Show a i WILL ike AKE W I 1 ESY nsf m ND BETTER BETT E H 1 I 1 1 guaranteed ngo co of america Anic rica 1 in los an geieg for foi that purpose Pur poc the guaranteed mortgage al lort gage securities co of america inc has just been organized in los angeles with a ca capitalization of according to an announcement made to day by john J morey president I 1 of the new organization one of the novel invests investment ent features which will be installed by the guaranteed mortgage securities co will be known as tile the guaranteed guara reserve system this plan will make farm loans liquid where ot of necessity they are at present frozen it nill also get tile the farmer entirely out of debt by enabling him to pay oft off and clear a portion of the indebtedness each year and by reducing the interest indebtedness it ill stabilize farm values by relieving tile the necessity for most farm foreclosures fore closures and st stabilize tile the farmers market this guaranteed reserve system still will finance entire communities and I 1 sections bisections by the proper handling bridling ot of 1 the communities 1 own funds and with the assistance of outside funds cherel they are needed through transferring surplus funds fund S from sees sections to other sections needing further funds it all A ill also e discount facilities for or the country banker baliker where they are denied him because of tile the nature of ilia hia p paper per by the federal reserve system this novel plan which was thought out by mr morey will ben benei fit the agricultural int in resta orests the farmers and the country bankers primarily bearing in mind the absolute necessity for discount facilities cili ties no not alone j or t the 11 e s short hort commercial paper which at prudent pre is I 1 discounted by the federal reserve system but also tor for the farni farm mort niort gages the frozen assets of the banks in the rural sections I I 1 member banks will be privileged go d to discount farm mortgages when advisable or they may hand the farm mortgage on oil to the reserve system in who ho will convert the loans i aiom the old basis to the new amortized im or basis the plans are at present limited ii to tile first reserve region as yet but as as ans the first reserve system is well under way it will also organize in the northern cali 1 fornia forma district and then in portland seattle denver deliver kansas city and I 1 covering the farm section of tile the united to 1 tates Eten extensive sive arrangements arrage ments according to mr morey are being made fo for the outlet for these securities A portion of them will be handled by itile i the daiil banks themselves elves selling them to ther their win own cl clients ants on tile the install 1 ment plan the money de rived each month by the sale of these bonds through the banks is to be loaned by bv the bank in the banks own community subject to the ap j and appraisement of the reserve system and the trustee which is the union bank trust co of lop angeles arrangements have been made and jtb mothr r arrangements are under way to place tile the bonds in now new york philadelphia and other eastern cities and in europe the bonds hae already been declared legal for jare saving in some sections and plans are being made for or this arrangement in california appraisals are made fiade by both tile the operating company and by the union bank ant and trust crust co of los angeles and the columbia trust C co 0 of salt lake city utah no loan will be made in excess of 50 per cent of the lowest appraisal made each bond and each installment purchase liase certificate carries a certificate signed by the trust officer ot the trustees bank evidencing the deposit of the securities for the payment of the bonds loans will be amortized over a period of 10 to 16 15 bears ears for farm loans and 10 years for loans on city property the bonds will be issued as ot the company and they have as additional security tor for their payment the capital and surplus of the company A further sinking fund amounting to I 1 per cent of bonds issued is provided to create a reserve sinking singing fund ot tho officers officer are john J morey president roland paul vice president john G mitchell vice president soren cn vice president elmer A waugh assistant to the president le roy will secretary E russel gibbons treasurer and K tinsley assistant treasurer the nhe board of directors consists of john J albrey roland paul john G mitchell dr eldon webb ebb tice sorn niel S paul goo geo robinson and elmer A waugh augh tho business of the company will include a city and farm loan department part ment a mortgage loan department and a wholesale and retail bond department from the los angeles evening horald herald 1 |