OCR Text |
Show Credit Association, in any Joint Stock Bank or in any other association, as-sociation, if he does not desire to. He can without any expense, and with very little trouble, get nine of his neighbors, who are desirous of securing loans from the Government, to join with him and form their own National Nation-al Loan Association. Rural Credit Concerns Farmers should distinguish carefully between the various V rural credit schemes now before the public. The term "Rural Credits" has of hte attracted wide attention. Investors are anxious to invest money in rural credit bonds. Unscrupulous men are taking advantage of this, and there are many rural credit banks, so-called, being incorporated. incorpor-ated. Under the Federal Farm Loan Act there are two types of banks authorized; one the Joint Stock Land Bank, the other the Federal Fede-ral La-d Bank. The Joint Stock Bank, while it is under the direct supervision of the Government, is still incorporated by private capital and has no Government money invested in it. The Federal Fede-ral Land Bank is the bank in which the Government owns the major portion of the capital and is directly under Government supervision. The Federal Land Banks do rrot deal directly with the farmer but deal with the farmer through what are known as National Loan Associations. The National Loan Association is perhaps the ,t favorable part of the Federal Farm Loan Bill, and particular attention should be given to it by all farmers. farm-ers. It is not necessary that any farmer join any rural credit association, take stock in any Joint Stock Bank, or do anything else if he will become a member, with his neighbor farmer, of a National Loan Association. The Federal Farm Loan Act makes this a matter of utmost simplicity. simplici-ty. Ten or more farmers can, by joining together and applying for an aggregate of $20,000.00 in loan, form a National Loan Association. No expense is attached at-tached to this. The necessary blanks can be procured by making mak-ing application to the Federal Farm Loan Bureau at Washington, Washing-ton, and when ten farmers have joined together, asking for an aggregate loan of $20,000.00, they are organized as a National Farm Loan Association. Of course, this is a minimum number, num-ber, and in all likeihood Farm Loan Associations will in general have several thousand members as the earning on the stock which the farmers hold in the National Loan Association will be much greater in proportion to the number of farmers who are members, but the things that the farmer should remember are that it is not necessary to take stock in any so-called Rural |