The Dallas express. [volume] (Dallas, Tex.) 1893-1970, 1921-10-08
FEDERAL LAND BANK LOANS.
M. H. GOSSETT,
President, Federal Land Bank OF
Houston.

The Bank is closing loans now
at the rate 100000 per month
Applications are being received in
larger volume. In view of the fact
that the Bank is not in funds equal
to all applications for all purposes
authorized by the Farm Loan ACT
which reach us from eligible Dor
rowers. we are approving loans at
this time mainly for two purposes
only to-wit
First.-To take up and extend
vendors or mortgage lien notes
against farm homes with maturities
as late as December first.
Second.-To pay indebtedness in
Cured for agricultural purposes.
In the latter case, the eligible
farmer must own unincumbered land
in excess of 200 acres under the
Texas Homestead Law. Eligible
farmers in need of loans of the class
indicated should confer with and
submit applications to the Secre-
tary- Treasurer of the National Farm
Loan Association in the country In
which the farm Is located.
Farm owners residing in town or
remote from the security with the
farms rented on the usual terms of
third and fourth are not eligible
and need not apply. The system
was never intended to serve men
who own farms for investment or
speculative purposes.
II is to be regretted that we are
not in position to approve all eligl-
BILE applications permitted under the
law, but II Is believed that in the
present emergency il is proper to
make loans that will prevent fore
closure, rather than finance the pr
chase of lands and to make improve
ments.
This bank has closed loans to 49,
600 Texas farmers in the total sum
of $44,1S1, 791.00, in amounts from
$4,000 to $4,000, with an aver
age loan of $4,000. The inter-
est rate is now 6 per cent. which,
with the l per cent. added and ap-
piled on the principal, equals per
cent. per annum, payable semi-an-
nually; 3 IL per cent. each six
months paying both principal and in
terest in : 8 years. Tire borrower has
the option after five years OF pay
ing the loan in whole OF Ia part at
any interest paying period, without
bonus or commission. These bor-
rowers have saved more than ST.
600 10000 per annum in interest IN
addition to the fact that their total
payments OF less than the average
interest rate pay both interest and
principal.
It Is very gratifying in these
times of financial stress to find the
great body of our borrowers meeting
promptly their semi-annual pay-
ments. They appreciate that this
! is of vital Importance. The Farm
Loan Act successfully withstood the
attacks in the courts of its open
enemies On the outside. The bor-
rowers only can now impair the
usefulness of the System by falling
to meet their interest payments
when due. This Bank is required
to pay semi-aunually the interest
on its bonds from the sale Of which
the funds were provided and loaned
and which interest now amounts to
more than $1,000, 900 November and
May Cf each year, Gad which in
creases with the volume of new
loans. A default fer a day by this
or the other banks to meet these
interCat payments would utterly de-
stroy the bond market and we would
have a splendid organization which
could no longer function for lack
of funds.
Notwithstanding the financial de-
precision, the officers Of the leder-
al Land Ealnk ara confident the boz
/ rowing farmers will continue st