The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1917-03-27
Wichita Federal Land Bank Expects TO
Make Loans Aggregsling $1,000. 900
to lO$l0,000,0O0 to Farmers h Scar
WANT LOAN LIMIT
RAISED TO S25,OOO
Oklahoma legislature May Be Asked u
Make Farm Loan Bonds Approved
Inyestman.
snaeIaI % tho Exrress.


Special 70 the Express.
wichita. Kansa March IT, Dan f.
Callahan president of the Wichita Fed
eral Land bank, mas returned from
Washington where ne attended con-
ference OF the presidents OF the twelve
federal land banks with Secretary OF
+ The Treasury McAdoo and the menu
bcis OF the Federal Farm Loan board.
he expressed qualification over the
fact that this conference had fixed .
flat interest rate Of per cent, apply
ing to an parts OF the United States.
lie declared that this interest rate
would prove great boon to the far.
mers OF the middle west and predicted
that within year the Wichita Federal
Land bank viii have made loans aggre-
eating sG,O0O.OO0 TO Sl0,oO0O0O
Mr.. Callahan also announced that the
conference OF bank presidents passed
resolution requesting congress to in
crease the limit OF the loans permitted
to an individual borrower from $4,000
to SIS. 900. He expressed the hope that
the special session Of congress soon to
convene. would make this change for
the special benefit Of the Wichita
Bank district. where the average size
Of farm loans Is larger than IN any 9TH
cr section Of the United States.
May Petition Legislature.
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 district, Mr.. Cal
iahan urged that the legislatures OF
Kansas, Colorado, Oklahoma and New
Mexico Immediately pass laws making
farm loan bonds approved investments
for trust funds. insurance companies
ana savings banks.
4Is Per Cent Bonds.
Mr. Callahan announced that the
bonds issued by the twelve Federal
Land banks would be placed on the
market at w per cent but would prob
ably be sold at a premium He ex-
pressed qualification over the fact that
the Federal Farm Loan board has antic-
ipated that at least $i0e.O00.O0O Of
these bonds will be issued during the
coming year and is making arrange
ments which will assure a ready mar
ext for them All Of this money Will
be made available to the farmers OF
the United States at per cent
Grouping Borrowers.
TO borrow from these federal land
banks. farmers are required to organ
ize themselves into groups containing
at least ton farmer-borrowers and each
group asking for at least $4,000 of
loans The Wichita Federal Land bank
is now prepared to furnish a blank
form Of articles OF association TO make
the organization of these groups simple
and easy. Other necessary blanks
viii also be furnished ON application
May Borrow so per cent.
Farmers are permitted 10 borrow up
to So per cent OF the appraised value
Of the land, plus 20 per cent OF the
value Of the permanent insured i'm
provement Loans are to be made,
at 3 per cent and must be retired on
the amortization plan, which means
repayment by fixed annual payments
throughout the period Of the loan
The loans may run from to 40 years
at the option OF the borrower The oh.
ject OF these long time loans Is to ena-
bic the farmer to meet these small an
nual payments out OF the increased
earnings OF the land made possible by
the Investment OF the borrowed money
Cooperative System.
This new banking system is purely
cooperative 1t is for the sole use OF
farmers and prospective farmers. Far
mers viii eventually own an OF the
stock Of the federal land banks and
they will elect the officers Of these
banks There is no opportunity Tor
Individual profit in the entire system.
The preliminary organization of ma (
ional farm loan associations has pro-
,ressed to a degree far beyond the ex-
,ectations OF the Federal Farm Loan {
'oard at Washington and everything
'oints to the unqualified success OF I
his new enterprise.
Safe Appraisements.
The Wichita hank was the first bank