The herald-advance. (Milbank, S.D.) 1890-1922, 1919-06-20

Federal Farm Loan Bank LO.
Gated at Big Stone City
Capital Of $250,O0O Paid Up in Full
Clients Of Gold Bros. Security Co.
and Gold-Cooper Securities Co.
given advantage of amortize-
ment plan under Federal con.
troll.
Institution in operation in 80 days.
Will operate in Southern Min
nesota and Eastern South Da-
kota.
Application has been made to
the Federal Farm Loan Board,
Washington, D. c., for a charter
to organize and operate the
Southern Minnesota Joint Land
Stock Bank with headquarters at
Big Stone City, South Dakota
and Redwood Falls, Minnesota,
with the privilege of loaning in
the states of eastern South Dako-
ia and central western and
southern Minnesota.
The bank will make first
mortgage farm loans in South
Dakota and Minnesota under
governmental supervision. The
loans to be made on the killing
off, or amortizement plan which
gives the land owner thirty-four
years time to pay his loan IN
small semi-annual installments of
one percent of the face Of the
loan added to the semi-annual IN
terest.
The land owner can pay any
part or all of the principal after
tive years. The treasury de
partment Of the federal govern
ment will issue bonds to the ex-
tent Of $3,75O,OOO.00 to the bank
and take it's farm mortgages as
security for the same and permit
the bank to sell these bonds to
investors, thus insuring the bank
of a steady and permanent sup
ply of funds at all times for loan
ing purposes. The bonds being
absolutely free from all taxes OF
any kind makes them one OF the
best investments obtalnable,
yielding handsome return.
Every loan made by the COM
pany is not only passed on by its
board of directors but each IN
dividual piece of land its apprals.
ed by the government appraiser
and all of the business Of the
bank will be under the direct
supervision af the treasury de
partment of the federal govern
ment who appoints examiners to
check up all of the bank affairs
twice a year.
The capital Of the bank has all
been subscribed by the members
of the well-known mortgage
companies, the Gold Bros. Securi-
ty Co., of Big Stone City, South
Dakota, and the Gold-Cooper Sc
curities Co., of Redwood Falls,
Minnesota. These gentlemen
scarcely need an introduction
locally. The present volume OF
the outstanding mortgages OF
the two concerns amount to over
$4,000, 900 and in order to render
service to their customers and
clients, the land owners of east
EN- South Dakota and southern |
Minnesota, (the corn belt OF
these two states), they decided it
was only fair to give them the
opportunity to make use of the
'killing-cff or amortizement
plan authorized by and under
federal control.
The two concerns will continue
their old mortgage companies
and operate them in the same
safe and conservative way that
has built up such a magnificent
business, for the benefit of both
borrower and investor. They feel,
however, the field is sufficiently !
large to enable them to use their
present organizations and offer
their land owner clients the
benefit Of the new plan authoriz-
ed and recommended by the
federal government and at the
same time furnish the investing
public safe, secure, tax exempt
investment bonds secured by
first mortgages under federal