The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-04-27

ficate has one vote in the land bank,
irrespective of the amount of his
hoIdings-one member one vote. Thus
the land bank is strictly cooperative
and no one interest can control or
rnanipulate IT, The members elect
the trustees, and the latter employ
the officers who conduct the bust
ness
After paying interest on its certi-
ficates and bonds, and accommodating
a certain reserve, the excess profits
go to the land reserve certificates
owned by the agricultural hanks that
are members Therefore these little
co-operatives ultimately will comprise
the major number in the member
ship.
For each $1,000 of giltedge mort
cages accepted by it the land bank
issues its own bonds to like amount.
bearing such rate of interest and in
such denominations and maturities as
will make them readily marketable.
All banks and brokers may buy and
sell these land bonds.
The law should provide that bonds
Issued by national land banks should
be a legal investment for postal saw
ings deposits and other trust funds.
The headquarters for the national
land bank in each State should be an
be the headquarters for all the agri-
cultural and home economies interest
Of the State The results received
should enable the land bank to get
its own rent free reducing its ex-
penses and increasing the profits.
State laws may he enacted by each
legislature under which may be In
corporated and conducted similar lit
tie cooperative banks and one or
more land banks for each State, just
as there are commercial banks under
both State and national law.
State laws relating to real estate
aud land titles may require modif
cation in some States to simplify and
cheaper the processes of mortgagtng
and foreclosure. and TO insure the inn
peccahle character Of the security.
Absolute safety to the investor in
these land bonds is a prime requisite
to low interest rates, and to the
smallest expense between borrower
and lender
The borrowers note being for
long term Of years. with privilege Of
reducing principal in excess of the
required minimum Of ! per cent an
nually he does not require certain
restrictions imposed in some States to
protect him against the sharks who
otherwise might untustly foreClose
upon short term mortgage. But the
American farmer will never consent
to parting outright with the title. to
his land in order to secure the mort
gage thereon, as one suggestion has
1t. This IS not required even in any
European country.
Conclusion
We have outlined briefly n method
in two parts that f1tly supplement each
other
This method readily adapts itself
to the varying conditions in country
and town.
1t is individual self effort. inspired
by community of interest. managed
capably. and associated in Il union for
the common welfare
II aCCords with the nature, history
and characteristics Of our people.
II does not inJure any existing in
terest.
Il creates wealth in place OF want.
II benefit every branch of industry
aud Of commercial banking save only
the few usurers OF i'll -gotten gains
wrunE from poverty.
Economically, 1t is husinesslike,
practical thrifty. efficient. prottahle
spiritual
Periodically, 1t insures the common
welfare. promotes material. physical,
mental and spiritual health and max es
for a greater nation through a greater
agriculture