The producers news., 1920-01-09
Georqe w. Wickersham Tells
How Federal Institutions
viii Be Taken Over.
TO Buy GOVERNMENT STOCK
Eventually the Borrowers viii Ac'
quire Complete Ownership of Banks
Established Under Federal
Farm Loan AcS.

TEN :n' The federal rcScrV" system was
emphasized by former Attorney ''''
c!ul Nvnrr" W. Nirkrr>hNm IN tue l''!'
c'nl court at Kansas CITY, Wll'r" 1t
nrncnrcd with Charles r. Hughes AT"
". e. N'Ad'" I" "rienH 'H' t"'i*ItA'
t;+HA!itN "i tn" 1arlh ini'N o'F.
MIR. Nir>HT>}tanl, VIII" with ,'ir. -''''
A1"n, Hr1'ru:"h as attorneys for II"
jnint Stock innd hahkS' NHor ''1>
Clear lie 'Na't >rrv'r" W''!rh III" ZOO
el,:i land !A"Ns perform ana 'i:'"
exact relation t" the 'A'''l' '.N E'''.!
Of III" country. lie also h'A'1' ''cA' ~
what respects the l"'l'' S''"'N '''n
H,Hfs %!!'cr from 'l'' '"''''''! '"--'.
banks.
p.,,+er+i1, syo2l Dor,ovjcr's r:itIhts.
/,.,., .,,,.,
l,''" 'H'" ]','''>,> ,n',,i>.., -. ,;'', ~" an.
J'-''' '''' ~ 49,. -, .n,..,,,
ei"'.'''' - 49, ,.,+,,. A.,
lul'l ",''''.='' 80 ''' ,'','''
'''' -, " .'' ~''' '':.' ,,,.,, ,,,,,
"'''' ""'''' ''' ~
Slo''' ''a'' ''''S ''''' '''' w. ''''
ever! e'''',','' ~ ''' ''','' '.l',.,,, =
the '''''''' ''''H' '''''N, |'' ,.',.'', , ,,,
p'o|," ''''''' ~, '.,,'', ,.>,nn w.,
inc J',''~ >'" " ''''',' , ';r,;,,r or,,,.,
+hrn,,on which thc larger borrowers
among farmers might secure. ample
funds, without having to rely upon the
funds which had been assembled fo'
the use of the small borrowers. nnt
without danger OF dcprivinS the small
borrower of the very money which hat
been assembled for his particular use.
lie pointed out how in the case OF
the establishment of federal LAM
banks the government had subscribed
to the stock of these banks as trm
porary aid to the particular class OF
borrowers it was intended these banks
should accommodate. But, he said
this was only temporary aid and thai
the government had provided that the
stock which had been subscribed by
the government should be taken~ur
eventually by the borrowers SO that ir
the end, in very short time, the small
borrowers will own their own banks
that is that the federal land banks
will be privately owned in the end
even as the joint stock land banks are
now privately owned.
ea.u,, p,.L. fo. A..oo;,+;one
- ,na;,,,d,,o,sn so,d NJ Wic,-orshom
"they lend to organizations Of borrow
ers, who together must desire at least
$4,000, and who must organize them.
selves into a farm loan association,
and they must subscribe to per cent
Of the amount Of the loan which they
seek, in the stock Of the federal land
bank, as a condition to securing the
loan.
"Provision is made that when these
banks are set up, If within limited
time subscriptions are not made to the
stock by others, the federal govern
ment, through the treasury depart
ment, shall take up the minimum
amount Of stock with which they are
authorized to start business, to-Wit,
$75O.OOO.OO. Then, as they proceed IN
their operation, as they loan to these
associations, and as these associations
subscribe to their stock. by and by, by
the operations Of the system, the stock
which the government has taken Is re-
tired, and ultimately those banks come
'A'o '''0 ~''o'
The 1ederal government as stock'
holder, Will pass OUT ana II the sys'
tenn be SUCCESSFUL, a1ter certal"
length OF tlme' the lana oahNs WIZ Ut
owned Dy tne various loan ASSOCIATIONS
whlch are borrowing thro"s" tle lanu
panks' ana 'heS VIII 20 ahe"o on '"e
impetus OF prl'ate ownership
Having thus proVlded system
whereby TINS great scheme snail oe
launched ana become at once opera
tive ana money snail become aVall.
able to the farmers desiring II, the ACT