Show RURAL CREDITS BILL PASSED BY SENATE PLAN BEING WORKED OUT TO SECURE CREDIT FOR FARMERS RS IN TIME OF NEED provides for system of twelve or more land banks and farm loan associations under supervision of nonpartisan non partisan board washington the hollis farm loan aan bill embodying the administration plan for establishing a system of 0 rural credits passed the senate thursday night by a vote of 68 58 to 6 5 the senate bill provides for or a a nonpartisan farm loan board to consist of the secretary ot of the treasury and courothers four fou others having general control of a farm loan system of twelve or more land banks and of farm loan associations through which loans ad actually would be made each land bank would have a capital stock of 0 at least to be subscribed by the government if not taken by the public the farm loan associations would be operative cooperative co made mada up of ten or more farmers who would obtain a charter from their district land bank A farmer desiring to become a borrower would be required to take stock in the loan association equal to 6 per cent of his loan the association in turn would take an equal amount of stock in the land bank which would appraise the security offered and make the loan through the association on mortgages amounting to io a bank might issue a like amount of farm loan bonds which would be secured by all twelve land banks all profits would go to the loan association in dividends and thus to the borrowers who are shareholders in them loans might be on as long terms as thirty six years on the amortization tiza tion plan so that with each interest payment the farmer could pay a small am nil amount of his principal loans would be limited to first morti mortgages ages and could not exceed 50 per cen cent t of the appraised value of the land |