National Affairs: Farm Credits

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" The Agricultural Credits Act of 1923 " passed the House and then the Senate late in the evening of March 3. It is composed of three bills, the Capper, Lenroot-Anderson, and Strong measures, and combines their provisions.

Briefly, the Agricultural Act reorganizes the banking system of the Federal Farm Loan Board to establish 12 rural credit departments in the 12 Federal Land Banks. Each will have a capital of $5,000,000, upon which it can issue tax-free debentures up to ten times that amount on farm properties and stock to 75 per cent of their value.

In addition the measure provides for the formation of rural credit corporations to make loans to farmers for agricultural purposes. These corporations must capitalize at $250,000 or more, and can incur liabilities up to ten times their capital.