The Bridgeport evening farmer., 1917-03-26
/ =. Finance. Real Estate Insurance ..
of Finance



Leonard G. Robinson, president of the
Springfield Federal Land Bank, has
returned from Washington where he
attended a conference of the presi-
dents of the twelve Federal land
banks with Secretary of the Treasury
McAdoo, and the members Of the Fed
eraf Farm Loan Board.
Mr.. Robinson expressed gratifica-
ton over the fact that this confer
ence had fixed flat interest rate Of
5 per cent, applying to all parts of
the United States. He declared that
this interest rate would prove a great
boon to the farmers of the New Eng
land States and predicted that within
a year the Springfield Federal Land
Bank will have made loans aggregat-
ing $1O.000.000. Mr.. Robinson point
ed out that the establishment of this
per cent. rate on farm loans
throughout the United States will
mean a net gain of nearly 1 per cent.
on the present farm mortgage in
debtedness of all Of the New England
States and New York.
Mr.. Robinson also announced that
the conference Of the bank presidents
passed q resolution requesting Con-
gress to increase the limit of the loans
permitted to an individual borrower
from $4,000 to $4,000. He express
ed the hope that the special session
Of Congress, soon to convene. would
make this change for the large bor-
frowers Of the Springfield bank dis
trict.
r. hat
available for investment in farm loan
bonds, and in turn made available to
lend to farmers Of this district, Mr.
Robinson urged that the legislatures
of Maine, New Hampshire, Vermont,
Massachusetts, Connecticut, Rhode
Island. New. York and New Jersey
immediately pass laws making farm
loan bonds approved investments Tor
trust funds, insurance companies and
savings banks.
Mr.. Robinson announced that the
bonds issued by the twelve Federal
land banks would be placed on the
market at Az 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 $780,
100000 of these bonds will be issued
during the coming year and is max
ing arrangements which viii assure a
ready market for them. All OF this
money will be made available to the
farmers of the United States at . per
cent.
To borrow from these Federal land
banks, farmer are requested to or
ranize themselves into group con-
tanning at least ten farmer-borrowers
landeach group asking for at least
$4,000 Of loans. The Springfield
Federal Land Bank is now prepared
to furnish a blank form Of articles or
association to make the organization
of these groups simple and easy. 9th
ier necessary blanks will also be rur-
nished on application.
Farmers are permitted to borrow
,1p to 80 per cent. of the appraised
value Of the land, plus 20 per cent.
OF the value of the permanent in
sured improvements. Loans are to
be made at 5 per cent. and must be
retired on the amortization plan,
/, which means repayment by fixed an
nual payments throughout the period
OF the loan The loans may run from
l5 to 40 years at the option OF the
borrower. The object Of these long
time loans is to enable the farmer 70
meet these small annual payments
out of the increased earnings OF the
land, made possible by the invest
1nent Of the borrowed money.
This new banking system is purely
cooperative. It 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. There is no opportunity for
individual profit In the entire system
The preliminary organization OF
National farm loan associations has
progressed to degree far beyond the
expectations Of the Federal Farm
Loan Board at Washington and every
thing points to the unqualified success
of this new enterprise.