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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Aug. 1, 1916)
nwiarqw Commoner 'AUGUST, 1916 13 resent tho public Interest, and six local direct ors, resident in th district, shall bo elected by tho farm loan associations who must be stock holders in th bank. Th Federal Farm Loan board shall designate on of its appointees to act as chairman. Th act requires that at least one- of the three district directors shall be ex perienced in farming and actually engaged at tho time of his appointment in farming opera tions within the district. Any compensation paid to the directors must be approved by the Federal Farm Loan board. OFFICERS OF LOAN ASSOCIATIONS Each loan association must have a board of directors and a secretary-treasurer. Tho direct ors shall servo -without pay. The secretary treasurer shall receive such compensation as may bo determined by tho board of directors. The association must appoint an appraisal committee for the purpose of valuing lands offered as se curity for loans. No member of such committee shall have any interest in tho property upon which ho passes. FUNDS FOR CURRENT EXPENSES To provide funds ,for current expenses, the loan association may retain as a commission from each interest payment not to exceed ono eigthth of 1 per cent semi-annually upon the un paid principal of the loan. This commission is to be deducted from the dividends payable to such, farm loan association by the federal land bank. If the commissions are not adequate, and an association does not wish to assess members for current expenses, it may borrow at 6 per cent from the .federal land bank to an amount not to exceed in the aggregate one-fourth of its bank stock. RESERVES AND DIVIDENDS The law requires both the land banks and the farm loan associations to make provision for certain reserves-before they can pay any divi dends. AGENTS OF LAND BANKS In sections where local conditions do not make tho formation of associations practicable, the Farm Loan Board may authorize the federal land bank to make loans through agents ap proved by the board. These agents are to be' banks, trust companies, mortgage companies or, savings institutions, chartered by the state. They may receive as compensation the actual expense involved in transacting the loan and in addition thereto a sum not to exceed one-half of one per cent per annum on the unpaid principal of the loanB made through them. When the Farm Loan board decided that a locality is adequately served by farm loan associations, no further loans are to bo made through agents. JOINT-STOCK LAND BANKS In addition to the system of 12 federal land banks and the national farm loan association of borrowers, the act permits the establishment of joint-stock land banks and authorizes them to carry on the- business of lending directly to bor rowers on farm mortgage security and issuing farm loan bonds, These banks must have a capital of not less than $260,000. They are under the supervision of the Federal Farm Loan board, but the government does not lend them any financial assistance. The joint-stock, land bank is free from any of the conditions imposed on the federal land banks. Subject to the 50 and 20 per cent value limitation and the limitation as to territory, the joint-stock land bank may lend more than $10., 000 to a single individual and it is not restricted to making loans for the purposes specified in the case of the federal land bank. The joint-stock bank, like the federal land hanks, can not cliarge an interest -rate on farm mortgages in excess of 6 per cent, nor shall such interest rate exceed by more than 1 per cent the rate of interest paid by the bank upon its last issue of bonds. A jotnt-stock bank is limited in its bond issue to 15 times its capital and sur plus. Among the restrictions placed on these banks under the act are (1) that their mortgage must provide for an amortization system of repay ment such as is prescribed in the case of loans through the federal land banks, and (2) that they shall in no case demand or receive under any form or pretense any commission or charge not specifically authorized by the act and ap- Proved by the Farm Loan board. The bonds of the joint-stock land banks are exempted from taxation. Their capital stock, however, is not exempted. GENERAL PROVISIONS The law, through the Farm Loan board, pro vides the necessary machinery for frequent ex- THE FEDERAL FARM" LOAN ACT m.ti?18 act Provldes or too creation of tw olve Federal Land banks and permits tho es tablishment of any number of joint-stock la nd banks for tho purpose of making loans at a reasonable rate of interest, for long periods of time on farm lands.. A Federal Farm Loan Board has compl eto control over theso banks. A FEDERAL LAND BANKS Twelve Federal Land Banks are provided, one in each of 12 districts into which th country will bo divided. Theso banks aro empowered to lend on first mortgages on farm lands in amounts of $100 to $10,000 for approved purposes. Tho loans aro to b made through farm loan associations and agonts. No loan may be made for more than 50 per cent of tho value of the permanent insured improvements upon it. National Farm Loan Associations local organizations composed exclusively of bor rowers are authorized. These associations must bo stockholders in tho land banks in proportion to the amount their number wish to borrow. Evontually all stock in th federal land banks will be owned exclusively by theso associations. A reasonable interest rate Is established. Tho act prohibits tho federal land banks from charging more than G per cent on any mortgage or requiring fees not approved by the farm loan board. Tho borrowers will share in the net proflts of tho bank because they aro stockhold ers. It is contemplated that ultimately the borrowers will bo tho only stockholders. Long term loans aro provided by authorizing mortgages for periods of from 5 up to 40 years. Small annual or semi-annual payments on tho principal aro made a required feature of all mortgages. B JOINT STOCK LAND BANKS Joint-stock land banks are authorized. They aro corporations for carrying on the business of lending on farm mortgage security and issuing farm loan bonds. They are to be under tho supervision of the farm loan board, but tho government will not invest In them. Subject to geographical limitations and subject to tho 50 per cent and 20 per cent limitation,' theso banks can lend to an individual any amount they wish, and for any purpose. They can not charge an interest rate exceeding six per cont and such rate must not exceed by more than 1 per cent tho interest they have paid on their last issue of bonds. Their mortgages, however, must provide for amortization paymonts. These banks are prohibited from charging, under any pretext, fees or commissions other than those authorized by the act. ir aminations of the banks and the associations, for the proper cancellation of mortgages, and for the safe custody of mortgages offered as security for bonds. When any mortgage offered as se curity for bonds is withdrawn, the bank is re quired to replace the security with other mort gages or with other satisfactory collateral. Heavy penalties of fine or imprisonment, or both, are imposed for violations of tho act, mal feasance in office, fraudr embezzlement, defal cation, or other illegal practices. Iowa women came within a few votes of win ning suffrage last primary election. By the next time Iowa comes to vote on the proposition, it is safe to predict that a majority of tho men will be willing to concede that the women of that state are as intelligent as those of Wyoming, Colorado, Utah, Idaho, Washington, California, Arizona, Kansas, Oregon, Alaska, Montana and Nevada, where they have the full right to vote. High tariff organs are poking fun at the dem ocrats because the administration has given its sanction to a protective tariff on 4ye stuffs to enable American chemists to get capital to work out the formulas necessary to establish the in dustry in this country. But the high tariff or gans neglect to say that the only tariff they favor 'is one that continues forever, without re gard to the actual needs of the business. Every high tariff beneficiary and advocate in the country was a strong backer of the giant army and navy plan that congress was so strong ly urged to adopt. It is not difilcult.to trace tho connection. The more money the' nat!6n spends on armament the greater its need for revenues, and there isn't any easier way to get the higher taxes from the people than by taking it from them at the custom house. The people who have the money resulting from the great prosperity of the country are not likely to be greatly worried over the fact that the republican orators insist upon so much, that because there is a democratic national adminis tration they really should be mortgaging their homes. The republicans insist that the prosperity the country is at present enjoying is but temporary. Which is only another way of saying that they think democratic prosperity can not last any longer than republican prosperity did. PRESENT PEACE PROBLEMS AND THE PRE PAREDNESS PROGRAM (Continued from Pago 11) stood about the cross mocked and jeered, and " said: "Ho is dead." They thought that was the end of tho story, but it was the bogiunlng. From that day on the power of Caesar waned and th power of Christ increased; throughout tho ages He has grown until He is today the command ing figure of the world, aye, tho growing figure of all times. This great nation, with an ocean rolling on either side, with a mountain range along either coast that all the armies of all th world could never cross, is in better position than any other nation that ever lived or lives to day to set the world an example. Nineteen hun dred years ago wise men came from the East, following the Star of Bethlehem and seeking Him who was to be born tho Prince of Peace. If they could do this, inspired only by prophecy unfulfilled, this great Christian nation, after nineteen centuries of demonstration, should be able to go as a wise nation from the west carry ing gifts to relieve the distress on both sides, and appeal to these people to come with us and lift the world out of the bloody mire and up to a plane upon which a permanent peace can be built. Some talk about going into this war, if honor requires. Oh, my countrymen, there is no honor that we can secure oi detenu by going into this war that is comparable with the honor that we can win if we can persuade the warring nations to turn, like prodigal sons, from the husks on which they have fed and make the fu ture of the world bright by establishing co-operation instead of combat, and friendship instead of the hatreds out of which theso wars hav grown. It is fundamental to tho policy of this govern ment that if business will let politics alone gov ernment will let business alono. Any conflict that appears in Washington can invariably be traced to the fact that business won't let pol itics alone. As long as that happens business won't be let alone because letting it alone means that it will control politics and therefore govern ment. This is an issue every serious-minded voter should study carefully before ho Votes th republican ticket and thereby puts business again IiT'tho saddle. Colonel Roosevelt and Mr. Taft have not yet spanned the bloody chasm. Wo trust that this will not be considered as reflecting upon the en gineering abilities of Candidate Hughes. - H t