Middlebury register. (Middlebury, Vt.) 1886-1937, 1914-10-23

er FARMERS are deeply Interested.
At the last session of the New York
state legislature law was passed,
which was promptly signed by Cover
nor Glynn. authorizing the organiza-
ton of the Land Bank of the State
of New York. Plans are under way
for the organization of this bank and
the formation of more savings and
loan associations. The Land bank is
the central association and will he
located in New York city.
There are now over $50 local savings
and loan associations in the state.
Their method of orga nization is as fol-
lows: Fifteen persons, men or WON
en-, may unite to form a savings and
loan association. They can operate in
a territory embraced within radius
of fifty miles. The organizers should
all reside within that territory. If,
however. it is found impossible to or
ganize without going outside the ter
ritory they may secure enough persons
outside the fifty mile radius to assist
in forming the association.
The Land bank will be organized by
the local savings and loan associations
and will be owned by them. But no
local association will be compelled to
become a member of the Land bank.
This will be determined by its mem
bers. But if it is not a member then
1t will derive no benft from the Land
bank A local association will become
a member Of the Land bank by taking
one or more shares in il. and IL viii
then be entitled to all the benefits ac-
cruing from such membership. When
ten or more local associations desire to
organize Land bank a meeting of their
members will be held and a charter
and bylaws will be prepared and sub
mitted to the superintendent of banks,
who will approve the same and issue
certificate of authority to begin bust
ness The local associations will pay
81 900 for each share in the Land bank.
and directors and officers will then be
elected and may proceed to do bust
ness. The money received TO- shares
will form the capital to loan on real
estate mortgages.
There is one very important advan-
tage in the local association plan. The
officers of the local associations know
the individuals who wish to borrow
money. and they also know the values
Of the property on which mortgages are
desired. They are in constant touch
with the men interested, can make
collections cheaply. and the members
get the benefit of any profits and of
low rates of interest on loans. Now,
for the first time in this country,
mortgages of the small homes and
farms are placed on the financial basis
to which their merit entities them and
on plane equal to that of any other
industrial security The farmer may
borrow on mortgage for forty years
or less. and on a forty year mortgage
he would make an amortization pay
ment of ! per cent year and at the
end of forty years the mortgage viii
have been cancelled. The rate of inter
est which he will pay the Land bank
will be determined by the rate of the
Land bank plus the cost of administra-
ton The mortgage cannot be called
for payment so long as the borrower
pays his annual dues. but he may pay
part or all the mortgage at any time.
Those who have been looking for
safe investment will find it in the Land
bank bonds. They will be written in
small denominations and may be
bought and sold by one person to an
other. II will doubtless be a boon to
many wage earnerS who wish 10 lay by
81.
day" for the bonds will not only be
safe, but they will be convenient
1t is interesting To note in this con-
nection that a New York publication
has recently organized among its office
force and staff a local Land bank. and
forty of them have subscribed for
shares to the matured value of $4,000
The local bank or association may is
sue four kinds Of shares: Installment
shares. on which dues may be paid at
30 cents per share per month; second.
shares on which dues may be paid at
the option of the owner: third. accumu-
lated shares, on which the member will
pay down $50 or more at time of issue,
and the dividends will be added until
the share natures at 500; fourth, in
come shares on which the payment OF
the face value of 500 shall be paid at
time Of issue, and the dividends will be
paid semiannually in cash
The Land bank of the state of New
York will probably be organized this
fall as more than the required ten as
sociations have enrolled or signified
their intention TO enroll. The ten assO-
Citations that have already enrolled
have a subscribed capital of $4,000
and have total resources of $4O0O,000.
The Land bank offers to farmers a
plan and an opportunity 10 finance
their mortgages on real estate for long
terms and TO amOrtize the debt by
small annual payments. 1t would seem
To bee the thing they have long needed.
4. -.