The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1920-01-09

banks.
j Protecting Small Borrowers Rights.
4 Both types Of banks federal AN,
joint stock) were created by the gov
eminent to provide aid for the agricul
tural interests of the country. MI
Wickersham said that the government
with wisdom and singular comprehen
sion, had reached out to take care o
every element Of borrowers. Therefor,
the federal land banks were created t
/ provide credit for small borrowers. an.
the Joint stock land banks were Gre
| ated to provide a similar agenc!
through which the larger borrower
among farmers might secure ample
funds. without having to rely upon thu
funds which had been assembled fol
the use Of the small borrowers, nn(
without danger Of depdving the small
borrower Of the very money which llat
been assembled for his particular use.
He pointed out how in the case Of
the establishment of federal lane
banks the government had subscribed
to the stock Of these banks as tenn.
porary aid to the particular class OF
borrowers it 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 by
the government should be taken uI
eventually by the borrowers so that IL
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 emo
even as the joint stock land banks are
now privately owned.
Federal Banks for Associations.
1.-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 condition to securing the
loan.
"Provision is made that when these
banks are set up, if within a 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
$75000000. 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
into the control Of their stockholders.
Farmers to Own Banks.
"The federal government, as a stock.
holder, will pass out, and if 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 a system
whereby this great scheme shall be
launched and become at once opera.
tive and money shall become avail.
able to the farmers desiring it, the act
also provides that there be created q
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
by private individuals. The
stock shall be subscribed by private
and when $250,O00.0O is
subscribed, then the bank may begin
lts operations.
Joint stock Banks Controlled.
aSince the enactment Of the law, = |
OF such banks hive been organized i Is
different parts of the country. and the5 Il
IRE set forth n tie petition. and thek1
capltal Il something more |
t1an $4,000 600.
~New despite the fact that those
baaks are privately owned. from the
beelnaing 4: their operations, they and /
heir operations are subjected to con. |
lrol. They are invested with the same
povers, they 'sre made subject 70 the
Dn1ne Iiability - are given 70 and I'm
= ,lsn cha Nnllesn1 land han1a
zss Is M