RURAL CREDITS 789 



the purposes of a land bank and exempting it from taxes. The bill 

 was therefore accompanied by a concurrent resolution providing for 

 the submission of the necessary amendment of the state constitution 

 to the voters at the regular election in November, 1916. Thfe 

 amendment was defeated by a vote of about two to one. EDITOR. 



253. THE FEDERAL FARM LOAN. ACT 



After several years of agitation and the rejection of scores of rural 

 credit bills, Congress has at length passed a land credit measure, to 

 be known as the Federal Farm Loan act. This act was approved by 

 the President on July 17, 1916, and, with the lapse of only a few days, 

 announcement was made of appointments to the board whose task 

 it will be to organize and put the system in operation. This measure 

 shows a certain resemblance to the Federal Reserve act, in that it 

 provides for local loan associations, regional land banks, and a general 

 supervisory bureau under the control and direction of a Farm Loan 

 Board. In addition, provision is made for "joint stock land banks," 

 analogous in function to the federal farm land banks but making it 

 possible for private mortgage companies to preserve their existence. 



ORGANIZATION OF THE SYSTEM 



Federal Farm Loan Board. At the head of the farm loan system 

 stands the Federal Farm Loan Board. The Secretary of the Treasury 

 serves upon this board as a member and chairman ex officio, and there 

 are four other members appointed by the President with the approval 

 of the Senate. Not more than two of these members may be chosen 

 from the same political party, and none of them may be an officer or 

 director of any other organization engaged in a banking or land mort- 

 gage business. The President shall designate one of the members 

 of the board as the Farm Loan Commissioner, and he shall be the 

 active executive officer of the board. Members shall serve for a 

 period of eight years, and shall receive a salary of $10,000, together 

 with necessary traveling expenses. 



The powers and duties of the Federal Farm Loan Board include 

 the organizing and chartering of land banks and farm loan associa- 

 tions; regulation of the rate of interest charged by federal land banks 

 and of the charges made for appraisal, determination of title, and 

 recording; making examinations of and requiring reports from all land 

 banks and loan associations in the farm loan system; and supervising 

 the issue of farm land bonds. 'They shall appoint a farm loan registrar 



