Carthage courier. (Carthage, Tenn.) 1913-current, 1920-01-29
FEDERAL FARM LOAN

The Federal Farm Loan Act is one
Of the most beneficial laws to the far
! n1ert ever, passed by the Congress- of
the United. States. And the farmers
of the United States owe debt of
everlasting gratitude to w. G. McAdoo
for originating this law.
In writing a brief explanation of
this law, it is not the purpose of this
scribe to invade the realms of the law
yer, not even to enter into TECHNICAL
ties. The unselfishness of this law is
seen in the fact that, while the Treas
urer of the United States is D mem
Der of the Federal Farm Loan Board
at Washington, D. c., and chairman
eX officio, the other four members
of the Beard being appointed by the
President Of THE United States and
confirmed by the Senate. ''Not more
than two shall be appointed from one
political party" And further, mo
member Of the Federal Farm Loan
Board shall, during his continuance in
office, be an officer or director Of any
other institution, association or part
newhip engaged in banking, or in the
business of making land mortgage
loans, or selling land mortgages"
Before entering upon his office and
duties as a member of the Loan Board
each member shall certify under cath
to the President that he is eligible
under this section Of the law.
To be brief the Federal Farm Loan
Board has the oversight and super
vision Of carrying ont the execution
and application of the law.
The law provides for the organise
ton of twelve Federal Land Banks,
operating in the United States, divided
into twelve Federal Land Bank dis
tricts. These banks are to operate
under the Bank System, based upon
mortgages on farm lands.
But the practical thing the farmer
wants who needs help is how can he
avail himself Of the benefits of this
great institution.
nge fod wodfarof rawodf rowaorf fof
National Farm Loan associations
The law provides for the organiza-
ton of National Farm Lpan Associa-
tions to work with the Federal Land
Bank in obtaining loans. Having the
Federal Land Bank and the National
YARN Loan Association organized, the
: process of obtaining a loan then be-
comes very simple.
| The banks make loans at the rate
, of 1-2 per cent interest, payable
semi-annually or annually or what is
: called the Amortization" plan. That
is, at the rate of sos on the 500 an
nual installments. This sos lis really
y 1-2 per cent interest and Il per cent
to iquidate or reduce the principal
: which is $55 interest and $40 pay.
4 ment on the principal. This install
!. ment or amortization" payment is Sc
+ calculated as to wipe out the debt il
"a years. Every applicant for a loaI
must furnish an abstract" prepared
I by a9lawyer approved" by the Fed
d eral Land Bank at his own expense
!. The Chestnut Mound National Earn
d Loan Association is Chartered in
stitution," Charter No. 787. This AS
sociation charges applicants for LOAF
theIvery moderate sum of 1-2 of l pc
cent on the loan granted by the BAN
is as an expense fee. This is very mod
crate fee indeed, and would not NEE
Ie expenses on a small loan. The Asso
w citation has to send an "appraising
ID committee to value your farm. TIL
Association also has furnish cor
re veyance for the Bank appraiser
3 from the railroad to see your farr
and back to the railroad.
I'd To illustrate, say man has farl
tn worth $4,000 and he wants a loa
of $4,000. He can get that without an
,g trouble.
STEPS TO BE TAKEN
Sc Make application to the Sec.-7'rea
of Chestnut Mound National FAR
hit Loan Association. Have your far
|. surveyed and an abstract" made I
nd your title. Your "abstractor" will ma
Iyour abstract" to the Federal Lar
IS Bank of Louisville, Kentucky. tt
!. Association will send the appraisin
ed committee to value your farm. tt
IT. appraising committee makes their n
port to the Association Board of D
ad rectors for approval. The report
nv incorporated in your application b