BUYING FARMS WITH LAND-BANK LOANS. 
17 
Table VIII. — Manner of repaying amount loaned on second mortgage. 
[First mortgage held by Federal land banks and giving of mortgages coincident to the 
purchase of the land.] 
Per cent of second mortgages repayable — 
Holder of second mortgage. •. Ail cases. 
1 
Monthly. 
Semian- 
nually. 
Annu- 
ally. 
End of 
mortgage 
period. 
Any time Other 
optional. ways. 
35 
398 
144 
2.9 
0.3 
0.8 
0.5 
3 
17.1 
46.7 
20.1 
38.3 
221 
40.0 
44.5 
70.1 
50.6 
292 
34.3 
1.5 
7.6 
5.0 
29 
5.7 
Other former owners 
1.0 
G.O 
1.4 
All cases: 
0.7 
4 
4.9 
Number 
577 
28 
In Table IX second mortgages involving the privilege of periodic 
repa} r ment are grouped according to the size of annual payments. 
There were 240 second mortgages repayable in periodic payments on 
which it was possible to determine the relation of the size of the 
periodic payments to the cost of the farm. Ignoring interest, it is 
found that about one-third of these 240 borrowers are under obliga- 
tion to pay to the holder of the second mortgage, each year till the 
second mortgage is fully paid, an amount up to 6 per cent of the 
original cost of the farm by way of reducing the amount of the second 
mortgage. Payments larger than this, on second mortgages of any 
considerable size, would be rather hard to meet out of the income of 
the farm in addition to the payment of interest on the second mort- 
gage, and interest and amortization on the Federal land-bank loan. 
Yet the greater number of the rest of these second mortgages are so 
arranged that there is annually due on the repayment of the second 
mortgage an amount exceeding 6 per cent of the cost of the farm in 
addition to the interest due on the second mortgage. 
Table IX. — Periodic repayment of second mortgages; size of annual payments. 
[Per cent of total cost of farm, ignoring interest.] 
Annual payment. 
Number 
of records. 
Per cent 
of all 
records. 
Annual pa yment. 
Number P JJ Jf * 
ofrecords ^^ 
L'p to 4 per cent 
33 
45 
37 
36 
37 
13.8 
18.8 
15.4 
15.0 
15.4 
15 
37 
6.2 
4 to6 
15.4 
Total 
8tol0 
240 
100.0 
10 to 15 
In at least one instance the Federal farm-loan plan of repaying 
the interest and amortizing the principal has been copied by the seller 
of his farm in drawing up the terms of repayment on the second 
mortgage, which he accepted in part payment for his farm. In buy- 
