The Redwood gazette., 1919-10-08
Stock Land Bank
Makes Big Record
LOCAL INSTITUTION SEES NEG
ESSITY FOR DOUBLING CAPI-
TAI STOCK SIX MONTHS
AFTER STARTING.
sI,sOO,OO0 BUSINESS DONE.


Messrs. j. r. Cooper and j. "a. Gold.
representing the Southern Minnesota
Joint Stock Land Bank, met syn
sdicate of bond buyers in Chicago last
week and sold two millions Of the
local banks loan bonds at q premium.
a sale indicative of the standing If
the local bank In the eastern bond mar
ket and also tribute to the srlen-
did farming community in which the
bank operates.
The Redwood Falls bank is making
an exceptional record. Receiving its
charter June 25, it's officers completed
their organization and secured suf-
flclent equipment to start business
July IT, 1919. Two principal Offices
are maintained d-one at Redwood
Falls, and one at Big Stone City, S..
ID. Up to October 1, three million
dollars had been applied for. The
banks statement to the government
made Ocober /, shows volume of
business of S., 300, ,0OO.O
All the loans accepted and closed to
date have been within hundred miles
OF one or the other of the two Offices
Of the bank, and in territory with
which the banks officer are entirely
familiar-the corn belt of Minnesota
and South Dakota. Applications from
the newly developed part Of Minnesota
and the dry belt Of South Dakota are
Immediately declined.
There are now in operation in the
United States twenty-five Joint Stock
Land Banks and it is extremely
doubtful if any other single bank has
made SO good and so strong a record
in the first three months of its or
Grafton, IN the total volume Of business
done, IN cOnservativeness, and In low
cost of securing the business. thus
lnsurIng a fair dividend to its stock
holders. All the bank loans are made to
the farmers without commission and
not to exceed 30 per cent of q consery-
ative valuation and the entire oper-
alton of the bank is subject to bureau
of the United States Treasury De-
partment.
The Federal Land Banks and the
joint Stock Land Banks, all under
the same supervision have loaned
about four hundred million dollars
to the farmers of the United States
lat a low rate of interest and very
nominal expense saving thousands
LOT dollars to them, and the system
has only fairly gotten started. The
old-time farm mortgage loan comp
anies are bitterly complaining and
carrying on an intensive propaganda
claiming legislation, favorable to
the farmers, and unconstitutional
the same old story as always when
some ones toes are stepped on.
However, it is quite beleivable that
the system is here to stay. Already
| it has shown its power to fill real
! need and the necessity for such a sys-
tenn grows daily. It is doing for the
long term credits of the country just
what the Federal Reserve bank system
has done for the snort term credits.
! In other words it nas proved and is
proving a great stabilizer, and the
stabilizing Of the United States re-
sources was one of the great factors in
winning the war and. in making the
nation the leading financial power of
the world.
Thel Redwood Falls bank can issue
three and three-fourths millions of
bonds on its present capital. At the
present rate of operation these will
be issued before January 1, 1920 and
the banks officers are now contem-
plating an increase of stock from
I$25O,O0O.OO, now paid in and owned
| by themselves, to $500, 100000. IF this
| is done part of the increase will be
offered to the public. Just what
this means In business way to Red
wood Falls alone and to the entire
county as well, can readily be seen by
one having even the most meager
knowledge Of banks. The establishing
Iof this bank in Redwood Falls is un-
doubtedly one of the most progressive
and profitable Innovations made during
T the entire history Of the county and
even the most conservative are en-
tirely optimistic concerning its own
future and the benefit it will bring
to the community.