Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1921-04-08
OPERATION OF FARM LOAN SYSTEM
TO Be REALIZED S00N,SAYS O'SHEA
Bank Bonds Make Attractive
Investment and VIII Pro-
vide Money for Loans.

vide Money for Loans.
Active operation in the near future
Of the federal farm loan system ant
its gradual expansion and extension
Of it's service and influence in the In
terest Of the agricultural people O
the nation at large, and PARTICULAR,
to the farmers Of the northwest, I,
predicted by .. G. o'shea, president
Of the Federal Land bank Of spo
kane. s
1.-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
4 loan associations organized there
under, and 1t is believed the farm
loan system will get into active op
Grafton in the near future and will
gradually expand and extend it's 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 a
feature to the new bond issue very
attractive 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.
at 10 expected that the change will
greatly increase the interest Of the
investing public In federal land bank
bonds. The purpose Of the act 10 to
greatly bros den the market for this
class Of bonds. II should produce this
effect, coming as 1t does almost CO.
incident with the supreme court de-
eision, which has firmly established
the right Of congress to create the
banks, and to exempt the bonds not
only from federal taxation, but from
state, county and municipal taxes.
"Since the last offering of federal
farm loan bonds financial conditions,
not only in this country, but through
out the world, have undergone Sc.
rious change, interest rates have ma.
terially advanced and there Is de-
mand for investment funds in excess
of the available supply. Such condi
ton makes 1t desirable that the
funds that will be available should
be handled to the best advantage Of
applicants and OF the community In
which they reside. There will be a
Discrimination to encourage invest.
ments that may well be postponed.
Money for Farming.
1.-THE federal land banks will con-
slider loan applications only from per
sons actually engaged or to become
engaged in the operation Of the farm
mortgaged, and whose principal bust
ness is that OF farming, and loans
will be made only for necessary and
beneficial purposes. The federal land
bank can make loans only through
the medium Of qualified national
farm loan associations chartered and
operating In the district where the
farm is located. The bank must So
cure first mortgage lien ON the
farm offered as security, following ap-
praisal and approval OF title. ao,r
Applicants will be required to fur