1918] EDITOEIAL. 105 



The Federal Farm Loan Board is given supervision over a Federal 

 Fami Loan Bureau, to be established in the Treasury Department 

 and to have charge of the execution of the act. The board is to 

 consist of the Secretary of the Treasury, ex-officio, and four other 

 members to be appointed for terms of two, four, six, and eight years, 

 respectively, in the beginning, and thereafter of eight years each, at 

 salaries of $10,000 per annum. The initial appointments consist re- 

 spectively of Messrs. Charles E. Lobdell, of Kansas ; George W. Nor- 

 ris, of Pennsylvania; William S. A. Smith, of Iowa; and Herbert 

 Quick, of West Virginia. One of these members is to be designated as 

 the farm loan commissioner, and will be the active executive, officer 

 of the board. The board is to charter the Federal land banks, 

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

 and has general supervision and control over the entire system. It is 

 also to prepare publications relative to the act, the principles of 

 rural credit, and the like, and to disseminate its results, through the 

 United States Department of Agriculture or otherwise. 



The United States is to be divided by the board on a basis of State 

 lines and the farm loan needs of the country into twelve land bank 

 districts. Each district may contain a Federal land bank and branch 

 offices as needed. A capital stock of $750,000, divided into shares at 

 $5 each, is required for each of these banks, but it is provided that if 

 this is not subscribed by the public within thirty days the Govern- 

 ment must purchase the imsubscribed portion of the stock. The 

 funds thus secured, together with a special appropriation of $100,000 

 for the expenses of the farm loan board, are expected to be available 

 to initiate the new system. 



The National farm loan associations, which are distinctive local 

 organizations, are to be chartered by the Federal farm loan board 

 upon the recommendation of the district land bank. Membership in 

 these associations is restricted to actual or prospective owners of 

 farms in a given locality who wish to borrow upon farm mortgage 

 security. At least ten such persons are required and their individual 

 borrowings must not be less than $100 nor more than $10,000 and 

 must aggregate at least $20,000. 



The loans when granted are made by the district land bank to the 

 individual members of the association through its secretary-treasurer. 

 The amount can not exceed 50 per cent of the value of the land, based 

 principally on its earning power, plus 20 per cent of the value of the 

 permanent insured improvements. The loan can be negotiated only 

 for the purpose of purchasing land for agricultural uses, the pur- 

 chase of equipment, fertilizers, and live stock necessary for the farm 

 operations, the provision of buildings or the improvement of farm 

 lands or the liquidation of existing indebtedness. 



