OCR Text |
Show Rural Credits Continued and trust deeds in that amonnt, the bank may sell and issue debenture de-benture bonds in a like amount and the bonds shall state on their face that they are secured by trust deeds to Missouri farm lands appraised at double the value of the bonds and are further fur-ther secured by the funds of the Missouri Land Bank. When the second accumulation of notes and trust deeds amount to $500,-000 $500,-000 the second issue of bonds may be sold. The first $500,000 shall be loaned loan-ed to farmers at 4.3 per cent and to this shall be added a charge of one-half of 1 per cent for the reserve fund and also an additional addit-ional per cent sufficient to return the loan at the expiration of the period for which the loan is made. On loans running 25 years under this plan the borrower borrow-er would pay a total of about 6 per cent per annum to cover interest, in-terest, payments into the reserve fund and the principal. The second $500,000 shall be loaned to farmers at the rate of interest inter-est secured for the first $500,-000 $500,-000 issue of bonds, but, in no event shall the interest rate be in excess of 6 per cent. To provide for the sale of the Missouri Land Bank bond issues the law provides that saving banks may invest in these bonds and insurance companies which are required to deposit securities with designated state officers may purchase and deposit these land-bank bonds in the same manner as though they were bonds of the state of Missouri. This state land-bank act has been given considerable publicity. publi-city. Its provisions meet with the approval of many of the leaders in the farm-credits movement. move-ment. It appears to be a practical pract-ical step toward the realization of reasonable rates of interest for farmers. Other states could with profit follow the lead of Missouri in this work. I. D. O. D, |