The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-02-16
FARM LOAN and
LAND BANK BOND
ISSUES ANALYZED
Joint Stock Banks Pri:
marily Are Private
Institutions.
OTHER LOCAL NOTES
Potomac Savings Bank In
creases Surplus to $4,000
BY $4,000 Addition.
OTHER LOCAL NOTES

In connection with the recent
successful flotation of $4,000. 200
Farm Loan bonds and the issuance
since the first Of 1922 OF $3.50. 900
various Joint Stock Land Bank
ponds. the fundamental difference
between tn two organizations may
be pointed out.
Although both bodies are under
the supervision Of the Federal Farm
Loan Board, the joint stock banks
are primarily private institutions
operating under Federal charters.
inc strength of the Individual bank
dependent not upon the strength
- the system, put upon the record
ana Character of the managers of
the individual institution Bonds
ISSUED by them are subject to the
same limitations as those issued by
the Farm Loan banks
Federal Farm Land Banks will
ultimately be owned by the Ma
tional Farm Loan Association, the
paste organization Of the Farm
Loan system These are voluntary
organizations OF ten or more per-
sons who are owners. or about to
pecme owners. of land qualified as
security for a mortgage loan under
me provisions of the Farm Loan
act No persons but borrowers can
pc members of an association, and
each borrower must subscribe for
stock of the association to an
amount equal to per cent Of the
desired loan.
eThe association in turn must sub
scribe to the stock Of the Federal
Land Bank an amount equal to
per cent Of the loans applied for.
All unsubscribed stock is taken and
pad for by the government. The
amount So held is now about 500
100000. 1t is provided, however.
that cfter the subscriptions TO cap
ital stock by National Farm Loan
associations shall amount to $780,
900 in any Federal Land Bank. said
bank shall apply semiannually to
the payment and retirement of the
stock which was issued to represent
the subscriptions to the original
capital % per cent of all sums
thereafter subscribed to capital
stock until all such original capital
is retired at par
Thus the farmers through their as
sOciations will finally be sole own
ers OF the banks and the benen-
Charles of any profits accruing from
its operation
Local- Securities.
Ono new high record was made in
yesterdays interesting session on
rthc Washington Stock Exchange.
Prices held firm all the way, and
a fair volume of business was
Transacted.
In one of the opening sales OF the
day $1,000 Potomac Electric gem
craI mortgage and refunding IS sold
at log which represents the peak in
this issue. After call. like amount
sold a. the same figure. Washing
ton Railway and Electric Is sold
10 the extent of $4,000 at 50 and
69ts.
Ii the stock list. Capital Traction
was firm and In good demand, 20
shares selling at prices ranging
from 95Ss to 95lz. Railway pre-
fcrrcd sold at sc with the common
firm at SO.
Personal.
Charles Il. Grant, assistant trcas-
urer of the Washington Loan and
Trust Company is taking a motor
trim through Pennsylvania. He is
accompanied by John II. Clapp. a
director of the institution Incl
dentaIly. Mr.. Clapp will sail shortly
from New York for Panama. Cuba,
etc.
Raymond b. Dickcy. attorney-at-
law, will address the advanced
class. American Institute of Bank
inG, tonight.
Columbia GraphOphOne.
United States District Judge
FIl0=-is has extended until February
II the time for filing affidavits in
the application for a receiver for
. the Columbia Graphophone Com
pany. The time for a heating on
the application has been put off
from February II to February 20.
Bank Adds to Surplus.
At a recent regular meeting OF
directors of the Potomac Savings
rank il was unanimously decided
10 vote an additional $25.OOO to
surplus. making a total of $4,000.
This sum will be taken from undi-
- rro6ts Cashier r A BOwles