OCR Text |
Show EXPLANATION' OK FARM LOAN' ACT The principles of the Federal Farm Loan Act were recently ox-plained ox-plained for the farmers and business men at the Utah Agricultural College Col-lege Round-Up by Dr. George Thomas, director of the School of Commerce and Business Administration Administra-tion at the college. Dr. Thomns stated that the idea underlying tho present act was first developed in Germany when, at the close of tho Seven Years War the Germap farmers farm-ers found themselves impoverished, They then formed co-operative bor-bowing bor-bowing associations that secured money by selling the association bonds. The idea has spread all over Europe. The United States act provides for the establishment of twelve federal farm loan banks. Stock in these banks may be subscribed by Individuals, Indi-viduals, farm loan associations, and by the government, in case any of the stock remains unsubscribed. The government has appropriated $9,-000.000 $9,-000.000 to be used to buy what stock is not taken by individuals or farm loan associations. In order to keep the control of these banks out of the capitalistic class, it has hoen provided that individuals owning stock may receive dividends, but they may not vote their stock. Tho government may vote its stock, but it may not receive dividends. Whenever ten or more farmers desire de-sire to inane use of the Farm Loan Act, they may do so by forming a Farm Loan Association. Every member of tho association, with tbo exception of the secretary and treasurer, treas-urer, must be a borrower. These farmers can borrow money for loglt-Imete loglt-Imete purposes from the bank In their district. Long time loans will be made at a low rate of Interest on an easy payment plan. |