Evening star., 1933-10-05

there were not enough appraisers and
examiners to keep up with the work.
But at length, good news came to the
Hagens. They had been prompt in put
ting in their application and they were
rewarded. A land bank appraiser
visited their place and some time after
ward another appraiser came from the
Farm Loan Association. Then Hagen
was called to town for discussion Of
Of his application.
The land bank could not lend $40 900
on first mortgage. Its limit is SO per
cent of the normal value of the land,
with 20 per cent Of the value to the
farm Of the improvements. The bank
would lend $4,000 and 1t had been de-
cided that q secondary loan from the
commissioners fund could be made for
1000 If Hagen's creditors were willing
to grant the $3.50 discount for cash and
receipt in full for their claims Hagen
promptly went around to see the
creditors and he found that they would
accept and pro rate $4,550 in payment
Of $500 in obligations. His abstracts
ton and Hagen got his loan. His in
terest charges are now $605 instead Of
1920. This is all he will have to pay
for three years. After that he will
have to begin paying of the second
loan OF $4,000 at the rate Of $400 year
and two years later he will need to be-
gin making small principal payments
on the $4,000.
Good News for Neighbors.
Hagen can thus be listed as one Of
the fortunate ones who have obtained
altogether some thirty million dollars
in loans since the passage of the new
act. One Of his neighbors, who already
had land bank loan of $4,000, has
had the benefit of q reduction in in
terest amounting to 500 a year and
has the comfortable assurance that he
need not make any principal payments
over the next five years unless he
wishes to do SO.
There is good news for Hagen's
neighbors who are still waiting for
action on their applications. The ef-
land bank system Is beginning to show.
Loans are being made at the rate Of
81 100000 q day. with every prospect
that this rate will be rapidly increased.
Those in danger of eviction are being
given preferred treatment. If there
Is any sound prospect of helping a
farmer out Of his financial difficulties
and putting him in position so he can
pay up. officers Of the land bank system
| and the Farm Credit Administration
are determined to find the way to do it.
Now let us follow Hagen and his
neighbors into another phase of the
Farm Credit Administrators activities.
Every year they need to borrow money
which they expect to pay back that
year. They need it to buy feeder cattle
or other live stock. to buy fertilizer and
seed, to hire men for planting and
harvest. The loans are repaid out OF
crop returns, or the sale Of the increase
Of stock It has been extremely diffl-
cult to get loans of this class in re-
cent years.
| News has come into Hagen's COM
munity of new form Of organization
and a new kind Of loan to meet this
need. Recently the local papers told
OF the formation Of the first production
credit association of farmers in Cham
paign County in Hagen's own State.
There Is production credit corporation
newly formed in st. Louis which is a
part Of the Farm Credit Administra-
tion's new organization there. 1t Is
setting up these production credit asso-
Citations of farmers in one community
after another in the St. Louis land bank
district. Hagen and nine or more Of
his neighbors may form one. The cor
poration in st. Louis will supply the
| capital needed to start one in x County.
Then those who wish to borrow for
farm operating needs on the security Of