FARM CREDIT AND THE RATE OF INTEREST 189 



If one gradually saves the whole amount during the five years 

 and deposits in a savings bank at a rate two per cent less than he 

 is paying, the loss may be equivalent to one per cent on the face 

 of the loan for the whole time. Where the borrower can secure 

 a part of the funds needed at a low rate and a part at a higher 

 rate with privilege of paying whenever he has an even hundred 

 dollars, he will be in a position to benefit by both of these 

 systems. 



