The Raymer enterprise., 1914-04-23

ment and stock upon II. The loan may
run from forty-fye years to seventy
nine years. The borrower has his
prospective purchase surveyed and as.
sessed. He makes out mortgage and
delivers II to the cooperative society.
This mortgage and hundreds of 9th.
ers like II are delivered to a trustee
with trust deed which pledges them
as security for series Of bonds. The
cooperative society guarantees the
bonds also.
1t 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 to see
Cd that the real estate security Of
fered is assessed at its true value;
t2) that the title is clear; l31 that the
mortgages are properly executed;
(4D that they are grouped. pledged
and deposited with the trustee;
l5J that the trustee issues bonds;
t6) that the land. buildings and equip.
ment are properly cared for and their
value is not permitted to deteriorate;
l7) that the payments OF principal and
interest are promptly met.
Easy Repayment Of Loans.
Tho nave frop, faat a,
per cent. OF the principal amount each
year. This is not wholly interest, how.
ever, for II includes a small install.
ment of principal. for the mortgages
ara all amortization mortgages. Pay.
ment OF this fixed sum annually or
semtannually 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 il he is one of the poorer
farm laborers. If such laborer seeks
to become land owner on a small
scale he may under certain conditions
secure 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 Cl1 the Dor.
rover must have been engaged In az
rieuItural labor for FIVE years twomen
may take advantage OF this law as
well as menl; t2) the land must not
exceed ten acres in extent nor $2,14i
In value; 81 the borrower and pro.
spectlve purchaser must agree to crop
the farm In certain manner, dividing
II up into five or seven fields and fol.
lowing certain rotation of crops, thus
insuring continued productiyeness and
preventing deterioration of soil fer.
tility Under these mortgages the
borrower pays three per cent. interest
with no installments upon the prinei.
pal for the first five years. Then he
pays, in addition to the interest one
per cent. upon two-ffths 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 iustallment of one Der
cent. upon the three-fifths 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 adyan-
tage OF these opportunities? Are the
tenants becoming land owners? The
facts are these: Denmark has $500, 900
population, somewhat less than that
OF Chicago. It has about 100000 fami.
lies, Including those in cities and vii.
lages as well as those In the rural re-
gions. These cooperative credit soci.
etles have a membership OF over
100000; that is to say, two out of
every five families In the entire coun.
try ere represented In them. Largely
as result of this credit system ninety
per cent. OF the farmers of Denmark
own their own land.
How Character Is Capitalized.
Obtaining loan on personal secur.
ity has been euphoniously termed
"capltalizing character" 1t Is not an