Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-03-03

able buildings and improvements
thereon, through the use of the ma
chinery of the Federal farm land
banks and national farm loan associ-
ations, and to make all necessary
rules and regulations for the carry
ing out of the purposes of this Act
with expedition. Such loans to be
made at a rate of ~ per centum
interest and y per centum principal
per annum.
Sec. 4. The Federal Farm Loan
Board is further authorized and di-
rected to liquidate, retinance, and take
up chattel mortgages and other farm
Indebtedness, existing at the date
that this Act takes effect, by making
loans at the rate of per centum in
terest per annum. secured by first
mortgages on livestock used for breed
ing or agricultural purposes, to an
amount equal to 65 per centum of the
fair market value thereof, such loans
to run for a period of one year, with
right of renewal from year to year
for term of ten years: Provided,
That any depreciation in the value OF
such livestock is replaced by addi-
tional livestock used for breeding or
agricultural purposes, and the amount
of the loan is reduced 10 per centum
each year.
Sec 5. The funds with which to
liquidate, retinance, and take up eX-
listing farm mortgages and other farm
Indebtedness shall be provided by the
issuing of farm loan bonds by the
Federal farm loan system, through
the Federal Farm Loan Board and
Federal land banks, as now provided
by law, which bonds shall bear in
terest at the rate of y per centum
per annum. if secured by mortgages
on farms, and 3 per centum per an
mum if secured by chattel mortgages
on livestock used for breeding or agri-
cultural purposes. These bonds, after
delivery to the Federal Farm Loan
Board, may, by it, be sold at par to
any individual or corporation, or to
any State, National. or Federal re-
serve bank, domestic or foreign, 10
the trustees of the postal savings de-
poSitOry system or to the Treasurer
of the United States. And it shall be
the duty of the Federal reserve banks
to invest their available surplus and
net profits, after the dividends are
paid to their stockholders, in such
farm loan bonds. Such profits to in
clude the franchise tax now paid to
the United States.
Sec. g. The trustees of the postal
savings depository system are author
lied and directed to invest at least 40
per centum of the postal savings in
such farm loan bonds and all limita-
tions upon the amount that may be
deposited in the postal savings de-
positorieS are hereby removed. And
such farm loan bonds may be eX-
changed and delivered to depositors
for their deposits in postal savings
repositories as is now provided by law
for investments of savings funds in
bonds.
Sec T. In case all of said farm
loan bonds are not readily purchased,
lilCH lHc It CIlCI III L I'll III bodi VI
shall present the remainder to the
Federal Reserve Board, and the Fed
eral Reserve Board shall forthwith
issue and deliver to the Federal Farm
Loan Board Federal reserve notes, as
now provided by law, to an amount
equal to the par value Of such bonds
as are presented to it. Such farm
loan bonds to be held by the Federal
Reserve Board as security in lieu of
any other security or reserve.
Sec. 8. The Federal Farm Loan
Board and the Federal land banks
shall turn over all payments of in
terest and principal on such farm
loan bonds, for which the Federal Re-
serve Board issues Federal reserve
notes, to the Treasurer of the United
States, and shall be by him kept ami
reinvested as a sinking fund in mum
icipal or State bonds and in bonds