The Watertown news. [volume] (Watertown, Wis.) 1917-1919, 1917-07-20
Want a Farm Loan

And you say you would like to get
loan under this new farm loan law?
And that you are in something of
hurry for the money? Well, just be
patient, for there are some little de-
tails to be attended to, viz, namely
and tO-wit:
1. Go out and see your neighbors
and find nine other farmers who also
want to borrow money and are ready
to say just how much they need and
what they want the money for.
2. These nine neighbOrs and your
self must agree to borrow total of
$4,000. Remember that unless it is
that none of you can borrow cent
| 3. Call a meeting of these 10 farmers
who need money, organize yourselves
into National Farm Loan Associ-
atiOn," and elect offers.
4. You then appoint committee of
three to apprase the 10 farms
5. The committee reports it's ap-
praisements, and the various blanks
are filled in and sent to the farm loan
bank.
6. Remember that if your farm is
appraised at $4,000, you can borrow
$4,000, and if the insured improve
ments are worth $1,000, you can only
borrow $780,
Z. No, this appraisement doesn't
settle it, In due course of time fed
eral appraiser, slick looking gentle
man will come out and make a second
appraisement.
| 8. Perhaps, after driving around
and viewing the 10 farms this federal
appraiser finds that one of the farms
was appraised too high
9. That being the case, under the
law, the committee must meet again
and make new appraisement, bring
ing the amount down to the limit set
by the federal appraiser
| TO- Perhaps just at this time one
of the 10 men dies. This is hard luck
all around. For nine men cannot form
one OF these associations, and so you
must go and find another man who
wants to get loan, and the whole
process must be repeated
IL. But wait minute The federal
land bank sends word that it's attor-
neys find defect in the title to Bill
Jones land The title must be cor
rected through the court or else you
must find another man to take Bill
Jones' place. For you cannot get your
loan unless all 10 of the titles are per-
| feet.
II. But be patient In a few more
weeks the matter is Strengthened out
and your loan of $4,000 on your $4,000
farm, aud your loan of $500 on your
$4,000 mprovements-thi is the limit
you can get-are approved You are
to get a loan of $3,40O.
Is. But you understand you don't
get the $4,000 in cash. No, you are
| required to subscribe five per cent. of
it for stock in the farm bank. So you
only get in cash So ,23O.
IA. You understand, that this $17O
in stock in the bank may or may not
draw interest-that all depends on
whether the stock earns anything.
Is. You also understand, that this
$17O in stock has a double liability"
just like other bank stock If your
neighbors fail you may not only have
to lose the $40, but you may have to
dig up $170 more. But cheer up, the
probability is that won't happen.
Is. AS to the rate of interest, there
is nothing in the law to show that it
is to be below six per cent. There is
no assurance that it will be below that.
| II. No, you cannot put a second
mortgage on the farm, and you cannot
sell it unless the Federal Farm Loan
Board grants special permission to
you to do it,
| IL. You must pay off the loan in
regular installments, and cannot make
any payments before five years.
-. II you should die, your heirs
must assume the obligation in 60 days
or the mortgage will De foreclosed.
20. In case of default in payment
the mortgage will be foreclosed in 80
days.
| Il. And you say you want the loan
in order to buy feed for your stock
Well, there is nothing doing. The
money cannot be used for that pur-
pose, no matter how good the security
you offer may be-
| These are few of the main condi-
tiOns of the law.
And what's your guess How many
farmers of this county are gong to
avail themselves of its wonderful pro-
visions marion Record, Kansas.