104 EXPEEIMENT STATION EECOKD. [Vol.85 



of Columbia, and the Dominion of Canada. Early in 1913 it was 

 supplemented by the United States Commission of seven members, 

 authorized by Congress to work in cooperation with it, as previously 

 noted (E. S. R., 28, p. 301). A three months' study was made by the 

 two commissions of agricultural credit and cooperation in fourteen 

 countries of Europe, followed by elaborate reports and the submis- 

 sion of a proposed land credits bill. 



The fii'st Federal legislation providing improved rural credit 

 facilities was embodied in the Federal Reserve Act of December 3, 

 1913. This Act contained more liberal provisions than had pre- 

 viously obtained as to the discounting of agricultural short-time 

 loans, and also empowered the national banking associations, under 

 certain restrictions, to make loans on improved and unencumbered 

 farm land. These real estate loans were, however, restricted to 50 

 per cent of the value of the property and in duration to five years. 



In March, 1915, the Senate and House each adopted a rural credits 

 amendment to the agricultural appropriation bill, but in conference 

 both of these propositions were eliminated and a joint congressional 

 committee provided to study the subject further and suggest legisla- 

 tion. This committee subsequently submitted a bill which, after 

 amendment, passed the Senate May 3, and the House May 15, 1916. 

 After a considerable period in conference, the measure became a law 

 July 17, It is evident, therefore, that the legislation is not hasty but 

 that time has been taken for study of the question and the adaptation 

 of a system to American conditions. 



The complete title of the new measure is "An act to provide capital 

 for agricultural development, to create standard forms of investment 

 based upon farm mortgage, to equalize rates of interest upon farm 

 loans, to furnish a market for United States bonds, to create Govern- 

 ment depositories and financial agents for the United States, and for 

 other purposes." This title indicates its general scope and compre- 

 hensiveness. 



The act provides for a Federal Farm Loan Board, a system of 

 Federal land banks, National farm loan associations, and joint-stock 

 land banks. Some of these component parts correspond to a certain 

 extent to institutions which have proved successful in Europe and 

 elsewhere, and some of the principles incorporated are analogous to 

 those followed in many of the building and loan associations devel- 

 oped in numerous urban sections of this country. In form the meas- 

 ure is also patterned in a general way after the Federal Reserve Act, 

 and while the system proposed is essentially distinct as to adminis- 

 trative purposes it is designed to supplement and articulate with the 

 Federal reserve system. 



