Show INTEREST RATE ON FIVE YEAR LOANS T interest maturing during five commencing july 12 1933 i 0 on 11 loans nindo made by tile federal land bank of ner Ilet keloy through national faridi loan from the proceeds of bonds bonda sold during the i baxt boxt two years yeara will bo be chargo charged id at the rate into of not to exceed four and ane halt half per cont cent annually wh while on loans nindo directly by the bank tile the rato rate will not esceo of 5 per pei cent during the same period sah this lit in rates to be 21 charged borrowers was waa made liere here today by willard 1 D bills lont ilont of 0 the bank 1 normally the interest rate to borrowers hot rowers on oil men money ey obtained from tile hie fatale of federal farm loan 4 v ondi bearing 4 per cent interest fe V would be 5 per cent explained mr air bills tile the banks banka are per under the ille low law to charge I 1 per cent aoi erti between the bond i I 1 terest osite rte and an d that charged bor rowers tilts Opre spread gd of bourise co course urise to la i educed deduced to one half ot or I 1 per scent cent nhen n hen the bonds bear a rate of not to exceed 4 0 pe aron t LS 11 rato rate must ts ot exceed 41 per dent cent in order fe the banka to loss losi of if income because of the new low rata late to be charged li borrows orrow ora era during tho the fl five 0 years corn com r r next july 1 12 pon gresa has authorized toa the han banan of annually y or ol whatever ar part ot of th chatum ia I 1 necessary authorization Is im also albo given I 1 in junr tile the new emergency gency farm mort af gage act to borrowers to pay only interest ort on their loans during thel the next five years it if they live boio up to 1 tile the other covenants of the imort t rage gage normally borrowers pay inq ln i stall ments on the principal of their floars when they pay the he interest for example 1 alm total pigment on a 10 00 loan might be GO k Il dually itallY for the first flye deaia yeara 1 if nothing were paid on the 7 t 1 1 7 1 pal tile the tot total al payment would wohld noal nop exceed 45 where ere the borrower ra r 01 1 V celled his loan from the b ha an alcy 4 v th rought lIght a national farm I 1 loan 0 an as e f clation so or 50 it he borro borrowed 1 y directly from the bank i the low rate of int interest areat on 3 loans iq largely due to the n aw 1 1 type ond authorized under jae th e l 4 fi emergency act tho the into interest rests an b n 1 fr these theao long term federal ia F bonds bondi which may be ba issued during the ne nott 1 4 two yesra years eik aeed 4 per cent and it aw la gu aran 14 V a y 5 teed by tile united state i tah y are eligible for 15 1 day borrowings by b all from 0 federal res reserve erve banks oey ara arai I 1 iv V 1 1 consolidated tax exempt securities for which the 12 re federal pail la lab at I 1 banks will be jointly arid 4 j X 4 ly liable collateral Col latoral see becu 4 t hebi will be I 1 arora codih t ze curing b bonds ends issued eW lOtio 0 P to ci may 12 1933 washl gm ii news y t |