Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1916-10-06
RURAL CREDITS IN A VISION
How to Borrow Money Through the New Law-COOpeatOn Has
Difficulties Explained to Farmer Ned
by His Cousin Ben

you $4,000 to build FIVE years ago.
they may be appraised now, say. at
$500. and you can borrow 5000 on
the buildings-no more. That makes
a loan OF $4,000 on a farm which has
an actual value according to apprai-
sail Of $500 under the sehriffs ham,
mer; you probably think you could
sell it some day for $1,000 or $4,000.
But you cannot really get all that So
300. for you must buy stock in your
Credit Union, which you and your nine
neighbors formed in order that you
might borrow.
Buy stock when you are already
hard up? Certainly; you must buy
Sis of the stock. or you cannot bor-
row the $4,000. so II leaves you 81
1856 to use. but you pay interest on
$4,000. You may get some dividend
on the stock. so cheer up. The inter
est you pay is certain, the dividend is
well you know how stocks go. You
get a dividend II there is any net pro
nj left after paying all expenses OF
the Federal Land Bank located sew
eral hundreds OF miles from you. Any
how. YOU get a handsome autographed
certificate Of stock-not live stock.
Just stock" which carries a double
liability on it.
What is a double liability" Why,
that means that you may lose the S1l5
that you have been forced to invest in
the handsome stock certificate: that
is one liability" Then If Bill Jones,
or any OF your other eight or nine
neighbors fail to pay their notes, you
may be called upon TO help pay the
loss to the amount OF another Sl15;
that Is the second liability That
makes the double liability" In order
to borrow the sum of $4,000, you have
to invest S115 in stock and get only
S21S5 net. and you have to guarantee
your neighbors' debts to the amount
Of $3.50.
or course. you know your neighbors
are honest; have you ever endorsed
their notes al bank? Still. since yor
need 10 borrow for yourself you may
think OF the wife and Riddles in your
own home and consider what woulc
happen il you had 20 lose $3.50 through
that double liability" II would buy
a lot OF clothes for the family.
But you risk IT, Maybe il will turr
ont all right II crops are good. veal
after year and those neighbors al
use good scientific methods in farm
ing So you and the neighhors decide
to 90 ahead. form your National Farm
Loan Association and borrow S20OoO
+ if your ten farms are worth over $40.
00O You appoint committee OF three
to aDpraise all your farms. or course
different committee must apprais'
/ the three farms Of that first commit
! toe Of appraisers. but that's easy
What is an appraisal between friends
You may think Bill Jones has nerv'
( to expect his farm 10 be appraised a
$4,000. when It IS only a quarter sec
ton. and that southeast quarter OF tn
northeast quarter is swampy. and tn
creek spells the west half for plowine
but you keep still. so Bill won't say
word about the alkah on your farm.
You are wondering all the time
Sam Slick is put on that appraisa
! committee to appraise your farm wha
he will do TO you. or course the mar
YOU traded 10 Sam. three years age
did have a touch Of heaves. but Sar
never asked you about heaves an