The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1921-05-12
SOREN ], RASMUSSEN DISCUSSES
FEDERAL FARM LOANS AND RE-
VIEWS The SOUTH DAKOTA ACT

the security. and we should be willing
to recognize that the person who
loans us money is not doing so for the
sake of robbing us, but as a purely
business proposition mutually profit
able.
With the agitation which has
been going on in our good state dur
ing the last few years, it is perfectly
natural that outside capital is going
to be suspicious of us as borrowing
class, so that in reality it is our New
Day stuff which is principally to
blame for the timidity Of capital
when it comes to farm loan invest
ment.
OF course it is conceded that the
general high rates for money, and
the ease of finding attractive invest
emnts outside of farm securities, has
a large effect; but after all, the big
reason why the investor has with
drawn from North Dakota is the I'M
certain political situation, and it is
only to be hoped that next fall we
will be brought back to our senses
and be enabled to do business as US
ual. 1t has been getting more and
more difficult to get investors to
renew farm loans in this state, and
YOU can't blame them very much at
that. Mere crop failures did not seem
to disturb investors as the interest
was usually paid in any event and To-
cal conditions not looked into very
much. Now apparently he is Won
dering what sort of laws are going to
be enacted next, and he is more wor
ried about our economic program and
what effect it will have on his secur-
ity. As soon as we get back to a
normal state of affairs the North Da-
kota prairie land will be looked upon
as the very best security.
1t is good thing that the Federal
Farm Loan act, approved July 1916,
is going to be in operation again with
in the month. On account of test
suit trying the constitutionality of the
act having been in the courts for some
time, temporary stop was made on
farm loans but the supreme Court
having decided in favor Of the Act,
the land bank will be doing business
and relieve lot of the farmers who
have been waiting for action.
1t may be of interest to quote the
relative amounts loaned by the Fed
eral Land Bank of St. Paul as per
statement of Dec. 81, 1920.
Loaned on farms in North
Dakota -------2O 20, 724, 800
Wisconsin -- 5,7O9, 700
Minnesota " 14,835, 800
Michigan -------- $4,000
A total Of SAT 1886, 800
As you know there are IL Federal
land districts in the United States.
These are under the Federal Farm
Loan Board which consists Of five
members, including the Secretary of
the Treasury and four other men,
bers appointed by the President by
consent of the Senate.
Persons who desire to borrow mon
ely under the Federal Farm Loan act
can form corporations known as ma
tional farm loan associations.
We have several such associations
in Ward county doing business now,
and as the system becomes better
known no doubt the number will in
crease, as they are strictly cooper
ative and based on a very solid foun-
dation as you will readily see.
The association is governed by a
board of five directors elected an
nually and the board chooses sec
retary-treasurer who received such
compensation as the board may de-
termine. The board then elects a
president and vice president and a
loan committee of three members.
All directors Of course must be share
holders in the association. Ten or
more persons who are the owners, or
about to become the owners, of farm
land qualified as security for mort
gage loan under the Act, may unite to
form such national farm loan associ-
alton.
The aggregate desired loans must
not be less than $4,000 and loan de-
sired by each person not more than
$4,000 nor less than $780, Each
member of the association must sub
scribe to stock in the Federal land
bank equal to per cent Of his loan,
each share of stock being of par
value of $500. Every shareholder is
entitled to one vote for each share of
directors and in deciding questions at
meetings Of stock holders, maximum
number Of votes cast by any share
holder shall be 20. "
The capital stock is paid at par and
retired when the loan is paid in full,
but the borrower gets any dividend
accrued or payable on the capital
stock while it is outstanding.
When an application for loan is
made it is first referred to the loan
committee, and the committee must
examine the land and make detailed
written report. No loan can be APP
proved by the directors unless the
loan committee gives a favorable re-
port. This report with the applca-
ton is then submitted to the land
bank, and the directors Of the land
bank examine the report and applica-
ton. Before the loan is made by the
land bank application and report is
submitted to one or more of the land
bank appraisers and the appraiser in
vestigates and makes written re-
port Of the security offered.