The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-03-28
FARM LOAN BANK PLANS.
MAXIMUM INDIVIDUAL LOAN
MAY BE INCREASED.
Won Engelken Says Columbia Bank
Expects to Lend Ten Million Dol
lars Within Twelve Months.


Columbia, March 26.--F. J. H. Won
Engelken, president of the Columbia
Federal Land bank, having returned
from Washington, where he attended
a conference of the presidents of the
IL federal land banks, with Secre-
tary McAdoo and the members of the
federal farm loan board. expressed
qualification over the fact that this
conference had fixed a fiat rate Of 5
per cent. applying to all parts Of the
United States. He declared that this
interest would prove a great boon to
the farmers of the Southeastern
States and predicted that within a
year the Columbia Federal Land
bank will have made loans aggregate
ing $1O,o00.000.
Mr.. Won Ehgelken also announced
that the conference of bank presi-
dents passed resolution requesting
congress to increase the limit Of the
loans permitted to an individual bor-
rover from $4,000 to $4,000. He
expressed the hope that the special
session of congress soon to convene
would make this change for the large
borrowers of the Columbia bank dis-
trict.
In order that more funds may be
available for investment in farm loan
bonds and in turn made available
to lend to farmers of this dis
trict. Mr.. Won Engelken urged that
the legislatures of North Carolina,
South Carolina. Georgia and Florida
Immediately pass laws making farm
loan bonds approved investments for
trust funds, insurance companies and
savings banks.
Mr.. Won Engelken announced that
the bonds issued by the IL federal
land banks would be placed on the
market at 4 1-2 per cent, but would
probably be sold at premium. he
expressed qualification over the fact
that the federal farm loan board. has
anticipated that at least 500, 600, ,o00
OF these bonds will be issued during
the coming year and is making ar
rangements which will assure a ready
market for them. All of this money
will be made available to the farmers
"f the United States at per cent.
To borrow from these federal land
banks. farmers are required to or
ganize themselves into groups con-
tanning at least ten farmer-borrowers
ard each group asking for at least
$4,000 of loans. The Columbia Fed
eral Land bank is now prepared to
furnish a blank form of articles of
association to make the organization
of these groups simple and easy Oth-
er necessary blanks will also be fur
nished on application.
Farmers are permitted to borrow
up to so per cent. of the appraised
value OF the land. plus 20 per cent.
OF the value Of the permanent insured
improvements. Loans are to be made
at per cent. and must be retired
on the amortization plan, which
means repayment of fixed annual paw
ments throughout the period of the
loan. The loan may run from five 70
4O years at the option Of the borrow
er. The object of these long time
loans is to enable the farmer to meet
these small annual payments out of
the increased earnings of the land.
made possible by the investment OF
the borrowed money.
This new banking system is purely
cooperative. 1t is for the sole use
OF farmers and prospective farmers.
Farmers will eventually own all of
the stock of the federal land banks.
and they will elect the officers of
these banks. The. is no opportunity
for individual profit in the entire sys-
tenn.
The preliminary organization of ma.
tional farm loan associations has
progressed to degree far beyond the
expectations of the federal farm loan
board at Washington and everything
points to the unqualified success of
this new enterprise.