The Snyder signal. (Snyder, Tex.) 1887-????, 1918-10-11
URGES MODIFICATION
OF HOMESTEAD LAW
Judge s. A. Lindsay Explains How
Amortization Plan Kills of
Debt.

Ing the proposed amendment to the
Constitution permitting the mort
gaging Of homesteads and dealing In
a special manner with the amortiEa-
ton plan Of payment, Judge s. A.
Lindsay, treasurer OF the Federal
Land Bank OF Houston, today said;
"The farm loan act has given to
this country a perfectly safe, effec-
tive and workable long-term rural
credit system, by means Of which az
rieulture may now obtain the cheap
est money to be had by any industry
and that upon terms and conditions
which practically remove all danger
OF the borrower burdening himself
with debt beyond his ability to pay
and which safeguards him against
losing the security mortgaged.
These provisions OF the farm
loan act are germano to the quos-
tion OF the proposed amendment to
our State Constitution as regards the
homestead law. The only change In
/ the Constitution sought is such an
amendment as will enable the Texas
farmers. who won not more than 200
acres OF land, to avail themselves
OF this or other sources Of credit on
offer equally safe terms.
LET us examine and consider
these terms and conditions, The
farm loan act, as well as the pro-
posed amendment to the Constitu'
ton, stipulates that all loans made
Hereunder shall provide for repay
ment upon the amortization plan;
that is. that the payments must be
made in equal semi-annual install
ments sufficient to discharge both
the interest, which is not to exceed
per cent per annum, and the prin-
cipal. within the period OF the loan
This provision Of the act seems
not to have received consideration
OF the general public. The reduction
Of the rate OF interest on farm mort
gage loans. the per cent, together
with the easy means OF obtaining
loans upon farm land security seems
to have satisfied the public and PEG
pie have not looked for discovered
nor considered the provision OF the
farm loan act above mentioned
which ] regard OF even greater eco
monte value than the reduction Of
the rate OF interest
ITO 'amortlRe' a DEBT Is TO Kill
extlnguish' destroy H. one can not
make an amortization note Wiihou'
at tho same time and by the same
act executing the sure ana certalh
death warrant OF the dept rms IL ne
cause with the hrst payment smali
savings account Is startedwhich gain
ers volume from each interest pay
ment until the debt is entirely wiped
out within the period OF the contract
Plan Is Explained
How repayment OF a debt upon
the amortization plan operates may
be illustrated by the actual WORKING
Of the plan now In operation IN the
Federal Land Bank OF Houston Lei
us take the case OF farmer VINO DOR
rows $1,000. lie pays S6o year OF
6h per cent, In semi-annual pay
ments OF s32,5O until the loan Is DIS
charged. This, Of course is 6Is per
cent on the sum borrowed, We com
monty say he Is paying o V per cent
interest and ] per cent on the prlh-
clpal His first payment IL applied as
follows; Twenty seven dollars ana
fifty cents on the principal and 20
on the interest The next payment Is
figured at 6ls per cent on 1870 ana
would be applied as follows Twenty
seven dollars and forty cents on the
interest and $50 on theprlnclpaI
Interest on the next payment would