THE FARMERS IN CONTROL 



interest rate that the bonds bear plus the 

 actual cost of administration, making a total 

 estimated at not more than 6^/2 per cent., 

 when the bank shall be in full working order 

 (depending upon the condition of the securi- 

 ties market), as against 12 per cent., the legal 

 rate of interest under the old regime, and 16 

 to 20 per cent, actually charged. 



One of the great advantages under this sys- 

 tem is that the loan is made quickly and easily. 

 When the application is received it is sent at 

 once to an agent of the state appraisement 

 machinery already in existence. He inspects 

 the property and returns the application, 

 properly verified and attested. The loan is 

 limited to one-half the appraised value. 



Another advantage is that each applicant 

 can proceed separately and need not wait, as 

 he must under the Federal Farm Loan Act, 

 for the forming of an association of borrowers. 

 Another, and one of the greatest importance, 

 is that unimproved farm lands may be offered 

 as security, whereas under the federal law 

 there can be no lending except upon property 

 that has been improved. 



Still another ancient though minor griev- 

 ance of the farmer was ended by the provision 

 authorizing loans upon warehouse receipts 

 issued by the Industrial Commission or by 

 any licensed warehouse in the state. This 

 takes from the private banker the power to 



18 2o9 



