THE STORY OF THE NONPARTISAN LEAGUE 



in the act to prepare, and the governor and 

 the state treasurer are authorized to issue 

 bonds of the state amounting to not more than 

 ten million dollars to bear not more than 6 

 per cent, interest. 



The bank is to receive applications for 

 first mortgage loans on farm lands, whether 

 improved or unimproved, and to lend money 

 upon them. As soon as the mortgages it has 

 accepted amount to one hundred thousand 

 dollars the Industrial Commission certifies 

 this fact to the state treasurer, and assigns 

 to him and deposits with him these mort- 

 gages. The governor, state auditor, and sec- 

 retary of state each inspect the mortgages, 

 after which the governor and the state treas- 

 urer issue to the Industrial Commission bonds 

 equal in amount to the sum of the mortgages. 



These bonds the Industrial Commission 

 proceeds to sell, and the money derived from 

 this sale is immediately available to be lent 

 on more mortgages up to one hundred thou- 

 sand dollars, when the process is repeated. In 

 this way a revolving fund is provided up to 

 ten million dollars. 



The bonds are certified, under the great seal 

 of the state, to be secured by real-estate first 

 mortgages deposited with the state treasurer. 

 Capital is thus provided without increasing 

 the state's total indebtedness. The interest 

 charge to the borrower on real estate is the 



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