The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-23
HIGH INTEREST
FARMING LOANS
ARE REFINANCED
Applications Being Rushed
at This Time, Walter F.
Calm Declares.

OdllIil OcCldI cS.
BIZ Times Special
WASHINGTON, Feb. 23.-An in
crease Of at least 100 per cent in
loans by the "A production credit
associations in Ohio, Indiana, Ken
lucky and Tennessee for 1885 as
compared with last year is esti-
mated by Walter F. Calm, presi-
dent of the Production Credit Corp.
Of Louisville, who is here attending
a conference of corporation exec
utives from the y farm credit adj
ministration districts of the United
States.
Loan applications are increaS-
ing rapidly at this time" Mr.. Calm
said rejecting the financing by
farmers of their requirements for
seed, fertilizers and labor for spring
planting. Loans for livestock flnanc-
ing, too. continue in good volume.
A considerable movement of west
ern breeding cattle to the grass
lands of Tennessee and Kentucky
is being financed with production
credit money and demand is keen
for both feeder and breeding live
stock loans in Ohio and Indiana.
Indiana Unit Active
The Greencastle Gnd0 Produc-
ton Credit Association, for exam
pie started of the new year by
lending an average of $1,000 a day
for each Of the 81 days Of January
and $1,000 day average for the
first seven days of February. his
was chiefly for livestock financing.
The Greencastle association made
its first loan in April, 1884, and
closed the year with a record of 345
loans for S124, 290, with not a cent
charged of for bad loans, a COM
Portable profit on hand and a SUBJ
Stantial enhancement of the book
value of Glass B stock, held by Dor
rOwer-members.
The largest loan volume of bust
ness was done by the Black Swamp
Production Credit Association, at
FOstoria. Ohio, with sos loans for
S261 900. Eighteen Of our A as
sOciatiOns exceeded the 100000
mark during 1884. Each association
made a profit for the year and in
no case was there an impairment of
the value of Glass B stock"
Mr.. Calm stated that a consider
able number of production credit
association loans have been made
for the purpose of enabling farmers
TO pay off loans bearing 3 per cent
to 81 per cent a month interest
rates, which were incurred for farm
operation and tax payment prior to
the establishment of production
credit associations.
Interest Rate Heavy
These farmers in some cases" he
said. already had paid out IN in
tereSt costs more than the amount
originally borrowed. They had found
it impossible to make any Roadway
in repaying the principal and get
ring free of the debt, yet possessed
collateral sufficient and a farm
management program satisfactory
to support a production credit loan,
with its per cent per year inter-
est rate. Reflnancing on the low
interest basis is enabling them to
pay themselves out of debt by the
use of amounts which they previ-
OuSly paid for interest alone.
Schools of instruction are being
held at this time for training county
representatives of production credit
associations in receiving loan appli-
cations of farmers, assisting the
prospective borrowers in creating
acceptable plans for repayment and
in otherwise projecting loan details
50 as TO simplify the work of in
Spectors anu of the association loan
committees. Similar one-day train
ing schools are also being held for
inspectors in each association.
Our constant effort is to shorten
the period between loan application
date and the disbursement of loan
proceeds, said Mr.. Calm. I'VE are
working as rapidly as possible TO-
ward having a thoroughly trained
production credit association repre-
sentative in each county. He not
only will receive applications, as at
present. but will handle many de-
tails which now slow up the progress
Of farmers loan requests through
the associations on their way to
the Federal intermediate Credit
Bank of LouiSvilel for discount"