The independent. [volume] (Elizabeth City, N.C.) 1908-1936, 1921-08-05
PASQUOTANK FARMERS ORGANIZE A .
NATIONAL FARM LOAN ASSOCIATION
Expect to Embrace Counties of Currituck, Cam
den and Perquimans AS Well - S67 10000
Loans Applied for by Charter Members

| 1AAS ~ SCl III Oh the
$100,OO0,O0000 which the Fede-
arl Farm Loan Banks expect to
make available in loans to farm
ers at an early date, the Pas
quotank National Farm Loan AS
sociation has been organizedn in
this city and applications for
loans aggregating $6z, 10000 have
already been made. Other ap-
plications will be made this week
land other applications will follow
with large increase in the mem
bership of the association which
is expected.
The charter members of the Pasquo-
tank National Farm Loan Association
areJ. J.. Morris, NJ. B. Sawyer, Her
man Newbern, c.. d. Bell, r. III. WeIch,
G. G. Markham, W. H. Pritchard, G..
H Winslow. w. H. Jennette, H. G.
Meads, w. J. Meads, J. w. Hobbs, w.
T. Jackson, Carlton Jennings and E. R.
FerreI1.
II. Jennette, president; w. G. Gather,
Secretary and treasurer. The directors
are W. H Jennette, G.. G. Markham,
Herman Newbern, R. H. Welca and M.
B. Sawyer. Mr.. Gather is acting as
secretary and treasurer only temporar-
lily, this Office eventually to be filled by
some farmer member of the association
The Pasquotank National Farm Loan
Association will have a capital stock of
$4,000 consisting of 1000 shares at $5
each. $3,125 of the capital stock has
been subscribed and under the Farm
Loan Act such an association is per-
mitted to do business when only $1,000
of it's capital stock has been paid in.
How 1t Works
The organization of this association
is expected to take an enormous strain
off the Elizabeth City banks and to give
a mighty impetus to business generally
in this vicinity.
Members of National Farm Loan AS
s5t4a tfons organized under the proEi-s
sions of the Federal Farm Loan Act
are enabled to borrow money on first
mortgage real estate at per cent in
terest, with no brokerage and no COM
mission deducted. There are twelve
Federal Farm Loan Banks and the
Pasquotank Association will work under
the Federal Farm Loan Bank at Co
Iumbia, S. c., which bank serves the
states of North and South Carolina and
Georgia.
The Federal Farm Loan Bank does
not deal direct with the farmer desiring
a loan. The farmer must become a
member of farm loan association and
make application for loan to his as
sociation. The application must not re-
quire a loan exceeding SO per cent of
the value of the first mortgage farm
land security offered.
A loan committee of the local asso-
citation investigates the security offered,
its value and makes its rec
to the board of directors.
If their recommendation unanimously
favors the loan and the directors unani-
mously approve the loan, the recon-
mendation is passed up to the Federal
Farm Loan Bank which sends it's own
to finally pass upon it. A
number of applications are considered
at one time, thereby minimizing the ex-
pense of Investigating and appraising.
Only farmers or those. about to en-
park in legitimate farming operations
nay Join National Farm Loan Asso-
,iation and participate in it's benefits
Where the Money Comes From
The members of a Farm Loan Asso-
,iaton are individually and collectively
responsible for loans made to members
# its organization. But in the event
# the association becoming insolvent no
member shall be individually responsible
or more than five per cent of it's liabir-
ties. The farmer who applies for a
oan thru the association must invest
i've per cent of the amount of the loan
n farm loan stock, to be deposited with
he Federal Farm Loan Bank at Co.
umbia, S. G. The stock will be re-
eemed when the loan is paid.
It is confidently believed that the Fed
raj Farm Loan Banks will shortly
ave available one hundred million dol
ars for long time loans to farmers.
his money will. become available only
hru the sale of so many Farm Loan
;ank bonds. These bonds, tax free and
earring five per cent interest will be
ffered for sale at an early date and it
expected that buyers will be found
,r them. The Federal Farm Loan \
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