Durant weekly news. (Durant, Choctaw Nation, Indian Territory [Okla.]) 190?-1944, 1915-08-13
THE STATE LOAN PLAN
FOR TUE FARMER BORROWER


sioners OF the State Land office, has
following in the Oklahoma Farmer
Stockman relative TO the State rlsu
FOR loaning money 10 the farmers Of
Oklahoma:
The State loan plan has as its ba-
sic asset sli.00O.oOo OF real estate
wealth. Neither the common school
fund nor common school lands are
part OF this fund. The lands set
aside for higher institutions OF learn
ing. commonly known as the New
College Lands. and Section 15 Ia
demnity Land. and Section IS Greer
County Land stand as the basis o;
this fund. a portion OF these lands
have already been sold. and notes u
the amount Of s4.Sis.97O.7l have
been taken. a portion Of these notes
have been paid and have accumulated
cash fund in this department OF at
the rresent time about S40o eco. and
the notes remaining in the office
amount to about Si.50O.O0O. The
most valuable part Of the lands be-
longing to this fund remain to be-
sold. and most Of this land Is expect
ed to be converted into notes during
the present fiscal year When sll of
the land has been sold it is expected
TO create fund OF ten or eleven mil
lion dollars. and this is the bts:s NJ
home ownership fund.
when bonds are sold peT cen,
of their value is paid in cash and the
balance Of the sale price is divided
into 40 equal payments. which can b.
paid each year for forty years. or. at
the option OF the purchaser. any'
number OF installments can be pail
by the purchaser after the first yep-.
1T will be seen-that continual
revenue will be realized from these
lands. all Of which can be loaned un
der the law governing this fund: va.
as the demand for tNis money greatly
exceeds the supply. the legislature
provided notes held in the office OF
the commissioners OF the land office
10 IS per cent Of the value OF the
notes. when these notes reach an
aggregate OF sl0.000.000. s7.S0a.-
Geo could be issued in bonds. all o.
which would be available for loans
ander this act.
When these loans are completed.
the board is further authorized to Ia
sue bonds using all former loans as
collateral security. and. If the de-
partment has no difficulty in float
ing these bonds. it viii not be Gis-
ficult matter 10 accumulate .rnG
OF fifteen or twenty million dollars.
This fund to be used during the time
that the people are paying for lie
lands which they have purchased
from the State.
The 100000 in cash and bonds
now held by the department is Inn
mediately available. and the commits
sionefs are prepared to accept ap-
plieations and make loans for that
amount. BY the first Of January Of
this year il is expected that the mi
tial payment on the sale OF lands be-
longing to this fund will net at least
Sl00. 600 more. and. If results justify
an attempt will then probably b.
made TO float bonds for the purposs
OF securing funds TO continue max
ing loans.
The experience OF this office leads
TO the belief that when the average
man places a loan of s.00O on his
farm. he confidently expects 10 pay
Il off within five years. but in rs
Ter cent of the erses. when the q -
years roll around. he renews his ap-
plication for the loan. Under TIE
home ownership plan he is compelled
10 pay portion OF the principle zach
year He pays per cent of the fsee
value Of his loan and per cent o.
this applies 10 the interest fund and
the balance OF Il goes 20 a continual
decrease OF the principal. The
amount that he pays in interest az
first amounts To IS for each 500 he
first six months. gut il gradually de-
ereases until. at the last six months.
II cents is all that he pays in inter
est. The first six months he pays 81
on the principal. and the last SIX
months he pays S354 on the princi-
pal. or. in 23is years on an per
cent rate of what he originally bof-
rowe5 he pays out both the interest
and principal on his loan AT The
present time the average rate in this
State is somewhat mere than 5 Pc.
cent
Thus il will be seen that the STATE
is not only endeavOring to administer
- 49, s,.-,rasosa rnnHu ~ she F~r-