The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-03-03
Federal Farm Loan Board.

(Ccntinued from Page one.)
Federal Farm Loan Board.
If farmer has a mortgage on his
farm and borrcws money from the
land bank, his mortgage lien must be
the first thing paid off with the
money II any surplus Of his loan re-
mains. he can apply 1t for the pur-
chase of fertilizers or I've stock, the
construction Ct a silo, the building of
barn. the erection of poultry houses.
or for any other purpose which will
improve the farms value.
But, II a farmer has no mortgage on
. !, g farm and desires to borrow for i'm
proving it in any Of the ways mem
toned above, he can borrow money
frcm the land ban by giving first
mortgage on his farm.
The practical work of a national
farm loan association Is done by the
OBSERVATION-DISCLOSURES. He writes and
answers letters, keeps the books.
kandle s the funds. secures the loans
frcm the land banks. pays over the
money to borrowers. and does all the
active work Of the association for the
members.
The loans are made on first merit
cages on farm lands. The mortgages
may run not less than five years nor
more than 40 years. The borrower him
self decides the length Of time his
loan shall run. The interest rate il
now per cent. the maximum rate
prescribed by the farm lean act. Every
six month"; or once each year the farm
or pays the installment on his debt.
This includes int rest. part of tho debt
itself. and small amount to cover
expenses of the land bank. The Sec
retary-treasurer makes the collections.
gives his receipt for them. and sends
the money collected to the Federal
land bank. Thus most Of the work Of
the associations is done by this Off
Ger. That is why he is allowed n
small salary.
The Federal land hank which re-
ceives the application for loans and
ether papers from the association then
sends an appraiser to examine the land
and the financial condition of the pro-
posed borrowers. If these conditions
nre found satisfactory. the land bank
forwards the papers to the Federal
Farm Loan Board with their RECON-
mendatfon. On approval by the Fed
eral Farm Loan Board. charter is
granted to the applicants to do bust
ness in their district. the charter be-
Ing forwarded to the assc ciation by
the Federal land bank.
When the charter has been granted.
the association can borrow money Of
the land bank. The mortgages are
then prepared and delivered to the
OBSERVATION-DISCLOSURES. who forwards them
to the Federal land bank CT the dis
tr'ct. On It's part. the land bank sends
the money for the loans to the Sec
Tetary-treasurer Of the association. He
In turn delivers the proper amount Of
money to the respective be rrowers ana
the farm mortgage transact ON is
closed. The farmer has thus been en-
abled to borrow money on first mort
gage with practically no trouble or
expense on his part.
In this way the farmers themselves
become the owners and directors of
fhe national farm loan associations.
They become investors as we'll as bcr-
rowers. The government has not only
made the way easy. but 1t helps the
farmers to reap the benefits Of the
profits derived from their own united
efforts OF borrowing.
But more than this. BY becoming
subscribers to the capital stock Of the
Federal land bank Of their district.
which the associations have to do when
applications fer loans are made. the
fnrmer members OF hte national farm
lean associations VIII ultimately be-
come the owners Of the land bans also.
Tor the government will gradually
withdraw Its stock holdings from the
Federal land banks and leave their
10
Hrely In the hands of the farmers
themselves.
Here. then. is a great opportunity
open to all farm owners in the United
states. The power lies within their
rands to extend the benefits Of this
system into every rural community Mt
practically no loss Of time and at lit.
NC eNpehse. There ts no reason why
na''onai farm loan association
should not he established in every ru.
,ai district. The government has placed
I'VE money and Its moral support at the
command OF our farmers. But they
"ust get oehind this system ana take
a@Vantage OF 1t If they would reap
all its benefits. The Federal fsrro
MORTGAGE credit system thus becomes
o.. "e.u OF UNI mited promise to Ameri-
Let IT he plainly understood that
farmers can form their preliminary or.
sanisations at once. They can have
their directors chosen. as wen az their
president. vice president, loan commit.
tee. and secretary.treasurer But they
can not receive their charter until the
loans have been approved. nor can
they borrow money Of the land banks
until the assoc ations are chartered by
the Federal Arm Loan Board.
But. II the farmers have all the pre-.
limtnary work done ahead. they can
make their applications 10 the land
rank at any time. This will help them
&c get their loans quicker or when the
members mcst need them. Let 10 or
moro farmers IN every commuaity 20
ahead at ones and form national
farm loan association.