American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-03-29
THE FEDERAL FARM
LOAN ASSOCIATIONS

There are number of things a
farmer should consider before availing
himself of the benefits of federal farm
loans. First of all the applicant for
loan must realize that requirements
/ will be placed upon him the same as
with any other loan and as good Sc
curity demanded by the inspector.
After this the farmer should determine
the following:
l. Do you need loan? How much
do you need and how much can you
carryg Will the income from the
property upon which the loan is made
justify big or small, long time or
short time loan and make possible the
yearly payments?
2. Are you in a position to get
federal farm loan?
3. Can you pay up Immediately all
mortgages on property for which the
loan is to be made?
T. Do you farm the land yourself?
5. Do you hire the work done?
Note: Only actual farmers may OBJ
tain federal loans. Owners, leasing
land are not eligible to loans on
property leased Where the work is
hired done loans may be obtained.
6. Now, if you need a farm loan
and can get one, do you wish to sub
scribe to the conditions some of which
follow:
(a). Farm land upon which loans
have been made cannot be sold with
out consent of Federal Loan bank.
tb). Minimum loan 800; short
est time, 5 years.
tc). Five per cent of loan taken
as investment in stock of association.
(d). Each member of association
jointly liable with Federal Farm Loan
bank to the extent of twice the value
OF stock owned or ten per cent of loan
obtained.
(e). Foreclosure on property up-
on failure to make annual payment.
q Next, where can you form or
Join an association of not less than
ten good, responsible characters who
also desire federal farm loans totaling
not less than $4,000?
In forming or joining an association
one should surround himself with
farmers in whom he has absolute con-
fidence in the matters of finance. One
should not join a neighbor because of
social ties in so purely a business
transaction. Keep in mind the purpose
OF organizing an association, the Sc
curing OF cheap money for permanent
Improvements and profitable use. A
weak member in the association upon
whom 1t is necessary to foreclose
shifts responsibility and burden up
on the rest that detracts from the at
attractiveness of the loan. Next to
picking associates one should careful
~ select a secretary absolutely COM
petent as well as dependable in keep
ing the books of the association.
For Power county it would seem that
one active, first class secretary for all
the associations is desirable. In fact
an expression asking for this has come
from leaders in the Federal Farm Loan
association movement from Rockland
yelley and the American Falls section.
The idea is to have the common secre-
tary located at the county seat. all
business to be transacted through a
central office.
The great outstanding good which
comes from the federal farm loan is
, that it will standardize methods and
principles affecting all other loans.
II brings the farmer and business man
TO a common understanding of what is
! right and many loan compaies are well
! coming the operation of the Federal
! Loan Act as a justification OF the
practices observed by them heretofore
|. With the farmer the condition of the
loan encourages thrift, works for pep
manency in ownership of farm lands
. and stimulates the association and
J grouping together of farmers into
strong financial units, these in turn
! establishing confidence and unity Of
J action among the farming class.
W. KJOSNESS.