142 THE LURE OF THE LAND 



in the discussion of more efficient methods of controlling 

 trust operations, have convinced the leaders of the dom- 

 inant party that there will be no time left for the con- 

 sideration of this bill during the present session. 



That such an act, however, as has been outlined 

 above and the title of which is given, will become a law 

 in the near future, there is little doubt. Inasmuch as 

 the proposed legislation will probably be radically 

 changed before it becomes a law, it would be a useless 

 consumption of space to given even an outline of it. The 

 commission has gone over the whole subject most care- 

 fully, and has tried to safeguard not only the interests 

 of the farmers themselves, but also of the banking sys- 

 tem as a whole, in the various provisions of the bill. 

 One important Section is No. 18, which provides: 



That every national farm-land bank incorporated under the 

 terms of this act and the capital stock and surplus therein and 

 the income derived therefrom and the mortgages and deeds of 

 trust (and the notes and bonds secured thereby) held by said 

 bank and the national land-bank bonds issued by the same shall 

 be exempt from Federal, State, and local taxation, except in 

 respect to taxes upon real estate. 



RESTRICTION ON THE USE OF BORROWED MONEY. 



Another important provision, which has already been 

 referred to in the preceding discussion, is found as a 

 part of Section 16. In this Section it is provided that: 



Every national farm-land bank shall have the following 

 specific powers: 



To make loans upon farm lands anywhere within the State 

 in which such national farm-land bank is operated: Provided, 



(1) That such loans are made for not more than thirty-five 

 years. 



(2) That such loans are secured by a first mortgage or first 

 deed of trust on farm lands. 



