FAEM FINANCE 143 



(3) That such loans shall be made for any of the following 

 purposes : 



(a) To complete the purchase of the agricultural lands mort- 

 gaged. 



(b) To improve and equip such lands for agricultural pur- 

 poses. 



(c) To pay and discharge debts secured by mortgages or 

 deeds of trust on said lands. 



(4) That such loans do not exceed fifty per centum in 

 amount in the case of improved farm lands, and do not exceed 

 forty per centum in amount in other cases, of the value of the 

 said lands; to be determined by an appraisal, as provided in 

 this act. 



(5) That every such farm-land loan contain a mandatory 

 provision for the amortization of such loan, or reduction of 

 the same by annual or semi-annual payments on account of 

 principal : Provided, That the loan extends over a period ex- 

 ceeding five years. 



(6) That every such loan may be paid off in whole or in part 

 by the borrower, in accordance with rules to be prescribed by 

 the commissioner of farm-land banks, at any interest period, 

 after such loan has continued for five years, by the payment of 

 the whole or a part of such loan, with interest to such date, 

 after crediting the amortization payments on the same as and 

 when they were made. 



In a final review of this most interesting subject I 

 may say that, as a result of the investigations which 

 have been made by the United States commission and 

 the wise recommendations which they have made in re- 

 gard to the matter, the whole system of rural credits 

 in this country may soon be placed upon an entirely 

 new basis. In this transformation not only will the 

 farmer be able to get his money at a lower rate and for 

 a longer time, but he will be supervised in the applica- 

 tion of it for the specific purposes for which it was ob- 

 tained. Meanwhile the borrower, on account of the 

 increased value and stability of the security, will be 

 perfectly content to let his money go at a lower rate 



