Mount Vernon signal. (Mt. Vernon, Ky.) 18??-current, 1915-04-16
MONEY WHILE
YOU LIVE

| ~ ~ ATD4 AADhOOOAAA Wv aOSAo
money to farmers on 20, 30 and
80 years time at 5 per cent inter-
est. These loans are uncallable
and reducible, a Small amount in
addition to the interest being re
quired each year. Whatever
amount is paid annually in addit
ion to the 5 per cent interest will
be compounded at 81 per cent in
terest and deducted from the
loan whenever paid, the borrower
having the privilege of paying all
or any part of the loan at any time
by giving 90 days notice.
The strong points in favor of
borrowing from the Association
are that one can borrow One-half
the value of lands; the net rate OF
interest Is actually S per cent and
the borrower knows that he can
not be called upon TO pay the prin-
cipal except in annual payments,
as provided in the contract. He
may, however, pay any or all OF
the loan whenever it suits him to
do so. For illustrations a farmer
borrows 100000 on 49 years
time, and keep the money for that
period of wears, and ali that is re.
qnired of him is to make a pay
ment of $58 90 on each $1,000. 90
every year. $1,000 of said pay.
meat being interest, and IS 90 of
il is applied to the principal and
compounded at 81 per cent inter
est-which will pay the principal
in full i'll 40 years, the borrower
has the right to pay off the loan at
any time, however.
On the % year plan a farmer is
req uHed ~ paysS7o.oo per thous-
and dollars (Slooo. oo) each year
for 90 years, at the end of which
| period his mortgage is Cancelled
and returned to him. The . per
cent $4,000 paid each year in.
addition to the interest of 5 per
cent being applied to the princi-
pal, and will pay the loan in full
in % years, but if the borrower
wishes to pay off his loan at the
end of 10 years he would get cred
it tor S242 50 on each $1,000. 90 of
principal, leaving a balance of
1867 20 to be paid.
Another plan is the 20 year
loan. Under this plan the farmer
is req uired to make an annual
payment of $S5 90 on each $1,000.
oo-S5o.oo of which is interest and
$35 90 is credited on the principal
which pays the loan in full in 20
years. If the loan is paid on the
10th year there will be a credit on
the principal of 1925. SO, leaving a
balance of S574.o7.
| Compare this plan with the ordi
, nary practice of borrowing mouey
A farmer bo-rows $1,000. 90 from q
local institution or individual al
s per cent interest, and pays II
20 years $1,000 90 in interest and
still owes the SIooo.oo making 6
total of $1,000. 90, while under the
Kentucky Rural Credit Association
plan he borrows $1ooo.oo anc
makes 20 payments of S85 90 eacf
or a total of $4,000, which pay.
both principal and interest. Thi
> is saving of exactly 5000 90
There can be no argument as t,
: which is best for the farmer.
Everv farmer who owns a farm
and wishes to improve it, or VIII,
wishes to buy or sell farm, o
: who already has mortgage OIL
/, his farm at high rate of interes
L should be member of the Ken
e lucky Rural Credit Associatio
I and transfer his loan and get tn
S benefit of S per cent money. 1
! plain language, the Associate
a will act as agent for the farme
land 60 direct to the cheap none
~ market, and secure for him none
~ on the same terms that railroad
:. and other corporations secure i
l. The principal involved In NAL
a ing these loans are the principle
Z. of life insurance reversed: 20
10 pay interest instead of premium
as and enjoy the money while yc
a. live.
he Among those, who ha We joins
Id the Association in ROckcast
10 County are the following citizens
.e DR.. Walker Owens,
10 @ Mt. Vernon, K
u Bethurum & Lewis, ("