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Show ! RURAL CREDITS BILL PASSED Bf SENATE PLAN BEING WORKED OUT TC SECURE CREDIT FOR FARMERS FARM-ERS IN TIME OF NEED. Provides for System of Twelve oi More Land Banks and Farm Loan Associations Under Supervision of Non-Partisan Board. Washington. The Hollis farm loar bill, embodying the administration plan for establishing a system of rur al credits, passed the senate Thursday night by a vote of 58 to 5. The senate bill provides for a non partisan farm loan board to consist ol the secretary of the treasury and four others, having general control of a farm loan, system 'of twelve or more land banks, and of farm loan associations through which loans actually ac-tually would be made. Each land bank would have a cap ital stock of at least $500,000, to be subscribed by the government if not taken by the public. The farm loan associations would be co-operative, made up of ten or more farmers who would obtain a charter from their district dis-trict land bank. A farmer desiring to become a borrower bor-rower would be required to take stock in the loan association equal to 5 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 $50,000, a bank mig'.t issue a like amount of farm loan bonds, which would be se cured by all twelve land bonks. All profits would go to the loan association as-sociation 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 amor-tization plan, so that with each interest in-terest payment the farmer could pay a small amount of his principal. Loans would be limited to first mortgages, and could not exceed 50 per cent of the appraised value of the laud. |
