Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1934-06-08
Farm Credit
Administrations
Lends ~$S3,oOo,ooo

year OF the Farm Credit Admin
%lstration. which came to a close
On Sunday, May II, the institu-
tons OF the third district compris-
ing the States of North Carolina.
oouth Carolina, Georgia and Flor
1aa' and the associations under d.
rect supervision of the district adj
mlnlstration, loaned a total of over
$4,000, 900.
OF this total owe s5s,ooo,ooo
consisted of farm mortgage loans
OF the Federal Land Bank of COL
umbia and the Land Bank Com
missioner; $370,S50 consisted of
loans by the Columbia Bank for
C'ooperatives; $7,213,922 of net
loans by the Federal Credit Bank
lot Columbia; $7,241,542 of loans
by the Production Credit associa-
ton operating under the super
vision of the Production Credit
Corporation of Columbia; ST.
|o94,532 of loans by the Regional
Agricultural Credit Corporation
of the district and $S,5o2,o55 of
emergency crop production loans.
Out of a total of $57,261,eSs
put out On loans by the Federal
Land Bank of Columbia and the
Land Bank Commissioner, a total
OF s47,s21,325 was used by Dor
rowers to refinance their indebted
ness. Of this $1O,O30,655 refin-
anced farmers debts to CONNER
clal banks, including receivers and
~conservators of banks; $2,S27,425
went on their debts to insurance
companies; $2,S9e,S1S went on
their taxes and S32,O63,517 wen
on their debts to other creditors.
Not all of the money has been
loaned in actual cash. On March
|26, the Federal Land Banks
switched from closing loans with
cash to closing them with bonds of
the Federal Farm Mortgage Cor
Poration. The Federal Land Bank
of Columbia has already put out a
total of approximately $1O,0O0,-
900 in these bonds and announces
that almost without exception
bankers and farmers crediors have
indicated that they are glad to &C
cept them in lieu of cash.
The bonds now being used in
closing land bank and Land Bank
Commissioner loans bear 3 per
cent interest and are exempt from
all taxation except the usual inheri-
lance, estate and gift taxes. In
terest and principal of the bonds
are guaranteed by the government.
The money being loaned through
the Federal intermediate Credit
Bank likewise is obtained from the
investing public and confidnce of
the investing public in the sound
ness of the agricultural paper be-
ing handled by this bank has en-
abled the bank to get money at a
very low rate of interest.
Through the new type of perma-
nent local productioa credit as
ISOLATION managed by persons
chosen by the farmer-members
and supervised by the Production
Credit Corporation of Columbia,
farmers are not only getting loans
which are low in cost, but which
are also accurately timed to the
production season, arranged to ma
ture when crops are marketed and
the Indebtedness can be liquidated
most advantageously.
The Columbia Bank for Coop
eratives leads only to cooperative
organizations of farmers in the
States Of North aCrolina, South
Carolina, Georgia and Florida.
The applications received by this
bank for loans up to this time
have covered such products as
pecans, citrus fruits, lespedeza, as
paragus, watermelons, ferns, truck
crops, fertilizer, ETC.. having come
from all four states of the district.