362 Report of Farmers' Institutes 



bj not being able to meet the payments. Recognizing what a great 

 help a financial institution to remedy the situation would be to 

 these people, a preliminary meeting was held at Centerville 

 Station, June 4, 1914, at which, with the help of several officials 

 interested in the Land Bank, the First Farmers' Savings and Loan 

 Association was organized. 



Any savings and loan association incorporated under the laws 

 of New York State can become a member of the Land Bank of 

 the State of New York on payment of a share of $1,000; there- 

 fore, the First Farmers' Savings and Loan Association at once 

 became a member. About one month ago we received our first 

 installment of $5,000 from the sale of the debenture bonds issued 

 by the Land Bank. In order to secure these loans, we were 

 obliged to place with the Land Bank mortgages amounting to a 

 little over $6,000. All these mortgages are deposited for safe 

 keeping with the State Comptroller's office in Albany, We just 

 received a notice from the Land Bank to file an additional applica- 

 tion for money. According to law we are entitled to $15,000 

 more, provided, of course, we will give them the necessary 

 mortgages. 



On account of the present financial condition, it was not deemed 

 advisable for the Land Bank directors to issue these bonds foi 

 longer than ten years. They have sold them for 41/^ per cent, 

 charging us Yo per cent additional for expenses, so that our 

 association gets them for 5 per cent; we lend out this money, as 

 well as our own, at 6 per cent interest. While this may appear 

 rather a high rate of interest, you must remember that all the 

 profits belong to the shareholders of the association, and that we 

 expect in the near future to get money on more advantageous terms 

 from the Land Bank, when we shall be able in turn to reduce our 

 rates of interest to the farmers. 



Our savings and loan association recently held its second annual 

 meeting in Centerville Station, and I can give you the following 

 interesting data from the annual report: 



We made altogether five loans on farms as follows: $800, $1,700, 

 $3,200, $3,500, and $3,000, making a total of $12,200. The law 

 perriiits us to grant loans up to 60 or 70 per cent, but we have 



