The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-10-26
ONLY rs PER CENT
PAYMENT REQUIRED
WHEN loan IS DUE
Government Urges Farm ers
Who Are Able to Pay More
to Do So, However
TO REPRESENT $17,456,021
Details of Liens Are Clarified
BY L. J. PauIson of Min
neapolis Office

Minneapolis, Oct. 26.-(P,-Specific
information was issued Wednesday
by l.. j. Paulson, manager of the
Minneapolis crop production loan Of
flee of the department of agriculture,
covering the moratorium of IS per
cent decreed by Secretary Arthur M.
Hyde for the benefit of 113,047 seed
loan borrowers this year in the
northwest.
Under the terms of the decree of
the secretary of agriculture these
borrowers will have to pay back this
year only Is per cent of their loans
or $5,8l8,000 of the $23,274,021 they
obtained last spring through the
Minneapolis office.
The balance of their crops covered
by seed loan liens may be sold and
the money used for such purposes as
the borrowers find necessary. Thus,
farmers will have $17,456,O21 more
funds this fall than they would have
had if they had been compelled to
pay up all their seed loans Nov. %,
as provided for when they were
made.
In a letter to borrowers of seed
loans this year, Manager Paulson
said:
due to the prevailing low market
price for farm products, President
Hoover has announced that farmers
during 1882 crop production loans to
the government will be asked to pay
Is per cent of the amount due and
execute an agreement to secure the
remaining IS per cent on whatever
terms congress may authorize (This
order has no application to feed
loans secured by mortgage on live
stocko To carry out this order of
the president, it has been necessary
to work out the required details and
a plan now has been devised where
by borrowers may enjoy the benefits
of this order.
Some Able to Pay
1T is contemplated that many bor-
rowers in the northwest will find
themselves able to pay their loans in
full and many others will be able to
pay substantially more than Is per
cent. Therefore, it should be borne
in mind that the Is per cent request
for payment is the minimum and
that all who are able to reduce their
obligations more substantially should
do so.
mot being in a position to deter
mine at this time just what renewal
congress will require, borrowers must
put themselves in position to comply
when congress definitely acts, by ex-
ecuting contract to deliver to the
secretary of agriculture a first lien
on the 1888 crops and also agreeing
not to execute any encumbrance or
lien thereon before delivering to the
secretary the lien which congress may
require.
Before determining whether or not
you are eligible for this extension
privilege, you should consider the fol-
lowing questions:
Cd do you find yourself in pos
ition where an extension of your loan
will be of personal benefit to you? It
is contemplated that the use and BEN
eft of the crops remaining after pay
ment of the Is per cent, will go to the
borrowers and he will be permitted to
make such disposition thereof as will
enable him to take care of his family
needs, his seed and feed for the next
crop producing period and otherwise
carry on his farming program.
ca Are you renting any lands?
If so, it will be necessary for your
landlord or the owner of the land to
consent with you that the government
be given first lien on all crops pro-
duced thereon for the coming year.
Must Secure Consent
60 "Have you executed any mort
gage or otherwise pledged your 1893
crops, or does your real estate mort
gage or land purchase contract call
for lien on the crops? If there Is
any lien or encumbrance on your 1888
crops, you will be required to secure
from those holding such lien con-
sent whereby the government will be
given the undisputed first lien there
on for the balance owing to the gov
eminent.
IF 1t is necessary that you be given
the renewal privilege and If you can
comply with the renewal provisions,
you should then request this office
for your obligation. The renewal
agreement will be sent to you and
when properly executed and APP
proved and the Is per cent payment
received, you will be given proper re-
ceipt and then will be in a position
to make personal use Of the remain
ing 1882 crops, looking forward, Of
course, to your continued future
farming operations"
To assist crop buyers. Paulson has
advised them that If the farmer who
has seed loan has paid his rs per
cent, special receipt will be issued
to him showing that he has paid the
required amount and has executed
a proper renewal. Upon presentation
of such a receipt the farmer may sell
and the buyer may purchase the re-
mainder of his crop without further
consent from the Minneapolis seed
loa:' office.
Paulson warned, however, that the
government Is in no wise undertaking
to speak for other secured creditors
who have a mortgage upon the crops
IN question