The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1916-07-14
MONEY FOR THE FARMER.

members Of the Federal Farm Loan
board the organization Federal Farm
Loan bureau Of the treasury depart
ment and Of the twelve Federal land
banks will take time during which
farmers desiring to borrow money on
easy terms, al reasonable rates Of in
terest and ON long time may busy
themselves in forming the national
farm loan associations, subsidiary to
the land banks, for which also the act
provides, thinks the Times-Union.
Through these ASSOCIATIONS money
can be borrowed on first mortgages
at a rate of interest yet to be fixed
but which viii not. in any case. ex-
coed per cent per annum, and for
term Of years varying from six to
thirtysix years at the option Of the
borrower, If we read the act Alright
These mortgages must be on the amor
tization plan, by which a part OF the
principal is paid up every six months.
The money can be borrowed for only
productive purposes, as the appIica-
ton must plainly show. or for the
purchase Of a farm for a home, or to
liquidate existing Indebtedness. No
loan must exceed 80 per cent of the
appraised value Of the morlgaged
land. The borrower must engage in
the cultivation Of the farm mortgag
ed a provision which shuts out the
SPECTATOR hut whether il affects the
absentee landlord is another question.
for cultivation by tenant may be held
TO satisfy this provision. None
may borrow more than $4,000,
Amortization is a term with which
not all Americans are familiar and
may be explained as the gradual year.
ly liquidation of the principal Of the
debt by partial payments. Thus. if
man borrow money at per cent,
payable semi-annualIy and with each
interest payment pay also one per
cent Of the principal on this plan, his
debt would be automatically extin-
guishcd in thirty-six .years by pay
ing larger percentage of the prin
cipal at each semi-annual payment he
would shorten the term of years dur
ing which he would be paying the
debt. On $1,000. for instance, he
would pay semi-annually, SIS of in
terest and $40 of the principal and by
the end of thirty.aix years Of such
-semiannual payments of $35 he would
have extmguished the entire debt
a little calculating will show that
the borrower under the amortization
plan Of $1,000 at 3 per cent per an
mum, IL he needs one per cent semi-an
nually for amortization will have paid
in thrty.slx years $2.520 and have
liquidated the debt Under the sim
pie interest plan he would have paid
$500 in interest in that time and stir
have the 81 900 of principal to pay,
or $2.S00 In all. difference of $3.50
in his favor, to say nothing of the con
venionce of paying the debt by smau
payments SO gradually and habitually
that he has not felt It. Add the dinicul-
" OF procuring farm loan for So
long time and at an easy rate of in
terest. and the advantage becomes
more apparent lie would have to
borrow il for a shorter time and every
time he procured an extension he
would have commissions. fees and 9TH
or charges TO pay which would make
the total paid in that time still great
or.
TO he sure. the borrower must con
tribute per cent OF the face of the
loan to the capital OF the land bank
Tor his district, but the amount viii
be returned with some interest when
he has paid his debt Il amounts to
putting that amount at interest in a
loan to the federal government for
The faith OF the government viii be
behind these banks.
Those Interested in this matter
shiuld write to the congress.
man Of their district, or to one OF
the senators from the state. for Re.
port No. l44 OF the Senate committee
on Banking and Currency and other