Show faff ft ff FARM LOAN ACT I 1 ill III amortization how loans loana a U under the farm loan act are ara designed to be at helpful to th tile the e 13 bor rower dy rank frank r IL II vilson federal loan loaa 1 0 n bureau b lV washington ashington 1 U C it lins ins always been recognized recognised that tile most effective aid ono one can ret got la Is that which enables him to help himself some critics of tho the federal farm loan net act have charged that flint this net act makes it too easy for farmers to got get into debt and that there will all bo be a tendency to A careful rending reading of tho the bill will show that tills objection Is la mot met by very carefully limiting tile tho wo ilse to which tile tho borrowed money may inny be put and by the requirement that farmers gradual ly each year tear must reduce their tit in the farm fann loan net act was designed to bo be helpful to ilia former farmer of 0 average operations opera tlona who has been denied adequate credit it wisely limits the loans to 60 per cent of tile tha appraised value of the security be bc cause tills makes the ilia security of a high character thus satisfying tile thu investor and therefore results in a lower rato rate of interest tho the use of tile tho money Is carefully to tile tho purchase of land to pity off 0 existing indebtedness to purchase live iho stock or to ninke make any productive improvement such as fencing drainage buildings and machinery Is really an investment when money can bo be borrowed clieny cheaply for productive use a mortgage becomes an investment rather than it handicap the farmer Is enabled to ret got money to put ills land to better use so that tile the profits of ills his investment t will mill pay off ills indebtedness hereafter judicious borrowing on oil the ho part of the farmer will be regarded ns as business enterprise just its as it Is 19 now BOW considered beneficial for large commercial institutions to borrow loan tho the farm loan net creates a form 0 of indebtedness which alch peculiarly pecullar ly fits the he fa farmers needs it recognizes that ilia forming farming business Is ono one of slow returns so it provides pro ldoa that a mortgage under the net act bo be paid on oil tile tion or installation plan through a long or short period of years ors tho the mortgages may be mado made to run from filin live to forty years i cars at the option of the borrower and they must bo be paid olt off interest and principal in equal installments through tha ilia period of tho loans permission slon Is given eh en to pay any all of tile tho loan or any part of it on oil any interest paying date utter after it tins lias run ivo ilya tears table of payments to gho the prospective borrower nn an exact idea of tho ilia aizo sizo of tile payments required annually to alpo out n mortgage in a given period amortization tables have am e been prepared tho the allowing table shows tile tho amount of annual payments required to extinguish in ilia period indicated ft thousand dollar loan bearing interest it at 0 5 BI and 0 6 per cent hate of interest term ars yrs 6 pet 46 pet 0 6 pet 10 CO Is 15 20 25 7 1 SO 30 35 0 0 WAG CO 40 so it will mill bo be seen been that the farm enrin loan act in addition to providing a way for cor ilia former fonner to borrow to the limit ot of safety provides 3 that lie ho must put his borrowed money to product iva ho use J and furnishes ilia machinery to get him out of debt in nn nil honorable bud businesslike way vay the alio loan let act helps tho the farmer fanner by placing w athin his grasp tile tho means to help himself it makes tor for business initiative tind and independence |