Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1920-01-08
FARMERS TO own
BIC LAND BANKS
George W. Wickersham Tells
How Federal Institutions
& Win Be Taken Over.
10 BUY GO GOVERNMENT STOCK
Eventually ths Berrowers Will 40
sulrs Complete ownsrshlp u Banks .
~ EstahlIshsd Under Federal
se ~ si'alparnS .EsaR Act-l0 seae Z

That the, federal land banks and the |
,eint stock land banks are important
TO- the national bank sys- |
tenn and the federal reserve system was
BY former Attorney Gen
ersl George w. Wickershan lii the fed.
eral court ii Kansas City, where hSt
appeared With Charles n Hughes and
w. d. MEAdoo to defend the eonstitu'
or the farm loan act. saaee
I Mr.. wickersham. who with Mr. Me- |
Adoo. appcsred !; 80 attorneys for the
toint Axtock ginnd cbaukss madee very
clear the exact, service which che FED, |
eyalo land banks perform and their
exAct relation TO the. financial system
OF the country. he also made Clear In
what respects the Joint stock land
Banks diffsf from the Federal land
hanks n NsiAad@sN &as N&.r hcs
! p 70, "a small I sss,rssws.|s Rishts
s. both types Of banks federal and
Joint stock were created BY tbs gov
ernment to. provide aid FOR The asricul.
tursi interests of ths country, Mr..
Wickershain raid that the government
WITH wisdoti and singular comprehen-
sion, had reached out to take care Of
every element of borrowers. Therefore
the FEDERAL hand banks were created to
provide credit Tor small borrowers, and
the joint stock land banks were ere
ated to, provide similar agency
through which the larger borrowers
among farmers might secure ample
funds without having to rely upon the
funds which had been assembled fer
the use of the smah borrowers, and
without danger Of depriving the small
borrower OF the very money when had
been assembled for his particular use.
He pointed out how in the case OF
the establishment Of federal land
banks the government had subscribed
to the stock of these banks as tenn
porary aid to the particular class OF
borrowers 1t was intended these banks
should accommodate. But, he said
this was only temporary aid and that
the government had provided that the
stock which had been subscribed py
the government should be taken up
eventually by the borrowers so thar IN
the end, in a 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. II
Federal Banks for Associations. "a
"The federal land banks do not lend
to individuals" said Mr.. Wickersham,
"they lend to organizations Of borrow
ers. who together must desire at least
$4,000, and who must organize them
selves into 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. r ~
Provision is made that when these
banks are set up. II within q 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,N
S7bO,OOOOO. Then, as they proceed I'M
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 LIS re-
tired, and ultimately those banks come
into the control of their stockholders.
a2 as Farmers to Own Banks. ~
.The FEDERAL government. as stock
holder, will pass out. and II the sys-
TEN be successful. after certain
length of time, the land banks will be
owned by the various loan associations
which are borrowing through the land
banks, and they will 60 ahead on the
impetus Of private ownership.
Having thus provided system
whereby this great scheme shall be
launched and become at once opera
tive and money shall become avail
able to the farmers desiring 1t, the act
also provides that there be created a
different class of banks, namely, the
joint stock land banks.
"Following the analogy Of the ma
tional banks, the act provides that
from the outset, those banks shall be
organized by private individuals. The
stock shall be subscribed by private
individuals, and when $250,000,O0 IS
subscribed, then the bank may begin
its operations.
Joint Stock Banks Controlled.
"Since the enactment of the law, n
L. l.. 1.r.1- irxnl N