The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-06-06

by the federal farm loan board, and
three directors, one from each Of
three internal districts Of the main
district, elected by the national farm
loan associations of the three sub
districts.
OF these the Montana member is w.
s. Mccormack, of Kalispell, whose Sc
lection was announced June l By the
federal farm loan board.
Mr. Mccormack has been actively
connected with every movement for
thC advancement of the interests of
the Montana farmers for many years
He served as chairnan' of the term
inal wheat elevator commission
named by Governor S. V. Stewart sew
eral years ago, is president of the
Kalispell Farm Loan association,
largest of the $50 associations il
Montana, and was chairman of the
house committee on agriculture which
framed the new agricultural laws Of
the recent session of the legislature
The Federal intermediate Credit
bank of Spokane has a capital Of S.,
100000 provided by the nationa
treasury, which money it can utilize
in the purchase of rediscount loans
from banks or agricultural credit as.
sociations, which loans were origin
ally made for agricultural purposes
or it can perform the same servic'
, for cooperative associations on loan
! secured by approved collateral.
I The bank is limited to loans aggre
eating 10 times its capital, or $50,
j 00G, 900, and will make these loans
, st 5K per cent, but in turn limits th'
hank or association to a margin O
III per cent, thereby fixing the tota
interest charge to the farmer-borrow
er at a maximum of z per cent. Thes
loans will be made for periods o
from six months to three years.
AS provided by the congressiona
act creating the intermediate credi
bank, there are two forms of corpO
rations or associations of farmer
which can be formed to handle sucI
loans. One is the agricultural credi
association, which must have a pal
in cash capital of $4,000 or more
and which is limited to a maximum
of 10 times the capital stock upo
the amount which it IAN secure upo
r~ediscounts to the intermediate credi
bank upon loans made only for agri
cultural purposes.
When it is proposed to organize a
agricultural credit corporation
statement of intention to form sue
a corporation, signed by not less tina
three nor more than seven of the pei
sons who propose to become member;
must be filed with the secretary Q
state. The secretary of state Wi
then issue to such persons a licens
as commissioners to open books an
sell stock in the corporation, and a
soon as 10 shares of stock have bee
sold the subscribers must meet an
organize by adopting bylaws an
electing directors and officers.
After this the commissioners mus
make final report to the secretary c
state setting forth briefly the facts q
the application, issuance of licens,
proceedings of the commissioners
which must be attached copies of tn
subscription list, notice of meeting
minutes of meeting and the bylaw
adopted. Forms for all of these PIT
ceedingG have been prepared by tt
state department of agriculture.
The alternate plan is the formatio
either with or without capital stoc
of cooperative credit association
which can operate to great advantas
as helpful adjuncts of wheat marke
ing associations or cooperative liv
stock shipping associations. The
associations can borrow money fro
the intermediate credit bank on war
house receipts for grain or on liv
stock mortgages at 5h per cent
terest, up to a certain percentage
the values represented by the receip