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Each farmer pays par, $5, for one share in his
national farm loan association for each $100 he
wishes to borrow upon a long term first mort-
gage on his farm at not to exceed 50% of its
value. His liability for the association's debts
is limited to this $5 and as much more, $10 in all.

The national farm loan association indorses its
members' mortgage notes, cashing same for full
amount at its federal land bank, and turns all
the money over to the borrower. Annually or

twice a year borrowers pay a regular sum as
dues, including (1) their interest, (2) a fraction
for expenses, and the balance applies upon
principal.

The federal land bank sells bonds secured by
these indorsed mortgages and thus gets more
money to lend. The 12 land banks are jointly
and severally liable for all the bonds. The bonds
are legal investment for almost every fund.

All these notes, shares, bonds, capital and surplus are tax exempt, because the land is taxed.

THE FEDERAL FARM

LOAN SYSTEM

NEW METHOD OF

FARM MORTGAGE FINANCE, UNDER

NATIONAL SUPERVISION

A Practical Manual upon organizing and conducting na-

tional farm loan associations, also joint stock land banks.
Showing how farmers, investors, bankers and the public

may obtain the fullest benefit of the system.

By HERBERT MYRICK

Chairman Massachusetts Farmland Bank
Author of Co-operative Finance, How to Co-operate, etc., etc.

INCLUDING FULL TEXT OF THE FEDERAL FARM LOAN ACT

NEW YORK
ORANGE JUDD COMPANY

COPYRIGHT 1916
BY ORANGE JUDD COMPANY

All Rights Reserved

FOREWORD

HE Federal Farm Loan System of 1916 possesses potentialities of transcendent importance to the

American people. Utilized to the utmost by farmers and investors, with the patriotic aid of the business interests whose welfare is dependent upon a prosperous agriculture, the new statute may prove to be epochal in its economic and social benefits.

The new law is not perfect. It is the work of many minds. It is a well-thoughtout basis for a system that (1) could command the necessary votes to become a national law, and (2) bids fair to accomplish the purposes it aims to serve.

The object of this book is to aid those who so desire to enjoy all the advantages of the new Federal Farm Loan System

The Act is the Magna Charta of American farm finance.

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