The courier-index. (Marianna, Ark.) 1917-current, 1918-07-05
FILES REPORT ON
FARM LOAN WORK
w. S. MITCHELL, TREASURER ST.
LOUIS DISTRICT BANK, AO-
DRESSES INTERESTING LETTER
TO LOAN ASSOCIATIONS.

To the Secretary-Treasurer. the Off
GERS and Members OF the National
Farm Loan Association, Addressed:
! Gentlemen:
AS one Of the 284 chartered nation
al farm loan association in the sixth
land bank district during the first
year of its active operation-for our
first loan was closed on July 2. 1917
Il feel that you are interested in the
progress of your land bank, beyond
the point of the loans that your
association has so far received.
summary of the first years act
this land bank has closed loans in
! the total OF s6,894 $4,000. Itemized by
states the number and amounts are
as follows:
Illinois SO charters. 572 members,
loans s1,539,355.
! Missouri, charters 1O1, members
1,242. loans s2,S34,690.
Arkansas, charters 120, members
1929, loans $2.520,395.
4 1t should be borne in mind that
the greatest delay that farmers have
| In arranging to get loans from the
federal land bank is in that period
in which they are organizing a
| National Farm Loan Association, up
/, to the point of approval of loans and
the issuance of their charter.
This being true, it follows that
once chapter is received the men,
/ bers of that association owe it to
themselves and to the farmers of
their territory to see that the assO-
citation remains an active agency OF
the land bank to serve the farmers of
their territory.
! The purpose of the farm loan act
is to encourage agricultural develop
ment, and, as the land banks cannot
lend except to members of National
Farm Loan Associations, agricultural
! development can really only be en-
couraged when the farm loan asso-
! Citations are operated on a basis that
serves the farmers of their territory;
! the loan committee. the president,
| the vice president. and the board of
directors may all be excellent men,
| but. unless the detail work is attend
ed to by the secretary-treasurer in
organizing the loans. closing the loans
and in continuing to look after pay
nents. etc, that association is not
serving the farmers of its territory
as it should.
In their last analysis the Federal
/ Land Banks are merely clearing
houses for farm land credit through
which the approved loans OF farmers
are converted into the highest-priced
non-taxable bonds on the market to-
dav and these bonds are sold to in
vestors for cash which is the money
we lend. aside from the capital OF
the bank.
It is worth while to note that over
$50 900, 900 of these per cent Fed
eral Farm Loan Bonds were placed
at 1O1 through bond houses In thirty
days for advance funds for the land
bank now availablei for loans to
farmers, and that these bonds are
now quoted in New York at 102 IL,
which means that they only net the
investor. when bought at this rate.
less than a 4 i-2 per cent bond.
bought at par. for the callable period
AS a parting word, put your asso-
citation on a business basis and serve
the farmers within the limits of your
association; for your association
is to the farmers of your territory
exactly what your local bank is TO
the business men OF your town: and
unless your doors are open and
ready for business all the time. your
association is hardly fulfilling its
duty in these times.
Ia leaving the bank | wish to ex-
press my thanks to the members OF
your association for the promptness
with which they have met all busi-
ness requirements, and | am enabled
To say this in letter addressed TO
all associations because every mem
her OF every association Identified
with this land bank has seemed OF
special interest in the credit OF the
land bank. TO the extent of being uni
formiy prompt in all matters; for
up to and including June 1st report
this land bank has had no delin
quents to report to the Farm Loan
Board in Washington. think this
Is a record to be proud OF | kno"
that am proud to have been an
officer in the institution that has
made that record
Very respectfully.
W., 9 NxTTCHEIJ Treasurer