Lincoln County times. (Jerome, Idaho) 1911-1919, 1917-09-06
DEMAND FOR FARM LOANS
Farm Loan Bank at Spokane Lend
ing An Average OF $40, 900 Day

Inc ftucTdl rdTul LOdn Dduhs,
are seemingly becoming very popular
among the farming element, and
while we have no details as regards
the business being done by other
banks throughout the country. the
one at Spokane. which covers thu
section of the northwest, Is certain
ly meeting the demands of the farm
ers for farm loans at rapid rate,
as appears from following account
of the business being done by the
bank, as appears In the Idaho Farm
er:
The farmers OF the four northwest
ern states are now receiving from
the federal farm loan bank an aver
age OF $4,000 day. Some days the
amount OF money actually sent out
to borrowers is considerably less than
this sum, but other days 1t Is much
greater. The daily average is grad
ually increasing.
Already the bank has sent out
money to the farmers OF Oregon,
Washington. Idaho and Montana tot
alling almost 100000. At even
the present rate of loans. which will
be greatly increased as time goes
on, a total OF more than s12, 0.00O
would be loaned in year.
Financed by Bond Issues
While the government made an ap
preparation OF $75O.OO0 to start the
work OF each of the IL district farm
banks, the large total of the loans
made and to be made is secured
through the sale Of government
bonds issued with the mortgages Civ
en- by the borrowers as security. Thu
Spokane bank, which handles TIL
business for the four states OF thu
northwest, has already loaned con
siderably more money than congress
actually appropriated for 1t. 1t ha
therefore had to sell bonds to rails
the amount. Two issues OF bond
have already been sold and thir'
issue OF s25o.000 is to be offered i'm
mediately.
I'VE expect to make loans regular
~ from now on in such volume a
to require a bond issue of $4,000
weekly. with a gradual increase 1
these figures" says President D.
O'Shea.
Notwithstanding all that has bee
said and written explanatory OF tn
federal farm loan act, we find pee
pie from day to day whose concel
ton of the law is that the feeders
land bank is operated with govern
ment funds and works under govern
ment appropriation" he continue
by way OF explaining the syster
while II is true that the COVER
ment furnished the original capt.
with which the business was starte
il should be remembered that Il
government expects that money
be returned to It; and while the lar
banks are operated under COVER
ment supervision and direction. thu
do not work under an appropriate
but are expected to be operated {
thorough business basis and eal
their current expenses from the o
erations. The land bank makes
charge OF s per cent interest per a
mum. payable semi-annually with
small amortization payment on q
principally II sells its bonds, bea
ing Az per cent interest. payat
semi-annually. leaving II marg
of profit OF one-half OF l per ceI
out OF which It is expected to ME
= all the expenses incidental to its {
= ganization and operation. 1t thei
fore should be remembered that I
land bank does not draw on COVER
ment funds. and that It needs mi
operate economically.
Many New Charters Granted
The Spokane bank has chartered
total OF 131 local farm loan assoc
: lions and is daily adding new on
The loans sought by the memb
OF these associations total more tn
S6,500,0O0. These loans are appr'
ed by the land bank. and are bel
3 made as rapidly as the titles to
land on which the loans are sout
can be perfected and the work
completing the loans done.