The Waxahachie daily light. [volume] (Waxahachie, Tex.) 1894-current, 1917-01-17
HOW TO GET A LOAN
UNDER FARM LOAN ACT
BY FRANK Il. WILSON.
cor the Federal Farm Loan Bureau ]
Written for the United Press

WASHINGTON, Jan. II. The
right 10 borrow under the Farm
Loan Act Is limited to farmers aud
prospective farmers.
Farmers and prospective farmers
who wish To borrow group them
selves into Farm Loan associations,
each association being composed OF
ten or more farmers, and each 1850
citation starting with Il minimum OF
at least $20,0do of loans.
To join, farmer merely makes
application To the secretary
urer Of the loan association in his
community II none has been organ
lied he should get together the re-
bQuired number Of borrowers and or
ganize an association.
The federal farm loan board at
| Washington will furnish, on appli-
| cation, a blank form Of articles OF
association for such organizations.
Then the organizers meet and adopt
these articles and sign them aud the
secretary-treasurer makes affidavit
thereto.
This association then elects five or
more directors and the directors then
eject a president vice president, sec
retary-treasurer. and loan com
rnittee OF three members.
AS soon as the Federal Land bank
OF that district is ready for bust
ness 1t viii provide this local asso-
citation with additional blanks in
Guiding an application for charter
and blanks for the loan committee
10 use in the work Of appraising the
farms.
AS soon as the loan committee is
elected 1t may proceed to appraise
the farms upon which mortgages are
to be placed. It's report, which must
be unanimous, must accompany the
signed articles Of association ana be
flied with the Federal Land bank OF
that district
When this is done the appraiser If
the Federal Land bank viii come to
Inspect the security offered and ac-
cept or reject the report OF the loan
committee.
No enc farmer may borrow more
than $f9.ea0 nor less than 500. No
National Farm Loan association may
start with aggregate loans of less
thar 100000.
II John Smith, q farmer. desires
10 borrow $4,000 he invests In the
stock OF his local loan association
one.tWentieth OF this amount, or
500.
His association then invests this
money in the stock Of the Federal
Land bank, enabling it TO increase.
it's capital SO as to make another loan
Of 81, 900 to some other farmer. The
borrower gets his investment back
when he pays off his loan, or he may
turn ii IN as the last payment of his
loan.
Farmers are required to form
these organizations so that they
eventually viii control the Federal
Land banks. Each loan association
votes in the election OF the directors
of it's Federal Land bank. Each as
ISOLATION has q loan committee which
values the land of its members sub
ject to the approval of the land bank
appraiser and the Federal Land bank.
Each association has board Of di
reetors which has The power to ex-
clude or admit new members by a
two-third's vote. It is through this
local loan association that the far
mer invests the money to be used
for increasing the capital stock Of
the Federal Land banks, and this is
how the farmer comes into posses
sion Of his own banking system,
Farmers are permitted to borrow
up to 30 per cent OF the appraised
49,