| Show Loans Refinance Farmers Debts In Davis County Utah r rA of A total of of Federal land bank and Land Bank Commissioner's CommIssIOner's Commis- Commis Commissioner's farm mortgage loans was made in m Davis county Utah from June 1 1933 to May 1 I 1934 ac- ac according ac IC according cording to the Farm Credit Ad- Ad AdminIstration Administration Ad Administration ministration Of this total f l mers in m D Dads DIS IS county used or 91 0 per cent to refinance theIr indebtedness By refinancing farmers obtained new mortgage I loans which the they v used to repay rep then old debts They generally re- re reduced reduced re reduced their annual interest charges I Ies es in m doing so EO In a number ot of cases ses downs scale of indebtedness in m connection with Ith the new loans These and other advantages es benefited farmers primarily Secondarily Sec Sec- Sec Secondarily creditors benefited from the receipt of cash or bonds in m e- e change for obligations they held Of the loan money used by Las fal mers m mers ers in m Da Davis DaIS IS county for refinancing mg their debts about It Its was s estimated repaid their debts to banks 2900 their debts to Lo insurance companies theIr taxes 1400 their debts to mer mer- merchants mer- mer merchants merchants chants their debts to toi others or creditors not separate separate- separately I ly cla classified including private ate mort mortgage mortgage mortgage gage lenders mortgage loan companies com com- comI corn i panics retired farmers and many I others to whom farmers were m in debt A total of about of loans m in the county was used for pur- pur purposed purposes pur purposes poses posed other than the refinancing of borrowers debts Of this sum was as used for the purchase of land and equipment the con con- construction construction con construction or improvement of bUIld buildings buildings mg's ings and for general a agricultural uses including the provision of capital while 16 the lance balance was as used for the purchase of stock In national farm loan tenons for fees Throughout hout the United States approximately of the theland theland land bank and Commissioners Commissioner's i loins loans were made from June 1 1933 to May 1 1931 i Most of the e loans were made to refinance debt resulting from the long period of low farm income Generally farmers pay con consider considerably considerably lder ably less interest each year rn n the neW than on the old loans Lund bank b loans made through farm loan as associations carryon carry an Interest in interest terest rate of 5 per cent bit Jt there 1 is a reduction of 41 4 per cent un until until til July 1938 Loans made dIrect by banks carry a n rate of 5 J pel cent but there is a reduction to 5 per cent until 1938 The rate on CommissIOners CommissIOner's loans Is b 5 per pr cent ent I A Against these rates farmers In Inmost inmost inmost most cases had been paying from 5 per cent to 8 per cent but on numerous loans they had been pay payIng paying paying Ing 9 per cent 10 per cent and even above 10 per cent Until March 26 the land bank and Commissioners Commissioner's loans were made in m cash Commencing on that t date they were made mainly in the gO government guaranteed bonds of the Federal Farm Mortgage e Cor Corporation Corporation These bonds are exempt c from all an federal state municipal l and local loc taxation except surtax surtax- surtes surtaxes cs I es estate inheritance nce and gIft tue taxes They are Ire gU guaranteed I fully funy II as to principal and interest by the United States government In a relatively short period after they were ere issued they sold above e par parI I and had met a favorable receptIOn from farmers and their credItors I IaU aU all over o the United States WIth the uso use of these bonds the refinancing refinancing program is going forward rapidly I IBy By F R RICHARDS Secretary I |
