Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1917-10-05
FARMERS TO MEET HERE.
Important Matters Concerning Farm
Loan Bank to Be Discussed in Brat
tleboro Next Wednesday Forenoon.

Windham county farmers who are in
terestcd in securing capital with which
to pay off Il mortgage or debt; to buy
u farm; to buy more land to purchase
equipment, fertilizers, or live stock; to
put up buildings or otherwise to de-
velop their property, will meet at the
Farm Bureau Office in the Brattleboro
town hall Wednesday, Oct. 10, at 10 a.
m, for the purpose of learning more
about the proposition and organizing n
locad association if possible A. w.
Sweeton, county agricultural agent, will
have charge of the meeting Mr.. Sweeton
has Just received statement from the
federal land bank of Springfield, show
ing that 81 associations have already
been chartered by the federal farm loan
board to receive applications for loans
| from the Springfield bank. Some 30
others have organized or are in process
of formation, but have not yet received
their charters. Vermont has four such
organizations and one chartered assoca-
ton.
National farm loan associations are
organized 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
30 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 Il farm
mortgage any sum ranging from 500 to
$4,000 may be admitted to membership.
Each borrower buys shares in the asso-
citation to the amount of five per cent
of his desired loan The money the
farmers pay their association for 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 association. They become investors
as well as borrowers. The government
has not only made the way easy, but it
helps the farmers to reap the profits de-
rived from their own efforts Of borrow
ing.
But more than this. BY becoming sub
scribers to the capital stock of the
federal 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 as
sociations ultimately will become the
owners of the land banks also, for the
government will 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 Civ
ing 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
each 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
.: mortgage may equal oneh half the APP
. praised value of the land and twenty
per cent of the value of the permanent
|. insured Improvements thereon. The pro-
ceeds of the loan may be used for the
extinguishment of pre- existing indebted
ness or for productive purposes, which
include the purchase of live stock, fer
, tilfArs;1 e4uipmertg and fiphoVtnelitsso