The Record-courier. [volume] (Gardnerville, Nev.) 1904-current, 1916-09-08
WILL INVESTIGATE
STATE CONDITIONS
No Possibility of Regional Bank
Being Established in this
State
tBy {. A. NORCROSS)

visit Reno Tuesday, September 18th,
for the purpose of holding public
hearing and investigation of the farm
credit situation In Nevada In relation
to the operations of the new Rural
Credits Law, or Farm Loan Act, as
II is officially to be called.
This act was signed by the Presi-
dent on July 18th. The Federal Farm
Loan Board, created by the act and
having In charge its administration.
consists OF the Secretary of the Treas
nry and four appointed members.
namely: George W Norris. of Penn
sylvania; Herbert Quick OF West
Virginia; w. s. A. Smith of Iowa. and
Charles T.. Lobdell OF Kansas.
Twelve regional banks. to be known
as Federal Land Banks, are to estab-
lished by the Farm Load Board. The
present series of hearings through
ont the United States are to enable
the board to determine which twelve
cities shall be the sites of such regio-
comprise the districts for each. One
regional bank. at least. will be estab-
lished on the Pacific Coast and possi-
bly, two. Assuming that San Fran
cisco may be chosen as the site OF one.
then California Nevada and probably
Utah and Arizona would likely com
prise It's district. with Oregon, Wash
ington,. Idaho and passibly Montana
in another district, and Portland OF
Seattle as the site OF the bank. II is
hardly conceivable that Reno will be
selected az the site of the regional
hank the hearing on September IL
being more likely in the nature of an
investigation to determine the farm
credits situation In Nevada and the
proper districting of the state In re-
spect to the regional banks.
The Federal Land Banks
Each of the twelve regional banks
must have "a subscribed capital stock
of non less than s750.000 the par
value of each share being five dollars.
The Farm Loan Board appoints the
Officers OF the ndw bank and the
capital stock Is offered for sale AT par
to the public. The stock remaining
nnsold at the end OF thirty days Is
bought by the Secretary of the Treas
Iiry OF the United States; but the
Government shall not receive any
dividends on stock so held, and pro-
vision is made for transfer to as
sociations or borrowers by the Gov
ernment at par value. as hereinafter
stated.
After a regional bank has loaned
$50 900 on first mortgages. IL can oh.
tain permission from the Farm Loan
Board to Issue like amount OF farm
loan bonds based uocn these ,ncrte-
ages, to sell the same in open mark
ct, and to use the proceeds for fnrth
er farm loans. This process may be
repeated until bonds to the amount
of twenty times the banks paid-up
capital are outstanding. The regional
banks may at any time increase their
capital stock above the required
minimum of 75.O00.0OO,
The bonds talso the mortgages on
which they are basedl are exempt
from Federal. state. municipal and
local taxation and are made legal in
vestments' for fiduciary and trust
funds. The capital stock of the.
banks, also, Is exempt from taxation.
The Farm Credit Feature
Loans by the regional banks are
made to local National Farm-Loan
Associations organized within their
respective districts. Ten or more
persons who own and cultivate farm
land, or who are about to own and
cultivate the same, may form an as
sociation, provided the aggregate
loans they desire are not less that
$2oO0O. Each member must take
stock in his association to the a
mount equivalent to five per cent of
the sum he wishes to borrow This
STOCK Is held in trust by the associa-
ton as security for the members in
dividual loan.
me association. In turn, when ap-
plying for loan from the regional
bank. must subscribe for stock In
snch bank to an amount equivalent
TO i've per cent of the sum II desires
TO befrow, and this stock is held in
trust by the bank as security for the