The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1916-11-10

lected; but the work is being pushed
as rapidly as possible 1t is larg
undertaking, new as to principle an,
detail, and must be proceeded witt
with care and each detail considered
from every angle.
But local organizations, to secure
the advantages offered by the Federal
loan plan, may be effected at, once.
They do not have to wait until the sys-
tenn is fully put into working opera
ton, but may organize now in any
community, so as to be ready to take
advantage of the system as soon as it
is ready for business. These local or
CARNATIONS are called national farm
loan associations" and may be organ
lied in any community where ten or
more citizens owning land desire to
borrow an aggregate Of not less than
$4,000. The land upon which they
wish to borrow must be unincumbered,
and the proceeds of the loan must be
used, in part, to remove any lien that
may be upon any of the land on which
it is desired to borrow. The FEEDER
al loan reserve must have first mort
gage on the land on which the loan
is made, and the loan cannot be for
more than so per cent of the value of
tthe land. The borrower must also
subscribe for stock of the association
equal tC per cent Of the amount he
borrows. Loans may be as small as
500 OR as large as $4,000, and in no
instance shall the, rate of interest be
more thrn 6 per cent.
The borrower cannot be called upon
to pay the debt except % the install
ments he originally fixes, unless he
defaults, but after five years he may
lpay off the whole or any portion at
his option at any installment period.
He may also elect to pay off the
amount he borrows on the. amortiza-
ton plan, similar in principle to the
payments made by borrowers in the
ordinary building and loan associa-
.tions, familiar to everybody. p
For instance, on a $1,000 loan at
5 per cent interest, on 10 to 40 year
term, the annual payment would be
on 10-year term, $129.50; on 10
year term, $96.34; on 20 years, $8O;24;
on 25 years, $7095; on 80 years, $65.05;
on 80 years, $61.O7; on 40 years,
S5S.2S. The last payment on any term
would wipe out the original debt. This
'installment plan of paying the inter-
Vest and a portion of the amount Dor
rowed each year, makes the payment
much easier upon the borrower than
to Just pay the interest each year and
then at the close of the term have to
pay the $1,000 in one sum.
At the rate of 51a or per cent
the highest rate of interest that may
be exacted, the annual payments Oh
the amortization plan would be slight
ly larger, as for instance at 5h pei
cent the annual payment would be
| $132.67 for a 10-year term, and at
per cent it would be $135.87 for the
same term. The longer the term, the
smaller the annual payments would
be, as on a 40-year term it would be
'$66.46 on per cent interest basis
instead of $135,S7 as in the case of ;
10-year term.
Might it not be good idea fol-
Nsome of our farmers who may wan
to borrow money on the Federal farm
loan plan to talk the matter ovel
among themselves and consider the
organization of local national farm
loan association" They can get al
the information as to how to proceed
by addressing the Federal Farm Loar
Board, Washington, d. C.