| Show more credit for farmers preliminary organization of the utah idaho joint stock land bank created to extend long term credits on agricultural real estate is announced today by the directors representing the bankers of the two states who are subscribing tc the capital stock of formed under the provisions 0 the federal farm loan act this ne new corporation will have a lending power of fifteen times the capital stock or which the dir actors intend to distribute equally ii utah luh and idaho it is the first corporation of it kind in the intermountain section aa and is probably the most significant coope operate cooperate co ope rate financial move undertaker in the two states the directors art an W V W armstrong president of the th Lioi ul copper bank who head the temporary tempora rv organization charle b burton vice president of the utah stat asiata a nat onal bink N T porter former state bank commiss loner of utah is secretary of the I 1 organization the permanent organization wil be effected upon the receipt of th clia ci inter iter for which hl ch application wil be made immediately to the fe federa dera itam loan board it is the aim aim ol 01 the backers of the bank to be read to begin making loans within tin hect thirty days I 1 since ince january mr porter and J P jacobsen Jacobs cn former state bank ex aciner have been devoting theia entire time to the promotion of this enterprise and ahe the t w working oking out ci 0 the details of organization in thi last few bew weeks they have held man meetings ss with the bankers of uta and idaho as well as with various bariou business interests th e 1 undertaking was new to man of alse those who were approached ched but armed with the statistics of thi accomplishments of other banks in the east and in californi Califor and supported by the successful example of these institutions converts convert to them the feasibility of the project wert obtained and now endorsement of thi th bankhus bank has been given by practically all of the most important financial institutions of the two states as well as by agricultural and busine business bus ineis s w ir ip ests rests M porter spoke yesterday of tl arc c nth isia support which has been cc cco oled aed the plan by theban keis nd the farmers fan ners and he be characterized characterised ed me loan system possible through the organization as the most inviting and safest plan for the financing of agriculture which has ever been devised and operated the plan of operation simply stated is this the owner of farm land whether engaged in the cultivation of the faim or not makes application for a loan through his local banker A first mortgage up to so 50 per cent of a conservative appraisal is extended by joint stock land bank then the mortgage is de deposited osita with the federal registrar and bonds ara issued an on the security of the cwm in it q these rhese bon bonds ds are sold on the open market the loan bears an annual interest rate of aper 6 per cent and andin in addition tie t ae borrower pays 1 per percent cent annually oi 01 ibe he principal which in thirty t tree iree eais eai s through the amortization wipe out his debt the farmer far meris is thus cabled led to get a long term loan al a a reasonable interest rate and with nu no haiges for service sen ice beyond the irit iest ane bonds bond s which he united states s supreme supie me court recently deter in id d to be free from all federal state md local taxation gives the investor stor interest at 5 per cent and tle bond has the security of a conser ati i first mortgage MoTt gage handled under the close supervision ision of the feda fencil A authorities d dv vintages possible to the borrow ers im the joint stock land bank 9 with the borrowers fi f in the federal land banks are pin pim i pally keally these that the borrower f from rom the joint stock land bank bink is not r to make any subscript ons t trie ane capital stock ot of the bank that the borrower need not necessary necess ari y bt c s g ted ged in the cultivation of the lini mi 11 the lian ian is sought that fie cie borrower makes application for his loan direct and is not required to io become a member of a national earm aarm loan is association and that the individual borrower may obtain any sum up to the borrower f from born the federal federi tl land bank can cannot not set get more than one of the principal objects of the organization of the utah idaho joint stock land bank is to relieve many A f the banks of utah and ida idaho 0 principally those in the country irom from their frozen loans on agricultural real estate to relieve the janks of a considerable amount of this paper will release credits for other and more constructive purposes on to making more liquid be assets of the banking institutions while the benefit of the institution t 11 the banks is expected to be ol 01 very large importance the benefit to he farmers who will obtain the long arm loans will be of inestimable benefit lene ene fit if the banks and the lamers are helped by the ion 1011 and it seems certain that the rill be all the members of the corn com nuni ties involved are bound to share i indirectly at least in the move |
