Washington telegraph., 1927-05-27
TO PROVIDE FOR
FLOOD SUFFERERS
Letters Have Been Sent Giving Com.
plete Instructions to All Com
mittee Members.

With total OF S566,66O subscribed
to stock, and ability TO rediscount
paper in an amount almost four
times as great, the Arkansas Farm
Credit Company probably will begin
making loans to farmer-ilood suffer
ers today, it was announced last
night by w. A. Hicks, president Of
The company.
Appointment of members of all
county or district Loan Committees
has been completed, and letters have
been seni to each committee mem
Der containing complete instructions
with regard TO applications for loans
and informing them that il will be
The policy Of the home office in Lit
tie Rock TO speed up the loans so
thai a part of the amount sought will
reach the borrower within SO hours
after the application reaches the
home office.
Basis of Rediscount
The 4eiters say that whereas the
Federal Intermediate Credit bank of
st. Louis will rediscount notes on a
basis less rigid than usual, il is up to
the local committees to take every
precauiion to see that the best pos
sible security is obtained and that
the intermediate Credt bank may
be insured against loss.
The letters explain The manner in
which the capital stock of the Ar
kansas company, or a large part Of
it, will be invested in Liberty Bonds
which will be deposited with the
United States Treasury as a.margin
of security over that furnished by
borrowers. When this is done the
Intermediate Credit bank will re-
discouni notes to an amount four
}. iimcstas. greai as the amount iis-
vested in Liberty Bonds.
The Arkansas Credit Company.
however, has sci aside a small par.
of its capital stock with which to
handle Limited number of loans on
The 1927 crop only, 10 farmers who
cannot give mortgages on personal
property, including Livestock and
farm implements, free of all other
prior liens. Because money thus
Sc aside will be worth only dollar
for dollar from q loan standpoint.
compared TO four 10 one if the dollar
was put into Liberty bonds. COM
mitlee members were instructed TO
hold this class of loans TO the mini
mum.
Committee members also were
asked to make arrangements with
county and acknowledgement off
cials TO waive all fees for filing re-
Cording and acknowledgment fees.
so that such fees will not have TO be
deducted from amount Of the loans.
The committees were instructed not
TO consider any applications when
prospective borrowers may be able
to finance themselves through some
other channel.
Individual loans will be made 10
farmers on the basis of not TO ex-
coed $3.50 per acre ON land planted
To cotton and 81 per acre on land
planted TO feed crops, where bor-
rowers feed their own stock. If
they do not feed their livestock the
loans will be on the basis of So per
acre on land planted 10 cotton and
Sl.50 per acre on land planted TO
feed crops.
In cases where il is necessary TO
buy livestock or farm implements,
or both, actual cost may be added to
The acreage advance, or when il is
necessary 10 pay existing obliga-
tions secured by livestock and i'm
plements, held by the actual sellers
of the livestock or implements, who
will not subordinate their liens in
favor of the Farm Credit Company,
the amount may be added TO the
acreage advance, if in the judgment
Of local committees the payment of
such obligations will increase the
value of the security given the com
pany. Where necessary TO buy seed
for planting a maximum of 80 cents
an acre may be added TO the acreage
advance.
No loans with which 10 pay eX-
isting obligations will be made under
any other circumstances. and except
in the few cases where first mortg-
ages on the 1927 crop are accepted
as security TO be made from the
amount set aside from the capital,
all loans must be secured by mortg-
ages on personal property, includ-
ing livestock and farm implements,
The 1927 crop, and real estate, and
holders of prior liens will be re-
quired to subordinate them to the
'icu3 IT The company.