
placed.
vI