The Celina Democrat. (Celina, O. [Ohio]) 1895-1921, 1914-05-01

/ capital whatsoever. Each is simply
an agency whose functions are to see
| % that the real estate security Of
fered is assessed at it's true value;
(2) that the title is clear; (3) that the
mortgages are properly executed;
| (D that they are grouped, pledged
and deposited with the trustee;
| (5) that the trustee issues bonds;
(6) that the land, buildings and equip.
ment 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 small Install
ment Of principal, for the mortgages
are all amortization mortgages. Pay
ment Of this fixed sum annually or
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 to the borrower,
particularly if he is one of the poorer
70 10 hnrayc 1n hnrnr gnalYG
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
ernment furnished the funds for these
loans. The conditions are (1) the bor-
rover must have been engaged in ag-
ricultural labor for five years (women
may take advantage of this law as
well as mem; (2) the land must not
exceed ten acres in extent nor S2,144
in value; (3) the borrower and pro-
spective purchaser must agree to crop
the farm in a certain manner, dividing
it up into five or seven fields and fol-
lowing a certain rotation Of crops, thus
insuring continued productiveness and
preventing deterioration of soil fer
tility. Under these mortge ges 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-fifths Of the loan as
an installment upon principal, doing
this until the two-ffths Of the loan is
entirely discharged Thereafter he
pays an annual installment Of one per
cent. upon the three-ffths remaining
Of the principal, this being in addi-
tion to his three per cent interest
as before. The bonds may be issued
upon unstamped paper and are free
from tax.
Does the Danish farmer take advan-
tage of these opportunities? Are the
tenants becoming land owners? The
facts are these: Denmark has 100000 |
population, somewhat less than that
Of Chicago. 1t has about 100000 fami |
lies including those in cities and vii
lagos as well as those in the rural re-
gions. These cooperative credit soci- !
eties have a membership of over
100000; that is to say two out Of |
every five families in the entire coun-
try are represented in them. Largely |
as a result Of this credit system ninety |
per cent. of the farmers of Denmark |
own their own land
How Character Is Capitalized.
Obtaining a loan on personal secur-
ity has been euphoniously termed |
"capitalizing character" 1t is not an
inept phrase since any farmer who has |
a good character, who is sober, hon
est, industrious, intelligent, productive !
worker, has a capital that is consid- |
cred a proper basis for credit and he |
can in fact capitalize his character. !
His character Is in very truth under
these conditions his capital Here is
the way it is done here in Denmark: |
BY the law enacted in 1898 the gov
ernment is authorized to turn over to !
the credit association $l,250,000, for
which the associations account to the |
government at the rate of three per |
cent per annum. This sum is placed |
at the disposal of the farmers credit |
association in order that these asso-
Citations may be ready to give small |
loans to their members. When any |
farmer finds it urgently necessary to
secure a loan in order to meet ex-
penses such as the payment of wages,
the price of better seeds, or of artifi-
cial manures, or Of feed for cattle, he
makes application to one of these as
sociations. In determining the amount
Of the loan to be granted to each man
it is the theory that the earning ca
pacity Of the borrower should be taken
into account This Is thought to be
best indicated by the number of dairy
COWS which he owns. A member may !