The Bowbells tribune. [volume] (Bowbells, Ward Co., N.D.) 1899-1969, 1919-01-24
QuAMME REPORTS CONDITION
OF THE ST. Paul FEDERAL LAN0 BANK

and practically no income until we
began to close the loans and place
them on the books. The business
came in great volume however, and
the income inceased from month to
month ais loans were added. The
profits during the last six months
have been such that all of the ex-
penses from the organization Of the
bank up to January 1st have all
been paid, leaving a net surplus Of
6,493.oS. The Bank has a vol
ume Of business now on its books
that will insure us a steady net pro-
1T of over $4,000 a month, and
this will be increased from month
to month as new loans are added.
The Bank is, therefore on a solid
Income earning basis that will In
crease from day to DAY with every
loan closed.
!. We have passed the critical or
| ganization period and the Bank Is
I an established, successful financial
| institution, As soon as the profits
accumulate to an amount that will
warrant it, dividends will be paid
! TO the stockholders, and dividends
WIN W pdAQ ouAuoAAy AS6oAoA y
thereafter. :
t. The difference between the rate
of interest charged the farmer and
J, the rate of interest paid the bond
| buyer is one-half of one per cent.
! We. have, therefore. operated on a
!. basis Of one-half Of one per cent.
In other words, we have brought
| the money-lender and the farmer
I, together and secured the funds TO.
! the farmers on an overhead charg
: OF one-half Of one per cent. Their
| has been doubt in the minds Q,
many of our borrowers whether
not this could be done, but we hav
operated long enough now to de
termine that We CAN operate on
margin of one-half OF one per cen
and pay our expenses and pay tn
borrower a dividend on his stot
besides.
/ We fully appreciate the cooper;
ton received from the officers, d.
ectors and members of the FarL
| Loan Association throughout GU
district. This was an entirely ne
! financial system and every deta.
! had to be worked out step by ste /
as the system was developed. w
know that the members in. tn,
! Country found many difficulties II
! the initial organization work befor :
their association was chartered
The Officers and Directors of tn (,
Federal Land Bank have also ha
a hard task to establish the Ban :.
in all its departments. In othe
words, we have all worked hard l.
order to put this system across
From now on the task will be eas
ier. When the Farm Loan Asso
citation has been. chartered, tn
heaviest work is over, The sam
thing Ia true Of the Bank. Th
The Bank has been organized, tn
departments have been determined
and tho system for doing busines:
has been established I want te
mention here, especially, that W.
appreciate the patience that the
farmers have shown during this o1s
ganization period.
We herewith enclose book O.
rulings which will be. of material
assistance to you in the future,
Within a few weeks we will also
send to the Secretary-Treaaurer OF
each association little booklet
covering the Instructions and re-
quirements of the various depart
ments. This will be especially
helpful for the practical work of
conducting the business of the Farm
Loan Associations in the country.
This is a great cooperative sys-
tenn of financing. Let VS. therefore
all cooperate together tn order to
make this Bank a great instrument
for coed In the Development of ag-
riculture In our district,
sincerely yours,
D: G, -QUAMME, President.