St. Landry clarion. (Opelousas, La.) 1890-1921, 1916-09-16
MOVE ON FOOT TO SECURE A
FEDERAL LOAN BANK For N. o.
A Meeting to Further This Cause
Will Be Held Wednesday, Sept.
20, at 1880 A. nj. at Courthouse

The establishment of one of the
Federal Loan Banks in New Or
leans will mean the passing of the
short time heavy interest bearing
| paper and the farmers nightmare
foreclosure proceedings. Thor
ougaly appreeiating the benefits
that will follow the selection OF
New Orleans, farmers, bankers and
| business men over the State ot
Louisiana and other territory con-
tlguous to New Orleans have joined
n an effort to impress upon the
members of the Federal Farm Loan
Board the wisdom Of making the
Southern Metropolis as a Farm
Bank site.
With an executive committee, the
membership of which is composed
l#of the leading Louisianians, a con-
sistent campaign is being waged to
secure recognition for New Orleans.
This battle is participated in by
Hon. Harry B. Wilson, Commission
Ter Of Agriculture, and Justin r.
Denechaud, secretary Of the immi-
grafton division of that department.
The preliminary work comprises 4
campaign Of education So that the
farmer may become familiar with
the rural credit system that viii
AID SO materially in the Develop
ment of Louisiana and the entire
Southland.
Mr. Denechaud arrived here this
morning to complete arrangements
for meeting Of the farmers Of the.
vicinity Of Opelousas to be held
here Wednesday, September 20,
1880 A. NJ, at the Court House.
This meeting will be addressed byI
Mr., ". ]. Leppert, one Of the tray-
cling representatives of the state
committee conducting the campaign
70 secure the location Of one Of Tie
banks at New Orlens. Mr.. Dene-
.chaud will confer with the leading
business men Of this city with d
view OF encouraging a large attend
ance and to create the proper in
stefest IL the matter of the Farm
Loan Bank which is Of such vital
Importance to the farmers Of Lou.
slsa sisIana and the territory contiguous
20 the City Of New Orleans.
ln connection with this campaign,
s55a
y might be well to give the more
essential features of the act ereat-
ing the Federal Farm Loan
Board which is to administer the
Federal Loan System in the same
way that the Federal Reserve
Board administered the Federal Re-
serve Banking System.
The act provides that ten Or
more farmers in any community
may incorporate as National Farm
Loan Association. The lonas tley
apply for must aggregate not less
than s20,oooo0. Each indiyidual
aoan must be not less than $4,000
and not more than $4,000. 90. The
loan may not exceed one-half of
the fair appraised value Of the bor-
rower's land, plus one-fifth Of the
insured value of his buildings.
Each member Of the association
agrees to purchase one share of
location association stock at d par
value Of $500 for each $4,000 bor-
roWed. His liability for the debts
Of the association is limited to dou-
Die the amount Of his stock or
$1,000 per $4,000 borrowed. There
Is no other joint and several la
bility.
Under the present borrowing fa-
0cilitles available to the farmers Of
the United States, the average Of
81 600 IS $3.50 per year taking the
country as q whole, or 8 1-2 per
cent interest. At this rate bor-
rover IN SO years will pay s2,s05
interest On a Thousand dollar loan.
Ihe compound interest on this IN.
terest, which the lender gets is.
g ss3'59 Thus a thousand dollar
loan for g years, under present ia
.ellItlesa costs the farmer s2.so5 in
interest paid out and costs him So
595 n compound interest lost. or d
total Of 5000. A til eend Of Sc