The Barre daily times. (Barre, Vt.) 1897-1959, 1917-10-04
Will Organize National Farm Loan
Association.

Washington county farmers who ar,
interested in securing capital with whicl
to pay off an old mortgage, or debtsj t
buy a farm; to buy more land; to pur
chase equipment, fertilizers, or live stock
to put up buildings or otherwise to de
velop their property, will meet at The
office of the county agent, No. o Langdor
block, Montpelier, on Monday, Oct. 8, al
] o'clock p. m. for the purpose of organ
izing one or more national farm loan as
sociations. Il. II. Abbott, county agri.
cultural agent, will have charge of the
meeting. Mr.. Abbott has just received
a statement from the Federal Land bank
of Springfield, showing that 81 associa,
tons have already been chartered by the
federal farm loan board TO receive appli.
cations for loans from the Springfield
bank, Some 80 others have organized
or are in process of formation, but have
not yet received their charters. Vermont
has four such associations and one char
! tered association.
| National farm loan associations are or
ganized and run by and for farmers.
Others cannot legally be admitted to
membership. There is no limit to mem
bership. Some already have more than
80 members, and the strongest associa-
tions promise to have several hundred
by the time they are a year old. Any
farmer, who wants to borrow on farm
mortgage, any sum ranging from 500
to $4,000, may be admitted to member
ship. Each borrower buys shares in the
association to the amount of five per
cent. of his desired loan. The money the
farmers pay their association tor stock
is turned over to the Federal Land bank
TO buy stock for the association. In this
way the farmers themselves become the
owners and directors of the National
Farm Loan associations. They become
investors as well as borrowers. The gov
eminent has not only made the way
easy, but it helps the farmers to reap
the benefits of the profits derived from
their own efforts of borrowing.
But more than this. By becoming sub
eral Land bank of their district, which
the associations have to do when appli-
cations for loans are made, the farmer
members of the national farm loan asso-
cations ultimately will become the own
ers of the land banks also, for the gov
eminent win gradually withdraw its
stock holdings from the federal land
banks and leave their ownership with all
their profits entirely in the hands Of the
farmers themselves.
National farm loan associations are
organized for the primary purpose OF
giving to each borrower the benefit of the
combined credit of all their members, to-
the extent of the capital contributed and
the liability they each incur, and hence
the association is required to endorse
every loan made TO members. No loan
can be made except upon the security of
first mortgages. The amount OF the
may equal one half the APP
praised value of the land and 20 per cent.
of the permanent insured improvements
thereon The proceeds of the loan may
be used for the extinguishment OF pre-
existing indebtedness, or for productive
which include the purchase of
live stock, fertilizers, equipment, and
Here, then, is a great opportunity. |
open TO all farm owners in Washington
county," said Mr.. Abbott. "The govern |
ment has placed its money and its moral
support at the command of our farmers,
but they must get behind this system
md take advantage Of it, if they would
-eap all its benefits. l hope our farmers
will attend the meeting Monday for the
purpose of becoming conyersant with the
federal farm loan system, for this sys
EN- is field of unlimited promise for
he agriculture of Washington county"