The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1917-01-24
Congressman ]. R. Walker Sends
Out Very Interesting
Statement.
OF INTEREST TO FARMERS
Full and Detailed Information Is
Given to the Farming Inter-
eSts of the District on Matters
OF Vital Importance.

For the information of the thou
sands of good farmers in the Eleventh
congressional district, Hon. j. R. Wal
ker has sent out a clear, concise state
ment, showing just how loans are to
be made by the Farm Loan Banks.
The statement is as follows and is
very interesting and Illuminating:
"The right to borrow under the
Farm Loan act is limited to farmers
and to prospective farmers. Farmers
and prospective farmers who wish to
borrow group themselves into farm
loan associations, each association
starting with minimum of at least
100000 of loans and each association
being composed of ten or more farm
ers. To join, a farmer makes appli-
cation to the secretary OF
the loan association in his community.
If none has been organized, he should
get together the required number of
Rrrowers and organize an associa-
vThe federal farm loan board at
Washington will furnish on applica-
ton blank form of articles of asso-
citation for such organization. Then
the organizers meet and adopt these
articles and sign them and the secre-
tary treasurer makes affidavit thereto.
The association then elects five or
mere directors and the directors then
elect a president, vice president, sec
retary and treasurer and loan COM
mittee of three members. AS soon as
the federal land bank of that district
is ready for business, it will provide
this local association with additional
blanks, including an application for
charter and blanks for the lean COM
mittee to use in the work OF apprais-
ing the farm.
AS soon as the land committee is
elected it may proceed to appraise the
farms upon which mortgages are TO be
placed. Its report. which must be I'M
animous, must accompany the signed
articles of association and be filed
nth the federal land bank of that
district When this is done, the ap-
praiser of the federal land bank will
come to inspect the security offered
and accept or reject the report of the
loan committee. No one farmer may
borrow more than $4,000 nor less
than $100. No national farm loan as
sociation may start with aggregate
loans less than 100000 If John Smith,
a farmer, desires to borrow $4,000,
he invests in the stock of his local
loan association one twentieth of his
amount, or S100.
His association then invests this
money in the stock of the federal land
bank, enabling it thus to increase its
capital so as to make another loan
of $4,000 to some other farmer. The
borrower gets his investment back
when he pays off his loan or he may
turn itsin as the last payment on his
loan.
Farmers are required to form these
organizations so that they will even
tually control the federal land bank
Each loan association votes in the
election of the directors of its federal
lard bank, and each association has
a loan committee which values the
land of it's members subject to the
approval of the land bank appraiser
and the federal land bank. Each as
aeciation has a board of directors
Which has the power to exclude or
admit new members by a two-thirds
vote. It is through this local loan as
sociation that the farmer invests the
money to be used for increasing the
capital stock of the federal land banks
and this is how the farmer comes
into possession of his own banking
system.
Farmers are permitted to borrow
up to 80 per cent of the appraised
value of their land and 20 per cent
of the permanent insured improve
ments thereon.
1t is not necessary for borrower
to be an actual land owner when he