The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-03-19
NEED FOR
LOANS IN
THE EAST
Greater Than in the West,
Says Springfield Federal
Land Bank President.

The need for rural credits in the dis
trict composed Of the New England
states, New York and New Jersey is
greater than Is popularity supposed,
though perhaps not so urgent as in the
south and west, said Leonard q. Rob-
inson, who has been appointed presi-
dent and director Of the Federal Land
bank of Springfield, Mass, in an inter-
view. At present Mr.. Robinson Is gen.
eral manager Of the Jewish Agricultural
and Industrial Aid society.
The interest rate on farm mortgages
In Maine. New York and New Jersey
ranges from to s per cent, exclusive
Of commissions, said Mr.. Robinson, who
stated that if commissions are included
no accurate estimate can be made or
the rate which the farmers are COM
PEELED to pay. It is practically certain
that under the new rural credits sys-
tenn farm loan bonds can be sold on a
Az per cent basis, and that the charge
to the farmer will not be more than
6h per cent, as the law specifies, that
not more than / per cent may be used
for various expenses incident to opera
ton Of the plan and the disposal Of the
bonds, he stated further.
"As the farm mortgages become
standardized and the investing pubic
becomes more familiar with them, it is
probable that the interest charge to the
farmer may go below 5h per cent" Mr..
Robinson said. THE bonds will be in
vestments Of the soundest possible ma.
ture. the repeated examinations will en-
from federal. state or municipal taxa
ton and they will constitute first class
collateral for banks and other similar
institutions.
'Tt is to be expected also that the life
insurance companies will invest to
large extent in land bonds. They have
done so in the past, but in some in
stances their experience has been un-
satisfactory from causes which the new
system eliminates. They have invested
large sums of money in certain locali-
ties to the exclusion of others. AS an
instance. the investments OF life insur-
ance companies in farm mortgages in
Iowa in 1914 amounted to $139, 900, 0009
In the same year investments in Con-
necticut reached only $4,000, while in
Massachusetts, and New York there was
an aggregate Of $10. 900 each, IN Manner
$500, and none in New Hampshire and
Rhode Island" - a
In the view Of Mr.. Robinson, the farm
loan plan will equalize the credits in all
parts Of the country. He pointed out
that in some localities 1t Is compare
lively easy to borrow on farm mort
cages, but that In others the funds are
entirely absorbed In local improve
ments, buildings. road construction and
other activities.
COMMENTING upon the conditions pre-
vailing in this district, Mr.. Robinson
said that the eight states have total
population of 18.203,0 900. Of whom 81
655, 900 live in rural communities, in
GLIDING the Inhabitants of towns Of less
than 5000. The proportion Of those
living in rural localities in this district
is about one to five. as compared with
one to two III the remainder Of the
There are $4,000 farms in the dis
trict comprising 100000 acres. The
average farm is about 100 acres. The
Der centage Of land in farms il ~ per
cent in New England. ~ per cent in
New York and So per cent in New
Jersey.
The valuation of farm property ana
lands in this district Is $2,573.000, 900.
The valuation in the entire United
sta;es is $4,000. 100000. Accordingly
the proportion Of this Eection is ap-
proximately Ter cent. The value of
the lands alone is estimated at $1,214,-
oeG 900.
Mr.. Robinson said that the actual
lending of money to farmers will be-
gin as soon as the organization of the
land bank system can be completed.
Farm loan associations are now being
formed in a number OF localities in the
east, he stated, and in the west and
south the applications for farm loans
already aggregate many millions Of dol
lars.
Besides President Robinson. who will
resign his present work to devote his
entire time to the federal land bank,
other officers are B. G.. Mcintyre, East
Waterford, Me- vice president and di-
rector; Edward III. Wilkins, Middle
town, Conn, treasurer and director;
Edwin H. Forristall, Cortland, N. Y,
secretary and director; Herbert My
rick, Springfield, Mass, director, and
Kingman Brewster, Springfield, Mass,
registrar and director.