White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1934-03-29


of this state who had sent their ap-
plications for loans in to the Federal
Land Bank have been expressing their
dissatisfaction with the Banks SLOW
ness in appraising lands for loans ana
their policy in excluding certain lands
The following article by Mr.. Newcomp,
vice-president of the Land Bank, gives
an explanation of the delays and out
lines the firm foundation the Bank IS
attempting to lay through it's handling
of the many problems which have con-
fronted it during the winter:
BY Ward X. Newcomb, Vice-President,
Federal Land Bank of Spokane
The Federal Land Bank of Spokane
reports that appraisal of land offered
for loans is being made promptly as
new applications arrive except in
few of the higher attitudes where
roads are still impossible. The organ
ization of a force of appraisers large
enough to produce this result has been
one Of the big jobs Of the last nine
months, generally overlooked by the
public.
When the Emergency Farm Mort
gage Act was passed in May, 1888,
every owner of farm land who needed
money naturally thought he could get
loan. While appraisals are more lib
eral by reason of the mandate of the
law to use normal values instead OF
present depressed prices, and the Land
Bank Commissioner was given addi-
tional funds so that loans could be
made up to IS per cent of. normal
values, it is still a sound rule that
loans should be made only where the
land is productive enough to give ar
average farmer a reasonable chance
to pay out.
In other words, the act did moi
contemplate simply shifting the bur-
den of a bad deal from the presen
creditors to the Land Bank system
which would get the farmer nowhere
Appraisers arrive at fair value b.
capitalizing the net farm income at
\ Aga which permits such income +
pay the loan. This is based on tn
average yields for the past ten year
with prices for farm products received
during the period 1909 1914.
Loans arrived at in this way are a
high as the farmer can be expected
to repay from the proceeds Of tn
farm under normal conditions, AM
higher than he can expect to repa
under present conditions. For this rea
son, interest and taxes only need b
paid for three years at least. To lem
the farmer more money would be
; disfavor to him since he would b
headed again straight into bankruptcy
Furthermore, the maximum amour
loanable under this plan is ordinaril
more than his present creditors ca
, recover by foreclosure and sale OF hi
farm.
For this reason, creditors are USUAL
9 finding it advisable to accept the loar
t offered and take the cash rather tina
4 carry along a slow and uncertain deb
4 It Is, of course, almost uniformly re
quired that if new loans are made TT
proceeds shall be accepted by all cree
: itors in full settlement and release
the farmers debts. Otherwise,
u would not be in a position to work OF
l. of debt or have any incentive to
y SO.
r Thirty thousand applications we
n filed with the Land Bank in the la
= nine months. With an even start q
" appraisers could have handled tt
/ work but before they could be ha
10000 or $4,000 applications had pill
up and 200 per day were coming
all of which had to be cleared aw
y before winter. It is not possible
J make good appraisal of farm wi
i, the ground frozen or covered WI
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