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growing out of its activities except the examination of titles to sites. With the approval of the Secretary of the Treasury it prepares plans, specifications, and estimates for buildings which other executive departments or independent establishments may be authorized to construct. During the war the Veterans' Hospital building program of $27,000,000 was carried out under its supervision. Upon request of the various departments it inspects temporary and rented buildings occupied by the government in the city of Washington.

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CHAPTER 8

ASSISTANT SECRETARY IN CHARGE OF CUSTOMS, COAST GUARD,

AND PROHIBITION

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1. Assistant Secretary in Charge of Customs, Coast Guard, and Prohibition

Under the supervision of this Secretary, the Customs Service, the Coast Guard, and the Prohibition Unit of the Bureau of Internal Revenue are administered. The Prohibition Unit and Customs Service will be discussed in separate chapters, post. 2. Coast Guard

The Coast Guard is one of the oldest organizations in the government, having been established originally in 1790 as a result of the need for the services of a coastal patrol for the enforcement of the customs laws and an organized armed force for the protection of the seacoast. Since the establishment of the Coast Guard, its scope of activities and services to the nation has greatly increased. The duties of the Coast Guard, in general, may be classified as follows: Rendering assistance to vessels in distress and saving life and property; destruction or removal of wrecks, derelicts, and other floating dangers to navigation; extending medical aid to American vessels engaged in deep-sea fisheries; protection of the customs revenue; the conduct of the international ice patrol in the North Atlantic Ocean; patrol of the North Pacific Ocean, Bering Sea and southeastern Alaska for the protection of the seal herds under international convention and the enforcement of United States laws; operating as a part of the Navy in time of war; enforcement of law and regulations governing anchorage of vessels in navigable waters; enforcement of law relating to quarantine and neutrality; suppression of mutinies on merchant vessels; enforcement of navigation and other laws governing merchant vessels and motorboats; enforcement of law to provide for safety of life on navigable waters during regattas and marine parades; co-operating with and assisting other branches of the government in the enforcement of the federal laws intrusted to their jurisdiction.

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CHAPTER 9

FEDERAL FARM LOAN BUREAU 1. Mission

The Federal Farm Loan Board is charged with the administration of the Federal Farm Loan Act, as amended, and that portion of the Agricultural Credits Act of March 4, 1923, providing for the creation and operation of federal intermediate credit banks.

The Federal Farm Loan Act was passed in order to assist farmers in securing longer term credit than could be furnished through the ordinary channels of commercial banking or through the Federal Reserve System. The Intermediate Credits Act of March 4, 1923, was designed to furnish to those who are engaged in live stock and agricultural pursuits credit of a longer duration than could be secured at the ordinary commercial bank, but not so long as that needed by the farmer for the purpose of buying land. Under these two acts other organizations were provided for such as joint-stock land banks and national farm loan associations. The oversight and regulation of all these organizations are in the hands of the Farm Loan Board. It is necessary that the Federal Land Banks and the joint-stock land banks secure the permission of the board before they make a bond issue. Likewise a federal intermediate credit bank must secure its permission before it can issue debentures provided for under the Agricultural Credits Act. This board has such incidental powers as are necessary to fulfill its duties and to carry out the purposes of the act creating the institutions for which it is responsible. 2. Purpose of Federal Farm Loan Act

To lower and equalize interest rates on first-mortgage farm loans; to provide long-term loans with the privilege of repayment in installments, through a long or short period of years, at the borrower's option; to assemble the farm credits of the nation to be used as security for money to be employed in farm development; to stimulate co-operative action among farmers; to make it easier for the landless to get land; and to provide safe and sound long-term investments for the thrifty. 3. Agencies for Application of Farm Loan Act

The Federal Farm Loan Act is applied through: (a) The Federal Farm Loan Board, consisting of six members* (named by the President) and the Secretary of the Treasury as chairman, which board exercises supervision over the entire system. (b) The twelve Federal Land Banks established in December, 1916, and a large number of joint-stock land banks located in various parts of the country, to make loans and issue their bonds and debentures to investors. (c) Many national farm loan associations organized and controlled by the borrowers themselves, each composed of at least ten farmers, through which associations applications for loans are made to the Federal Land Banks.

1 0f July 17, 1916 (39 Stat. 360 [Comp. St. 88 9835a-98352]).

% Act April 20, 1920, Ch. 154 (41 Stat. 570 (Comp. St. Ann. Supp. 1923, $8 98356, 9835ee9835ff, 9835k, 98351]); Joint Res. May 26, 1920, No. 45, c. 208 (41 Stat. 627 [Comp. St. Ann. Supp. 1923, § 9835ww]); Act May 29, 1920, c. 215 (41 Stat. 691 [Comp. St. Ann. Supp. 1923, § 9835hh]); Act March 4, 1921 (41 Stat. 1362 [Comp. St. Ann. Supp. 1923, 8 9835k]); Act July 1, 1921 (42 Stat. 105 (Comp. St. Ann. Supp. 1923, § 9835w]); Act Aug. 13, 1921 (42 Stat. 159 [Comp. St. Ann. Supp. 1923, § 9835k]); Act March 4, 1923 (42 Stat. 1473).

342 Stat. 1454.

4 Act July 17, 1916, § 3 (39 Stat. 360 (Comp. St. § 9835b]) and Act March 4, 1923 (42 Stat. 1473).

4. Federal Land Banks

Each Federal Land Bank is managed by a board of seven directors; three elected by national farm loan associations and borrowers through agencies, three appointed by the Farm Loan Board, and a director at large, also selected by the board from a list of three persons having the greatest number of votes cast for them by national farm loan associations and borrowers through agencies.

Each bank was organized with a capital stock of $750,000, which, under the terms of the act, is automatically increased by 5 per cent, of each loan made.

The banks are on a dividend basis and have paid dividends on stock held by national farm loan associations.

The banks obtain additional money to lend to farmers by depositing the mortgages which it has taken as security for farm loan bonds and then selling these bonds. There is no limit to the capacity of a bank to serve the needs of farmer borrowers so long as it can sell its bonds.

They may accept deposits from the United States government, and may also accept deposits from national farm loan associations to be applied to the purchase of farm loan bonds. They cannot do a general banking business.

Owners of farm land who are at the time, or shortly are to become, engaged in the cultivation of the farm mortgaged, may borrow from Federal Land Banks.

Federal Land Banks are located in the following cities:

District
Number,

States.

Federal Land Bank at

1 Maine, Massachusetts, Vermont, New Hampshire, Rhode

Island, Connecticut, New Jersey, and New York.... Springfield, Mass. 2 Pennsylvania, West Virginia, Maryland, Delaware, Virginia, and District of Columbia .....

Baltimore, Md. 3 North Carolina, South Carolina, Georgia, and Florida... Columbia, S. C. 4 Indiana, Ohio, entucky, and Tennessee

Louisville, Ky. 5 Louisiana, Mississippi, and Alabama..,

New Orleans, La. 6 Illinois, Missouri, and Arkansas

St. Louis, Mo. 7 North Dakota, Minnesota, Wisconsin, and Michigan. St. Paul, Minn. 8 Wyoming, Nebraska, South Dakota, and Iowa

Omaha, Nebr. 9 New Mexico, Kansas, Colorado, and Oklahoma.

Wichita, Kans. 10 Texas

Houston, Tex. 11 California, Nevada, Utah, and Arizona

Berkeley, Calif. 12 Idaho, Washington, Montana, and Oregon

Spokane, Wash.

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Persons desiring to get in touch with any of these banks should address them in this style: "Federal Land Bank of Springfield, Springfield, Mass." The danks are equipped with all the necessary literature to accommodate inquirers. 5. The National Farm Loan Associations

A national farm loan association is a local corporation chartered by the Federal Farm Loan Board. Such a corporation consists of ten or more farmers whose applications for loans amount to not less than $20,000. A person who desires to make a loan should apply for membership in the nearest farm loan association. If there is no national farm loan association within easy reach, he should communicate with the Federal Land Bank of the district, which will advise him what to do. The national farm loan association is the door through which the farmer borrower enters into the benefits of the system. It is the co-operative agency through which loans are initiated, through which the application of their proceeds is supervised, through which collections are made, and generally through which the local interests of borrowers are served. Prospective farmers, tenants, or farm laborers, who are about to purchase land for their own use, may apply for membership in a national farm loan association and may become members when their loans are closed.

Membership is confined to stockholders, and borrowers only may be stockholders. A local loan association may increase its membership after it is organized and in operation. It may admit new borrowers, each of whom must subscribe to stock equal to 5 per cent. of his loan.

Each member of the local association has one vote for each $5 of stock up to 20 shares. A man who borrows $1,000 would necessarily have $50 worth of stock or 10 votes. But no one stockholder may have more than 20 votes no matter how much stock he may own. In the organization meeting each person has one vote irrespective of the amount he expects to borrow.

The secretary-treasurer is the executive officer of a national farm loan association, whose duty it is to act as custodian of its funds; to collect, receipt for, and transmit to Federal Land Banks payments of interest, amortization installments, or principal arising out of loans made through the associations, when requested to do so by the national farm loan association; to act as custodian of the securities, records, papers, certificates of stock, and all documents relating to the conduct of the affairs of the association; to make quarterly reports to the Federal Farm Loan Board; and, at the request of the board, to furnish information regarding the condition of his association; to assure himself that the loans made through national farm loan associations are applied to the purposes for which they were sought; to report any failure of any borrower to comply with the terms of his application; and to ascertain and report to the Federal Land Bank the amount of any delinquent taxes on land mortgaged and the name of the delinquent. He is the agent for the local association in its relations with the Federal Land Bank. He may receive compensation, the amount to be fixed by the directors of the local association, subject to the approval of the Farm Loan Board, but he may serve without salary if he will.

The amount of the bond required of a secretary-treasurer, if the total loans of a farm loan association do not exceed $50,000, should be $3,550. For each

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