Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-02-11
FARM LOAN BONDS.
Governor Asks Legislature to Make
Them Legal Investment.

sage has transmitted letter from W.
u. McAdoo, former secretary of the
treasury, asking that the general as
sembly pass law making farm loan
bonus legal investments for the funds
of savings banks, insurance companies
trust companies, and for guardians
and trustees. Accompanying the cor
respondence is a copy Of the act de-
sired, which has the approval Of the
treasury department Of the United
States.
II respectfully recommend that you
give this bill favorable consideration -
the governor said, land that the same
be acted on at this session Of the gen.
eral assembly"
The second paragraph Of the gov
ernors message reads:
II am informed that the legislatures
of most of the states have already
acted favorably on this bill. In this
feaeral land bank district, composed
of North Carolina, South Carolina,
Georgia and Florida, the states Of &C.
orgia and Florida have passed the bill,
and 1t is now in force in these states.
am also informed that the bill has
received a favorable report by the
committee on agriculture Of both the
house and the senate in North Caro-
lima, and Governor Beckett Is Of the
opinion that 1t will pass without diff
Guilty"
In explaining the purposes Of the
bill, Mr.. McAdoo said:
To secure an adequate supply OF
money for the very vital and urgent
purpose Of making such mortgage loans
as the farmers Of the country need,
the federal land banks issue bonds Sc
cured by the deposit as collateral OF
first mortgages on land. The farm
oan act provides that these bonds
shall be a lawful investment for all
fiduciary- and trust funds. and may be
accepted as security for all public de-
posits.' This Of course relates only
to fiduciary and trust funds under the
Jurisdiction and control Of the federal
government. In order to make these
bonds lawful investments for the trust
funds and savings banks in the various
states, 1t is necessary that each state
shall enact laws to that effect unless
such laws are already in existence.
"Such legislation will accomplish the
double benefit of putting within the
reach of trustees and guardians an alb
solutely safe investment, yielding a
satisfactory income, for the benefci-
aries under their trust, and widen the
opportunity for sale investment OF
the savings Of the masses, while, at the
same times it will prove Of immense
benefit to the farmers Of your state IN
enlarging the market for farm loan
bonds and farm mortgages.
1.-THE constitutionality Of the act has
been passed upon by the attorney gen.
eral of the United States, on behalf OF
the farm loan board, and by former
Supreme Court Justice Hughes. on be-
half of private interests, and the II
federal loan banks have already made
loans to the amount Of approximately
s5o,00o,OO0, and have sold more than
$40, 900, ,OOO."
The following is the body Of the pro-
posed act:
Section 1. Any savings bank, bank
ing institution, trust company or IN
surance. company, organized under the
laws of this state, or any person act
ing as executor, administrator, guar
dicn or trustee, may invest in federal
farm loan bonds issued by the federai
land bank or joint stock land bank
organized pursuant to an act OF con-
grcso entitled AN act to provide capl-
tai for agricultural development to
create standard forms Of investment
based on farm mortgages, to cqualize
rates of interest on farm loans, to FUR
nish a market for United States bonds
to create government repositories and
financial agents for the United States,
and for other purposes approved July
II, 1916.
"sec. 2. That act shall take effect
Immediately and all acts and parts OF
acts inconsistent with the provisions
thereof are hereby repealed"
The message, correspondence ana
copv of bill were referred to the judi
ciary committee.