Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1919-08-29

can possibly be in any farm. Farms
NAV rise in value or may fall. 1t
now looks as though land had gone
about as high as 1t can go in most
parts of the country. We are fac
ing an era of labor shortage and high
wages, and these influences never
help the price of land. Nobody can
look forward, however, to any time
ed in farm loan bonds will buy less
in any kind Of goods or in land than
it will buy now. The prospects are
that such money will buy more of
! ali these things than it will buy now;
and the interest is absolutely secure
at four and one-half per cent, and
the security of the principal is ample.
Security Behind These Bonds
Each federal farm loan bond is
secured by all The resources, not only
of the federal land bank which is
scues it, but of all the other federal
land banks The II federal land
banks of the United States are all
liable for every federal farm loan
bond issued These banks are al
ready great institutions. Starting a
little over two years ago with So
600, 900 capital, they now have capt.
81 rtoo1y ourrauo+inu con mn 000
Three of them have already paid div
idends to their stockholders, almost
all of whom are farmers. Two more
will pay dividends in the immediate
future, and three others. are almost
ready to pay dividends. They are
beginning to pay back to the govern
ment the money which the govern
ment furnished for their capital
stock. They ale big, sound, strong,
financial institutions, under careful
management and strict government
supervision, and are gradually COM
ing to be owned comparatively by
the farmers of the country.
But these resources are not the
only security for federal farm loan
lends. Each issue of bonds amounts
tc $250,000, AID before the bank
can issue the bonds it is required to
deposit farm mortgages to the
amount of more than $250,000.
Each of these is a first mortgage
upon land worth at least twice as
much as the face of the mortgage.
AS matter of fact, the mortgages
do not average more than about 40
or 10 per sent of the value of the
land, and in some parts of the coun-
try the federal land bank thinking
that the price of land is too high,
will not loan over one-third of the
selling price Of the land. No bond,
therefore, not even a United States
government bona, can be more safe
or secure.
Money invested in federal farm
loan bonds will be taken by these
banks and loaned to farmers. so that
the whole operation benefits not only
the farmers who buy the bonds but
those 10 whom the money will be
loaned. In addition, these bonds are
always readily marketable, if the
farmer wants the money, and are
acceptable security at any bank if
he wants temporary loan.
These bonds may always be had
in exactly the amount which the
farmer or land owner wants. If he
attempts to loan his money out to
farmers direct, he often has difficult
ty in finding a borrower who wants
to borrow the exact amount he wants
to loan, and he has to look after his
collections of interest, and has the
bother of reloaning the money when
lit is paid. Furthermore, he has to
pay taxes on it, but he does not have
t. pay taxes on any sort of money
invested in feueral farm loan bonds.
These bonds ire much more con-
venient sort OF property to have than
farm mortgages 1t will stay invest
ed. These bonds run 20 years, and
when they are paid there will be no
difficulty in Getting other federal
farm loan bonds 20 take their places.
Tie system is a permanent one and
Is issuing constant stream of these
excellent bonds.
/ Attractive for Small Investor
These bonds hould be bought, too,
by people who are saving money,
even in small amounts. Any person
who can save $25 month can buy
with it $25 bond. II is rather hard
to find any kind u good bond in a
denomination under $500. Any
young man or woman who will buy
every month a S25 fadnral farm, Ioop