592 TWENTY-SECOND ANNUAL YEAR BOOK— PART VII 



Q. What will be the probable rate? Make us a guess. 



A. At the present time, the rate, on the plan we have with the 

 War Finance Corporation, will be 6 and 6^ per cent on loans we 

 take. 



Q. Is there any commission on that ? 



A. No ; no commission. 



Q. You take a rediscount alone? 



A. We take it with the banks. 



Q. On a chattel mortgage or real estate or straight farmer's note, 

 what will be the interest on the long-time, farm-secured note? 



A. At the present time, all over Iowa, it is on a 6^^ and 2 

 basis, and we follow the market, of course. 



Q. What do you mean by a farmer's note — just a farmer's note 

 endorsed? 



A. Yes. 



Q. And when can it be paid off? 



A. At any interest time. Please take into consideration the two 

 different classes of business we will have. 



Q. Does that refer to farm land loans? 



A. That is only paper. That is a side issue with us. Our main 

 business is with farm paper. 



Q. Will the rate you quoted, 6^^ and 2, apply to paper? 



A. That is the general going rate in Iowa on farm loans if you 

 can get any money. 



Q. What commission would that be? 



A. On paper? 



Q, Yes. 



A. That depends on the different locahties. Do you mean in- 

 vestment paper ? 



Q. Yes. 



A. Probably one-half or one-fourth of one per cent. 



Q. Do you think that these tax-free securities had something 

 to do with the advance in the rate for farm mortgage loans? 



A. Yes, I do. 



Q. About how much? 



A. It is hard to tell, gentlemen. There has been a lot of things 

 at work on this proposition, and the main influence today is the 

 large amount of policy loans which the insurance companies are 

 being asked to make for their policyholders. I understand that 

 three of the large insurance companies are borrowing money to lend 

 on their policies. 



