The Dawson news. (Dawson, Ga.) 1889-current, 1921-03-29

WADE in lSlI.
Steps having recently been taken to
organize at Dawson a federal farm
loan bank, the following information
given by former Congressman Lever,
of South Carolina, who is now mem
Der of farm loan board, outlining what
borrowers must do so secure the bene-
fits of the system, is of timely interest.
Says Mr.. Lever:
1T is understood that an offering of
farm loan bonds to the public will be
made in the near future and those who
are fully advised as to the security
back of these bonds the success of
such sale is not doubted.
The farm loan system consists of
ed by the president, by and with the
consent OF the senate, which has SUI
pervisory control over the operations
gional banks, known as federal land
banks, and approximately four thous-
and local associations composed of
borrowing farmers.
First Loan in 1917.
THE first loan made through the
farm loan system was in the spring of
1917 Since that time approximately
$3.50, 89l 800 has been loaned to APP
proximately 131, 581 farmers. The cap
ital stock of the twelve federal land
banks has increased from 100000,
the initial capital, to $24,458,867. The
reserves of the banks at present
amount to $1,175,450 in addition to
which they have undivided profits
amounting to $1,917,315. Every farm
loan bond has back of it 200 per cent
OF farm land value because under the
law the loans are based upon so per
cent of the appraised value of the land
and this appraisal is made by a COM
mittee of the local association and a
federal land appraiser appointed by
the farm loan board and who is in
dependent of any local influence or
neighborhood pride.
THE conservatism with which the
system has been managed is best
shown in the percentage of delinquent
borrowers. For a 90 day period the de-
linquency amounts to about ITO per
cent, notwithstanding the tremendous
| ly adverse agricultural conditions
| throughout the country. The foreclos-
ures, through failure to meet the re-
qufrements of the loan, have been prac-
tically nothing and in no case has the
land sold under foreclosure brought
less than the mortgage over it.
The continued success of the sys-
tenn is assured because of the we'll
known friendly attitude of the con-
gress toward it, the known conserva-
tism of its management, and the act
ual basic values upon which its bonds
rest. The chief problem in the future
in the administration of the farm loan
act is to make it more efficient in SER
vice in meeting the needs of agriculture
through improving rural surroundings,
increasing production and in convert
ing tenant farmers into homecoming
farmers.
Process Is Simple.
THE process of obtaining a loan
through the farm loan system is COM
paratively simple. In practically every
agricultural county i'll the United
States there is a local national loan
association, whose executive officer is
known as the secretary-treasurer. The
applicant should apply to him for de-
tails, which will be furnished If the
applicant is eligible for membership,
and his eligibility is determined by the
fact of his being an actual farmer or
a person about to become an actual
farmer, his farm will be viewed by the
local committee of the association to
determine its value. This same land
will later be appraised by a federal ap-
praiser and these appraisa1s will then
be forwarded to the federal land bank
of the district and again they will be
passed upon by the executive COM
mittee OF the bank who will determine
finally the amount that may be loaned
upon that farm The matter of title
examination is simple. When these re-
quirements have been met and the
mortgage placed it becomes the basis
for a bond issue. The rate of interest
to the farmer is determined by the
price at which the last series of bonds
have been sold. If they have been sold
at, for example, AZ the interest rate
may be 81, or if they have been sold
at 5 the interest rate to the farmer
will be per cent with per cent add
ed to amortize the debt over period
of 80 years"