The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1918-11-15
PROSPEROUS FARMERS
is SOLE PURPOSE OF
FEDERAL LAND BANK

| Inc feueTal Lana BANK, WIN ltS
exclusive farm loan service, is the
national governments recognition of
the farming industry as the basis of
the nations enduring prosperity, its
leadership of the worlds progress.
1t is the institution through which
the government extends its power
fully helpful hand to the farmer by
lending him money at the lowest in
| terest rate, on mortgage that vir-
tually never reaches the foreclosure
stage, and places in the hands Of the
borrowing farmer, as rapidly as it
can be done, ownership of the bank.
The borrowing farmer, who also
becomes a stakeholder, is the only in
terest in the bank who profits from
its operations on an interest basis,
the management and all employees be.
ing on reasonable salary.
Contrary to report stealthily
spread by selfish interests, there is
no signing of each others notes by
groups of farmers obtaining loans
from the Federal Land Bank. Each
borrower signs his own note, as he
always has done, and secures the note
by giving first mortgage on land
and 20 per cent of the insurable i'm
provements. Farm loan associations
of farmers, through which loans are
effected, actively participate in ap-
praisal of the lands and otherwise
share in supervision of the loans, thus
giving double security.
An addition of l per cent to the
regular annual interest payment will
wipe out the loan in "a 1-2 years. 1t
may also be paid off in whole or in
part on any interest date after five
years.
Federal Land Banks charge no
bonus or commission for loans.
Contradicting another rumor circu-
lated by selfish interests, Federal
Land Banks close loans within three
to five days after receipt of abstract
of title to land in proper form.
Wherever delay occurs it is due
wholly to failure of the borrowing
interests to have their papers in
proper shape. In this, as in all other
respects, the Land Bank is conducted
on business principle generally rec
ognized. There is no "red tape" of
the useless type.
Herein are found the main features
of the Federal Land Bank system,
carefully employed after Congress
sional inquiry, from the established
system in Europe, where farm ten
ancy in some countries has within
forty years been reduced from S5 to
. Is per cent. Its sole purpose is to
extend national cooperation to the
farmers of the United States.
, Aims and Purposes Officially Defined
In a series of four articles, OF
which this is the first, the benefits of
the bank to the farmer, with main
, details of its operation, will be set
forth. These articles are the result of
E close inquiry into the aims, purposes
,, and achievements of the institution
much of the information being given
in the form of official utterance. The
same official sources will cheerfully
respond to inquiries for further in.
formation in the most detailed form.
f There are few farmers in the
: United States who are so well fixed
, that they could find no benefit il
: judicious use of the Federal Lane
s Bank resources" is tho deliberate
= judgment of Herman W. Danforth
r president of the bank at st, Louis
G which serves the district composed Of
| Arkansas, Illinois and Missouri
even the best farms can be made
$ more productive through intensive
f and diversified cultivation, coupled
: with conservation of the soil, and the
e use of modern methods and improve.
v ments. This requires capital, and the
n Federal Land Bank has millions Of
t dollars to loan the farmers for agri
cultural development"
0 an creating the Federal Lane
o Bank the government had no desire
|, or purpose to add a penny to it!
e revenues, except as it might and will
i come through greater prosperity anc
4 independence of the farmers as the
foundation of all national wealth,
= Mr.. Danforth continued.
i Loans to Farmers Only
n Borrowers from the Federal Lane
g Bank are limited to those who owl
v land or propose to do so with the
3 money gotten from it. The govern
d ment, through the Farm Loan Board
n looks after the raising of money fol
/. loans through sales of bonds baset
r upon first mortgages on land. These
: bond sales have the advantage of ;
d worldwide market, so that the in
{ terest rate is the lowest to be had
v Expense of conducting the bank i!
4 the only charge against the loan;
: made by it, and as this is kept at {
$ low level even a part of the low in
: terest charge is certain to go back tC
i the borrowers as dividends on theil
f stock. In instances where the banks
:. stock Of $750,000 was not subscribed
= by farm loan associations, composed OF
, farmers, or other individuals, within
: thirty days, it was taken by the gov.
a eminent. But the stock thus held by
i the government has no share in the
\ distribution Of surplus earnings, Of
: dividends. and whatever stock may be
+ held by it or by others than farmers
: who are borrowers, is gradually paid
| eff and retired, so that eventual own
ership and control of the bank will be
a by the farmers who have taken ad-
vantage of it to meet their financial
7 needs. When loan has been paid the
stock natures and the owner of it gets