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Show the road or went to see them j evenings. And after the assoc-: iation was actually formed, com- j ing into it was easy. As a mat-; ter of fact, Ira Daniels does most of the work. i i What we wanted our loans for j brings up a matter that seems to : me very interesting-. We hap pened to have in our association, one of every sort of loan the law permits. You know of course that money can't be borrowed through National Farm Loan Associations for any and every purpose. I suppose the reason Congress had for passing the law was to make the farmers more prosperous. So if a man wants the money to spend in high living or in living at all, for that matter he has to borrow bor-row in some other way. If a farm wont support a man in his living expences, the loan isn't very good, anyhow. I wouldn't belong to a National Farm Loan Association that made loans for other than productive purposes, even if the law allowed it. Each one of us had to subscribe sub-scribe 5 per cent of his loan to start the capital of our association, associa-tion, which was to be paid, only if the loan was granted, then to be invested by the association in the stock of our Federal Land Bank. In case of a default in any of our loans that is, in case any member fails to pay his installment in-stallment when due, and in case our accociation defaults also we are liable to an assessment of another 5 per cent just like stockholders stock-holders in a national bank. We can protect ourselves against any assessment by being careful about the loans, and if we aren't the Governor appraiser who has to approve them, will be careful for us. So the danger is much less, I figure, than it is for a stockholder in a national bank. On the 5 per cent it was $125 in my case 1 expect to get dividends divi-dends from the Federal Land Bank until my loan is paid off. Then I shall get the $125 back, (Continued on page 5) Forming R C. Ass'ns (From The Saturday Evening Post) (Continued from last week) We made the articles pretty brief, though we had the right to adopt any regulations we chose not contrary to law, but we felt that if we put nothing into them except what was necessary there would be no question as to their correctness. We all signed these articles and elected a board of six directors. direc-tors. In doing this we followed the methods prescribed by law for the election of national bank directors. We had a copy of the national banking act for this purpose. The Federal farm loan act requires this method of electing elect-ing directors. The directors were William Allen, James Peterson, F. ,J. Willcox, M. B. Smith, Alexander Alexand-er Pendleton and myself. , I suppose sup-pose I was put on because I had taken such a deep interest in the association; but the rest were selected because they were the most responsible and safest men we had. It is an office that carries car-ries responsibility, but no salary; so the people were' free to pick the best without any electioneering. electioneer-ing. Ira Daniels was elected secretary at a salary of 30 cents an hour for time actually spent on our work. He suggested this scale of payment himself. Ira was elected by the board of directors di-rectors in the presence of the meeting or the picnic. William Allen was made president in the same public way, and F. J. Willcox Will-cox vice-president. The Loan committee was made up of old Mr. Alexander Pendleton Pendle-ton who had moved into our neighborhood after being in the real estate and loan business in the city for years M. B. Smith, and myself. We put Mr. Pendleton Pend-leton on this committee because he is so cautious. He would keep the rest of us from taking chances on approving poor loans. There is no sort of use in being anything but safe in approving loans, for if we approved too large a one, or one for an unwise or illegal purpose, the Government Govern-ment appraiser would turn it down anyhow, as he ought, of course. If each loan is made safe the whole system will be like the Rock of Gibraltar. Well, we gave the secretary-treasurer, secretary-treasurer, Ira Daniels, the duplicate dupli-cate of the articles of association. After the loan committee had made a written report, stating that each of us was a landowner, or was about to become a landowner land-owner in this neighborhood, and how much money we wanted to borrow and after we had each made affidavit according to law as to our loans the whole bunch of papers was sent to the Federal Land Bank in our district. The formation of the association took some little effort, as I have stat ed, but it really didn't absorb much of our time, because we did most of the canvassing in town on Saturdays, and when we met our neighbors driving along |