Evening Republican, Volume 22, Number 296, Rensselaer, Jasper County, 10 December 1919 — How Low Rates Are Secured for Farmers. [ARTICLE]

How Low Rates Are Secured for Farmers.

“The federal land banks are not permitted to charge any rate of interest except that which the board may prescribe, and the rate of interest which the fariner is required to pay may nev er exceed one per cent .in excess of the rate upon the bonds. “If they can sell the bonds at three per cent, the farmer under the terms gets the benefit; he gets it at four and in addition to that pays one per cent for amortization, which would make the cost of the money five per cent, including all of the expenses of the operation of the bank and the one per cent for amortization. g “Now the value of the loan to the farmer is very great. Not only is he assured of his credit for thirty-three or thirty-six years, if he wants it, but he knows that nobody can force the earlier payment of the principal of the loan except upon his own default. On the other hand, if he happens to be prosperous and finds that he has earned enough money to pay the loan before maturity, he is allowed to pay it in full or any part, at any time after five years.”