The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-01-02
IIERS TO own
Il LAND BANKS
;. wickersham Tells
r.deraI Institutions
M Be Taken Over:
W
Ia GOVERNMENT STOCK
-. Borrowers Wit AZ
Lp.,.te ownership Of Banks
kte''sr, ...d Under Federal
EARN Loan ACT

,oderal land banks anu ene
.s ss I land banks are important hnps tan.
fee 't. to the national bank sys-
es .se federal d reserve system WA wa.
.s Nv former Attorney Zen
td's s. " =; wickersham in the fed.
Besols' Of Kansas City, where ne
gut 18th a. charles E. Hughes and
s n,. % to defend the constltu.
T. u tI f. the farm loan act
,b! ., a , who with Mr.. Nc
t v nessred as attorneys for the
y app. ,pek'' land banks, made very YER
g.. s's aract service which the fed
', ns ban banks perform and Their
a aa's,,on to the financial system
' 'anatrv. He also made clear IN
" snects the joint stock lano
y ' sifsr from the federal 'an'
email Borrowers Rights.
.,nos Of banks federal and
~ a,,c w. were created by the gov
l st to provide aid for the agr'cul.
\ IT, interests Of the country. Mr.
!e,. .a said that the government
4 s,,dom and singular comprenen.
! had s,iI reached out to take s,, care o.
1 s,ement Of borrowers. There1ore
,., ss land banks were created te
y. cradit for small borrowers. ano
',,t stock land banks were ere
4, W. - nrovide a similar agency
-, y which the larger borrowers
~. ~s' farmers might secure ample
~ w. without having to rely upon thu
= which had been assembled FOL
!. rse Of the small borrowers ane
! |ssut danger of depriving the SINAI
|' .svpr Of the very money which ilat
|. = ,ssembled for his particular use.
!, Dointed out how in the case o
!. establishment Of federal lant
h, the government had subscribed
] NJ stock of these banks as a tenn
|rr aid to the particular class o
|r-orers it was intended these bank
|.,,d accommodate. But, he said
|,svas only a temporary aid and tina
!, memment had provided that tn
|aS which had been subscribed D.
\ mvernment should be. taken VI
Mutually by the borrowers so that Il
Mend, in a very short time, the SINAI
mowers will own their own banks
NJ is, that the federal land bank
10 be privately owned in the EN-
No as the joint stock land banks ar
IN privately owned.
Federal Banks for Associations.
The federal land banks do not len
Individuals" said Mr.. Wickershan
hey lend to organizations Of borrow
d who together must desire at leas
tlN0, and who must organize then
ltes into a farm loan association
Mthey must subscribe to 5 per Ger
1.-THE amount of the loan which the
hk In the stock of the federal Ian
INK, as a condition to securing tn
M
Provision is made that when thes
ms are set up, If within a Unite
he Subscriptions are not made to tn
ht by others, the federal govern
eat through the treasury depar
aat shall take up the minimum
mount Of stock with which they al
lshorized to start business, to-W1
lMmM. Then, as they proceed
aar operation, as they loan to the'
aodadons, and as these association
'a'sertbe to their stock, by and by, !
v operations of the system, the stot
mich the government has taken is !
aa and ultimately those banks con
NO the control of their stockholdel
Farmers to Own Banks.
lhe federal government, as a stoc
soer, will pass out, and If the 81
~ De successful, after a certa
ugh OF time, the land banks will
saea by the various loan associatio
'lea are borrowing through the la
suks' and they will go ahead on t
4gelus Of private ownership.
:, having thus provided a systt
'Asfeoy this great scheme shall
spacned and become at once opel
y. y and money shall become ava
NC !. 10 the farmers desiring it, the {
~ provides that there be created
..a !. class Of banks, namely, I
',ul Stock land banks.
- 'ollowing the analogy Of the.
s 81. banks, the act provides Il
~, y. Inc outset, those banks shall
! sauized by private individuals. I
!, SHALL be subscribed by priv,
~WflGNAlc rrl -,h~- N0En nA0 M