The pioneer-review. [volume] (Philip, Haakon County, S.D.) 1920-current, 1922-04-13
RURAL CREDIT LAW
A BENEFIT TO FARMERS
(By j. F.. Ziebach)

lowing summary Of loan applica
tions received from July 1917 t,
January |, 1929.
1896 applications applied foI
amounting to S70,629. .306 52.
$3.50 applications have beer
closed as loans in the sum oi
S34, Gi6,S50 90.
SO applications have been ap.
proved and are waiting abstract.
for closing, amounting to 1888.
25O.O0.
1.l59 applications arc on hand
for investigation Of the board am
ounting to S5,63S, $50 90.
5,155 applications have been can
cellcd or rejected for var us rea-
sons and the following amount IN
cludes all reductions made on an
plications S2s,596, ,405 50.
In order to meet the demands
.or farm leans .he board has DIS
posed oi nineteen different hon,.
issues aggrcgating Sl1 100000 At
rates of interest varying from 112
to s per cent. The last issue Of
bonds was for S5,O00,0O0 and credit
for the same was received Dccem-
ber 20, 1921. On January |. 1929
the board had on hand the sum Of
p6,77l ,632 SO and since that date
q ,,,nptb h IL, oXar,..a ,,f ol,n,,4 S.-an
coo has been sent ont in closed
loans to farmers in the various
counties of the state. The money
on hand Will provide funds to keep
on loaning at this rate until about
July |, 1922 when a new issue Of
bonds will have to be sold. 1t is
only a question Of sonnd business
policy that the board is compelled
TO keep on hand a balance Of from
Sl,500,000 to S2.000,000.
Tho annual interest on the bonds
issued amounts to over S2,000,000
and these payments come due dur
lngpyery month OF the year. These
payments have to be met prompt
" or the state would lose its ere
lit To administer the law success
fully certain reserve is necessary
to provide when the farmer de-
faults and in this way assistance
is rendered to needy persons, and
the credit Of the state maintained.
The rural credit law became cf-
fcctive in July 1917, and to enable
the act to be made effective the
state appropriated 100000 Of this
S240.00O has never been
taken from the treasury and the
interest on the same goes to the
state and not to the Rural Credit
board. If the $4,000 withdrawn
from this fund were returned tc
the state treasury and it can be,
not one cent of the general tax
payers money would be involved
in the operations of the Rural
Credit Board.
The business has been conduct
ed IN conservative manner, has
never been questioned by anyone
who has an intelligent knowledge
If the administration Of the act.
Of the $34, ,646,S50 placed by the
BOARD in farm loans, two-thirds Of
his amount has been made on
ands east Of the Missouri river.
and the state holds as security Oh
oans made 2,237, ,279 acres of n.
average of SIS 4S per acre loaa
n the state.
The volume Of loans in force is
sufficient to create net surplus |
'und Of approximately $4,000 each |
Jcar and this will be enlarged as
lew loans are made in the future.
There never was any intention I
n the adoption Of the act, nor
Is administration to make it a
money making institution. TIE
whole system has been conducted T
With the one idea in view Of pro
'idlng farmers with the oppoi-
unity to finance their farm loans
It the very lowest possible rate
# interest and on long time loans.
hat the farmers have appreciated
he opportunity afforded by the
ct is evidenced by 1899 closed
oans on March 1st, and by over
5000 loan applications received
y the board since its organization.
is safe to say that the loan val
e Of the land in every county in
he state has been increased from
5 to so per cent, above the cs-
abllshed by private loan compan-
IS before the Rural Credit act
'ent into effect and Of still great
r benefit than this, it has saved
he farmers of the state, who have
lade loans through the board, at
East that they have been compeil-
4 to pay in the past, This item
lone amounts to more that $780,
10 each year.