The gazette-times., August 17, 1916, Page PAGE THREE, Image 3

THE GAZETTE-TIMES, HKPPW.n ORE, THURSDAY, AUG. 17, 1D1S
PAGE TIItJEB
m HERpla
yourself
c
finnan
Why not get a good
oil store to that dur
ing the hot weather
your wife or mother
or sister or daughter,
can prepare the
meals in a cool, com
fortablt kitchen?
A1
There's no overheating
the kitchen with anup-to-date
oil cook stove. It's
just like cooking with city
gas. The burners con
' centrate the heat at the
different cooking points.
NEW PERFECTION
OIL C0QR3TOVE
No wood or coal or
ashes to lug. No
waiting for fires to
catchup. The long
blue chimneys do
away with all
smoke and smell
In 1, 2, 3, and 4-burneP
sizes, with or without
ovens. Also cabinet
models with Fireless
cooking oven.
STANDARDOIL
COMPANY
(California)
FOR SALE BY
CASE FURNITURE CO.
GILLIAM & BISBEE.
GO TO
Gilliam &Bisbee
FOR YOUR
Harvest Supplies
Of
Oils, Greases, Belting, Lace Leather,
etc.
i!
I!
WE will give you the qual
ity and price that will
command your patronage; oth
erwise we do not ask for it.
We Have It, Will Get It, Or It Is Not Made,
Gilliam & Bisbee
FULL PARTICULARS
OF FARM LOAN AC!
low Interest and Long Time Loans
Are Features of Hural Cred
it System.
MAKE
Thomson Brothers
YOUR HEADQUARTERS FOR
Harvest Supplies
We have everything you want in the line of
overalls, work shirts, harvest hats, kahki
pants and shirts, underwear, shoes, etc.
Our Grocery Department Is
Complete
Thomson Brothers
The Federal farm loan act, popu
larly called the "Rural credits law,"
was signed by the President an1
became a law on July 17, 1916.
The primary purpose of this act is
to promote agricultural prosperity
by enabling farmers to borrow mon
ey on' farm-mortgage security at a
reasonable rate of interest and for
relatively long periods of time. To
attain this object, two farm-mortgage
systems are provided: (1) A
system operating through regional
land banks, and (2) a system oper
ating through joint-stock land banks.
To attract money to the farm-loan
field the act provides a method
whereby those who have money to
lend can find safe investment in the
form of debentures or bonds in small
and large denominations, Issued by
the banks and based on the security
of mortgages on farm lands.
These two systems are to be un
der the general supervision of a Fed
eral Farm Loan Board in the Treas
ury Department, composed of the
Secretary of the Treasury, as chair
man ex officio, and four members
appointed by the President. This
board has authority to appoint ap
praisers, examiners and registrars,
who will be public officials.
Federal Land-Hunk System.
Under the Federal land-bank sys
tem the act provides for Federal
land banks which make loans, for
the first' 12 months, exclusively
through local national farm-loan as
sociations composed of borrowers.
These associations shall be share
holders in the banks, and in that
way the members who are the bor
rowers will share in the profits of
the bank. The money for the loans'
is to come partly from the capital of
the banks and partly from the sale
by the banks of bonds secured by
first mortgages on farm loans. The
act defines strictly the purposes for
and the conditions under which
loans are to be made, and requires
that the rate of interest charged on
farm loans shall not exceed 6 per
oent per annum.
Twelve Federal Land Hanks.
The United States shall be di
vided into 12 farm-loan districts,
and a Federal land bank with a sub
scribed capital stock of not' kss than
$750,000, each share $5, shall be
established in each district. Each
Federal land bark may est.illisli
branches in its clistr!- Within
30 Uay-i after th oapJUl s'ock is of
i" rci fo- sale i. w v be purchased ut
par by anyone. Thereafter, the
stock remaining unsold shall be
bought by the Secretary of the
Treasury for the United States. It
is provided, however, that the Gov
ernment shall not receive any divi
dends on its stock. Ultimately, it is
intended that all the stock in the
banks shall be owned by the associ
ations of borrowers, and provision
therefore is made in the law for
transferring the original stock at
par to these associations.
Farm-Loan Associations.
The act provides for the creation
of local national farm-loan assocla-
tipns through which it is contem
plated that the Federal land banks
shall make their loans. In the
event that a local loan association
is not formed in any locality within
a year, the Federal Farm Loan Board
may authorize a Federal land bank
to make loans on farm land through
approved agents. Ten or more per
sons who own and cultivate farm land
qualified as security for a mortgage
loan under the act, or who are about
to own and cultivate such land, may
form such an association, provided
the aggregation of tile loans desired
by the members is not less than $20.-
00. Each member must take stock
in his association to an amount equi
valent to 6 per cent of the amount he
wishes to borrow. This stock the as
sociation holds in trust as security for
the member's individual loan. The
association, in turn, when applying
for money from the bank, must sub
scribe for stock in the bank to an
amount equivalent to 5 per' cent of
the Bum It wants to obtain fpr its
members. This stock is held In
.trust by the bank as security for the
loans it makes through the associa
tion. If a prospective borrower htis
no money with which to pay for his
association stock, he may borrow
the price of that stock as a part of
the loan on his farm land.
Under this plan, then,' every bor
rower must be a stockholder in his
local association, and every associa
tion a stockholder In its district
bank. Each stock holder in an as
sociation is liable for the acts of that
association up to twice the amount
of Its stock.
How Loans Are Obtained.
A member of a national farm loan
association before obtaining a loan,
must first fill out an application
blank supplied to the loan associa
tion by the Federal Farm Loan
Board. This application blank and
other necessary papers will then be
to the Federal land- bank and must
be investigated and reported on by
a salaried appraiser of the bank be
fore the loan is granted. This ap
praiser is required to investigate the
solvency and character of the pros
pective borrower as well as the
value of his land. When a loan is
granted the amount is forwarded to
the borrower through the loan as
sociation. Conditions Under Which Loans May
He (H)tained.
The act specifically defines thn
purposes for which loans may be
obtained. These are:
(a) To provide for the purchase
of land for agricultural uses.
(b) To provide for the purchase
of equipment, fertilizers, and live
stock necessary for the proper and
reasonable operation of the mort
gaged farm; the term "equipment"
to be defined by the Federal Farm
Loan Board.
(c) To provide buildings and for
the improvement of farm lands; the
term "improvement" to be defined
by the Federal Farm Loan Board.
(d) To liquidate Indebtedness of
the owner of the land mortgaged ex
isting at the time of the organiza
tion of the first national farm loan
association established in or for the
county in which the land mortgaged
is situated, or indebtedness subse
quently incurred for one of the pur
poses mentioned In this section.
Loans may be made only on first
mortgages on farm land.
Only those who own and cultivate
farm land or are about to own and
cultivate such land are entitled to
borrow.
No one can borrow save for the
purposes stated in the act, and those
who after borrowing do not use the
money for the purposes specified in
he mortgage are liable to nave their
loans reduced or recalled. The sec
retary treasurer of each association
is required to report any diversion of
borrowed money from' the purposes
stated In the mortgages.
. No loan may be made for more
than $10,000 or less than $100.
land mortgaged and 20 per cent of
the value of the permanent insured
improvements upon It.
The loan must run for not less
than 5 and not more than 10 years.
Every mortgage must provide for
the repayment of the loan under an
amortization plan by means of a fixed
cumber of annual or semiannual in
stallments sufficient to meet all In
terest and pay off the debt by the end
of the term of the loan. The install
ments required will be those publish
ed in amortization tables to be pre
pared by the Farm Loan Board.
The bank is given power to protect
itself in case of default by recalling
the loan In whole or in part, or taking
other necessary action.
The Interest Rate Paid by the Bor
rower
No Federal land bank is permitted
to charge more than 6 per cent per
annum on its farm-mortgage loans,
and in no case shall the interest
charged on farm mortgages exceed by
more than 1 percent the rate paid on
the last Issue of bonds
For example, if the bank pays only
4 percent on an issue of bonds, it can
not charge more than 5 per cent for
the next farm loans it makes
Out of this margin of not to exceed
1 per cent, together with such
amounts as it can earn on its paid-in
cash capital, the bank must set aside
certain reserves and meet all its ex
penses. Any balance or net profits
can be distributed as dividends to the
loan associations or other stockhold
ers. The loan associations, from their
bank dividends, after setting aside
the required reserves and meeting ex
penses, can declare asociation divi
dends to their members. In this wav
the profits, if any, will be distributed
among the borrowers and will, to that
extent, reduce the amount of interest
actually paid by them.
Restrictions on Fees and Commissions
The Federal land banks are specif
ically prohibited from charging, in
connection with making a loan, any
fees or commissions which are not
authorized by the Farm Loan Board
The authorized fees need not be paid
in advance, but may be made part of
the loan
Amortization Plan of Repaying Loans
It has been said that all loans are
to be repaid on the amortization plan.
This plan calls for a number of fixed
annual or semiannual payments,
which include not only afi interest
and charges due the bank, but the
principal as well. These payments
are so calculated as to extinguish the
debt In a given number of years. Af
ter five years the borrower has the
right on any interest date to make ad
ditional payments on the principal in
sums of $25 of any multiple thereof,
thus discharging the debt more quick
ly. After a 'federal loan bank has loan
ed on first mortgage $50,000, It can
obtain permission from the Farm
Loan Board to issue $50,000 in farm
loan bonds based on these mortgages,
sell such bonds in the open market,
and use the money thus obtained to
lend on other mortgages. I
This process of lending on mort-1
gages and selling bonds in issues of '
$50,000 may be repeated until bonds
to the amount of twenty times the I
bank's paid-up capital are outstand-j
Ing. If each bank should have only
Its required minimum paid up cap
ital of $750,000, this plan will pro-'
vide eventually, if all the authorized
referred to a loan committee of the
association which must appraise the bonds of the 12 hanks are sold, over
property offered as security. Such $180,000,000 to lend on first mort-
applicatlon as is approved by Uie'- . j
loan committee is then forwarded 4 (Coutinued on Page Eight)
L M0NTERE3TELL1
MARBLE AND GRANITE
WORKS
PENDLETON, OREGON
Fine Monument and Cemetery Work.
All parties interested in getting work in my
line should get my pricas and estimates
before placing their orders.
ALL WORK GUARANTEED
t
CITY MEAT MARKET
UNDER NEW MANAGEMENT
All kinds of Fresh and Cured Meats and Lard
This is the place to buy
Oysters, Crabs, Clams, Salmon, Halibut, Smelts
Johnson & Rood
Choice Flour, Feeds, Wood, Coal and
Posts, for Sale by
HEPPMER FARMERS' UNION
WAREHOUSE CO.
Handle Wheat and Wool. Highest
Price Paid for Hides and Pelts.
t Don't Raise Weeds on Your Summerfallow i
FTH
V 1 ' "in
ffffffff
USE A
JONES WEEPER j
PATENTED DECEMBER 16, 1913 1
X
"Made In Morrow i
County" I
We have had lots of moisture and weeds will grow and ruin your
Summerfallow unless they are destroyed while small.
THE JOXES WEEDER is the best implement for this purpose. We
advise all who are needing a weeder to buy now while the pric? is low.
Steel has gone up 140 and the weeders will be considerably high
er next season.
FOR PRICES, ETC., SEE
C. E. JONES, Eight Mile, or H. C. ASHBAUGH, faner
Mr.B
usinessman
-
ARE you contemplating the execution o
a special advertising campaign? Do
you need some new stationery? In either of
these instances you need the services of an
up-to-date printery.
The Gazette-Times Printery
will be glad to help you plan your printed
matter regardless of its nature, and they may
be able to make some suggestions which
would be of value.
Bring Your "Printing Troubles" to Us
..
3-,