Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1917-02-13

borrower win De r.erua95ed to pap ID
. tine wiiFpae am@t1rf. IL he &.ssSnes. %,
apg g&serasJ date, pr to make paraas.
payments IN s.9.d15lpp i9 the ses-uaa.
salsSallsapas5-
, The requirement. Of atstalameua pay.
sieaats @a the amortization plaza. n,
9agb5@ss9 above, will serve. Grsa. In
esatSpste habits gf tGp51t an the bog
a@msts and s@oasl9e to make possible
tsae placing of Gbe g9sas at a bower
rate gs 1sltesesse since the gradual
fa9eei&&a qf the ralaegpsal e,@ns9satlq
improves 1ae security for the unaaid
balance THE privilege of 0f1aotql
Dagmsa9ts after s5e first $ years Leaves
\ the bg,rVwes free to discharge sl1s gt~
&est@e3@ess aef0se the end of the Goan
p@n.o9- If be- finds ii convenient to
do ~.
4 The Federal land banks viii per
form three important sesp'9ees> Fis&t
] they N5iy convert the security which
farm mortgages afford fntO q ne20t5-
\ able form. known az faf1l-l0an bonds.
Fee0n9 they will furnish additional
security for The protection Of these
bonds, through their capital and SUP
Jis&, and Thus make the bonds more
attractive To investors, Third they
VII seil the land bank o0nds In the
open investment market. which, for
Obgj0Us reasons. the small farmer
could not reach 10 advantage,
The bpnAs are 10 De issued in de- 4
nominations ranging from 81 to 81
900. and 1T IL expected that the bonds
NJ small denomination will encour-
ape saving through their appeal 10
ind5gidB8ls who have not been in the
haDi, ~ making investments. The
bonds viii be- secured not only by
farm mortgages deposited in trust
with a government official 1.-THE regis
trar for the land-bank district but
als0. ~ indicated above, by the capi-
tai and surplus Of the II land banks
Both mortgages and bonds will be
exempt from all forms Of taxation,
Farmers who wish 10 obtain money
from the Federal land banks will or. I
iinariIy be obliged ~ form local loan :
and get their loans
through these organizations. The To- {
al loan associations will improve the
,redit Of their members and reduce ,
he cOst Df their loans through the (
performance Of certain definite SER |
ices. among which are the following: &
The committee called the "l0an com |
nittGc' Df the association will ap- [
,raise the property offered al secnr- i
ty aud approve all applications for d
DAns which are sent to the land bank. {
The seerctary-treasiircr Of the assO- @
intion will transmit the papers and 8
AIRY on all correspondence with the a
and bank relative to the loans. The
asociation viii guarantee the mort d
ages Of It's members, the liability Of r
NY individual member being limit Il
II, however, 10 an additional sum 4
qual to the amount Of his capital n
Iock, or approximately to ) per cent Il
I his own loan. p
One important function Of the new p
ystcm will be TO establish safe stand W
rds for the farm-mortgagc business
the United States; for it is not al
roposcd 10 extend any credit except o,
u the basis Of proper security. In T
ldition to the Endorsement of the To- 10
Il association, every loan must have te
Ic approval Of one of the salaIied p,
,prnisers appointed by the govern hi
cnt for the several land banks.
Further, not more than 10000 may
loaned 10 one borrower, nor more
an 80 per cent OF the value of the an
nd offered as security plus 20 per Sa
nj of the value Of the buildings and of
G money must be used for specified oil
oductivc purposes, such MS the pur- sp
ase of farm land, improvements. bo
uipmcnt, fertilizers, or live stock, on
for the payment of existing indebt- ga
ness. Til
The Federal Farm Loan Board of tif
: Treasury Department has gener- ere
charge of the system. The Depart KIN
Mt of Agriculture will cooperate ent
ii this board in supplying infor- get
tion and rendering assistance to an,
mers who desire to take advantage Mr.
the Federal farm loan act. espec- an,
y with reference to the organiza- c.
4 of local loan associations. Gu
------ Mr.
Va ro,o that Iec,,ros oro still be. Gee