The Washington times., 1922-08-24
100000 FUND
AVAILABLE FOR
.NEARBY~FARMS
Prince Georges Federal Loan
Board Seeks Borrowers
for Idle Money.

Three hundred thousand dollalr,
available to farmers Of the District
and nearby Maryland at 5h per cent,
lies unsought in the Golfers Of the
Federal Farm Loan Board of Prince
Georges county. This strange condi.
tion in a rural section where con-
slant development makes low-rate,
long-term loans most desirable was
descanted upon at yesterdays quar-
terly meeting of the county organi-
Zation in the office of Frank
Stephens, secretary-treasurer, in the
Fendal building.
Board members agreed that the
reason there has been no call for ad.
vances out of this fund is that it's
availability is not widely known.
Until one year ago the question of
the constitutionality of loans by
county boards was in litigation and
was then affirmed by the Supreme
Court. Farmers wanting loans seem
for the most part unaware of this,
an official said after the meeting.
The county boards have met much
opposition from banks and Federal
officials, II is said. AS far as the
financial institutions are concerned,
it is pointed out that the operation
of the county system is in reality 4
help to them and not a means of cut
ting in on their profits.
Method OF Procedure.
The operation of the loan plan
is this: A farmer desiring to borrow
any amount VI to $4,000, or, In
terms Of percentages, up to one-half
utilized for buildings, fertilizer, stock,
machinery, etc, applies to the county
board, which examines the land and
| title. If the loan is recommended, a
! second inspection is conducted by
Federal agent, and upon his approval
the transaction goes through.
To the actual interest charge is
added per cent per annum, one.half
of which is deducted each six months
from the principal. By this means
the loan is amortized in thirty.tive
years. The face of the note can be
taken up at any time, though pen
atty of l per cent is attached II can
collation. takes place before five years
have elapsed. After five years the
note may be curtailed in multiples of
S25 or taken up without penalty.
Five years is the shortest period for
which note Is drawn.
Loan Boards Their Friends,
It has been the practice to loan
farmers enough money to meet mort.
cages held by banks, in reality an
aid to the financial institutions as
we'll as to the farmer who Is bor-
rowing at 51a per cent to meet an
obligation upon which he Is paying
z per cent or more. Furthermore,
as the law allows extension of loan
only to one-half the value Of the land
| involved, the banks can readily rx.
| tend a profitable second mortgage
on the remaining value. The banks
are coming to realize, said a member
oe the Prince Georges board, that the
loan organizations are their friends,
not their enemies.
The boards are at disadvantage
in making known these loan opportu.
mites to farmers because they are
not allowed to advertise. The county
boards have been forced to fight
tooth and nail, said = the Prince
Georges man, to keep from having
their legalized prerogatives curtailcd.
| The members serve without pay,
their only interest being in the de-
velopment of the section in which
they live.
1t is felt that once the word gets
abroad that substantial sums are to
be had on these terms, no great part
Of the $4,000 now available will be
lying out of work. At yesterdays
meeting 1t was reported that only
S12,0 900 of new loans had been made
since the beginning of the quarter.