Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1917-03-13
FEDERAL LOAN law
UNDER ANALYSIS
Editor of the Marion, Kansas, Re.
cord, Gives his Views in Re.
gard to 1t.

And you say you would like to gel
a loan, under this new Farm Loar
Law? And that you are in some.
thing of a hurry for the money!
Well, just be patient for there are
some little details to be attended to-
lviz, namely, and to-wit:
/. Go out and see your neighbor
and find nine other farmers who also
want to borrow money and are ready
to say just how much they need and
what they want the money for.
These nine neighbors and your
self must agree to borrow total OF
|$2O, 900. Remember that unless it is
that much money none of you can
borrow cent.
8. Call a meeting of these ten
farmers who need money, organize
yourselves into National Farm
Loan Association" and elect officers.
4. You then appoint committee
|of three to appraise the ten farms.
5. The committee reports it's ap-
|praisement, and the various blanks
are filled in and sent in to the Farm
Loan Bank.
6. Remember that if your farm
is appraised at $4,000 you can bor-
row $4,000, and if the improvements
ARE worth $1,50O. you can only bor-
row 5000 additional.
Z. No, this appraisement doesn't
settle it, In due course of time a
Federal Appraiser will come out to
make second appraisement.
s. Perhaps, after driving around
and viewing the ten farms, this fed
eral Appraiser finds that one of the
farms was appraised too high.
g., That being the case, under
the law, the Committee must meet
again and make new appraisement,
bringing the amount down to the
limit set by the Federal Appraiser
10. Perhaps just at this time one
of the ten men dies. This is hard
luck all around. For nine men can
not form one Of these Associations,
and so you must go and find another
man who wants to get loan, and
the whole process must be repeated.
IL. But wait minute. The Fed
eral Land Bank sent word that their
Attorney finds defect in the title to
Bill Jones' land. The title must be
corrected through the Court, or else
you must find another man to take
Bill Jones place. For you cannot get
your loan unless all ten of the titles
are perfect.
IL. But be patient. In few
more weeks the matter is straighten-
ed out and your loan of $4,000 on
your $4,000 farm, and your loan of
$4OO 'on your $4,000 improvements
this is the limit you can get-are
approved. You are to get loan Of
$s,40O.
13. But you understand you
don't get the $3,400 in cash. You
are required to subscribe S per cent
of it for stock in the Farm bank. So
you only get in cash $3,230.
IA. You understand, that this
$17O in stock in the Bank may or
may not draw interest-that all de-
pends on whether the stock earns
anything.
10, You also understand, that
this $17O in stock has double
liability" just like other bank stock
If your neighbors fail you may not
only have to lose the $17O, but may
have to dig up $17O more. But
cheer up, the probability is that
it won't happen.
16. AS to the rate of interest,
there is nothing in the law to guar
antee that it is to be below 8 per
cent.
II. You must pay off the loan in
regular installments, and cannot
make any payments before five
years.
is. And you say you want the
loan in order to buy feed for your
stock? Well, there is nothing do
ing. The money cannot be used for
that purpose, no matter how good
the security you may offer may be.