The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1915-09-07


ed to create fund Of ten or eleven
million dollars, and this is the basis
OF the home ownership
/ While lands are sold, 8 per cent OF
their value is paid in cash and the
balance Of the sale price Is divided into
forty equal annual installments which
can be paid each year for forty years.
or. at the option of the purchaser,
any number of instalIments can be
paid after one year
II will be seen that continual rev
enue will be realized from these lands,
all OF which can be loaned under the
| law governing this fund; but as the
demand for this money greatly ex-
ceeds the supply the legislature pro,
vided that bonds could be issued
against the notes held in the office OF
to Is per cent Of the value of the notes.
/ When these notes reach an aggregate
of $lO,O0o,00c, $7,500,000 could be is
sued in bonds, all of which would be
available for loans under this act.
When thtse loans are completed the
board Is further authorized to issue
bonds using all former loans as collat-
eral security, ana If the department
has no difficulty in floating these
bonds. II will not be difficult matter
to accumulate fund of fifteen or
twenty million dollars. This fund to
be used during the time that the peo-
Pile are paving for the lands which
they have purchased from the state.
The 100000 In cash and bonds now
held by the department is immediate
~ available, and the commissioners
are preparing to accept applications
and make loans TO that amount BY
the first of January of this year it is
expected that the initial payment on
the sale of lands belonging to this
fund will net at least a hundred thou
sand dollars more, and, If results jus
tify, an attempt will then probably be
made to float bonds for the purpoes
Of securing funds to continue making
loans.
The experience of this office leads
to the belief that when the average
man places loan of $4,000 on his
farm he confidently expects to pay i
Off within five years, but in 20 pei
cent of the cases when the five years
rolls around he renews his application
for the loan. Under the home owner
ship plan he is compelled to pay a
portion OF the principal each year He
pays 8 per cent of the face value of
his loan and per cent Of this applies
TO the interest fund and the balance OF
its goes TO a continual decrease OF the
principal The amOnnt that he pays
in interest at first amounts to SO per
hundred the first six months but 1t
gradually decreases until the last six
months eleven cents is all tnat he pays
in interest. The first six months be
pays 81 on the principal and the last
six months he pays s354 on the princi'
pal Or, in 2Si2 years on an per cent
rate Of what he originally borrowed
he paws out both interest and prinel-
pal on his loan At the present time
the average rate in this state is more
than per cent.
Thus il win be seen that the state
is not only endeavoring to administer
20 the immediate needs of the farmers
but is attempting 10 bring all interest
rates to per cent basis. This law
was passed primarily in the interest
Of home ownership. and is for the
benefit Of the man who lives upon his
farm and cultiyates it. No loans wlll
be made to anyone for speculation and
those who are holding their land tor
speculation need only apply as the
law absolutely prohibits the the MAX
ing Of loans to any except bona fide
farmers using the land as their home
stead, liking upon and cultiyating the
same
The nhximuih ioan is $4,000 and in
no case will more than 80 per cent Of
the value Of the land offered as secur
ily be advanced on loan and improve
nents do not count as part OF thS
security. although no loan can be mad
except or improved lands