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Show Fram Loan Banks How They Operate While each Federal Land Bank has a capitalization of $750,000 at the outset, this is only its minimum capital, and as soon as it begins to make loans, as each loan carries with it a stock investment in-vestment of 5 per cent, the bank's stock begins at once tc increase, until the new stock belonging to the farm Loan Associations As-sociations equals that held by the Government, making a total of $1,500,000, after which 25 pet cent, of all additional proceeds from the sale of stock to the borrowers bor-rowers (the Farm Loan Associations) Associa-tions) will be applied to retiring the Government stock. By the time all Government stock is retired, re-tired, the total capitalization ol a Federal Land Bank will be $4,500,000, less the redeemed Government stock ($750,000) oi $3,750,000 net. The bank is authorized to sell debenture bonds based on farm mortgages to the amount of twenty times its stock, so that at the time all Goveri ment stock is retired, it will have outstanding $75,000,000 of such bonds, based on an equal amount of farm mortgages, giving the twelve banks an ulti mate capacity for handling mortgage mort-gage to tn ;:mount $9,000,000,-000 $9,000,000,-000 more than double the total present farm mortgages in existence. ex-istence. In fact even this might be somewhat exceeded, since additional ad-ditional mortgages would continue con-tinue to add 5 per cent to the stock. Each of the twelve banks will operate independent of the others in adding to its volume of business, and some will therefore there-fore retire their Government stock before ethers do. But the twelve banks are mutual endorsers endors-ers on all bonds or obligations put out by any of them. The first loans will be made out of the bank's capital, until $50, 000 or more of first mortgages mort-gages are accumulated: these will be deposited with the Registrar Reg-istrar of the Federal Land Board, and upon approval of the Board, bonds will be issued to the same amount, and offered to investors,, by the Federal Land Bank so that funds will be replenished lor additional loans. The maximum interest on mortgages is 6 per cent, but oh is predicted. Review of Reviews. Re-views. The Denver Tost tells of twins born at that city, a black son and a white daughter lie in a crib .-ide by side a freak of nature of which thtre is no previous arallel known. The mother is white, the father unknown, the mother saying that she was married mar-ried but divorced. The state will have charge of the children. If the mother had been a reader read-er of the Pest and had brot forth tripletts, the the third, no doubt, would have been a yellow kid. |