The Morgan City daily review. (Morgan City, La.) 1916-1920, 1917-03-30
FEDERAL LOAN BANK CONFER.
ENcE

New Orleans, La. March 29.-T.
F. Davis, President Of the New Or
leans Federal Land Bank, has re-
turned from Washington where he
attended . conference Of the Presi-
dents Of the twelve Federal. land
banks with Secretary Of the Treas
ury McAdoo, and the members Of
the Federal Farm Loan Board.
He expressed qualification over
the fact that this conference had
fixed flat rate Of per cent, ap-
plying to all parts Of the United
States. He declared that this inter-
est rate would prove great boon
to the farmers Of the southern
states and predicted that within
year the New Orleans Federal land
bank viii have made loans aggre-
eating 100000.
Mr.. Davis also announced that
the conference Of bank Presidents
passed q resolution requesting Con-
eress to increase the limit Of the
loans permitted to m individual
borrower from 10000 to $4,000.
cial session Of Congress, son to con-
vene, would xGase his change for
the large borrowsss-sf the New Or
leans Bank district. /
In order hat more funds may be
available for investments in farm
loan bonds, and in turn make avail
able to lend to farmers Of this dis
tricit, Mr.. Davis urged that the Leg
islatures Of Louisiana, Mississippi,
and Alabama Immediately pass laws
making farm loan bonds approved
for trust funds, insur.
ance eompanieas and savings banks.
Mr.. Davis announced thst the |
bonds issued by. the twelve Federal
land banks would be placed on the
market It I and one half per cent, |
but wssll rrstably be sold at . pre-
mium. HI exIEsssed Qualification
over the fact tint the Federal Farm
Loan Board has anticipated that At
least 100000, 900 Of these bonds
will be issued during the coming
year and is making arrangements
which win assure = ready market !
fer aeaL An Of this money win be
S--Sl~Af~ - <h~ &~-n~. nf}
the United Stn1nasse s Per cent.
To borrow hu9 tue Federal
land banks, farmers are required to
organize themselves into groups |
containing at least ten farmer-bor-
rowers and each group asking for at |
least $4,000 Of loans. The New Or
leans Federal Land Bank il now
to furnish 4 blank form Of
Of association to make the
Of these groups simple
and easy. Other necessary blanks
will also be furnished on aptlica-
ton.
Farmres are permitted to borrow
up 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 1t 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
nun from s to40 years 1t the option
II the borrower. The object Of these
ong time loans is to enable the
farmer to meet these small annual
,ayments out Of the increased earn
ngs Of the land, made possible by
he investment Of the borrowed
money.
This new banking system il. pure
, cooperative. 1t il for the sole use
4 the farmers and prospective
armers. Farmers win eventually
wn al Of the stock Of the Federal
md bank and they win eject the
Ulcers Of these banks. There IL mo-
pportunity for individual profit IN
be entire system. u
The preliminary organisation Of
IRtional farm loan association has
cogressed to . degree far beyond .
e expectations Of the, Federal :
.fn Loan Board 1t Washington
nd everything points to the .uns
uslified success Of this new enter
rise.a
Annie = nnS&n~ .l~Al -