Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1935-06-27
MONTGOMERY COUNTY SENTINEL
New Farm Loans
To Bear Interest
Rate OF A Per Cent
Federal Land Bank Anticipates
Increase In Applications
Following Cut

Effective Immediately interest on
all new loans through National
Farm Loan Associations will be al
at an all-time low rate of 40, it
was announced today, (June 24) by
Charles S. Jackson, president Of the
Federal Land Bank of Baltimore.
This completes series of reductions
which have cut the interest costs
of farm mortgage money a full 10
in the last three months.
On April the rate on new loans
was lowered from to 41a%o by the
banks, and on April 10 to 4 percent.
This latest reduction of IA of 1 per
cent completes the one per cent cut
in three months. Thus loans will be
available at the lowest interest rates
ever offered farmers by the Federal
Lnad Banks or by any large lending
agency. ,.s
With this reduction the Federal
Land Bank of Baltimore is antici-
patings jump in applications, which
for the first three weeks of June
have fallen to the lowest point since
the passage of the Emergency Farm
Mortgage Act of 1888.
Under the Farm Credit Admins
tration Act of 1885 interest on all
Land Bank loans through National
Farm Loan Associations has been
reduced to 31a per cent for one year
from July 1 and to per cent for
all interest payable in the 2 year
period from July 1, 1886. On direct
loans made by the bank rates have
ben cut to and Az per cent re-
spectively for these periods. Land
Band Commissioner loans remain UNI
changed as to interest rates.
Applications for loans through the
Federal Land Bank of Baltimore re-
ceived during the five month period
ending May 81, this year were less
than for the single month of jan
uary, 1884. Figures for the first
half of June show a lower daily
average than at any other time since
early 1888. From January /, to the
end of May 2,076 applications were
made for loans, while for the single
month of January last year there
were 231 more than that number .
The decrease in applications began
in June of 1884 and continued steadL
lily from that time. During the five
months of 1885 the number of applil
cations have been comparatively
steady, averaging 415 per month, or
1876 per day. The month of June to
date shows am average of only 11.06
per day. The peak month was Sep
tember, 1888, when 2,499, or an aver
age Of 100 per day, were received.
In the same five month period Of
1888, which was just prior to the
"flood' of applications which came
with the passage of the Emergency
Farm Mortgage Act of 1888, there
were but 653 applications received,
or an average of 5.22 per day. The
average SO far this year is nearly
three times as large.
"This large drop in the number
of applications" Mr.. Jackson said
"shows rather conclusively that the
distressed condition of farmers in
our section of the country has been
greatly refinanced.
with the recent passage of the
Farm Credit Act of 1885, affecting
Federal Land Bank and Land Bank
Commissioners loans, and the addi-
tional assistance it will render those
qualified to apply for loans through
these agencies, we anticipate an in
ersase in the number of applications
in the near future, particularly in
view of this reduction in interest
rates ON new loans. These, however
viii not be Of an emergency nature
as so many have been in in the past
two years, but more in the nature ID
Strengthening the financial position
for the farmer.
"This new low 4 per cent is q
direct reflection Of the lower rate Of
interest borne by Federal farm loan
bonds sold by the Federal Land
Banks. 1t is in keeping with the
policy of the Farm Credit Admin
istration to lower or raise interest
rates on new loans as the rates on