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Better To Be Ahead Than To Be Behind
That makes sense with almost anything, especially with money.
When you’re ahead, somebody pays you interest on your investment. When you’re behind, you pay somebody else. On farm equipment costs, it can make a lot of difference.
Take your tractor, for instance. It’s worth less every year. You take income tax depreciation on it, of course, 'but sooner or later you need a new one. Then what?
If you’ve saved money equal to the depreciation, your new tractor costs you less than the cash price, because you get interest l>h the money you saved. If you buy on time, you’ll pay more than the cash price, because you’ll pay interest on the balance.
Of course, the same idea holds for trucks, plows, combines, mowers and other farm equipment. The more you own, the more you can save by staying ahead of depreciation, rather than falling behind.
There’s no better, safer or easier way to save ahead for that equipment money, than by buying U. S. Savings Bonds. Series E Bonds are easy to buy at your bank or post office. They pay 3 % interest compounded semi-annually when held to maturity. Should an emergency arise and the money is needed, the bonds can be cashed at any bank.
Decide today to play safe. Start a “Farm Machinery Replacement Fund” of your own. Buy enough Savings Bonds to cover your total depreciation, year by year. When New-Tractor time comes ... You will be ahead.
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