American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-05-21

run from forty-1ve years to seventy
nine years. The borrower has his
prospective purchase surveyed and as
sessed. He makes out a mortgage and
delivers it to the cooperative society.
This mortgage and hundreds OF 9TH
ers like 1t are delivered to a trustee
with a trust deed which pledges them
as security for a series OF bonds. The
cooperative society guarantees the
bonds also.
It is from the sale OF these bonds
that the cooperative society obtains
its funds. These cooperative credit
associations have in the beginning no
capital whatsoever. Each is simply
an agency whose functions are 10 see
% that the real estate security Of
fered is assessed at it's true value;
(2) that the title is clear; 81 that the
mortgages are properly executed;
ca that they are grouped, pledged
and deposited with the trustee;
80 that the trustee issues bonds;
90 that the land, buildings and equip
men are properly cared for and their
value is not permitted to deteriorate;
CD that the payments of principal and
interest are promptly met
Easy Repayment Of Loans
The farmer pays from four to six
per cent. of the principal amount each
year. This is not wholly interest, how
ever, for it includes a small Install
ment of principal. for the mortgages
are all amortization mortgages. Pay
-r-@ ~ ~LT- E-rE crr~ annually ~
semi-annually for the fixed period
therefor automatically discharges the
debt. A small amount out of each
payment is also set aside for reserve
for the cooperative society and for
an expense account. 1t has been the
universal experience, however, that
the expense runs very low.
Still Easier for the Farm Laborer.
There are other forms Of loans even
more advantageous 10 the borrower,
particularly if he is one OF the poorer
farm laborers. II such a laborer seeks
to become a land owner on a small
scale he may under certain conditions
secure a loan for nine-tenths OF the
value of the proposed purchase, being
required TO advance only one-tenth OF
the purchase price in cash. The gOv-
eminent furnished the funds for these
loans. The conditions are CD the Dor
rover must have been engaged in ag-
ricultural labor for five years women
may take advantage of this law as
well as mem: 90 the land must not
exceed ten acres in extent nor s2.144
in value: 90 the borrower and pro-
spective purchaser must agree to crop
the farm in a certain manner, dividing
il up into five or seven fields and fol-
lowing a certain rotation OF crops, thus
insuring continued productiveness and
preventing deterioration Of soil fer
Utility. Under these mortgages the
borrower pays three per cent. interest
with no installments upon the princi-
pal for the first five years. Then he
pays, in addition TO the interest one
per cent. upon two-hfths OF the loan as
an insrallment upon principal, doing
this until the two-ffths Of the loan is
entirely discharged. Thereafter he
PAYS an annual installment Of nj per
cent. upon the three-ffths remaining
cg the principal. this being in addi-
ton to his three per cent. interest
as before. The bonds may be issued
upon uns amped paper and are free
rr1m tax.
Does the Danish farmer take advan.
&c IF these opportunities? Are the
'nts becoming land owners? The
s are these: Denmark has 2,600.00l
istiCn. somewhat less than that
.aso. Il has about 100000 fami
.illing those in cities and vii
as ven as those in the rural re
These cooperative credit soc,
hove q membership o. Owe
tfat is TO say. TWO org g
e families in the entir e1uu
presented in them. M
Of this credi. s
IL the fermer
own lara.
7rsctcr IS {
Q loan on
seem eunh0
lharacft