Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1916-08-11
FARM BANKS NAY OUT INTEREST," M;
Il. ATF.' { ~ 8 n

De repaid on the amortization plan. 81
rate Of interest not higher than 6 pei
cent, is the purposesof the federal farm
loan banks, established by the Federal
Farm Loan Act, recently passed by
congress .and signed. by the president
! If these banks could do all: the farm
loan business in Minnesota they would
reduce interest charges at least $Ll68,
600 year. There are about $146,O0O
600 worth of farm mortgages in the
state and they bear an interest rate
averaging 6.8 per cent. 49, &.. 4" =;
Loans will be made by the banks to
local organizations called national farm
loan associations. These associations
must be made up of at least ten farm.
!, ers who desire to borrow or have Dor.
rowed money from the farm-loan banks
TO get loan, a man must be mem:
Der Of one of these associations. When
he is admitted to the organization
three men appraise the farm that he
offers for security and the secretary.
treasurer Of the local association draws
mortgage for the land, which he
sends to the bank. The money is sent
to the local association when the bank
has approved the mortgage. l.
Bonds will be issued by the banks on
the mortgages held and sold to invest
ors. These are expected to find a ready
sale at or S per cent. The farmers
borrowing money cannot be. charged a
rate more than l per cent higher than
the debenture bonds bear. So, if the
bonds sell at per cent, the money
must be lent at not more man 5 PEI
cent. State and national bonds in most
sections now find a ready sale at per
cent.
The capital stock of each of the
twelve banks, $4,000, will be held
eventually by borrowing associations.
Each borrower must buy stock in the
local association to the extent of 5
per cent of his loan. The local asso-
citation in turn buys the same amount
of stock in the district bank. That is,
if man borrows $1,000 he busy $50
worth of stock. He need not pay this
in cash, but may have it added to the
mortgage. At the time the $1,000 is
paid, he will be credited with the
amount Of stock and will be paid what
ever dividends are due on it. The stock
is merely an added security, and the
only chance the borrower has to lose
it is to have his farm sold for the mort
gage.
The loans are paid on the amortiza-
ton plan. That is, certain amount
is paid every year, covering the inter-
est and small amount of the principal
The loans run at the borrowers desire
from five to forty years. A yearly
payment of $80.24 will cover the in
terest and principal of $1,000 per
cent mortgage in twenty years. An an
nual payment Of 5000 will pay the
same principal and interest in thirty
six years.
The money may be used to buy land,
to equip land, to improve land, or to
pay any mortgage that was on tn land
at the time the Federal Farm Loan Act
was passed. An amount equal to one
half the value Of the land and one-fifth
the value Of the permanent improve
ments may be borrowed.
1t is certain that the Federal Farm
Loan Act will be put in operation at
once. 1t is possible that an attempt
will be made to have the banks estab-
llsh at the time of the coming election.
The system can hardly be expected ito
be in smooth running order for several
months, however. 80
THE COUNTRY NEWSPAPER GAME
Oakley Graphic: "This newspaper
business is a great game. Just in the
midst of an obituary of dear friend,
and when hot tears threaten to flow
down and blot out the words you write,
there breaks through the office door
the radiant face Of the daddy Of new
boy. Tears and joy mingle in the same
breath and the giving and taking away
of life are recorded on the same page
Before you have finished the obituary,
the breezy advance man for a comedy
show pops in and asks you to write a
scream for his -Four Fat Frolicsome
Fairies and how joyous they are; before
you have done with the kind words
about your departed friend, the joy
over the new daddy and finished the
show, fellow sneaks in to ask you
to suppress the story of the fight that
he was mixed up in. Then after put
ting all the lace and trimming on the
brides wedding gown, dressing the
groom in the conventional black and
starting them off with congratulations
and best wishes, you turn again to the
teary side of life and write, But the
stately ship moves on to the haven
under the hill, and oh, for the touch
of a vanished hand and the sound Of a
voice that is STILL Then comes lull,
and the old typewriter is content to
record the commonplace facts, Knowing
that just around the corner and each
awaiting his turn stand Joy, Grief, Scr
row, Mirth, Sarcasm, Wit and Laugh
| ter. Small wonder, then, that the news:
paper man brings to his business de-
votion that is not found in any other
walk Of life.0
Fairmont Sentinel: The rural credits
farm loan bill is something that the
democratic party can we'll make capita
out of in the coming campaign. Rare
lily has congress passed bill that is 81
directly in aid Of the agricultural class
les as this one.
tEARLY FLOWING INCREASE:
YIELD
Repeated trials have shown that ea1
|ly fall blowing gives much better con
ditions for a crop Of grain the follow