American Agriculturist, May 26,-1923 
463 
How Federal Land Banks Help Farmers 
(Continued from page 454) 
The cost of this abstract, which must 
be paid by the applicant, will vary 
greatly, according to the labor involved 
and the scale of charges on the part of 
the attorney doing the work, but it 
will rarely Ise less than $20, and may 
easily reach $60. However, it ought to 
be said that an abstract once com¬ 
pleted becomes a permanent record and 
will have real value if at any time it 
is desired to sell the farm. It is ex¬ 
ceedingly desirable, however, that this 
necessary expense be kept as low as 
possible. The abstract becomes the 
property of the owner. 
Subscribing to Shares of Stock 
T here is one other item of cost that 
is commonly very much misunder¬ 
stood, and that is the subscription to 
shares of stock of the bank. The theory 
of the whole scheme is that the bank is 
a cooperative enterprise, and that each 
borrower must subscribe for shares of 
stock equal to five per cent of the 
amount of his loan. This stock is used 
as a basis for the distribution of divi¬ 
dends; that is, of any profits arising 
from the operation of the bank, and 
also as an insurance against any mis¬ 
management of the local association. 
At first sight, it seems ridiculous to 
demand that a man who is already seek¬ 
ing a loan should be asked at the same 
time to make an investment—and there 
is some truth in the contention. How¬ 
ever, this must be said; That it is an 
investment and not merely an addi¬ 
tional fee. It is practically certain to 
draw dividends during the years, and 
it will be deducted from the amount of 
the last payment. Last year the 
Springfield Bank paid dividends of 7 
per cent on this stock. Also, in theory 
it makes every borrower a part of the 
organization of the bank. 
The bank works pretty promptly. 
If an applicant feels that it takes an 
unconscionably long time to get his 
loan, I think he may generally feel that 
the delay rests with the local associa¬ 
tion rather than with the bank. They 
tell me that the record time for putting 
a loan through from the original appli¬ 
cation to the check was four days. But 
from two to three months will be the 
more usual time. There are several 
steps in the progress, but if there were 
no delays between it would not take 
long. Perhaps these steps may be 
stated thus; (1) Applying through 
the local association for the loan; (2) 
the visit and appraisal by the local 
loan committee; (3) filing the applica¬ 
tion with the bank; (4) the visit of 
the Federal appraiser; (5) the execu¬ 
tive committee of the bank consider the 
application and make their decision, if 
favorable the loan is granted subject 
to acceptance by the applicant and the 
furnishing of a satisfactory abstract 
of title; (6) the closing of the loan 
and the mailing of the check to the 
local association. 
A Policy of ‘‘Safety First” 
I T must be said that the bank insists 
on “safety first” as rigidly as any in¬ 
stitution well can. Probably no great 
corporation will ever be able to give 
the same sort of human touch and 
service that prevails between neighbors 
and friends—such as Joe Brown gave 
when he financed our county. Yet 
back of the whole plan is the fact that 
the Federal Land Bank is not organ¬ 
ized to enable anyone to make money, 
but rather to furnish credit to farmers 
upon the most liberal and advanta¬ 
geous terms consistent with sound 
finance. With all their rigid care, 
there have been but few foreclosures. 
The bank sells its bonds—^that is to 
say, it borrows—in sums of many mil¬ 
lions of dollars at a time, and then it 
loans out the money thus secured in 
sums ranging from $100 to $25,000. 
Its rules specifically provide that the 
interest rate to borrowers shall never 
be more than one per cent greater than 
the interest rate on their bonds. For 
example, just now the bank itself pays 
4y2 per cent interest, and loans this 
money out again at 514 per cent, and 
out of this one per cent margin, which 
certainly do^ not seem excessive, it 
' ’eat organization, covers 
fl, in addition, accumu- 
■ble surplus, this sur- 
n to the bank, but to 
ions, and in the end to 
the borrowers of which the local asso¬ 
ciations are made up. If the bank is 
economical and successful in its -opera¬ 
tions, every borrower finally profits 
thereby. 
The interest rate at present on mort¬ 
gages is 514 per cent, and this will be 
changed in accordance with the pre¬ 
vailing money market. If conditions 
become such that the bank can borrow 
at only 4 per cent, then the interest 
rate on loans will automatically fall to 
5 per cent, and even the present loans 
may be reduced after five years. This 
is more liberal treatment than would 
be accorded by any private institution. 
Perhaps the outstanding feature of a 
land bank mortgage is the amortiza¬ 
tion plan. “Amortization” is a long, 
and until recently, a very unfamiliar 
word. Perhaps we may freely trans¬ 
late it as “killing off the mortgage.” 
The plan provides for a small uniform 
payment each year throughout the life 
of the mortgage, and this amount is 
so calculated that the whole debt, both 
principal and interest, will be paid at 
the end of a certain definite period. 
For example, the typical $1,000 mort¬ 
gage of the Land Bank calls for the 
payment of $32.50 each six months for 
34^/4 years of 69 semi-annual pay¬ 
ments, when the debt will be paid. At 
first the amount of principal paid will 
be very small. For example, the first 
payment will represent $27.50 interest, 
and only $5 principal, but the last pay¬ 
ment will be only 87 cents interest and 
$31.55 principal. 
Paying Off the Mortgage 
I T should be said that the contract 
provides that the entire amount may 
be paid on any interest date after five 
years, and, indeed, I was given to un¬ 
derstand that the bank would probably 
waive the five-year clause if for any 
reason the mortgagee wishes to pay it 
earlier. 
It is a fact that under the old ar¬ 
rangements there were a considerable 
number of mortgages where the in¬ 
terest has been paid through long years 
with promptness, but, never any pay¬ 
ment on the principal because the 
owner has unconsciously come to re¬ 
gard his interest payment as a sort 
of rental rather than interest on a 
debt. The amortization plan of the 
land bank avoids this attitude and in¬ 
sures a slow but absolute discharge of 
the debt. 
So far as its position before the law 
is concerned, a land bank mortgage is 
in no way different from any other. 
The owner has precisely the small 
rights and privileges that he would 
possess if the mortgage was held by 
his neighbor, but it has the advantages 
of very small payments and a long 
term before due, together with an in¬ 
terest rate lower than he would be apt 
to secure if he had borrowed from an 
individual. 
There are twelve branches of the 
Federal Land Bank scattered from New 
England to Washington (State), Cali¬ 
fornia and Texas, but most readers of 
the American Agriculturist will be in¬ 
terested only in Branch No. 1, located 
at Springfield, Mass., and serving New 
England, New York and New Jersey. 
Pennsylvania is served by the Balti¬ 
more branch. 
A “Going Concern” 
T he New England Bank is the small¬ 
est of the twelve, but on April 
30 of this year it had outstanding loans 
aggregating more than $26,500,000, 
and during the preceding 12 months it 
had loaned money aggregating a little 
more than $8,000,000, divided among 
more than 2,500 farms. During the 
same period it distributed as “divi¬ 
dends” to the local associations nearly 
$49,000, and still retained a surplus of 
of nearly $250,000. It would seem to 
be fairly classed as a “going concern.” 
Note again that the bank is a coopera¬ 
tive enterprise, and that this surplus 
will ultimately be distributed as divi¬ 
dends to the stockholders—that is to 
say, to those who are its borrowers. 
I feel that at present the Federal 
Land Bank serves a real need in the 
rural community, and that it will have 
a far larger field of service when men 
come to have a better understanding of 
its methods and policy, which I admit 
seem at first to tangle with red tape. 
QUALITY CHICKS 
Sturdy, Healthy Chicks pins June 
Aiake the poultryman's Ideal profit combination. Take advantage of it and book your order. You can’t 
Increase the supply of June days, but you can increase your satisfaction and profits by orderlnff these extra- 
livable, hatched-right chicks that come from Hillpot Record Layers. 
White, Black or Brown Leghorns 
Barred Rocks . . • • • 
Rhode Island Reds - - • • 
White Rocks or Anconas 
Wh. Wyandottes or BIk. Minorcas 
Mixed Chicks . . . 
25 
$4.00 
4.75 
5.00 
5.25 
6.75 
3.50 
50 
$7.50 
9.00 
9.50 
10.00 
12.75 
6.50 
100 
$15.00 
17.00 
18.00 
19.00 
25.00 
12.00 
500 
$72.50 
82.50 
87.50 
92.50 
122.50 
57.50 
1000 
5140.00 
160.00 
170.00 
180.00 
S P E C I 
95.00 
105.00 
185.00 
190.00 
I A L MATING 
Mating A White Leghorns • • • 6.75 12.75 25.00 
Mating B White Leghorns • • . 5.50 10.50 20.00 
Barred Rocks. 6.00 11.00 22.00 
Send money order, check or registered letter. Chicks shipped parcel post with safe arrival 
of full count guaranteed anywhere in U. S. A. east of Mississippi River. 
W. F. HILLPOT, Box 29. FRENCHTOWN. N. J. 
Member Inlemational Baby Chick Association. life Member American Poultry Association. 
JERSEY BLACK GIANTS 
. Baby Chicks and Hatching Eggs 
25 Chicks $11.00 50 Chicks $21.00 100 Chicks $40.00 
Also R. I. Reds and Barred Rocks, White Wyandottes and White Leghorns at Attractive Prices 
Our birds have won seventj^two ribbons, including 18 first. 12 specials and 2 silver 
cups, at six of the leading shows the past winter. Order direct from this ad. 
PICTURESQUE POULTRY FARM, Box 71, Trenton Junction, New Jersey 
BUY HUBERS 
D Special Summer Prices 
RELIABLE CHICKS 
After June 1st 
Don’t fail to take advantage of these prices, for they will include our num¬ 
ber one grade chicks.. Our stock is bred for quality and heavy egg production. 
They will be money-makers. Will ship any number of chicks from 25 on up. 
S. C. W'hite and Brown Leghorns and odds and ends at 10 cents. S. C. 
Anconas at 11 cents. R. C. and S. C. Reds and Barred Rocks, 13 cents. 
S. O. Buff Orpingtons and White Wyandottes at 15 cents. .S. C. Black Minor¬ 
cas at 14 cents. S. C. Buff Minorcas at 20 cents. 
40,000 Chicks Every Week. Order Direct from This Ad. Attractive Catalog Free. 
HUBER’S RELIABLE HATCHERY, North High St., FOSTORIA, OHIO 
CHICKS $8.50 per lOO and Up 
POSTPAID TO YOUR DOOR AND 
FULL LIVE COUNT GUARANTEED 
VAKIETIKS Prices on- 
WHITE, BROWN, AND BUFF LEGHORNS.$5.00 
BARRED ROCKS, S. C. REDS, ANCONAS. MINORCAS. 7.00 
WHITE ROCKS. WHITE WYANDOTTES. 7.00 
BROILERS, MIXED CHICKS. 5.00 
BUFF MINORCAS —25, $5.50; 50, $10; 100, $20. 
Hatched in the best modern incubators frpm sooil, vigorous, pure-bred, 
free ranee. Carefully selected and packed to eo safely. Order riebt from this ad with full 
remittance. Save time. No catalog. Reference: Citizens’ Savings Hank. You take no chance. 
Instructions for raising late Chicks with eacii order. THE EAGLE NEST HATCHERY, Box F. 
UPPER SANDUSKY, OHIO. Only 18 hours from New York City. 
50 
100 
500 
$5.00 
$9.50 
$45.00 
7.00 
12.00 
57.50 
7.00 
13.00 
62.50 
5.00 
9.00 
42.50 
lieavy-laying flocks on 
CHICKS-$ii60 per 100 and UP 
POSTPAID TO YOUR DOOR AND 
FULL UVE COUNT GUARANTEED 
Varieties Prices on , , . 50 100 300 500 
White, Brown & Buff Leghorns, Anconas.$6.50 $12 00 $35.00 $58.00 
Barred Rocks, R. & S. 0. Reds .$7.50 $14.00 $41.00 $68 00 
Buff & White Wyandottes, & Buff Rocks.$8.00 $15.00 $44.00 $72.00 
Our Chicks are from selected heavy laying flocks, fed and well cared for and in a 
manner to insure strong and vigorous Chicks. ORDER NOW DIRECT FROM 
THIS AD and save time and get them WHEN YOU WANT THEM. Reference; 
Kirkersville Savings Bank. Circular Free. Write for reduced prices for June. 
KIRKERSVILLE HATCHERY Box D KIRKERSVILLE, OHIO 
ATHENEON CHICKS REDUCED PRICES 
12,000 per week hatched from healthy, vigorous, pure-hred, culled farm flocks — the kind that are easy to 
raise—live, lay*, and pay. Our customers re-order. There is a reason. 
VARIETIES Prices on — 50 
S. C. WHITE, S. AND R. C. BROWN LEGHORNS.$5.50 
BARRED ROCKS. ANCONAS, BLACK LEGHORNS. 6.50 
WHITE ROCKS, R. C. AND S. C. REDS. 7.00 
WHITE AND SILVER WYANDOTTES. BLACK MINORCAS. 8.00 
ODDS AND ENDS—Heavy Breeds, 10 cents; Light Breeds, 
the same. Mail your order now direct from tliis ad. Send check, money ore _ _ 
O. D. Full count and live delivery guaranteed. Parcel post prepaid. Reference: Athens National Bank. 
ATHENE CHICK HATCHERY, Box Y, ATHENS. OHIO 
July prices 
sliipments C 
- 50 
100 
300 
500 
.$5.50 
$10 
$30 
$48 
12 
35 
58 
,. 7.00 
13 
38 
63 
. 8.00 
15 
44 
73 
Is, 9 cents 
each. 
order, or 
registered 
lettet. 
No 
100,000 Chicks for June Delivery— 
Our flocks are bred for heavy egg production and our JUNE CHICKS will make excellent winter 
layers. VARIETIES Prices on— 50 100 500 1.000 
WHITE AND BROWN LEGHORNS.$5.00 $10.00 $47.50 $90.00 
BARRED ROCKS. REDS, ANCONAS. 6.00 12.00 57.50 110.00 
WHITE ROCKS, BLACK MINORCAS. 6.50 13.00 62.50 120.00 
MIXED CHICKS, ALL VARIETIES. PURE-BRED —same price as Leghorns POSTPAID. 
Full live delivery guaranteed. Orders filled in rotation. Season ends July 1st. Order right from 
this ad. Save time. Reference: Hl’RON CO. BANK. You take no chances. NORWALK CHICK 
HATCHERY. Box B6. NORWALK, OHIO. Only 16 hours from New York City. Chicks will 
vpgch you quickly and safely 
100,000 JUNE CHICKS 
Hatched under my personal supervision from personally inspected flocks of heavy-laying, pure¬ 
bred fowls. VARIETIES Prices on 100 500 
WHITE BROWN. & BUFF LEGHORNS.$10 $47.50 
BARRED ROOKS, REDS, ANCONAS. 12 57.50 
WHITE & BUFF ROCKS, WH. WYANDOTTES, MINORCAS 13 62.50 
WHITE & BUFF ORPINGTONS, SILVER WYANDOTTES 14 67 50 
MIXED CHICKS FOR BROILERS.$9 PER 100 STRAIGHT 
POSTPAID and full live delivery gruaranteed. Get your order in quickly right from this advertisement with full 
remittance. Bank Reference. Free Catalog. 
H. B. TIPPIN, Box F, Findlay, Ohio (Member 1. B. C. A.)— Only 18 hours from New York City 
CHICKS WITH PEP, $11 Per 100 and Up 
Selected Hogan-tested flocks. Postpaid, full 
live delivery guaranteed. Buff Orpingtons. 
Wh. and Sil. Wyandottes, 50, $9.25; 100, $18. 
Barred and Wh. Rocks, S. and R. C. Reds. 
Minorcas, 50. $8.25; 100, $16. Anconas and Heavy Broil¬ 
ers, 50, $7.25; 100, $14. Wh., Br. and Buff Leghorns, 
50, $7; 100, $13; mixed, all varieties, $11 per 100 
straight. On 500, 5% off; 1,000, 10% off. 
Free catalog. Member I. B. C. A. 
HOLGATE HATCHERY, Box A. Holgate, Ohio 
BABY CHICKS 
We ship anywhere and pay parcel post 
cliarges and guarantee 95% safe arrival. 
Barred White and Buff Rocks. R. I. 
Reds: White, BrOwn and Buff Leghorns; 
Wlilte Wyandottes: Black Minorcas; 
Anconas; White and Buff Orpingtons; 
Jlixed (odds and ends). Write to-day 
for prices. Prompt deliveries. 
E. P. GRAY. Box 90. Savona. N. Y. 
|Y P 1 1 Land and Water Fowl, Chickens- 
1*766 vdlcUOS Ducks, Geese, Turkeys, Guineas. Rab- 
® bits, Pigeons. Dogs, Stock and Eggs- 
HOME STOCK FARM, SELLERSVILLE, PA. 
for delivery 
after June ISth 
fe-VcBABY CHICKS 
White, Brown and Buff Leghorns. 1 10- parli 
Anconas and Black Minorcas . . /lUL. CdLII 
Barred and White Rocks, R. I. Reds. 117. narli 
White Wy ana ottes and Buff Orpingtons f i"!" ''“Lll 
Assorted Varieties . 9c. each 
For prompt shipments make first, second and third choice. If we 
should be short on one variety could fill on another. We send by 
S arcol post prepaid. 90 per cent live delivery guaranteed, Order 
irect from this ad or send for price list. 
THE LANH HATCHERY 
TIFFIN, OHIO 
400,000 CHICKS 
Big, strong Chicks from well:bred and well-kept heavy laying hens 
White, Brown, and Buff Leghorns, 60, $6.60; 
100, $10; 600, $48. Barred Rocks, Reds, An¬ 
conas, 60, $6.60; 100, $12; 500, $88 White 
Rooks, White Wyandottes, Buff Orpingtons, 
60, $7; 100, $13; 600, $63. Silver Wyandottes, 
80, $7.60; 100, $14; 500, $70. 
Postpaid. Live arrival guaranteed. Bank refer¬ 
ence. Orde- direct from this ad. FREE CIRCULAR, 
MODERN HATCHERY, Box D, Mt. Blanchard, Ohio 
TXr t I’Pkln and Runner Ducklings from selected 
III j jL I and properly mated stock, limited supply 
^ X • ipfj Order now for spring delivery. 
WAYNE DUCK FARM &. HATCHERY, Clyde, N. Y. 
