White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1917-03-16
Is Farm Loan
Queries=AnsWers

Among the many questions re-
ceived by the federal farm loar
board in regard to the operation Of
the new farm loan system few
occur most frequently. The secre
tary of the board haH selected fiji
teen of the questions asked often
est and is publishing them in a cir.
cular letter, with answers. Fol.
lowing are the questions and
answers:
/. What constitutes an "actual
farmer?"
An actual farmer is one who con-
ducts the farm and directs it's en-
tire operation, cultivating the same
with his own hands, or by means of
hired labor. An owner, to borrow
under the farm loan act, must be
responsible in every way, financially
and otherwise, for the cultivation
of his land.
2. What is the meaning of
"equipment?"
Equipment consists of the imple-
ments needed in the conduct of a
farm to facilitate in it's operation.
1t might consist of teams as we'll as
machinery, tools and like articles.
3. What is the meaning of Elm
provement?"
Anything in the form of benef-
cial structure, or any useful, per-
manent physical change tending to
increase productive value, such as
clearing, tilling, draining, fencing,
building, etc.
4. Has a farm loan association
the right to appoint an attorney to
draw up abstracts and pay him out
of it's official funds, or should the
members of the association club to-
gether as individuals and have this
done?
Each borrower is required to fur
nish his own abstract, and the ap-
plicant must stand the expense Of
preparing this abstract. An asso-
citation has no right to employ any
of its corporate funds to pay for
the preparation Of abstracts for it's
members. This must be an indi-
vidual charge, and if members of
an association club together to have
this work jointly done they must
do it as individuals and not as an
association. Each borrower is free
to make his own choice in the Sc
lection of an attorney or abstractor.
5. What will be the rate of in
terest?
Not exceeding 6 per, cent. The
exact rate cannot yet be told; per
cent more than the interest rate
farm loan bonds will bear.
+. May members of a partner
ship borrow?
Yes, if one or both are farmers
and engaged in the cultivation of
the land mortgaged. Partners must
join severally in executing the mort
gage and one should give the other
authority to represent him in the
farm loan association, as only one
can have membership.
7. Will the federal land banks
make any charge for examination
of title?
The examination of abstracts,
when furnished, will be made by
the banks general attorney at it's
office, and for this examination no
charge will be made. In districts
where abstracts are not obtainable
except by examination of the rec
ords, the borrower will have to
bear the cost of such examinations.
8. When a husband and wife
execute a joint mortgage should
one give the other power Of attor-
ney to be representative in the
farm loan association?
Both husband and wife should
sign the mortgage, but the one in
whose name the title stands should
be the member of the association.
9. What is the basis of apprais.
ing lands?
The appraisement of farm
should represent the best judg-
ment of the members of the loan
committee as to the value of the
land in question, the principal fac
tor being the productivity of the
land when used for agricultural
purposes, but taking also into con-
Continued on naoe az