The Hood River glacier. (Hood River, Or.) 1889-1933, 1918-02-07
UPPER VALLEY FARM
LOAN Is ORGANIZED

ne feueTdl LaHu BANK OF opO-
kane is now closing, through the To-
cal secretary-R. E. Scott-,the loans
of the upper valley members. II in
number, with $4,000 of loans.
Some criticism has been made as to
the slowness of the Land Bank in its
operations, but when it is understood
that they have in less than nine
months received applications for
over, S40,000,000 Of loans, the major
ity of this in the last five months,
and approved, over $15,000.000 and
closed over s7,000,Oe0, the magni-
tude of the task can better be under
stood.
The greatest delay in most cases
after loan has been approved COM
es In the neglect of the borrower to
closely follow instructions from the
bank as to this abstract and other
papers. In the case of the land I'M
der the East Fork irrigation dis
trict the borrower does not have to
furnish any evidence as to his water
rights, as the records in the sher-
IFS office furnish all that is needed.
Under the Mt Hood, Middle Fork
and Glacier bitches, the stock has to
ho apc;onad 70 the hanty mud eho,,ld
the land be sold. the stock sves
with the land.
Under the Farmers ditch the
same condition prevails. However,
no Association has been organized in
that district as yet, but papers are
fast getting in shape, it is under
stood.
Under the West Side bonded dis
trict a charter was refused for the
reason that the state law under
which they operate does not satisfy
the requirements of the Land Bank
ct present. Under this ditch the tax
es are collected by collector, which
leaves no public record of the mat
ter, so that taxes can be shown in
the abstracts as matter of record.
The Land Bank has said that it will
have irrigation experts in its en-
ploy in the spring, when an investi-
cation will be made particularly in
these cases and steps taken to pro.
vide loans in some way.
The original loans approved on
the East Side are all closed with the
exception of four, all of these being
delayed for various reasons, one be-
cause the borrower cannot yet pay
off the present mortgage, while in
two others releases have to come
from foreign country where the
holder of the present mortgage lives
at present, and fourth because the
title is not entirely cleared up.
Interest Is Increased.
The Land Banks have been com.
PEELED, on sccGunt of war conditions,
ID raise the interest rate to 8 3 in
stead Of the original S, it having
been found that it was necessary to
pay 5 per cent On the Land Ba;k
bonds. On account of this, the amor
tization payments have been reduced
in number to IS payments of 1872 so
and one of $3247, while under the
5 per cent rate there were II pay
ments of $50 each and one of s46.57,
The borrower is allowed to pay off
the entire amount or any multiple
Of $25 after s years. The limit Of
5 years is used so that the money
will not be asked for by spectators.
In case borrower sells his land,
his stock in the Land Bank goes with
the land. This stock earns divi-
dends which are distributed among
the members of the locals according
to their loans, each $100 of loan hav-
ing S. of stock in the Land Bank.
The dividends are the profit from
the $750,000 of Land Bank stock,
which is loaned at or 51a per cent
and the difference of 1-2 per cent
paid by the borrower over the inter,
est rate of, the bonds. The Spokane
Bank, for interest, at the end of two
years will have $2,OOO,O00 issued and
some $40,000,000 of loans in force.
This stock will produce an income
of 100000 and the IL per cent diff
ference on the bonds, total of
100000, out of which comes first
the expense of the Spokane Bank,
then the balance to the locals to be
distributed among members after
local expenses are paid. Should the
expense be 100000, there will be
100000 to be distributed among
members.
There are in the Spokane district
some 260 Associations chartered
now.
Saving Is Encouraged.
The Federal Farm Loan Law pro,
vides also stimulus for saving, as
the Land Banks will issue bonds
bearing per cent interest in de-
nominations as low as s25. These
bonds have the security of every
farm in the United States carrying a
Federal loan behind them, as we'll as
practically the United States Gov.
ernment, which controls the Land
Banks. Farm Loan Associations
may accept deposits for the pur-
chase Of such bonds. Farm Loan
bonds are exempt from all forms of
taxation.