Las Vegas age. [volume] (Las Vegas, Nev.) 1905-1947, 1927-06-11
SHURTLIFF ATTENDS
FARM LOAN MEETING
Fifty Per Cent of Farmers
Of Clark County Enjoy
Privileges of Long Term
Mortgage Loans.

Farmer borrowers from the Ma
tional Farm Loan Association of
Moapa Valley were represented In
Berkeley, June z, by Director Nor
man S. Shurtliff of OvertOn at the
meeting of the executive officials
of the 116 associations in Call
fornia and Nevada where they
discussed the business of making
long-term loans on farms and also
celebrated the completion of the
first decade OF service of this CO.
operative money lending institu-
tion.
''Of the 80 farms in Clark coun-
ty operated by owners reporting
mortgage debt in the 1925 cen
sus, AZ carry mortgages obtained
through the local association ana
the Federal Lana Bank at Berke-
lev" SAYS Mr.. Shurtliff. This
means that about so per cent of
the farmers operating their own
farms in this county who reported
mortgage debt are enjoying the
privileges and benefits OF a long
term loan bearing a low interest
rate and which cannot be called
so long as they pay their semi
annual installments. The majority
of our borrowers were paying
much higher rate of interest, ne
auantly Z to 10 per cent. The
saving to the borrowers through
the cooperative association VINO
pay 5 to 6 per cent not only rep
resants a substantial amount to
the individual farmer but a very
respectable aggregate to the
farmers of the county
"In ten years this system has
grown to the greatest institution
in the world lending on first farm
mortgages. The twelve Federal
Land Banks and 1865 National
Farm Loan Associations have
loaned in excess of a billion and
a ouarter dollars to more than
400, 900 farmers throughout the
limited States. Our bank at Berk-
eley is neither the smallest nor
the largest of the twelve. 1t mas
loaned to approximately 16,5O0
farmers about $62,000000 in the
four states which it serves-Call-
fornia, Nevada, Utah and Arizona.
During this time it has operated
upon a spread of not over 1 per
cent between the interest paid on
the money which it loans and that
paid by the borrower. In addl-
tion. it has accrued a substantial
surplus an dreserve and paid the
associations an average OF ap- |
5 per cent annually
on their stock in the bank.
"The system has most enVl-
able record, foreclosures during
the first ten years being a mere
fraction of one per cent OF the
loans. With the exception of one
instance. due to defalcation, no
borrower-stockhol in an assocl-
alton has been called upon for an
assessment upon stock for any
amount whatsoever, and should he
for any reason have to pay the
which could be collect !
ed under the law, it would no.
raise his total interest rate
the 33 year loan period
more than "a Of one per cent. |
Thus his loan would still be
cheaper, taking all items into con-
sideration, than he could obtain IL
for elsewhere, and he is RESPONSE |
ble only for his loan and the
amount of stock which he holds /
and not that of other borrowers, |
as is sometimes stated.
Due to the favorable terms OF
the sale of Federal Land Bank |
bonds, we are now able to make
loans at 5A per cent. This low
rate should result in many more
farmers in this county placing /
their loans with the cooperative
system as their old short-term !
loans become due.
"The American farmer never
has been in as favorable position /
so far as farm credit is concerned, |
either in terms of the mortgage
or interest rates, and this is due
to the Introduction of the amor
tiZed, longterm loan by the Fed ,
eral Farm Loan System"