The Hickman courier. [volume] (Hickman, Ky.) 1859-current, 1917-01-25
FARM LOAN ASS N.
ORGANIZED HERE.

Loan Association was organized
IN Hickman yesterday afternoon
to operate under the new Federal
Farm Loan Act passed by Con-
gresS last year to enable farm
ers to obtain money on long time
at low rate of interest.
The association will operate In
that part of Fulton county, KY,
and Obion county, Tenn, which
is served by the Rural Free De-
livery out of Hickman. The of
ticers of the association are: A. j.
Walker, Pres, Chris Ledwidge, II
Vice Pres, l.. p. Ellison, Secy.
and Treas. Loans applied for a.
mounted to something over $33,
900. The association passed a
resolution to permit farmers In
their territory who wish to join
in the next twoNxeeks to do SO
by signing the articles of asso-
citation. Any farmer wishing to
join can see l.. p. Ellison, the
secretary treasurer, who will give
him the necessary information.
The Federal Farm Loan Act
was passed by Congress last year.
The object of the act is to en-
able farmers to borrow money on
their farm land on long time at
low rates of interest. 1t pro-
vides for the orgaizationn of IL
Federal Farm Loan Banks to
make loans to farmers. Each bank
has a capital stock of $4,000,
all of which not subscribed by
private individuals to be taken
by the government.
Loans are made to farmers, and
to no others, the the amount of
90 per cent of the value of their
farms and an additional 20 per
cent of the insurable value of
the improvements. These loans
are made on from 5 to 40 years
time, at the option of the borrow
er, with the privilege of paying
off after five years time any a
mount of the principal from $50
up. In addition to the interest
to be paid each year it is also re-
CURED that a small amount be
paid on the principal so that the
entire amount shall be paid off at
the expiration of the time. For
! instance, if the rate of interest is
six per cent and time 40 years,
the annual payments ON a 81 COO
loan will be $66.46, if 80 years
$72.65, 20 years $S7.1S, while any
: part of the debt can be paid at
: ter five years
, The money to be loaned to
= farmers is secured by the sale Of
} bonds by the Federal Farm Loan
: Banks. When $4,000 in mort
/ cages have been taken, the Fed
, eral Farm Loan Bank sells that
: amount of Federal Farm Loan
Bonds. AS these bonds will be
high class, gilt edge, they viii
sell at a low rate of interest and
the law provides that the rate
charged the farmer cannot ex
iced the price at which he bonds
| sell, OnC POI NNhts
$hat is, if the bonds sell for 5
per cent is charged, 6 per cent
if they sell at 4 per cent, he can
not be charged but per cent.
But in no event can the state
charged the farmer exceed six
per cent. The loans are made
only through Farmers Loan As
ISOLATION duly organized and
chartered.
The borrower can never be
called upon to pay the debt ex-
cept by the installments he orig
inally fixes, unless he defaults
in his payments.
| The Federal Farm Loan Act
should not be COMPOUNDED with
the rural credit scheme in which
so many of our farmers lost
money. This is done under a
national law, passed by Congress
for the exclusive benefit of farm
ers, and is backed by the govern
ment. 1t does not cost a bor-
rover one cent until he gets his