Every evening, Wilmington daily commercial., 1922-05-08
OFFER S75,0OO,0OO
/ US. LAND BANK BONDS
New Issue of 4ia Per Cent Sc.
curitIes 10 Offered to
Investors,

A nation-wide group coinposeu vi
the IL Federal Land Banks, invest
mont houses, institutions and dealers,
headed by Alex. Brown a Sons OF Bal
ltjmors, Harris Forbes a Co., Brown
Brothers 4 Co, Lee Higginson 4 Co,
tho National City Co, and the Quar-
anty Co., OF New York, announced to-
day an offering for public subscription
of a new issue OF sTb,oo0,0oo ten-tweu-
ty year Federal Land Bank AZ per
cent bonds at price Of 100 and inter
eat to yield Az per cent. These bonds
are exempt from Federal, State.
municipal and local toxation\
Tho bonds are dated May !. 1922.
are not redeemable before May l. 1882,
and mature May /. 1912. Interest e
payable May l and November at any
Federal Land Bank or Federal Re-
crve Bank, and principal In payable At
tho bank OF issue. The bonds are In
coupon and registered form, inter
changeable. In denominations OF NO.
OO0 $4,000. $1,000. s600.&l00 and $40
and are redeemable at par and inter
est at any time after 10 years from
the date OF issue.
According TO figures made public H.
connection with the Offering the AZ
Federal Land Banks In the four years
of active operation have been built
up until on March 81, 1922 their capi-
ltal was $50 O,599. .7e5; reserve. s1.e43.o0O; {;
Iurf- 90 profits. s3,59o.bAo and total
la s55,157 ,3ab. All IL banks are
iun ,idend paying basis and each
lhanN shows surplus earned from it's
loperatIons. The United States gov
lcrnment owns over s5.50o.000 Of the
capital stock of the banks and the
United States Treasury has purchas ii
moro than s1ss.000o 600 Federal Land
Rank bonds The banks themselves
are under the direction and contro! OF
the Federal Farm Loan Board. n
bureau of the Treasury Department,
OF the United States government.
The SurVeme Court Of the United
States has held that these banks
we're legally created az part of tbs
banking system OF the United State'
and that the bonds Sesued by th'
banks are instrumentaliues OF the
United States government and are eN
enrpt from Federal. state. muncipo
and local TAXATION Issues of out
standing bonds dated prior to May
1921, are redcemsble Ave years from
tho date of ieeue In order 10 NEE
the demand foe longer term sccuritles
Congress enacted statute authorfz
ing the redemption period on new In
sues to begin in the eleventh yea
from date OF issue instead of IN th'
sixth as heretOfor& Tho bonds nov
being offered are issued under thi
authority They are acceptable by tn
United States Treasury as security 70
government deposits. including posta
1 Savings funds. and the Federal Farm
, Loan Act provides that the bonds ahal
, he lawful investment. for all fiducier
4 and trust funds under tho jurf>diC
!, ton OF the United States governmeu
They are eligible for investment b
! savings hanks in sc states
! with reference to the Federu1 Ian
4 Bank bonds Secretary OF the Treasus-
: Mellon says: I'm view OF the YER
= satisfactory financial condition Of tn
4 hanks themselves. OF the exemption c
+. the bonds issued by these banks f,or
/ Federal. state, municipal and lo,s
}. taxation everywhere IN the Unite
States, and OF the very adequate =,
curity back OF these bonds, the
should prove an attractive security
investors large and small .througho,
the country"