Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1919-02-12
FARMERS CAN BECOME OWNERS
Federal Land Bank Makes Long
Term Loans-L0w Interest.
(The State, Jan. 31.)


Farmers of the southeastern sec
ton Of the country are not showing
the same disposition to avail them
selves Of the benefits offered by the
Federal land bank as are the farmers
Of the West and Northwest said II.
H. Welch, registrar OF the Federal
Land Bank Of Columbia, yesterday.
I'VE have loaned out approximate
~ $9,000,000. Two and one-halr
million dollars have been loaned to
the farmers Of South Carolina; ST.
100000 in Georgia, $1,750.000 in
Florida, and about $3,5OO,OO0 in
North Carolina. Georgia, as COM
pared with North and South Caro-
lima, Is behind. feel sure that
many farmers do not understand the
purpose of the land bank; do not
realize that it's sole object is to
subserve the agricultural interests
Of the country. 1t is not organized
for profit.
THE Federal land bank makes
farming safe for the farmer. 1t will
not only enable the man on the farm
10 cease simply existing, but it will
help him to actually live; to live
wealth are entitled to live; to live
without being afraid Of tomorrow;
to live subservient to no man as his
debtor, and to live with such sur
roundings of modern comfort and
convenience as will tune the moral
forces Of his nature for right think
ing, right acting and right living.
How 1t Works.
The Federal land bank is confin-
ed in it's operations to loans upon
lands. Farmers can borrow to the
amount Of 80 per cent of the ap-
praised agricultural value Of the
farm. Farmers benefit in two ways
by borrowing from us. First, tho
loan runs for long time, and the
rate of interest charged is low. And
ne debt is paid by the amortization
plan. Now suppose | borrow 1000
from federal land bank and $1,000
from an old line mortgage company.
We will say that both loans bear
per cent interest and that the loans
t;ie to run SO years. | would pay
to the land bank the first year the
sum Of $60.44, OF which $lO.44
would be credited on the principal,
leaving new interest bearing prin-
cipal of $9S9.56, the remaining $50
which ] paid being credited as in
tnro2t - 'Ne same t'ma 7 Wu.fId
i pay $50 80 the mortgnHu company
I to no agcditrc az ,aLorastss|ouly
4 Each au" "oHjrE y"ar w0uld pay
the land r.nn f64.iI aud 20 the
'nortgagc company $50 until the
.st year when | would pay the land
ank $59.SS, Of which only $2S5
tould be credited as interest and the
'maining $57.03 would be credited
l the remaining principal. which it
ould exactly pay. At that time
ould pay to the mortgage company
80 ana still owe the full amount of
1000 which | originally borrowed
Aid to the land bank $lO.ll during
rach Of the first 80 years and $9.SS
IN the last year more than ! paid
nnually to the mortgage company.
% $375.2S, and yet a debt Of S 900
las been paid. This represents
>aving Of exactly $G24.72. How
as it done?
We'll, on the amortization plan
! would have paid to the land bank
4 interest and the sum Of 81, ,175.2S,
"hile to the mortgage company !
'ould have paid during the same
me $500. Here is a difference,
n my favor, between these two in
crest amounts, Of $624,72, which
when added to the 375.2S actually
paid on the principal, makes the
I'm OF 900, the exact amout of
~ loan. This is the result when the
interest rate is five per cent, and the
crm Sc years.
'But this illustration fails in
nat IL assumes that the mortgage
'ompany will loan at per cent.
'uppose the interest charged by the
mortgage company had been 8 in
ntead OF per cent Then I would
ave paid to the mortgage company
n interest $2,SS0 and to the land
.'ank $l,l75.2S, a difference in nv
avor of $l,705. This represents q