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Show RURAL CREDITS BILL PAOTSEiTE PLAN BEING WORKED OUT TO SECURE CREDIT FOR FARM- ERS IN TIME OF NEED. Provides for System of Twelvo or More Land Banks and Farm Loan Associations Under Supervision of Non-Partisan Board. Washington. Tho Hollis farm loan bill, embodying tho administration plan for establishing a system of rural rur-al credits, passed tho senato Thursday night by a voto or 58 to G. Tho senato bill provides ror a nonpartisan non-partisan farm loan board to consist ot tho Bocrotnry or tho treasury nnd four others, having general control ot a farm loan system 'of twolvo or moro land banks, and or farm loan associations through which loans actually ac-tually would bo made. Each land bank would havo a capital cap-ital stock or at least $500,000, to bo subscribed by tho govornmont ir not takon by tho public. Tho rarm loan associations would bo co-operative, mado up or ten or moro farmers who would obtain a charter from tholr district dis-trict land bank. A farmer desiring to becomo a borrower bor-rower would bo required to take stock In tho loan association equal to 6 per cent or his loan; tho association in turn would take an equal amount or stock Ir the land bank, which would nppraiso tho security offered and mako tho loan through tho association. On mortgages amounting to $50,000, a bank might issue a like amount of farm loan bonds, which would bo secured se-cured by all twelvo land banks. All profits would go to tho loan association as-sociation in dividends, and thus to tho borrowers who aro shareholders in them. Loans might bo on us long terms as thlrty-slx years on tho amortization amor-tization plan, so that with eacli interest in-terest payment tho farmer could pay a small amount or his principal. Loans would bo limited to first mortgages, and could not exceed 50 per cent or tho appraised valuo ot tho laud. |