The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1922-05-04
Banker Explains
How Farmers May
Secure Farm Loans

sued the following statement will
reference to the operations and re-
lief afforded to Idaho farmers by the
above company:
"The entire plan Is based upor
the arrangements made with the wal
finance corporation, thru Eugene
Meyer Jr., manager, his representa-.
tives and in cooperation with the
Idaho agency of the corporation and
the clearing house banks Of Sail
Lake and Ogden.
"The present plan is the result OF
a series of conferences and under
standings between the var finance
corporation and officials Of this COM
pany, and it must be remembered
that this company a only function
by strict adherence to the plan as
approved. One of the first condi-
tions imposed upon this organization
is that the various Idaho banks in
the territory served by this company
enter intellectually into the plan
by subscribing stock in this COM
pany. These stock subscriptions, TO-
gether with subscriptions by numer-
Gus wholesale and business firms
form the basis for the loaning power
of this company. Loans can be
made up to five times the amount of
paid in capital stock, but loans can
only be submitted thru banks that
are stockholders in this company.
Therefore, it behooves every farmer
to urge the bank of which he is a
customer to join the company so
that the farmer can submit his ap-
plication thru his bank. More than
fifty banks have entered their stock
subscriptions and applications are
coming in daily for approval, but
many farmers have written this COM
pany %deploring the fact that they
could not get a loan, because the
bank of which they were a customer
had not seen fit to join the company.
1t is unfortunate that this condition
exists and it is up to those banks
who have not entered their %subscrip-
ton to do so at once.
"This company is now approving
loans and it is expected that funds
will be available in not to exceed
five days from the time the bor-
rower's application is sent in from
his bank. A representative of the war
finance corporation is located in this
city and will pass upon all loans in
cooperation with the executive
committee of this company. Loans
do not have to 60 to Washington
for approval and as many shortcuts
as possible have been made, in order
to facilitate the closing of all loans.
"A great deal Of stress has been
placed by various people upon the
cost to the farmers of making a loan
Assume that a farmer desires to bHr-
row $500 the procedure will be as
follows: He will go to his bank to
make the application and must Of
fer a Chattel mortgage upon his live
stock and machinery and crop
mortgage as security for the amount
of money he desires to borrow. The
funds on the loan will be made
available thru his bank in Install
ments as the farmer needs them to
mature his crops, and he should
state in his application the date and
amount desired in each installment
and for what purposes the money
is to be used.
"All loans mature on or before
Is, 1922 and interest will
be at the rate of IN per cent per
annum. but the farmer has to pay
interest only from the time each in
is disbursed, and If the
loan is paid off before maturity, in
will cease when the loan is
paid. "A farmer is required to take
out 10 per cent of his loan in stock
in this company which is withheld
the first installment of the
loan and is pledged as additional Sc
but this money will be re-
to the borrower when the
company is dissolved, less losses, if
any.
"The total expense to the bor-
rover of making a loan cannot ex-
,eed $40, which include the record
.ng fee, recorders certificate, the
making out of the papers and in
,pection fee. If the borrowers bank
will make out the papers and make
he inspection free Of charge which
s being done in most instances, the
otal expense should not be over S..
Fire insurance will only be re-
on certain crops and the
premium will not exceed SO on q
500 loan. Hail insurance will be
equired only in those districts
hown on insurance company maps
hail districts, and this item when
equired, will not exceed $50 on a
500 loan. The expense of hail in
cannot be considered an ex-
ense Of the loan itself, for the rea-
that If a borrower is in a hail
istrict he needs the protection for
imself as well as to protect his
Dan, and the hail insurance pre-
lium is no more of an expense to
he actual loan than a live insurance
remium is an expense Of a business.
every protection possible for the
tockholder has been made, and may
9 properly expressed in the words
f w. w. Armstrong, president of
he National Copper Bank of Salt
axe City, who said, you are to be
congratulated upon the complete {
ess, comprehensiveness and full
ess Of your papers and the safe I
yards that you are placing about
ach one Of these loans {
"This company was formed to c
clip Idaho farmers and is now ready t
, make loans, but cooperation is !
eeded from every bank, il farmers s
va %o ho ~prOpor1Vy Anonnod Mu ~. r