The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1921-03-03
THE FARM LOAN BANK

The tAttN1 LNJAN bhNh
The Farm Loan Bank act has been
upheld by the Supreme Court of the
United States.
The farmers can now obtain loans
at reasonable rate and tide them
over the hard times in this country.
Possibly the people of Dillon coun-
ty do not understand the great ad-
vantage of the Federal Land Bank.
Just as it started to do business in
Dillon county, and after loaning
about seventy-five thousand dollars
in Dillon county two years ago, it
was stopped dong business by an ac-
tion being brought attacking the con-
stitutionality of the act creating the
Farm Loan Bank, and The Federal
Loan Bank of Columbia, S. G. and all
over the United States had to stop
business until this case was deter
mined. The United States Supreme
Court has upheld the act and held it
valid and there is nothing now to
prevent the Federal Land Bank from
operating and ie is likely that they
will be in position to make new loans
within thirty or sixty days.
Now, the farmers have never real
L.
Bank very well because since it be-
gan operating most of the farmers
al this country were in good shape
and did not. have to get loans. In
this crisis however, whenever every
thing needs money, the Federal Land
Bank is certainly a blessing.
The main feature of same are as
follows:
Of Fnr
a local Federal Land Bank Organi-
cation and apply for loans to the
Central Bank at Columbia, 5. G.
The loans as made two years ago
gave to the farmer the cheapest rate
of interest that they have ever been
abl to scure. He was allowed TO keep
the loan for thifty-siX years, if he so
desired, and pay five and one-half
per cent interest on the loan annual
ly. After the fifth year however he
can pay the loan up entirely and set
tie it. AS long as he keeps the loan
he pays one per cent each year on the
principal. For an illustration:
If man borrows one thousand
daollars through the Federal Land
Bank, he can pay each year sixty-fVe
dollars interest on the one thousand
dollars. Fifty-five dollars of this be-
ing interest and ten dollars bing pay
nent each year on the principal.
At this rate if farmer should keep
the loan for thirty-six years, he would
pay on the principal only three hun
dred and sixty dollars and this would
pay up and satisfy the entire princi-
pal. This is the most wondeSful loan
in the world. In other words he would
never pay back one thousand dollars
principal during the entire thirty-six
years, but would pay only the sum Of
three hundred and sixty dollars on
that principal which would satisfy
the principal at the end of the thir-
ty-six years, paying of course each
year five and one half per cent in
tereSt.
He does not have to keep the loan
for thirty-siX years when he does not
desire to do SO, but may pay the en-
tire principal at the end of five years
or any amount on the principal that
he desires to pay any year after the
fifth year for which he is given cred
it and he dCes not have to pay inter
est on the part OF the principal paid
any more.
! Now, there is nothing for the far
mers In the country to do but to or
ganize local Land Banks and get all
the money they need to carry them
through this crisis. The only man
that will suffer in this crisis is the
man who is not willing to even apply
for a loan from the government.
1 have all forms necessary for or
ganiZing and application blanks for
the loans.
JOE p. LANE.