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PAGE TWO
CO. AGENT COLUMN
Farm Loan*, And Mortgage Refinanc
ing Through The Federal Land
Bank System
Following information is taken from
• recent radio address by Hon. Henry
Morgenthau, Jr., Chairman of Feder
al Farm Board and Governor Farm
Credit Administration. This address
was about Section 11, of Farm Re
lief Bill, which deals with “Farm
Credit." All farmers whose farm
mortgages are held by any of the 12
Federal Land Banks will benefit di
rectly under the new act. The pres
ent rates of interest being paid by
farmers on their loans is between 6
and 6 per cent, the average being
per ccmt. Sixty days after the
approval of the act by the President,
the interest rate on all these mort
gages in the United States will be re
duced to 4Vi per cent, and it must
remain at that rate for the next 6
years.
Any farmer who receives a loan on
his farm from Federal Land Bank
during the next two years will get the
benefit of the same low rate of in
terest.
The Federal Government is in
hopes that individuals and corpor
ations that hold farm mortgages will
join them in reducing the rate of
interest charged farmers. If all
those holding farm mortgages should
reduce the rate of interest only one
per cent on the aggregate, the saving
to farmers in payments on the ag
gregate total farm mortgage debt of
$8,500,000,000 would be $85,000,-
000 annually.
The new act provides that for a
period of 5 years these principal pay
ments, called “amortization pay
ments,” shall not be required if the
mortgage is otherwise kept in good
standing. In addition, the land banks
are given authority to permit bor
rowers to postpone such interest pay
ments as they can show they are un
able to .meet.
To meet the needs of the larger
class, whose mortgages are held by
others, than Federal Land Banks, and
especially to protect from the loss
of theii farms and homes those whose,
mortgages are in danger of fore
closure, the act supplies another
means of financing. It authorizes
the banks to issue $2,000,000,000 of
a special type of bond on which the
rate of interest may not be more
than 4 per cent. To make these
bonds readily marketable, and thus
to assure a great reservoir from
which the land banks may make ad
ditional loans, interest payment on
bonds is guaranteed by the Federal
Treasury. With these funds thus
provided, the Federal Land Banks
are enabled to do two things. First,
from proceeds of the sale of these
bonds, the land banks may make new
loans on the 4ame liberal terms of
payment as those granted to pres
ent borrowers. Second, they may ex
change these bonds for farm mort
gages. The terms of exchange are
to be based on the value of the pro
perty covered by the mortgage. In
no case may the amount of bonds
given in exchange for a mortgage
exceed one-half the fair normal value
of the land as appraised by land-bank
appraisers plus 20 per cent of the
value of permanent insured improve
ments on the land. The effect of
this provision will be that in many
cases those who hold mortgages in
an excess amount, based on inflated
values, must consent to a scaling
down of the amount of the principal
in making the exchange for land
bank bonds.
When mortgages are thus pur
chased by the land banks at a re
duced figure, the farmer borrower
will immediately reap the benefit.
He will be given the privilege of
making anew mortgage to the Fed
eral land bank for the amount the
bank paid for the claim, and will
thus not only reduce his total obli
gation, but will have the advantage
of the low interest rate and liberal
payment terms offered by the land
banks.
The new act, however, provides
other means not only for paying off
existing mortgages, but for the re
demption of land which has already
been sold under foreclosure. for
satisfying other than mortgage debts,
and for obtaining funds with which
to continue the operation of the
farm. The act provided a fund of
$200,000,000, which is to be used bv
the Farm Loan Commissioner in mak-
ing direct loans to farmers for any
of these purposes. Preference is to
be given to the applications of those
farmers who wish to borrow to save
their land from foreclosure, or to
redeem land that has already been
sold.
Acting through an agent in each
one of the Federal Land Banks, the
Farm Loan Commissioner is empow
ered to make individual loans in a
tnounts not to exceed $5,000 in the
case on any individual. These loans
are to he for a period of 13 years,
and are to be paid off during the last
10 years of the term. For the first
3 years, nothing but interest pay
ments, at the rate of 5 per cent, will
be required.
The general purposes of the mort
gage refinancing portion of the farm
relief bill, are two:
The first is to reduce the debt bur
den now carried by farmers of the
nation, and to provide terms on which
they may have hope of working out
of their debt difficulties.
The second is to provide better
means, on a permanent basis, for
meeting the farmers’ land-loan needs.
Applicants lor loans, and those
who have which they wish
to exchange for interest-guaranteed
land-bank bonds, Bhould note, how
ever, that their applications must be
dealt with by officers who will be sta
tioned in the land banks. The land
bank for this territory is District No.
3, Federal Land Bank of Columbia,
S. C.
Hon. Henry Morgenthau, Jr.,
through the courtesy of U. S. Secre
tary of Agriculture, Mr. Wallace, U.
S. Director of Extension, Mr. War
burton, and Georgia Extension Di
rector, Mr. J. Phil Campbell, have
asked that we county agricultural
agents assist in giving farmers infor
mation about “Farm Credit Features
of the Emergency Farm-Relief Act."
I will be glad to assist, farmers in
giving more detail information; also,
as far as I may, in securing loans on
farms, exchanging present mortgages
for Federal Land Bank bonds, etc.
Yours for service,
W. Hill Hosch, Cos. Agr. Agt.
COLORED PEOPLES 4-H CLUB
NEWS
The Adult and Junior Club mem
bers have pledged to help in every
way to make their homes, their com
munities and their county the clean
est and most beautiful one in the
state. Take notice as you drive
through the county, then you can
make the comparison with other
counties as you go into them. We
know every one is busy with their
farm work, or rather should be, yet
you can see that many have already
started toward carrying out their
pledge. The people have learned
that cleanliness is an asset to them
in many ways. They are learning to
appreciate the art of beauty, and are
planting more flower gardens, as
well as vegetable gardens.
On May 11th, Daniel Grove Adult
and Junior Clubs held a joint meet
ing. A cake cooking contest was held
to test Rumford Baking Powder, to
decide which powder is best for
cakes. It proved to be very good, the
cakes were fine. There were four
different kinds of cakes baked —
orange cream, chocolate, bananna,
and non beaten egg cakes. Adlevia
Hardman won first prize ribbon in
the 4-H club, Murdell Aker, second.
J. Aker won the blue ribbon in the
Adult Club.
Lavada Williams, the sister of
Allen Williams, and one of the
faithful teachers of this county,
died last Tuesday at the home of her
sister, Mrs. Moncree, Monroe, Ga.,
while there on a visit. She was born
and reared in Jackson county, and
taught here for many years. She
loved club work, and showed the
fruits of it around and in her home
and community. In 1929, she was
one of the contestants in the home
improvement contest. She won the
high score of 95%. She always tried
to do the work assigned to her well,
and never grumbled. She did not
meddle or abuse, nor try to tax oth
ers patience with her views, like
some teachers often do. She straigh
tened out her own affairs, and let
other people straighten theirs. She
forgot what this world was coming
to, but worked on what was -assigned
to her-. She seemed to know that if
on the sea of life you float, you must
not ball the others boat. We, as
club members, mourn her death.
M. R. Torbert,
4 H. D. A. For Colored People.
Ex-Senator Thomas, of Colorado,
a native Georgian, has qualified as a
hoarder in order to make a test case
of the legality of the President’s or
der or request for the return of all
gold, being hoarded, to the banks.
Ex-Senator Thomas resented the sec
tion of President Roosevelt in de
manding the return of all gold to the
banks. Undertaking to qualify as a
hoarder, he managed to secure $l2O
in gold and immediately announced
to the world in defiant terms that he
was ready to be tried and sent to
the peniteniary. His publicity
"stunt,” however, did not excite in
terest. and up to the present time no
one has attempted to prosecute or
force the venerable senator of the
“silver state” to be tried as a violator
of the law.
THE JACKSON HERALD, JEFFERSON, GEORGIA
If
You Are An HEIR,
if
You Are The Executor or
Administrator
OF AN
ESTATE
WRITE OR CALL
DOZIER LAND CO.
ATHENS ATLANTA
GEORGIA
GENERAL INSURANCE
STOREY ELLINGTON, Agt.
Represent Standard Companies,
and write all lines, Fire, Tornado,
Life, Auto, Surety Bonds. Shall be
glad to serve you.
CALCIUM ARSENATE
Calcium Arsenate for sale.
See Farmers Warehouse.
HAY
Just received car nice No.
1 Timothy Hay. See me if
in need of feed.
H. I. MOBLEY.
General Insurance,
Jefferson Insurance Agency,
Jefferson, Georgia.
notice
Make your City Tax Returns NOW.
The books close May 31, 1933.
GUY STRICKLAND, Clerk.
d?Ccnry'
May 15, 1933
. T _ +oid by my own organization and by others
Time and again I am tola y y
- thQ Ford V -8 what they
Friendly critics quaUty i3 not necessary;
expect it; and that the public does not know the
difference anyway. ,
But I know the difference. h 0 drives he
Tknow thet the car a man sees "Ot th , g seen _
drives the car -hich the engineer aooesOTrie sall
comprises buty evldenoe tha t we think so is th&t they
desirable, of .ours*.
~ £ r,: m and, . ^
311 the reSt „d i3 ,0d h y e /durable; the long thought and experiment
:[ v nlar/y liodfthe steady deveiopment cl com Fort. conven
ience and economy. last two or three years. But we
A oar can be built tha baaic material of our car to be as
have never built ota discarded as the day it is bought. Ford
dependable the day the roa d. It costs more to
oars built 15 years ago are stl are oost and
*—“• public " ould
never know the difference. But we ”“ gdo^™ without any hesitancy.
The new Ford V-8 U whole thirty years' reputation
' /"it/a even' better than our previous V-8 It is larger,
with it. hotter iob all round.
an advertisement because I know the oar wili
back it up.
? ? ?
Want a cook,
Want a clerk,
Want a partner,
Want a situation,
Want to sell a farm,
Want to borrow money,
Want to sell livestock,
Want to rent any rooms,
Want to sell town property,
Want to recover lost articles,
Want to rent a house or farm,
Want to sell second hand furniture,
Want to find customers for anything,
Advertise in The Jackson Herald.
Advertising will gain new customers,
Advertising keeps old customers,
Advertising makes success easy,
Advertising begets confidence,
Advertising brings business,
Advertising shows energy,
Advertise and succeed,
Advertise consistently,
Advertise judiciously,
Advertise or bust,
Advertise weekly,
Advertise now,
Advertise
JEFFERSON, GA., MAY 25| I