Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-08-22
SUCCESS SEEN FOR
STOCK LAND BANK

D. E. Moncrief, Jr., formerly con-
nected with the Federal Land Bank
Of Columbia, issued statement
Saturday in which he predicted that
| the Atlanta Joint Stock Land bank,
being organized by A. B: Simms
and associates, will prove of great
| benefit to farmers and consequently
| strengthen the business and eco
| nomic situation in Georgia and Ala
bama.
cit is almost impossible" said Mr..
Moncrief, 'to estimate the possibili-
| ties in store for such an enterprise,
| and it is strange that somebody with
| the financial resources and connec-
tons should not have undertaken
| the organization Of joint stock land
| bank in Atlanta before this time.
Georgia and Alabama are two of the
| best agricultural states in the coun-
| try, and the success of such a bank
| is dependent only upon the exercise
of reasonable economy in operation
and the use of common sense and
Judgment in the granting of loans.
while the federal farm loan sys-
tenn was created primarily for the
benefit of the farming population of
| the country, it has proved itself to
be a big thing also for the invest
ing public, furnishing, as it does,
an absolutely safe, government back
ed investment at good rate of in
| terest, in the form of farm loan
bonds, free from federal and state
taxes. The system provides loans
for the owners, or prospective own
ers, of farm property on a long
| term basis, with no commission
plan by which the whole loan is paid
up in the term selected by the
borrower.
GAS an example, when 1 was con-
nected with the Federal LAND bank
in Columbia, a large majority of the
loans were made on a basis of thirty
five years. A borrower desiring a
loan of, say, $1,000 -sr this period
would pay to the Gank his annual
| interest at IL l,er cent, amounting
to $55, and 1 per cent additional,
making a total annual payment of
$65 on the $1,000 loan. Under this
amortization plan, each year slight
ly larger part of this $65 would be
applied to the principal, and by the
end of the thirty-five years the loan
would be paid in full, interest and
principal, and the mortgage given
to the bank as security for the loan
would be cancelled.
1.-THE law provides that all of these
loans must be secured by a first
mortgage on the property, and that
no loan may be made in excess OF
so per cent of the appraised value OF
the land and 20 per cent Of the per
manent insurable improvements
thereon. These mortgages are de
posted with the governments regis
trar, and bonds are issued, which
when sold by the bank, provide fur
Their funds to be loaned out in G
similar way. The process is, there
fore, a continuous one, and the
banks are assured Of a supply Of
!, funds dependent only upon a con
tinuous and regular marketing o.
these farm loan bonds.
"This system of farm loans Is
|, especially attractive to borrowers
, when contrasted with the old plan Of
arranging new loans every few
years, paying not only the interes
but also commission every time the
{ loan is renewed, and being con
, slant source of worry and annoy
: ance. Under the new system loan:
are never called" and cannot b.
; called, as long as the borrower
makes his annual payments.
5 "The new bank in Atlanta may
: reasonably look to the future will
confidence of success and with thu
e satisfaction of knowing that 1t will
: prove of inestimable benefit, especial
ly to the borrowers in Georgia. an(
Alabama, but also and in great meas
ure, to the general agricultural an(