Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-06-09
FEDERAL LAND BANK
BOON TO FARMERS
Saves Thousands of Dollars in In
tercst Annually; Patrons VIII
Always "Call Again"
FAILURE WAS PREDICTED
Business Increases by Leaps and
Bounds; Farmers Make Small
IN SeminnnuaI Payments.

WICHITA. Kan. June SIN re-
gard to the attitude OF the American
farmers toward the federal land
bank, Dan +. Callahan, president
OF the federal land bank at wichita,
was asked his opinion. Mr.. Gala
han Is enthused over the proposition
and had some mighty interesting
statistics TO present.
The proposition under. discussion
was OF the effect on the attitude or
the farmers OF the rumor that the
bank would not effect the rates Of
interest to any appreciable extent.
lie was also asked in regard to the
supposed rumors that this bank
would never loan any money.
Mr.. Callahan Immediately re-
piled: why you can not convince
the farmers that the land bank OF
wichita is not a successful instItu-
tion and that the federal farm loan
act is not the most beneficial farm
AIegislation this country has ever
passed" Mr.. Callahan continued;
N"The farmers know better, of course,
than any one else-t farm loans
now just little more than year
old and the farmer has not forgot
ten the high Interest rates, the
short'time mortgages, the ever re-
curing commissions and the almost
impossible conditions imposed by
the old system Of farm loans.
When the government undertook
in July, 1916, to change the system
of farm mortgages, so as to give the
farming industry the benefit Of the
lowest interest rates in the country.
and the convenience of long extend
ed self-paying mortgages, it was the
most natural thing in the world for
the great centers of farm mortgage
loans to rebel and begin cam
paign TO discredit the federal land
banks.
Started Right Off.
The farmers of the ninth district
as rule are intelligent and pro-
gressive men and when the hun
dreds of local agents going over the
district told them that"the goYera
. ment bank would never make a
>ioan, the farmers did not believe
them.
The federal land bank of Wichita,
since April /, 1917, a little more
than one year from the date of this
paper, has loaned the farmers of
the ninth district $ll,G47,00O. sub
divided as follows;
Kansas .........,... 10, 542, ,7OO
Oklahoma .....,.... 2,S69,bOO
Colorado ............ 1882, 900
New Mexico ........... l,342,SOO
This means an average of S32,7l6
loaned to the farmers every business
day since the bank opened and this
average continues day after day.
If one should figure the savings
% pt
the private loans, the results would
show up as follows:
The average rate of interest
charged by private companies in
Kansas, taking the whole state into
consideration, exclusive of commits
sions, Is 6.s per cent. The federal
hnd bank rate is 8 1-2 per cent. or
a saving of $14 per $1,000 annually.
MULTIPLYING this amount by $5,542,-
700, the amount loaned by the fed
eral land bank in Kansas, we have
saving Of s77597.S0 annually-an
Nmount increasing daily.
Savings Arc Great.
The average rates used in these
calculations are taken from depart
ment of agriculture bulletin 3S4,
published in 1916, since which time
the rate OF farm loan interest has
advanced in every section of the
country.
The average rate in Oklahoma Is
81 per cent, showing that the land
bank saves every Oklahoma farmer
$29 on every thousand dollars.
Multiplying this amount by $2,S69,-
500 the amount loaned by the land
bank in Oklahoma, we have $685.
2l5.50. BY the same process of fig
uring the land bank saves the Col
orado farmer sS4 per thousand; the
New Mexico farmer S55 per thou
sand. Using the totals loaned by
the land bank and retabulating the
Kansas loans, We have the following
table,
Amount Saved