"These associations are organized for the primary purpose of giving to each borrower the benefit of the combined credit of all its members to the extent of the capital contributed and the limited liability they each incur, and hence the associations are required to indorse every loan made to members. It is also through these associations that the borrowers will ultimately become the owners of the Federal land banks. The association decides whether any loan may be made or not by refusing the application for every loan which is considered unsafe or even doubtful. No loan can be made unless it is approved by the loan committee after examination of the land offered as security.
"The national farm loan associations are not limited as to the number of its members. After one is organized it may serve an entire neighborhood by receiving new members. Each association may obtain in loans for its members twenty times the amount of its stock in the Federal land bank, no matter how large its holdings of stock may become by the growth of the association."