The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1916-09-07

any period Of not less than five years
nor more than forty years.
Payment of the principal and inter-
est on the loan is based on an amorti-
cation plan Of a fixed number of an
nual or semi-annual payments, each
in the same amount, and sufficient to
liquidate the mortgage at the end of
the prescribed number of years.
No regional bank is permitted to
charge more than six per cent per
| annum on its farm loans and in no
case shall the interest charge exceed
one per cent above the interest rate
on the banks last issue of bonds.
That is to say, if the banks last issue
Of bonds, on which il pays interest,
we're at five per cent per annum, then
the maximum interest rate the farmer
will have to pay is six per cent, or
one per cent in excess thereof. AS
these bonds are not only amply Sc
cured by first mortgage farm realty
in double the value of the loans, but
are substantially guaranteed by the
United States government, it is be-
lieved that they can readily be mar
keted at interest rates, in time. as
AON 40 AOuA pei AGhts lluS IeOuClnR
the farmers interest to about five
per cent.
Under the amortization plan of
equal annual payments the farmer
would pay about $40 per annum ON
each $1,000 borrowed, forty year basis
which in that time would exting,iisb
the principal and interest of the loan
and give him no worry in respect 10
the mortgage coming due. This com
pares very favorably with $50 nor
annum interest commonly paid nv
farmers, with the liquidation of tho
mortgage a matter of c~onsiderahIe
immediate concern. The Operations
OF the "Landschaften" system in En-
rope. on which the present law is in
part based, has contributed enormoue-
ly to the development of agriculture
IN ose countries, and similar good
results are anticipated here.
The Joint Stock Land Banks
Aside from the foregoing provisions
of the act, the farmers and s~tockmen
of Nevada will be particularly inter
ested in the joint-stock land hanks
authorized by the new law. These
VIII De under the supervision and con-
troll of the Federal Farm Loan board
very much as National banks are I'M
der the supervision and control of the
Treasury department. They must have
a capital of not less than $3.50. 900
each and may be located in any dis
trict not already covered by a like
bank; each bank having a prescribed
n exclusive territory within the dis
trict of a regional bank for its oper-
atoms. 1t may loan more than $40. 900
to an individual, subject to the fifty
per cent and twenty per cent valua-
ton limit, and is not restricted in
making loans to the specific purposes
prescribed for the regional banks. II
cannot charge more than 6 per cent
interest, and such interest rate NAV
not be more than one per cen above
the interest rate on it's last issue of
bonds. 1t may issue bonds up to nf-
teen times its paid-up capital. The
bonds are exempt from taxation. but
the capital stock is subject to taxa
ton.
While it is not probable that n of
the regional banks will be located in
Nevada, it is quite likely that in time
n or more of the joint-stock banks
will be organized in this state to pro-
vide low rates, of interest and the
amortization plan of payment for
large farming and livestock enter
prises.