Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1917-10-12
SPOKANE FARM LOAN BANK

Al
farmers who have borrowed money
through it more than $500 a day.
and as the loans which it is making
increase, as they are doing with re-
markable rapidly, this saving will
likewise increase.
The bank, the central offices of
which are at Spokane, Wash, has
placed in the hands of the farmers
of Idaho, Oregon, Washington and
Montana a little more than $3.50
900. This much money, il borrowed
from the usual sources at eight per
cent, which is the usual rate of in
terest, would cost the borrowers
about 100000 year in interest.
The farm loan bank lends it at five
per cent, which costs the farmers
only $172,500 interest. or saving
of $76,500 year, which is in ex-
cess of $500 day.
The bank has now appraised and
approved applications for loans in the
four states totaling more than Sill
100000. If this were borrowed by
the farmers at eight per cent it would
require $SS0,000 each year to pay
the interest. 1t will require $780,
600 at the five per cent rate charged
by the federal farm loan bank, and
will thereby result in a saving of
$350,000 a year to the farmers, or
nearly $1,000 day. The total appli-
cations for loans in the four states
have reached more than $4,000, 900,
and it is apparent that the bank will
approve actual loans on these appli-
cations of probably $20,000,0OO,
which would m can a saving in inter
est charges of 5000 900 year to the
borrowers.
The speed with which the bank is
getting its loaning business under
way in the Northwest in indicated
by the fact that it made actual loans
during the month of September of
approximately $1,O46,000.
This is the first month that a mil
lion dollars have been sent out to the
farmers, and it is expected by Off
Gals. that this sum will be increased
a little with each succeeding month
until winter makes it impossible for
the appraisers to pass judgment on
the lands in some parts of the North
west. How the bank Is gaining speed
Is indicated by tho fact that it took
the first four months of operation to
make loans of about $1,50O,00O, but
the fifth month saw more than
81 900, 900 loaned. This was due to
several considerations; not only was
it necessary for all the organization
work of the bank still to be done
when first located in the Northwest,
but the farmers themselves had to be
educated as to the proper way to
apply for loans and cooperate with
Now the bank is in excellent work
ing order and the borrowers are able
to place their applications in better
shape so as to prevent needless de-
lays.
Illustrating the point of the great
er activity of the banking machinery
and the farmers, President O'Shea of
the Northwest bank cites one in
stance in Montana where Is persons
had formed an association and APP
piled for loans. The banks apprais-
er was sent into that district, and
while there he received the applica-
tons of ~ persons desiring a secure
loans.
The farm loan bank is making
every effort to reach the people who
desire loans. and IL afforded the CO.
operation of the farmers. expects to
have a loan association in nearly
every community of the Northwest
by the end of the year" says Presi-
dent O'Shea.
Montana was the last of the four
states to appreciate the advantages
that would come to the farmers from
the operation of the land bank, but
it is now awakening to the situation,
and its applications for September
are greater than for the other three
states combined
OF the $23,117,64S applied for by
the farmers of the four states, Idaho
has asked $2.S99,278; Montana, $6,-
S04.591; Oregon. $5,475,625; and
Washington, $7.93S,154.
OF the loans approved, which total
$11, 072,395, Idaho has $1,590,615;
Montana. $2,961,550; Oregon, $2,-
$50, 1885, and Washington, $685.
365.