The Nespelem tribune. [volume] (Nespelem, Wash.) 1934-1936, 1935-01-02
Millions Loaned
Northwest Farmers
Total Distributed By FCA
Agencies Was $l34,000,0OO
sb During 1884

T sSPOKANE-Agencies of the 18th
district farm credit administration
made loans totaling slightly more
than $134,OO0,000 to farmers of the
Pacific northwest during 1884, it
is announced by General Agent A.
G.. Adams. The breakdown of this
volume is as follows:
Long term Federal Land bank
and Land bank commissioner real
estate mortgage loans, $50, 1888 $50.
Short-term loans and discounts
through the Federal intermediate
Credit bank to agricultural credit
corporations, live stock loan COM
panies, cooperative marketing as
sociations and production credit as
sociations, 500 1865 1926.
Loans by the Bank for Coopera-
tives to cooperative marketing and
purchasing groups, for facility and
working capital purposes, $780,
900.
New money advanced by the Reg
ional Agricultural Credit corpora
ton (out of its own resources), 49,
$4,000.
The Federal Land banks volume
set a new all-time record since this
cooperative mortgage in stitution
was established in 1917. The banks
closing of 1888 loans during 1884
for $50 1888 $50 to farmers in the four
northwest states is more than four
times the 1888 volume when only
4O34 loans were closed for $10,202,-
OCT. The comparison is even more
striking when the 1884 volume is
measured against the banks total
business between 1917 and 1884 OF
43 ,642 loans for $141 ,023, 1886.
R@ Emergency Loans
This significant increase during
1884 is accounted for by the Land
banks completion of the big back
log of applications that poured in
when the emergency mortgage act
of 1888 provided for the refinancing
of accumulated farm Indebtedness
to arrest foreclosure. The peak OF
this emergency refinancing task was
passed last June and operations are
now returning to normal after be-
ing 40 times normal during the last
year.
This refinancing program, han :
died on a sound business basis, did
not add a new burden of indebted
ness upon farmers OF the northwest,
but rather enabled borrowers to re-
duce their Indebtedness through
voluntary adjustments with their
| for oV.or3itnrc At tho Tim q
these refinanced farmers are able to
carry their new mortgages mora
easily, their payments spread over
as long as "a years, at a low rate OF
interest. BY this means, thousands
of farmers now face the future with
new hope.
Small Payments
Land bank loans do not fall due
all at once but are paid off gradu-
ally on the amortization plan
whereby normally a portion of each
semi annual or annual installment
applies to reduce the principal. For
period of five years, beginning in
1885, borrowers whose mortgages are
not otherwise in default, have been
permitted to postpone the principal
portion of their installments. Fur
thermore, temporary reduction in
interest is saving borrowers nearly
81 100000 as another important aid
| to agricultural recovery.
In appreciation of this liberal, but
soundly conducted, mortgage SER
| vice, borrowers have shown their
good faith by meeting their pay
ments promptly. Although current
)installments falling due were almost
the same in 1888 and 1884, collect
| ions during the past year were S.
222,278 as compared with $780,
1888 for 1888. The Land bank made
an all-time record in the sale of &C
quired farms also, the volume being
$2588, 900 on 802 properties.