The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1917-01-04

Before any farmer can borrow, al
least 10 must organize a national
farm loan association to borrow a
minimum of $4,000. The maxi
mum loan to one farmer will be
$4,000 and and the minimum 800
Loans will be made on first mort
cages to the amount of SO per cent
of the land value plus 20 per cent OF
the value of permanent insured i'm.
provements. Each association will
have a farm loan committee to pass
on all loans.
There will be no cost for the ex.
animation of titles, although the Dor.
rover will pay for his abstract OF
title. The association can employ 9
man to do this for all of them
Loans will run to 40 years at the
option of the borrower and he can
pay out any time after five years
The amortization plan will be used
whereby the borrower pays off his in
terest and portion of his prin-
cipal annually in such a way that
both will be fully paid up when the
loan natures.
Determine Interest by Bonds.
The interest rate will be determin-
ed by the rate the bonds of the farm
loan bank pay, the former always be-
ing at least l per cent higher than
the bond rate. For instance, if the
bonds can be sold at per cent, the
interest rate charged borrowers will
be per cent.
In an emergency, which is regarded
as remote possibility, the farmer
who borrows will be held liable for
an extra per cent stock assessment,
making this total liability 10 per
cent of his loan. A farmer is given
a vote for every IS of stock he holds,
but none will be allowed more than
20 votes.
The secretary-treasurer of the as
sociation will collect the payments
from the members. This association
will pay his salary. The associa-
ion has two sources of revenue, di-
idsnds on the stock its members hold |
n the farm loan bank, and it may |
collect one-eighth of per cent from |
he interest payments on the unpaid |
balances of its members loans in an
icipation of dividends.
Old States Need No Loans.
Spokane bankers called attention
0 some unusual circumstances sur
ounding the selection of the cities
or the federal farm loan bank. St.
louis has a federal farm bank and
lso secures federal farm loan bank.
t is the only city so honored.
The great agricultural states Iowa,
Wisconsin, Indiana, Michigan, Illi-
lois and Ohio, do not get a farm
can bank. This is believed to be
Iue to the fact that they are older
tates and do not need the aid OF the
ank as the newer districts do.
On the edges Of crescent, the !,
oints on which rest on Springfield.
lass, and st. Paul, Mimi, are locat-
d 10 of the new farm loan banks
tiles. Spokane and Berkeley are
y themselves in the northwest and
outhwest respectively. On the up
er edge of the crescent referred to
re Springfield, Louisville, St. Louis,
nd St. Paul. On the lower edge
re Omaha, Wichita, Houston, New
'rleans, Columbia, S. C. and Balti-
lore.
Asked For Wyoming.
Spokane originally asked that
Wyoming be included in it's terri
Dry, although the inclusion of that
tate was declared to be satisfactorily
Though not essential. Wyoming
as been attached to the Omaha dis
'ict The farm loan committee of |:
ne Spokane Chamber of Commerce,
hich conducted the winning fight
,r Spokane, included N. W. Dur
am, chairman; c. B. Kegley, E. E.
aville, Conner Malott and r. Insin-
er.
Spokane bankers welcome the news
the selection of Spokane, although
le farm loan bank comes in direct
with the trust companies
nd the mortgage companies. Ma
onal banks are not effected, as they
0 not loan on farm property.