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An Act “To provide capital for agricultural development, to create a standard
form of investment based upon farm mortgage, to equalize rates of interest
upon farm loans, to furnish a market for United States bonds, to
create Government depositaries and financial agents for

the United States, and for other purposes."

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PERSONNEL OF THE SEVERAL COMMITTEES OF THE SIXTY-FOURTH

CONGRESS WHICH CONSIDERED THE BILL.

JOINT COMMITTEE ON RURAL CREDITS.

CARTER GLASS, Virginia, Chairman.
ROBERT L. OWEN, Oklahoma.

MICIIA EL F. PIELAN, Massachusetts.
HENRY F. HOLLIS, New Hampshire.

ASBURY F. LEVER, South Carolina.
THOMAS P. GORE, Oklahoma.

RALPH W. MOSS, Indiana.
HOKE SMITH, Georgia.

EVERIS A. HAYES, California.
KNUTE NELSON, Minnesota.

WILLIS C. HAWLEY, Oregon.
JAMES H. BRADY, Idaho.

W. W. FLANNAGAN, Secretary.

SENATE COMMITTEE ON BANKING AND CURRENCY.

ROBERT L. OWEN, Oklahoma, Chairman.
G. M. HITCHCOCK, Nebraska.

KNUTE NELSON, Minnesota.
JAMES A. REED, Missouri.

GEO, P. MCLEAN, Connecticut.
ATLEE POMERENE, Ohio.

JOHN W. WEEKS, Massachusetts.
JOHN F. SHAFROTH, Colorado.

CARROLL S. PAGE, Vermont.
HENRY F. HOLLIS, New Hampshire.

ASLE J. GRONNA, North Dakota.
BLAIR LEE, Maryland.

GEO. W. NORRIS, Nebraska.
PAUL 0. HUSTING, Wisconsin.
DUNCAN U. FLETCHER, Florida.

J. W, BELLER, Clerk.

HOUSE COMMITTEE ON BANKING AND CURRENCY.

CARTER GLASS, Virginia, Chairman.
THOMAS G. PATTEN, New York.

EVERIS A. HAYES, California,
C. U. STONE, Illinois.

F. E. GUERNSEY, Maine.
MICHAEL F. PEELAN, Massachusetts.

F. P. WOODS, Iowa.
JOE H. EAGLE, Texas.

EDMUND PLATT, New York.
OTIS WINGO, Arkansas.

GEO. R. SMITH, Minnesota.
EMMETT WILSON, Florida.

CHAS. A. LINDBERGH, Minnesota.
RALPH W. MOSS, Indiana.

A. L. KEISTER, Pennsylvania.
T. F. KONOP, Wisconsin.

L. T. MCFADDEN, Pennsylvania.
W. W. HASTINGS, Oklahoma.
JOUETT SHOUSE, Kansas.
H. B. STEAGALL, Alabama.

C. D. HAMNER, Clerk.

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THE FEDERAL FARM LOAN ACT.

AN ACT To provide capital for agricultural development, to create standard forms Purposes
of investment based upon farm mortgage, to equalize rates of interest upon farm
loans, to furnish a market for United States bonds, to create Government depos-
itaries and financial agents for the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled, That the short title of this short title.
Act shall be “The Federal Farm Loan Act.” Its administration shall Administration

Loan be under the direction and control of the Federal Farm Loan Board Board. hereinafter created.

DEFINITIONS.

Farın

SEO. 2. That wherever the term “first mortgage" is used in this Act it shall be held to include such classes of first liens on farm lands. First mortgage de

fined. as shall be approved by the Federal Farm Loan Board, and the credit instruments secured thereby. The term "farm loan bonds" shall be held to include all bonds secured by collateral deposited with a farm loan registrar under the terms of this Act; they shall be defined. distinguished by the addition of the words "Federal," or "joint stock," as the case may be.

Farm

loan bonds

FEDERAL FARM LOAN BOARD.

Federal Farm Loan

dovoto

SEO. 3. That there shall be established at the seat of government in the Department of the Treasury a bureau charged with the execution of this Act and of all Acts amendatory thereof, to be known as Bureau established. the Federal Farm Loan Bureau, under the general supervision of a Federal Farm Loan Board.

Said Federal Farm Loan Board shall consist of five members, to consist of five including the Secretary of the Treasury, who shall be a member and Secretary of Treasury chairman ex officio, and four members to be appointed by the Presi- (er officio), to be apa

pointed by the Presi. dent of the United States, by and with the advice and consent of the dent. Senate. Of the four members to be appointed by the President, not more than two shall be appointed from one political party, and all Bipartisan; must bo four of said members shall be citizens of the United States and shall citizens mand devote their entire time to the business of the Federal Farm Loan Board; they shall receive an annual salary of $10,000 payable Salaries and expenses. monthly, together with actual necessary traveling expenses.

One of the members to be appointed by the President shall be designated by him to serve for two years, one for four years, one for Terms of office. six years, and one for eight years, and thereafter each member so appointed shall serve for a term of eight years, unless sooner removed for cause by the President. One of the members shall be designated Designate by the President as the Farm Loan Commissioner, who shall be the active executive officer of said board. Each member of the Federal Farm Loan Board shall within fifteen days after notice of his appoint- Oath of omice to be ment take and subscribe to the oath of office.

taken within 15 days. The first meeting of the Federal Farm Loan Board shall be held First meeting must in Washington as soon as may be after the passage of this Act, at a bo held in Washington. date and place to be fixed by the Secretary of the Treasury.

3

Farm Loan Commissioner.

Members can not be associated with other

intorests.

filled by the President.

Board to appoint farm loan registrar for

bank examiners.

allowed.

paid by United States.

Board to tix comper

No member of the Federal Farm Loan Board shall, during his banking or mortgage continuance in office, be an officer or director of any other institution,

association, or partnership engaged in banking, or in the business of making land mortgage loans or selling land mortgages. Before

entering upon his duties as a member of the Federal Farm Loan Oath taken. Board each member shall certify under oath to the President that he

is eligible under this section. Vacancios in board The President shall have the power, by and with the advice and

consent of the Senate, to fill any vacancy occurring in the membership of the Federal Farm Loan Board; if such vacancy shall be filled during the recess of the Senate a commission shall be granted which shall expire at the end of the next session.

The Federal Farm Loan Board shall appoint a farm loan registrar each district, kanel-bank in each land bank district to receive applications for issues of farm

loan bonds and to perform such other services as are prescribed by this Act. It shall also appoint one or more land bank appraisers for each

land bank district and as many land bank examiners as it shall deem All to be public oli. cials, not interested in necessary. Farm loan registrars, land bank appraisers, and land other institutions, dos bank examiners appointed under this section shall be public officials

and shall, during their continuance in office, have no connection with or interest in any other institution, association, or partnership en

gaged in banking or in the business of making land mortgage loans Temporary emplor: or selling land mortgages: Provided, That this limitation shall not

apply to persons employed by the board temporarily to do special

work. Salaries and expenses The salaries and expenses of the Federal Farm Loan Board, and

of farm loan registrars and examiners authorized under this section, sation et land bank ap: shall be paid by the United States. Land bank appraisers shall respective land banks. receive such compensation as the Federal Farm Loan Board shall fix,

and shall be paid by the Federal land banks and the joint stock land banks which they serve, in such proportion and in such manner as the Federal Farm Loan Board shall order.

The Federal Farm Loan Board shall be authorized and empowered necessary administra.

to employ such attorneys, experts, assistants, clerks, laborers, and

other employees as it may deem necessary to conduct the business Salaries and sees fixed of said board. All salaries and fees authorized in this section and

not otherwise provided for shall be fixed in advance by said board

and shall be paid in the same manner as the salaries of the Federal Administrative force Farm Loan Board. All such attorneys, experts, assistants, clerks, visious ol civil-service laborers, and other employees, and all registrars, examiners, and

appraisers shall be appointed without regard to the provisions of the Act of January sixteenth, eighteen hundred and eighty-three (volume twenty-two, United States Statutes at Large, page four hundred and

three), and amendments thereto, or any rule or regulation made in President may place pursuance thereof: Provided, That nothing herein shall prevent the employees in classified

President from placing said employees in the classified service.

Every Federal land bank shall semiannually submit to the Federal 10 board semiannually Farm Loan Board a schedule showing the salaries or rates of comSlagwing compensatsoá pensation paid to its officers and employees. employees.

The Federal Farm Loan Board shall annually make a full report of annual report to Speak

its operations to the Speaker of the House of Representatives, who

shall cause the same to be printed for the information of the Congress. Examinations

The Federal Farm Loan Board shall from time to time require land banks to be made examinations and reports of condition of all land banks established board and pub. under the provisions of this Act, and shall publish consolidated state

Bor:red must require ments of the results thereof. It shall cause to be made appraisals appraisal of larin hund; of farm lands as provided by this Act,

and shall

prepare

and publish lion tables to be pub amortization tables which shall be used by national farm loan asso

ciations and land banks organized under this Act.

Board may employ

live force.

in a Ivance; paid by United States.

law.

service.

Federal land banks

Board must

make

er of the House

and reports of condition of

lislied

Sec. 4. FEDERAL LAND BANKS.

5

The Federal Farm Loan Board shall prescribe a form for the state-Must prescribe forms ment of condition of national farm loan associations and land banks tion; require quarterly under its supervision, which shall be filled out quarterly by each reports. such association or bank and transmitted to said board.

It shall be the duty of the Federal Farm Loan Board to prepare tion must we prepared from time to time bulletins setting forth the principal features of this and distributed showAct and through the Department of Agriculture or otherwise to dis-lization and giving in tribute the same, particularly to the press, to agricultural journals, structions for moreariz: and to farmers' organizations; to prepare and distribute in the same farm-loan associations. manner circulars setting forth the principles and advantages of amortized farm loans and the protection afforded debtors under this Act, instructing farmers how to organize and conduct farm loan associations, and advising investors of the merits and advantages of farm Investors to te adloan bonds; and to disseminate in its discretion information for the pastges or farm loan further instruction of farmers regarding the methods and principles hocthods ui cooperative of cooperative credit and organization. Said board is hereby author- credit to be oxplained. ized to use a reasonable portion of the organization fund provided in more anization. rund section thirty-three of this Act for the objects specified in this paragraph, and is instructed to lay before the Congress at each session its recommendations for further appropriations to carry out said tions tess los asesored from objects.

Further appropria

FEDERAL LAND BANKS,

tional

Sec. 4. That as soon as practicable the Federal Farm Loan Board United Statesto bedi-" shall divide the continental United States, excluding Alaska, into none to include a fractwelve districts, which shall be known as Federal land bank districts,

part of a State. and may be designated by number. Said districts shall be appor-reference to farm-hoan tioned with due regard to the farm loan needs of the country, but no needs. such district shall contain a fractional part of any State. The boundaries thereof may be readjusted from time to time in the discretion of said board.

The Federal Farm Loan Board shall establish in each Federal land bank in each district. bank district a Federal land bank, with its principal office located in such city within the district assaid board shall designate. Each Federal of Citje tiene ljude namo land bank shall include in its title the name of the city in which it is located. Subject to the approval of the Federal Farm Loan Board, any Federal land bank may establish branches within the land bank Branches. district.

Each Federal land bank shall be temporarily managed by five Temporary, manacedirectors appointed by the Federal Farm Loan Board. Said directors resident bonded" direcshall be citizens of the United States and residents of the district, tors. They shall each give a surety bond, the premium on which shall be paid from the funds of the bank. They shall receive such compen- sation and choose the fisation as the Federal Farm Loan Board shall fix. They shall choose cers. from their number, by majority vote, a president, a vice president, a secretary and a treasurer. They are further authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as they may deem necessary, and to fix their May, employ adecompensation, subject to the approval of the Federal Farm Loan quato force fix comBoard.

Said temporary directors shall, under their hands, forthwith_make Must make organian organization certificate, which shall specifically state:

First. The name assumed by such bank.

Second. The district within which its opérations are to be carried District and city of on, and the particular city in which its principal office is to be located.

Third. The amount of capital stock and the number of shares into Capital stock; numwhich the same is to be divided: Provided, That every Federal land bank organized under this Act shall by its articles of association permit an increase of its capital stock from time to time for the purpose. Increase of stock for of providing for the issue of shares to national farm loan associations borrowers:

pensation.

to

include

Name assumed.

.

ber of shares.

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