The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1921-04-15
OPERATION Of FARM LOAN SYSTEM
To Be REALIZED O0N,SAYS 0'SHEA
Bank Bonds Make Attractive
Investment and Will Pro
vide Money for Loans.

Active operation in the near future
of the federal farm loan system and
its gradual expansion and extension
of its service and influence in the in.
terest of the agricultural people of
the nation at large, and particularly
to the farmers of the northwest, is
predicted by D. G. O'Shea, president
of the Federal Land bank of Spo-
kane.
"The decision of the supreme
court of the United States uphold
ing the constitutionality of the fed
eral farm loan act definitely estab-
fishes the legal status of the federal
land banks and of the national farm
loan associations organized there
under, and it is believed the farm
loan system will get into active OPP
Grafton in the near future and will
gradually expand and extend its serv-
ice and influence in the interest of
the agricultural people of the nation
at large, and particularly to the farm
ers of the northwest" said Mr.
O'Shea
"There remains now the matter of
arranging for the disposal of federal
farm loan bonds to the investing
public Federal land banks secure
loanable funds through the sale of
bonds.
Bonds Good Investment.
The farm loan board has directed
attention to the recently enacted law
of congress authorizing the extern
sion of the redemption date on future
issues of federal land bank bonds
from five to 10 years. This adds
feature to the new bond issue very
to the investor today, who
is demanding long term issues.
MANY investors, while appre-
ciating the security and attractive
terms of federal land bank bonds
have found objection to the condition
which the farm loan board found it
necessary to impose that the bonds
should be callable after the fifth
year.
sit is expected that the change will
greatly increase the interest of the
investing public in federal land bank
ponds. The purpose of the act is to
greatly bros den the market for this
lass of bonds. 1t should produce this
fleet, coming as it does almost CO.
Incident with the supreme court de-
ison, which has firmly established
he right of congress to create the
anks, and to exempt the bonds not
My from federal taxation, but from
tate, county and municipal taxes.
Since the last Offering of federal
arm loan bonds financial conditions,
OF only in this country, but through
ut the world, have undergone Sc
ous change, interest rates have ma
.rially advanced and there is de
and for investment funds in excess
the available supply Such condi
on makes it desirable that the
nds that will be available should
: handled to the best advantage of
)plicants and of the community in
hich they reside. There will be a
STERILIZATION 10 encourage invest
ents that may well be postponed.
Money for Farming.
THE federal land banks will con
der loan applications only from per
ms actually engaged or to become
gagged in the operation of the farm
ortgaged, and whose principal bust
,ss is that of farming, and loans
Ill be made only for necessary and
neficial purposes The federal land
NIX can make loans only through
e medium of qualified national
RIM loan associations chartered and
Grating in the district where the
rm is located. The bank must Sc
re a first mortgage lien on the
IN offered as security, following ap-
aisal and approval of title.
Applicants will be required to fur
IN abstracts of title or, at their OPP
n, title insurance policies.
Farmers who desire to make ap
cations for loans from the federal
d bank should consult the officers
the national farm loan association
rating in the district where the
m is situated. The land bank Will
glad to furnish the names and ad-
sses of such officers upon re-
st"