The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1935-10-10
Credit Administration
Addresses Bankers
Rates of Interest Have Been Pushed
Down to Per Cent; Not Owned
by the Government

| AACASu AISN1 AuO OCIOUCr o. uC
100000 farmers who own stock in the
Federal land banks through their ma
tional farm loan associations in ex-
cess of $1O0,0OO,OOO have built a
permanent cooperative first farm
mortgage system which is an i'm
portant factor in the farm lending
field and as such will continue to
have wholesome effect on interest
rates and terms of farm mortgages.
This statement was made here by
w. I. Myers, Governor of the Farm
Credit Administration, at the annual
meeting of the Mortgage Bankers
Association of America.
Governor Myers cited the fact that
interest rates on farm mortgage av-
| eraged around 8 per cent 10 years
ago when the banks were chartered
and that these permanent cooperative
institutions since then have made
loans at S to per cent on a nation
wide basis. Following the establish
ment of the Farm Credit Administra-
ton, he said, rates have been pushed
down to the all-time low in this field
IA per cent.
The Governor stressed the fact that
these banks are not government
banks, that prior to the emergency
the farmers owned practically 100
per cent of the stock and that they
now hold nearly half, and is open for
them to own them completely.
Because these banks have been
temporarily called upon the handle
emergency refinancing loans from
ACKNOWLEDGEMENTS funds, there
may be some justification for the mis-
belief that they are not cooperative
and belong to the government" the
Governor conceded. "People forget
that the federal land banks were es-
tablished as farmers cooperative
credit institutions. They have a 10
year record of making sound first
mortgage farm loans, having built up
a two billion dollar business on that
basis and are continuing to make
loans on cooperative basis without
any essential change.
"These banks have given farmers
better terms that they could secure
J elsewhere not. only as to interest
rates but also the long term fol-
which the loans run and the provision
2 for systematic, orderly repayment in
/ small installments. Compared with
interest rates previously paid, farm.
ers with Federal land Bank and Land
, Bank Commissioner loans will save
over SIS, 100000 this year on Interest
. alone.
1.-THE total loans by the Fedora
land banks" he said, "now exceed
$4,000, O0O,0 One out of every fou1
mortgaged farmers has cooperative
loan for the Federal land bank loans
now exceeds 100000.
Building along much the same
lines as the cooperative Federal lant
Banks, $50 production credit associa
tions have been organized and have
E been furnishing short term produc
9 ton credit during the last two years
6 now ha"ing loans outs a n {
amounting to $110,OO0,000. Similarly
credit has been made available t.
farmers cooperative buying and sell
ing organizations, through the estab
lishment of 13 banks for cooperatives
These banks have. served the credi
needs of over 100 local cooperative
marketing and purchasing organiza
: tons which is 5 times the humble
served at any one tne by the oil
Federal Farm Board"
f "In brief" Governor Myers said
h "the Farm Credit Administration is
: cooperative credit system through
t which farmers reach the investmen
e market and obtain funds for lonl
}, term credit, short term credit an
n credit for cooperative maketing an
r purchasing organizations. These loan
e are made on terms fitted to farmers
: needs and at the lowest possible cos
e consistent with sound business prac