The St. Mary banner. (Franklin, Parish of St. Mary, La.) 1889-1931, 1917-01-13
Farmers Loan Bank.

Kdl MtlN LVdu DdlIk.
We publish in full the following
editorial, copied from a recent is
sue of the New Orleans Item, il
which 1t explains with absolut,
clearness the purposes Of the Far
mere Loan Bank, and the way il
which the farmers can obtain
loans from these banks Many O
our farmers do not completed,
understand the workings of thi,
banking institution. Read this
editorial carefully, for the infor-
nation desired cannot be more
clearly and more satisfactorily
given:
Any community can have a farm
loan association. 1t takes ten farm
en-, 1T the minimum, to form one
ct these associations. AS many more
as can be secured can organize one.
The federal farm loan board de-
sires associations to have large
membership rather than limited to
the minimum. These farmers must
have two qualifications. They must
be actual or prospective owners of
farms. They must be borrowers
from the farm loan bank, In addi-
ton the loans desired by the entire
membership of any farm loan asso-
siation must aggregate at least
$4,000.
TO be specific. Any ten or more
farmers in q community can get to-
gether now and form one Of these
farm loan associations. Together
they must borrow not less than
$4,000 90. Individually, they
nay borrow not less than 500, and
net more than 100000. They do not
have to wait until the farm loan
banks actually open before they
3syA this association. They can per-
Test their association Immediately.
AfteR they have filled their member
ship they can send to the Federal
Farm Loan Bureau at Washington,
o. to their district farm loan bank,
It it is opened, and obtain a pre-
scribed form or article of associa-
ton, which each member signs. This
form il sent to the district federal
land bank and filed.
The farm Loan Association is alb
self-governing. It selects it's
own president, vice-president, sec
fetafy-treasurer, directors and loan
committee. Neither the district land
bank nor the federal board can have
the slightest voice in the organiza-
hon, nor dictate to it in any manner.
The loan committee of each farm
|oan association is composed of three
members, elected by the entire mem
bership. This loan committee is the
'eal power in the farm loan banking
'ystem, 20 it is the "small farmer"
Vho, after all, has the real bossing
4 the job. l.
Every member Of the association
must be . borrower. As soon as any .
member who is . borrower pays off
IL loan, he automatically ceases be-
az . member of the association.
his makes it impossible for the
Andlord class to get control Of the
ystsn and exploit the borrower.
he borrower always control the
vstem, than which nothing could be
lore liberal to the small farmer. Z
The loan committee Of each asso-
alton examines every application
its membership for loans. The :
ans must be secured by first mort
sges and must not exceed one-half
the appraised value Of the land,
y appraised by the loan commit
e) and 20 per cent of the perman- q
t improvements on the land, all
which improvements must be in
red. It is the business of the loan
mmittee to see that loans asked for
. fully protected according to this
?, NO LOAN CAN BE MADE BY ~
he FEDERAL BANK UNLESS
he LOCAL LOAN COMMITTEE
THREE UNANIMOUSLY RE-
)11END IT AS BEING GOOD III 10
Nd WITHIN THE LAW. This ~
nmittes makes a written report b
each loan asked for, and this re- ~
rt i sent to the district farm loan IN,
*. This report must state dis phi
city that the local loan committee m6