The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-06-02
|ITY MAY GET
|JO|NT-STOCK
| LAND BANK
roject Would Aid
Farm and Ranch
Development

san FRANCDCo. June l.
Organization OF a Federal Joint
ock Land bark at Albuquerque
one OF the projects that the
lafnber OF commerce now be-
ves will be put through at an
rly date. Il II not n matter OF
mmon knowledge. according TO
= chamber OF commerce In
rmaiion. that the Federal Farm
pan act. under which the Federal
rm Loan board was constituted.
only provides for the estab-
hmcnt In the United States of
elvc land banks corresponding
mewhat TO the regional reserve
nks Of the federal reserve sys-
am. but also authorizes. through
ivate capital. the organization OF
limited number of Joint stock
nd banks.
A Joint stock Land back must
We not l.ss than szs0. 900 Of paid
capital. II H. authorized to lend
farms at fifty per cent OF their
praised value, the maximum
Ban that can he made IN $4,000.
kd Interest charged must not he
ove six per cent
Can Issue Bonds
The Joint stock Land bank n
lthorlxed to irsue bonds up 20
teen times its capital stock.
nese bonds are non-taXRbie. They
h Just M free from taxation as
e three per cent Liberty bonds.
sd there is a great demand for
en- among eastern investors
hsse bonds bear five per cent
<tsrest and are usually issued for
4 period of twenty years. the life
the loan. and are now sold
trough the trust companies OF the
II al one ger ssnt premium.
The stockholders OF a Joint
ock Land bank receive six pes
Int on their capital stock and
BE- per cent on the bonds issued
d 10 fifteen tunes the amount Of
,cir capital stock. which makes
Isenty-One per cent gross. Added
A that the premium on the bonds
one per cent makes thirty-siS
n cent
I The expense OF handling n Joint
ork Land bank T. very small as
deals entirely In land loans The
[ranch land hanks are not per
lifted 10 lend more than $4,000
one person, and the person bor'
: wing must be an actual resident
III the farm that IN offered a,
,curity. The Joint stock Land
a inks may lend 20 any land ownei
II 20 $50. 900 " the appraised valus
regarded as ample necurity.
The Joint stock Land hank car
nd In the state In which Il u
ganlxed and In one adjoininf
ate This would give TO a banl
i Albuquerque the whole OF th'
Fate Of New Mexico and siso q
ould doubtless have all OF ives
esns. " u 10 desired. II wouis
ereiy be adding another factol
|Sr the upbuildinE OF the ci,y b,
aking Il further a financia
|fntcr.
Rapid Growths of Ranks
"A The capital stock Of such Lsnl
|hn be Increased In any amour
II any time. Tho hank at Sallna
n annas. was organised with t25O.
|t1O capital. and AZ the end Of thre'
" .ars had increased it, capita
Iock TO a million dollars, whicl
|iowed Il to lend sixteen miiliol
Hnllars. The bank az Memphis
|enn. has aso increased Il capt
|ii stock from $4,000 TO $3.50.
II l0. that al Chicago from i2b0.
.4D0 10 t2.O00. zoe.
n The only expense. not horne b,
'lhe borrower. IL usually n manage
|End a stenographer- book Keeper.
II u is the belief OF the chambc
10 commerce that with the organ
t'atlon OF such Institution center
~ here that the $3.50, 900 Of pal,
- capital which Ia required oouil
~ easily had by letting the peopi
Ia New Mexico and West Texa
Know OF the benefits that woul
%nme 10 them from the establish
thent Of such bank In centra
,ration like Albuquerque.
III II would mean six per cen
Iwenty-year loans for the land
1<aat will lie reclaimed In IN
hiddIe Rio 0rnnde valley. for tn
lands under the Las Vegas prd
'fct and for all productive Hoc
..nnches and farm lands 81 .thl
hate. Western Texas and Arlfbni
/ 3he appraised value OF the pro
II uctlve agricultural and grain
} nds IA the basis for the ban