The Barre daily times. (Barre, Vt.) 1897-1959, 1920-01-21
CHELSEA
Statement BY Sec. M. c. Taft of Chel-
SEA National Farm Loan Association.

We are indebted to Mllward c. Taft,
one of our hustling young attorneys
who in the fall of 1918 accepted the po-
sition ms agent for the Federal Land
bank of Springfield, Mass. for Orange
and the northern half of Windsor coun-
ties, and who also was recently elected
secretary treasurer of the Chelsea Ma
tional Farm Loan association. for the
following data. which we think will be
of much valuable information and real
interest to the thinking" class Of
farmers who are readers of The Times;
During the two and one half years
of service, the Federal Land bank of
Springfield, Mass, which represents
district No. l and includes the states Of
Maine, Massachusetts, Vermont, New
Hampshire, Rhode Island, Connecticut
New York and New Jersey, has loaned
to the farmers in these states Sll ,549,-
CAS-, of which amount S5,s63,900. or over
one half of the sum total, was loaned IN
1919, and of this amount almost two
thirds of million dollars being loaned
in the month of December. During the
month of MAY, 1910, Sll ,342,S55 was
loaned to 1858 farmers of the United
States by the Federal Land banks, of
which there are IL throughout the
United States under the supervision OF
the federal farm loan bureau, which is
a bureau of the United States treasury.
Not only have the Federal Land
banks gained in.volume of business,
but they are fast approaching the pc
riod when earnings viii permit the pay.
ment of dividends on the stock sub
scribed by borrowers throughout the
various associations.
when the federal farm loan system
was. started the government loaned
each Federal bank S150.000 OF funds
as capital stock. with which to organize
and begin making loans.
AT first the cost and expense OF
making loans was high. but Jan. l.
1919, proved 20 be the turning point m
the history of these banks.
During every one of the u months
of 1919 the bank in this district earned
a profit. and this profit is steadily in
creasing owing to the immense volume
Of business transacted and the monthly
gain of revenue over expenses Is IN the
neiphborhood of $4,000 per month. and
the gross gam lof lHi' ucihe Nit~t ~
$50. 500. and the earnings are aecumu-
lating so rapidly that dividends VII be-
possible in 1921 SO each borrower viii
then be getting returns frcm his invest
ment of stock besides the advantages
of his loan and in this connection u
should be understood by investment 81
Stock IS meant fsr each Slo0 borr0ss ed,
the borrower j. issued a - certificate
of stock in the National Farm Loan
association. on which dividends viii
ultimately be declared. And. further,
that at such time a. the borrower
liauidates his indebtedness To the Fed
eral Land bank. the certificates Of stock
held bv him viii be taken up, and he
maid in cash the amount represented
hv aid certificates, or he may be per
mitted 10 continue to hold his rcrtiii-
Gates of stock il 50 voted by the asso- ,
citation.
In this district there are l3e sssoeia- f
I ;ons. N Of which are in Vermont, and
the records show that farmers are ap- 4
preciatine and taking advantage Of THE +
afforded them through the
medium Of the Federal Land hanks.
The money loaned By the banks Is
moi solely for the purpose Of r. iHg 81