The Dawson news. (Dawson, Ga.) 1889-current, 1921-11-08
PREDICTS BIG GROWTH
FOR FARM LOAN SYSTEM
urDGE c. E. LOBDELL SAYS 1T
WILL BE WORLDS BIGGEST
FINANCIAL INSTITUTION.
MUTUAL In broadcast SENSE

Asserts 1t Is Finest Example of Sue
cessful, Supervised Cooperation.
Gives New Ideas About It's Service
To Agricultural Interests.
BALTIMORE, Md.-Declaring the
Federal Farm Loan Bank was the larg
ost mutual farmers organization in the
world and that it was destined to be-
come the worlds largest financial in
stitution Judge Charles E. Lobdell,
chairman Of the Federal Farm Loan
Roard, gave those who had assembled
,t the farmers picnic at Mount Carmel
on Saturday some new ideas about the
hank and the manner in which it serves
the farmers of the country.
Judge Lobdell told his hearers that
he had no legislative scheme by which
there could be short cut to prospect
~ In the crisis through which the
country is now going, he said, the
farmer had taken his medicine with the
business men of the nation and had
suffered more losses than were his
share, perhaps, due to lack of organi-'
alton. But by work, thrift and econo-
nv the farmer has financed himself,
tbe speaker said, "and not only that,
but he is at this hour the paramount
factor in financing every other indus
try"
Three Kinds of Farm Credits.
In discussing farm financing Judge
Lobdell said that agricultural credit
fell into three clasSes-Credit Tor crop
production, credit for crop carrying
and marketing, and base credit or in
vested capital.
For the first of these classes the
farmer would have to depend on the
local banker, as the base security is
50 per cent personal character. The
second class, he thought, was taken
care of by the federal reserve bank
system as far as government interview
ton is possible, while for the third
class, base capital the federal farm
loan bank provides.
The purposes Of the farm loan
bank" Judge Lobdell said, were fire.
quently misunderstood"
1T canot be too positively stated
nor too often repeated" the speaker
declared, that there is no such thing
as government farm loan. The gov
eminent has not gone into the farm
loan business, but it has lent its aid to
place the farmers of the country III
the farm loan business for themselves
under government guidance and super
vision. Loans under this system are
made on the amortization plan, gen
orally for a term Of 80 pears, on which
basis an annual payment of 81 per 500
paws the interest at per cent and liq
uidates the loan in that period"
$4,000 the Limit of Loan.
Judge Lobdelf illustrated the man
ner in which the loans are made and
the amounts that would be loaned No
loan, he said, could be made in excess
Of $4,000 and the loan cannot exceed
50 per cent of the value OF the land
composing the farm plus 20 per cent
OF the value of its permanent insured
Improvements.
The speaker denied that there was
any excess of red tape in connection
with securing a loan, and showed that
it was more simple than most financial
transactions.
While loans are made for 80 years
the borrower, he said, had the option
OF paying all or any part Of the loan
at any interest-paying period after five
years. In special cases the loan may
be paid off earlier, the bank charging
small premium sufficient to cover
the expense incurred iii making the
loan.
During the four years of operation,
Judge Lobdell said, more than ST.,
100000 of loans have been paid in full
There is a farm loan organization
in every county in Maryland except
three" said the speaker, and any
farmer desiring a loan and having no
Information as to the local associa-
tons can secure such information as
he needs by addressing the Farm Loan
Bank in this district"
Gives Several Illustrations
Judge Lobdell gave couple of il
Iustration as to how the bank works.
In these commonplace stories of
commonplace people," he continued
lies the real genius and spirit of the
federal farm loan bank, a cooperative
mutual organization of farmers to en-
courage and stimulate agricultural pro-
ductlQn and make farm life worth
while.
1t is not a paternalistic organiza-
ton. On the contrary, it is mutual III
the broadcast sense. It's final concep-
ton rests upon the sound theory that
100000 farmers desiring to borrow
$4,000 each can secure better terms and
lower rate by pooling their securities
under government supervision and
control than Cou1d fhe SINGLE borrower