FARM LOANS ACTS

Federal legislation which authorizes the financing of agricultural enterprises with the Bangor of the Federal Government. e original act was pa ed in July, 1916, and provides for the i uance of farm loan bonds through a Bureau in the Treasury Department for financin, ihe nation-wide farm mortgage system. e Bureau is under the administration of a Federal Farm Loans Board, including the Secretary of the Treasury, ex officio, the chairman and four members, appointed by the President with the approval of the Senate. One of these, with the title. of Commi ioner, acts as chief executive. For purposes of administration the country is divided into twelve districts, in each of which is established a Federal land bank. To deal with the borrowers, the latter are required to organize themselves farm loan a ociations, composed of at least ten members each. These local organizations make themselves responsible for the integrity of each borrower, somewhat on the principle of the credit union system. To each bank, however, is attached a staff of appraisers, who are responsible for the valuation fixed for the property of each borrower. Loans are granted only on condition that they will be used for improvements on the property mortgaged, the sums lent ranging from $100. to $10,000, for terms ranging from 5 to 40 years. The borrower may borrow only en property which he is cultivating himself. The banks are located at Springfield, Ma .; Baltimore, New Orleans, La.; St. Louis, Mo.; St. Paul, Minn.; Omaha, Neb.; Wichita, Kans.; Houston, Tex.; Berkeley, Cal.; and Spokane, Wash.