| Show e lAND BANKS 1 CHARTERED i The largest cooperative financial undertaking ever initiated by br a combination combination combination com com- of western banks was started started started start start- ed last week when charters were is issued issued issued is- is sued in Washington by the secretary of the federal farm loan board Corthe for Cor forthe forthe the chartering of four joint stock stockland stockland stockland land banks with a combined capital and surplus of and an immediate lending capacity of 16 on the security of farm mortgages in Utah and five other western states The lie new institutions will be known as the tho Pacific Coast Joint Stock Land bank of Salt Lake City the Pacific Coast Joint Stock Land bank of Los Angeles the Pacific Coast Joint Stock Land bank of Portland and the tho Pacific Coast Joint Stock Land bank of San Francisco Nine banks s are arc associated in the movement including the National Copper bank Utah State National bank Walker Valker Brothers Bankers and the Deseret Desmet National bank of Salt Lake the Mercantile Trust company of San Francisco the First National bank of Portland the First National bank Security Trust and Savings bank and the Los Angeles Trust and Savings bank of Los Angeles To Work Rork Together Each of these Banks Danks will hold holdstock holdstock 1 stock in each of the joint stock stockland stockland land banks for the purpose of working working working work work- ing harmoniously to the end of a j proper cooperative financing of agriculture agriculture agri agri- culture in Utah Idaho Oregon Washington California and Arizona r Each joint stock land bank starts with a capital of and a surplus of giving each bank banka a lending capacity of fifteen times this amount or The Salt Lake bankers who have lent t their support to this undertaking ing and who will officer the Salt Lake City bank are W. W W. W Armstrong Armstrong Armstrong Arm Arm- strong president of the National Copper bank Heber J. J Grant president president president dent of the Utah State National bank and of the L L. L D. D S. S church Anthony W W. Ivins vice president of the Utah State National bank L. L H. H Farnsworth chairman of the board of jf directors and E. E O. O Howard president of Walker Valker Brothers Bankers John C. C Cutler president and Edgar S S. S Hills vice president or of orthe orthe the Deseret National bank dills k L It will be the special purpose of the Salt Lake Lale bank to meet the requirements requirements re re- of Utah and Idaho farmers farmers farmers farm farm- ers ers for term long credit on the security security security rity of farm real term credits credits' on the security of farm real estate a need need vital tal to the welfare not only of the farmers themselves but to those dependent dependent de de- pendent upon them The formation of a joint stock stockland stockland V land bank in Salt Lake was projected project project- ed about a year ago and some preliminary preliminary pre pre- work was done But at that j time the market marlet for the tho bonds of the joint stock land bank was lacking and inasmuch as these banks operate operate operate oper oper- ate under the strict provisions of the federal farm loan act It was decided decided decided de de- de- de to postpone action until a more fa favorable time That time has arrived Not only will wUl Utah money be placed at the disposal disposal disposal dis dis- of the farmers a significant move in itself but large large- financial resources of important banks in the principal cities of the twelfth federal feder feder- al reserve bank district will be jointly joint joint- ly used for the common support or of western agric agriculture To 10 Begin Business at Once While farmers in the s1 six states I concerned concerned will all profit by the move the need for the term long-term credits Is probably more urgent in Utah and andt t Idaho th than n in any of the other states Stales To make It possible for intermountain Intermountain in- in agricultural producers I to obtain term long-term credits at moderate moderate moderate mod mod- erate Interest rates will probably go farther towards stabilizing this in industry industry industry in- in than any other single effort could It is the expectation and aim of the organizers of the Salt Lake City Joint Stock Land Laud bank and the other affiliated Joint Stock Land banks to begin their operations almost imme imme- Issuance in Washington by W. W H. H Joyce acting secretary of the federal feder feder- al farm loan board Doard of the charters for the four banks permits the immediate Immediate Immediate Im Im- mediate beginning of operations U Under der the law governing th the operations operations operations oper oper- I of joint stock land banks they are empowered to issue bonds secured by first mortgages on farm farmlands farmlands lands the loans to be repaid on an amortization plan Under the act loans may be made for the following purposes oses To provide for the purchase of oC land for agricultural uses to provide provide provide pro pro- vide for foI the purchase of equipment fertilizers and livestock necessary for the proper and rea reasonable operation operation operation oper oper- of the mortgaged farm to provide bull buildings dings and and for the Improvement Improvement Improvement Im Im- provement of farm lands to liquidate liquidate liquidate date indebtedness of the owner of or ortho IT the tho land mortgaged No loans are made In cess cess' of 50 per cent of at the appraised value of the land mortgaged ed and 20 per rent of the value of the tho permanent Insured ed iTi on the land Bonds Donds Issued and sold on the open Investment market by joint stock stockland stockland stockland land banks are exempt from federal and state taxation and are permitted to charge Interest on loans of but 2 per cent more than tho the Interest paid on tho the bonds or at the present rate o of 45 per percent cent for tot tho the bonds farmers would pay but 65 per pcr cen for or the loans Should credit capacity of these four Cour joint stock land banks prove insufficient InsufficIent in insufficient In- In sufficient to meet the needs of th the tho farmers It Is the tho purpose of the organizers or or- to increase the capitalization tion from time to time as may be found necessary |
