New Iberia enterprise and independent observer., 1916-09-09
FARMERS LOAN BANK MEET.
ING HERE

Federal Farm Loan Banks L
New Orleans will mean the passin!
Of short time heavy interest bear
ing papers and the farmer
nightmare re-foreclosure proceed
ings. Thoroughly apprec iatins
the benefits that will follow th'
selection of New Orleans. farm
ers. bankers and business mel
over the State Of Louisiana ano
other territory contiguous to New
Orleans have joined forces in al
effort to impress on the member:
of the Federal Farm Loan Board
the wisdom Of naming the South
ern Metropolis as Farm bank
site.
With an executive committee,
the membership Of which is com
posed Of leading Louisianans, a
consistent campaign is being
waged to secure recognition for
New Orleans. The battle is par
ticipated in bv Honorable Harry
d. Wilson. Commissioner Of Agri-
culture, and Justin +. Denechaud,
Secretary Of the immigration Di-
vision of that Department. The
preliminary work comprises a
campaign Of education so that the
farmers may become familiar with
the rural credits system that will
aid so materially in the develop
ment Of Louisiana and the entire
Southland.
Mr.. Denechaud arrived in New
iberia to arrange a meeting to be
held in New Iberia at the Court
House at six o'clock p. NJ, next
Monday, to be addressed by w.
l. Leppert representing the New
Orleans "'mrit:ec 0" manaPe-
ment. Mr.. Denechaud is travel
ing in advance of Mr.. Leppert and
from here he will visit other Sec
tions of the State in the interest
Of the movement. While in New
Iberia Mr.. Denechaud will confer
with Parish officials and some of
the prominent business men to
stimulate interest in the meeting
to be addressed by Mr.. Leppert.
In connection with this cam |,
paign it might be WILL to give
some of the more essential fea-
lures Of the act creating the Fed
eral Farm Loan Board which is
to administer the Federal Farm
Loan System in the same way the
Federal Reserve Board admins.
tered the Federal Reserve Bank
ing System.
The Act provided that ten or
more farmers in any community
may incorporate as a National
Farm Loan Association. The
loans they apply for must aggre-
gate not less than 500, 10000. Each
loan must be not less
than $4,000 and not more than
100000. The loan may not ex-
'eed one-half Of the fair appraised :
ralue Of the borrowers land, plus
'ne-fifth of the insured value of s
his buildings. Each member of "
he association agree to purchase b
me share of location association r
tock at par value of 5000 for @
ach $4,000 borrowed. His liza O.
ility for the debts Of the associa- +,
ion is limited to double the Fl
mount Of his stock or $1,000 per is
10000 borrowed. There is no b
ther joint and several liability. e.
Under the present borrowing +,
ABILITIES available to the farmers IL
t the United States. the average tt
ost of $1,000 is $500 per year "
aking the country as a whole. or II
1-2 per cent interest. At this y;
ate a borrower in thirty years
ill pay 2.SO5 interest on a thou
md dollar loan. The COMPOUND
lterest on this interest. which 50
he lender gets is 1886. Thus m
81 600 loan for 33 years. under q,
lie present facilities. costs the S,
lrmer $2.SO5 in interest paid out III
nd costs him 1886 in compound IL
lterest lost. or total of Sc. 400. at
t the end Of SO years the bor e,
'wer still owes the principal Je
on" making his total cost r,
400. IN
Under the system provided by in
e Federal Farm Loan Act tho tn
rmer's total cost on $1,000 90 NJ