Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1915-07-30
OKLAHOMA Will
Lend MONEY TO
BUYERS OF Land
State Fund to Let Farmers
Have Money at 6 per Cent
Available Aug. l..

Oklahoma City, Ok, July 29.-The
state of Oklahoma is preparing to en-
gage actively on August 1, in the en-
enlargement and promotion OF nome
ownership under the provisions OF a
la wenacted by the recent legislative
ass Irbly, by the loaning of certain
public moneys on improved farm
lands. The purpose Of this undertake
ing is to improve the condition OF
agricultural tenants in Oklahoma by
anoa oring them to- the land as own
ars and landlords.
While the scheme in a measure IS
new and experimental, it's advocates
are confident that it will prove sue
cessful. anu that ultimately the state
government may be authorized by the
people to use for this purpose funds
derived from direct taxation.
The fund from which loans are to
be made is derived from the sale OF
lands given to the state by the United
States government, commonly
known as estate educational institu-
ton lands" from which source there
is on hand 100000, which soon will
be increased to $1,000,000, Loans will
be made only upon improved farm
land secured by first mortgages,
under rules devised by the commits
sioners Of the state land office.
Loans will be made for three pur
poses: First to assist the borrower
to pay for "a home; second to pay
Off any existing mortgage upon the.
nome; third, to make permanent ia
provements upon the home farm
Payments Equal Per Cent Annually.
Not less tnan 500 nor more than
$4,000 will be loaned to one person Or
family and each loan shall be in null
tiples ofe$109. lAil loans shall be
secured by first .moftgage. on falain
lands. upon which the borrower re-
sides and tholds as his homestead, the
cash value OF which, exclusive OF i'm
proverne nts, shall be- at: least double
The. IA mount OF the loan. Notes. for
payment OF the loan shall bas,draWh
to-, run for 231a years. . Twice. an
nually there shall be a payment Of 4
per cent of the full face value of the
note, at which time interest al the an
nual rate of per cent on the unpaid
balance shall be deducted from the
payment, and the remainder credited
upon the principal of the loan.
The schedule Of pawn ents involves
technical computations. For example,
On a loan of 500 the interest deduct
msnt of 81 is $2.97 and the amount
credited upon the principal is $1.03,
while for. the forty-sixth semi-annual
payment, % cents is taken for inter-
est and 1918 is applied to the prin
cipal.
The lands from which the home
ownership fund is derived are being
sold by the state. In addition to cash
received, the state holds notes and
other collateral from purchasers Of
land. This later fact affords a basis
available for the home ownership ex-
pertinent. The commissioners OF the
land office are authorized to sell, for
not less than par end accrued inter-
est, all or any portion Of such notes
and collateral.
Bonds to Provide Larger Fund.
Should it be preferable, the COM
missioners may issue and sell at not
less than their par value 5 per cent
bonds pledged for the payment OF the
principal and interest of such notes
and collateral, but the bonds at any
time shall. not exceed Is per cent of
the face value Of the unpaid principal
Of such notes.
The notes and mortgages taken
for loans from the home ownersnl J
fund also may be used for issues of )
per cent bonds, which shall sell at
not less than par value sand shall not
exceed 80 per cent of the face value
of the unpaid portion of the princi-
pal Of such notes and mortgages.
Some Of the Problems.
There are numerous problems to
De worked out by the land commits
sioners. For example, an applicant
for a. loan, intending to buy farm,
tray not be a land owner and under
a strict reading of the law does not
reside upon and hold a homestead.
Should a loan be made to such an ap-
plicant? If not, the law will fail to
reach the very class CT farmers in
Oklahoma who are most in need OF
its benefits.
Again, why should the benefit OF
the law be enjoyed exclusively by
prisons who can give a first mort
gage on farm property? What about
the mechanic, clerk or laborer who
wishes to own home in town?
Only the actual workings of the
law will bring an answer to these. as
we'll as many oiher questions. "A
start has been msde, however, and
the progress of the experiment VIII
be watched with close interest by the