Show federal loans to sevier farmers for year total A total of of federal land bank and land bank commissioners sio ners farm mortgage loans was made in sevier county from june 1 1933 to may 1 1934 according to the farm credit administration which released the information through the secretary of the richfield farm loan association secretary J F ogden of this total farmers in sevier county used approximately 16 or per cent to refinance their indebtedness by refinance ing farmers obtained new mortgage loans which they used to repay their old debts they generally reduced their annual interest charges in doing so in a number of cases scale downs of indebtedness occurred in connection with the new loans these and other advantages benefited farmers primarily secondarily creditors benefited from the receipt of cash or bonds in exchange for obligations they held of the loan money used by farmers in sevier county for re financing their debts about 12 it was estimated repaid their debts to banks their taxes their debts to others or creditors not separately classified including private mortgage lenders mortgage loan companies retired farmers and many others other s to whom farmers were in debt A total of about of loans in the county was used for purposes other than the ref re financing man cling of borrowers debts of this sum 2200 was used for the purchase purchase of land and equipment the construction st or improvement of buildings t and for general agricultural uses including the provision of capital while 1000 the balance was used for the purchase of stock in national farm loan associations for loan fees etc throughout the united states approximately of land bank and commissioners loans were made from june 1 1933 to may 1 1934 most of these loans were made to refinance debts resulting from the long period of low farm income generally farmers pay considerable less interest each year on the new than on the old loans land bank loans made through national farm loan associations carry an interest rate of 5 per cent but there is a reduction to 4 per cent until july 1938 loans made direct by banks carry a rate of 51 5 per cent but there is a reduction to 5 per cent until 1938 the rate on commissioners loans is 5 per cent against these rates farmers in most cases had been paying 5 to 8 per cent but on numerous loans they had been paying 9 or 10 per cent and even above 10 per cent until march 26 the land bank and commissioners loans were made in cash commencing on that date they were made ma mainly ly in the government guaranteed bonds of the federal farm mortgage corporation these bonds are exempt from all federal state municipal and local taxation except surtaxes sur taxes estate inheritance and gift taxes they are guaranteed fully as to principal and interest by the united states government ern ment in a relatively short period after they were issued t they hey sold above par and had met a favorable reception from farmers and their creditors all over the united states with the use of these bonds the re financing program is going forward rapidly |