Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1934-06-01
GEORGETOWN
Loans Rellnance Farmers
Debte In Sussex County

Debts In Sussex County
A total of $147,2OO of Fedora
land bank and Land Bank Commits
sioner's farm mortgage loans wal
made in Sussex county, Delaware
from June /. 1888. to May /, 1894
according to the Farm Credit Ad'
ministration.
OF this total, farmers in SUSSEX
county used approximately 1887 200
or 1872 per cent to refinance theii
Indebtedness. BY refinancing, far
mers obtained new mortgage loans
which they used to repay their old
debts. They generally reduced Their
annual interest charges in doing So
In a number of cases, scale-downs
OF indebtedness occurred in connec-
ton with the new loans. These and
other advantages benefited farmers
primarily. Secondardily, creditors
benefited from the receipt of cash
or bonds in exchange for obliga-
tions they held.
OF the loan money used by farm
ers in Sussex county for refinanc-
ing their debts, about $44.5OO, 1t
was estimated, repaid their debts to
banks; $4OO, their taxes; $500.
| their debts to merchants; $S4,50O,
their debts to Others" or creditors
not separately classified, including
private mortgage lenders, mortgage
! loan companies, retired farmers and
many others to whom farmers were
| in debt.
! A total of about $4,000 of loans in
the county was used for purposes
other than the refinancing of bor-
rowers' debts. OF this sum, $4,000
was used for the purchase of land
and equipment, the construction or
Improvement of buildings, and for
general agricultural uses, including
the provision of capital, while ST.
800. the balance, was used for the
purchase of stock in national farm
loan associations, for loan fees. etc.
Throughout the United States APP
proximately 100000 of land
bank and Commissioners loans
were made from June 1, 1888. to
May 1, 1884. Most of these loans
were made to refinance debts re-
sulting from the long period of low
farm income.
Generally farmers pay consider
ably less interest each year on the
new than on the old loans. Land
bank loans made through national
farm loan associations carry an in
terest rate of per cent. but there
is a reduction to Az per cent until
July, 1888. Loans made direct by
banks carry a rate of 519 per cent.
but there is a reduction to 5 per
cent until 1888. The rate on Com
missioner's loans is per cent.
Against these rates farmers in most
cases had been paying from 5 per
cent to per cent. but on numerous
loans they had been paying 9 per
cent, 10 per cent and even above 10
per cent.
Until March 26 the land bank and
commissioners loans were made in
cash. Commencing on that date they
we're made mainly in the govern
ment-guaranteed bonds of the Fed
eral Farm Mortgage Corporation.
These bonds are exempt from all
Federal, state, municipal and local
taxation, except surtaxes, estate, in
heritance and gift taxes. They are.I
guaranteed fully as to principal and
interest by the United States gov
eminent. In a relatively short per-
iod after they we're issued. they sold
above par and had met a favorable
reception from farmers and their |
creditors all over the United
States. With the use of these bonds, !
the refinancing program is going |
forward rapidly.
ChiIdren's Day Dates In Sussex
Children's Day services will be |
held in the following churches in !
Sussex county during the first two
weeks in June:
June 3-First Methodist Protes- 1
tant Church, Georgetown; Beaver
Dam Methodist Protestant Church.
Harbeson.
June 10-Salem NJ. E. Church, of
McColley's NJ. E. Church.
between Georgetown and Robbins;
Methodist Church. Millville; Whites
Chapel NJ. E. Church, near Lewes;
Christian Church. Ocean View;
Church. Ocean View;
Trinity NJ. E. Church. near Bridge
Vile.
June 17-Chaplain's Chapel NJ. E.
Church, between Georgetown and
Bridgeville; Zion NJ. E. Church, of
near Milton.
Services were held in the Meth
,dist Protestant Church at Cannon,
Seaford and Bridgeville,
asst Sunday.
Meeting At RehObOth
The Sussex Democrats gathered
It Rehoboth last Wednesday. May
g. to open the 1894 campaign.
lack w. Wells. candidate for the
Democratic nomination for Repre-
in Congress was the prin-
,ipal speaker of the evening. Prior
o the rally. dinner was served by
he Rehoboth Beach Fire Company.
lone Demonstration Club News
Fourteen members of the George
own Home Demonstration Club met
I the home of Mrs. William ].
Friday. May 4.
The leader. Miss Lucille Zion,
ave a demonstration on the max
ig of pastry.
Mrs. John W. Lowe and Mrs. Oil
err Jester had charge of the recre-
ton hour.
On Friday afternoon. June the
Tub will meet at Mrs. Miles Isaacs'
ONE. The subject "Refinishing OF
'urniture." will be demonstrated by
wo members Of the club.
Mrs. Willie Gibbons and Mrs. A.
. Lowe will have charge Of the
ecreation hour.