The county record. [volume] (Kingstree, S.C.) 1885-1975, July 20, 1916, Page TWO, Image 2
THE NEW RURAL
CREDITS LAW.
MACHINERY FOR MAKING LOANS
AND HOW IT OPERATES?HOW
FARMER JONES MAY GET LOAN.
The new rural cerdits bill has
passed both Houses of Congress and
gone to the president for his signature,
and by the time this reaches
our readers it will in all likelihood
be a law. This is a momentous
piece of legislation, with far-reaching
possibilities, and we believe an
explanation of its provisions will be
of value to our readers.
1. The Federal Land Banks.?The
act provides for the creation of a
bureau in the United States Treasury
to be known as the Federal Farm
Loan Bureau. This bureau is to be
in charge of a Federal Farm Loan
Board of five members, one of these
being the Secretary of the Treasury,
the four additional members being
appointed by the President for eightyear
terms, not more than two to
belong to any one political party.
This Federal Farm Loan Board is
to divide the United States into 12
Federal land bank districts, and at
some one city in each of these districts
there is to be established a
Federal land bank, with a capital
stock of not less than $750,000. The
federal Farm Loan Board is required
to invite and receive subscriptions
to the capital stock of these Federal
land banks, but it is expressly provided
that in oase $750,000 worth of
stock is not subscribed for within 30
days, the United Stated Government
shall subscribe for and take the
amount required to bring the total
up to the $750,000 minimum.
2. National Farm Loan Associations.?The
National farm loan association
is a group of not less than
ten farmers organized for the specific
purpose of obtaining loans on
their lands. To become a member
of such an association, the applicant
must be desirous of procuring a
loan, and must subscribe to the conditions
imposed, which will later be
explained in detail.
3.?Joint Stock Land Banks.?The
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joint stock land banks, organized for
the purpose of lending money on
farm lands, with a minimum capital
stock of $250,000. All this is to be
private capital, though the operations
of these banks are to be wholly
under the supervision of the Federal
Farm Loan Board.
Farmer Jones, let us say, i3 a cotton,
corn and peanut farmer in south
Alabama, owning 80 acres of land
free from mortgage or other incumbrance.
However, only 40 acres
of it are cleared and fenced, and
Jones needs some long-time money
with which to clear and fence the
remainder and provide teams and
implements for its cultivation. Under
this new law, how can he get
the money?
Probably his best plan will be to
organize among his neighbors a National
farm loan association. To do
this, not less than ten members are
required, all of whom are in possession
of or are about to come into
possession of the land to be offered
as security, and engaged or about to
become engaged in its actual cultivation.
It is required that the total
amount of the loans sought by all the
members of the association shall be
not less than $20,000, and that no
one member shall be granted a loan
greater than $10,000 or less than $100.
Now Jones' land is worth $1,600,
we will say, and his residence, which
is fuly insured, $1,000. Under the
provisions of the act, he is entitled
to a loan equal to 50 per cent of the
appraised value of his land plus 20
per cent of the value of his insured
permanent improvements. In other
words, he is eligible for a loan of
$800 on his land and $200 on his
residence, or a total of $1,000.
When ten or more farmers have
thus qualified, provided the aggregate
of the loans applied for shall
be $20,000 or more, their application
will be ready for consideration
by the district Federal land bank.
However, before forwarding this
application the local association
must have elected five directors,
who riiall be members^of_ the local
'H
association. It is required further
that the board of directors shall
elect a president, vice-president, a
loan committee of three, and a secretary-treasurer.
All directors and
other officers, except the secretarytreasurer,
whose compensation shall
be fixed by the board of directors,
shall serve without pay.
It is the business of the secretarytreasurer
to act as the custodian of
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and forward to the district land
bank payments of interest and principal
when due, and to keep complete
records of all transactions.
He is to be bonded in such sum as
the United States Farm Loan Board
may deem necessary.
When the local association has
been organized as above outlined, it
is the business of the secretarytreasurer
to foward to the Federal
land bank in his district the articles
of association accompanied by a report
of the loan committee of the local
association, together with all
other evidence noeaed to show that
the association has complied with all
the requirements. Upon receipt of
this, the Federal land bank appraiser
is required to investigate and report.
If his report is favorable,
the application is forwarded to the
Federal Farm Loan Board at Washington,
for final approval or rejection.
If approved, a charter is t
granted the local association and the
Federal land bank is instructed to
grant the loans applied for.
Upon making application for membership
ir, the local association, Jones
must subscribe for stock in it to the
amount of 5 per cent of the face of
his loan. In other words, if he is to
get a lean of 51,000, he mu3t take
$50 worth of stock in the association.
Suppose, however, Jones is hard up
just then and hasn't the $50. In
such case, he will be assigned $50
worth of stock and this amount will
be deducted from his loan, he receiving
$950 instead of 51,000. It is
expressly provided, however, that
when Jones' loan is fully repaid that
he shall be paid cash for the . stock
he holds.
Jones is also required to pay the
actual expenses incident to appraising
his land, examining the title,
and making and recording the mortgage.
These items will probably
range from $10 upward, depending
upon circumstances. On a farm of
80 acres, these items of expense will
run probably not less than $10 or
$15 or more than $30 or $40. It is
provided that these expenses, too,
may be advanced to Jones by the
Federal land bank, in case Jones at
the time is hard up for ready cash.
Loans are to be made for the purpose
of buying, improving, or payincr
riff the indebtedness on farm
lands; shall run for not less than
five nor more than forty years; and
the interest rate, exclusive of amortization
payments, (that is, payments
on the principal), shall not be more
than one per cent greater than the
interest paid by the last series of
farm land bonds issued by Federal
land bank in that district, and in no
case shall be greater than 6 per cent
per annum.
As an illustration of how the amortization
plan of payment works, we
will suppose that Jones borrows his
$1,000 for a term of 16 years, paying
6 per cent interest. In this case,
16 annual payments of $100 each
will serve to pay the interest and
entirely repay the principal. Or if
Smith borrows $100 at 6 per cent interest,
he may by making 19 annual
payments of $9 each, entitely repay
the loan, with interest.
While loans are to be made for
not less than five nor more than
forty years, provision is made after
the expiration of five years, for the I
borrower to repay his loan as rapidly
as he may wish.? The Progressive
Farmer,
Will My Cfcild Take Dr King's New
Discovery?
This best answer is Or King's New
Discovery itself. Its a pleasant
sweet syrup, easy fo take. It contains
the medicines which years of
experience have proven best for
coughs and colds. Those who have
used Dr King's New Discovery longest
are its best friends. Besides ev
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ery Dome is guarauieeu. xi yuu ?
don't get satisfaction you get your J
money back. Buy a bottle, use as "
directed. Keep what is left for '
cough, and cold insurance, _ _ 1
t
{nil
$825 f. o.
Needing a car for my w
tion and came to the conclus
best all round car and the bt
have bought one, and as n
county and, therefore, the u
the best kind of demonstrati
ing with my work, I have be
ative for Williamsburg count
you one,
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^ In tne Good Old !
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H edness, we
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^ may arise ii
^ ing needs.
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All Fresh Meats and Ve;
THE PEOPL
H. A, MILU
Subscribe now for 1
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ork, I made a careful investiga- I
ion that the OR ANT SIX is the I
ist money value I could find, so I K
ny work carries me all over the K
se to which I will put it will be I
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With Washington ^
it and Day. ^
Ifill Be Right There M
Fashioned Way.
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're prepared H
lergency that R
.1 your Cloth- Kg
Men's wear Kg
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- South Carolina
life (ft
Best Market Price Paid
getables on Hand in Season*
E'S MARKET
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bill I lUpilUIUII |
[HE COUNTY RECORD.
Ikod,
We have just gotten in a
daks and supplies.
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use /insco rums m juasui
Give them a trial ar d you
Call and see our line.
Vacation time is Ansco Ti
Send us your developing 2
Phone 1
SCOTT DR
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If you are going to buy a refrig
gladly explain this feature to you.
Steele Furn
208 Main Street
i? .
Wag<
C. We have just unloai
load of the famous Th<
(one, two, three and f
guarantee every Thon
sell and we have the
C. We also have in sto<
Buggies. Surreys, Ha
Robes, Etc. See us b
Yours to p
Williamsburg Li'
Kingstree,
Groceries For Ev<
! Good bread is the essential at
sure this try
m
, Laay uaire ur mm imig uiuj
, in barrels or bags. The]
There are other staples that \
handling the b
Rice, Home Ground.
Try these and be c
A Full Line of Teas Coffee
Kingan's Hams, Bacon and
Try a sack of our Ginger ]
Feed. It can't be beat.
I L. 5. VI
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V,
supply of Ansco Kolan
and Ansco Kodaks,
will use no other.
me. .
ind printing.
UG CO.,
Store
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DidYouEver
Stop to Think
"I
that the chipping of ice
inrefrigeratorsfor'cooling
drinks causes ex
cessive ice consumption
Herewith is an illnstration
or one of our Tacome
Refrigerators with its perfeetly
sanitary water cool- . y
er, which cools the water
without waste of ice.
.
erator, call and we will
*
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iture Co.
Opposite Court House
jns!
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ded another car
Drnhill Wagons,
our-horse). We
nhill Wagon we
prices to suit.
.I. _ -ff__11 ii
:k a iuii line 01
,rness, Saddles,
efore you buy.
'lease,
k Stock Co. j
S. C. j
:ryday Meals
every meal. To inour
ry Self-Rising Flour
re's none better.
ve pnue uurseives un .
est of:
Meal and Grits jfl
onvinced.
s and Caned Gnads
Pore Cream Cheese '
Bread Horse and Mule '
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