Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1915-01-07

manG AMn STOCK upon IT. Inc loan may
run from forty-ive years to seventy
nine years. ThA borrower has hia
prospective purchase surveyed aud as
sessed. He makes out q mortgage and
delivers IL to the cooperative society.
This mortgage and hundreds OF 9TH
ers like 1t are delivered to y trustee
with trust deed which pledges them
~ security for q series of bonds. The
cooperative society guarantees the
bends also. a- ... g. ii
ID IL from the sale Of these bonds
that the cooperative society obtains
fts funds. These cooperative credit
associations have In the beginning no
capital Whatsoever Each In simply
an agency whose functions are to see
I'll that the real estate security Of
fered In assessed at It's true value.
CD that the title In clear: t3l that the
mortgages are properly executed
"a that they are grouped, pledged
and deposited with the trustee:
III that the trustee issues bonds
sf6l that the land. buildings and equip.
ment are properly cared for and their
value liz not permitted to dsteriorate.
(7l that tho payments OF principal and
interest are promptly met
Easy Repayment Of Loana.
The farmer pays from four to six
per cent, OF the principal amount each
year. This III not wholly interest, how
ever. for II includes q small install
mant of principal. for the mortgages
are all amortization mortgages. Pay.
ment OF this fixed sum annually or
semiannually for the fixed period
therefor automatically discharges the
debt. A small amount out OF each
payment In also set aside for reserve
for the cooperative society and for
an expense account. IL has been the
/. universal experience, however. that
the expense runs very low.
still Easier for tina Farm Lahorer.
There are other terms of loans even
more advantageous TO the borrower,
particularly Ii he In one of the poorer
| farm lahorers. IN such q lahorer seeks
to become a land owner on . small
scale be may under certain conditions
secure a loan Tor nine-tenths OF the
value OF the proposed purchase. being
| required to advance only one~senth OF
| the purchase price In cash. The gov.
| arnrnent furnished the funds for these
| loans. The conditions are I'll the Dor,
/ rover must have been engaged I'm AZ.
| rsculturAl labor tor five years twomen
may take advantage OF this law az
| well as men1: lal the land must not
/ exceed ten acres I'm extent nor s21Aa
| in value ca the borrower and pro.
speetiye purchaser must agree to crop
| the farm In a certain manner. dividing
1t up into ave or seven fields aud fol.
lowing a certain rotation of crops. thus
inauring continued productiveness and
preventing deterioration OF soil fer.
tiltty. Under these mortgages the
borrower pays three per cent. interest
| with no fnstallments upon the princi.
pal, for the first i've years. Then he
pays, In addition to the interest one
| per cent, upon two-iifths of the loan al
| m iastaliment upon principal. doing
this until the two-fifths OF the loan Ia
entirely discharged, Thereafter he
pays m annual installmsnt Of one per
cent. upon the lhree-1fths remaining
OF the principal, this being ir add
ton TO his three per cent. interest
~ before. The bonds may be issued
| upon unstamped paper and are free
from tax,
i Does the Danish farmer take advan-
tags OF these opportunities Are the
| tenants becoming land ownerss The
facts are these Denmark has 2.sa0. 900
population. somewhat less than that
of Chicago. 1t has about SOC. 600 fanal
lies. ineluding those In cities and viii
lagos rs wei IS those In the rural re-
gions. These cooperative credit soci
eties have . membership of over
100000. that In to say. two out oil
every five families ia the entire eoan
try are represented I'm them. Largely
~ q result OF this credit ssstem ninety
per cent. OK the farmers OF Denmark
own their ewn land.
ftow Character To czpisailxed.
II Obtaining loan on personal secur
ity has been eaphoaioasly termed
'eapstalixing character" Ii In rot an