Mohave County miner and our mineral wealth., 1922-06-23
LAND BANKS ARE
 CHARTERED


 territory west of the Rockies was an nounced recently following the filing with the Federal Farm Loan Board at Washington on Monday of applica- tions for charters for four joint stock land banks. These banks will have a total initial lending power of $16, ,6O0,- 900 and will serve the farmers of Cal ifornia, Ariozna, Oregon, Washington, Idaho and Utah, comprising in gen eral the territory of the Twelfth Fed eral Reserve District, with the excep- tion of Nevada.
 Nine of the leading banks and thirty prominent bankers of Los Angeles, San Francisco, Portland and Salt Lake City are affiliated in this, move to provide a big reservoir of farm credits, and thus to further agricul- tural developments. .... ..
 Under the provisions of the Federal Farm Loan Act, each of the five banks to be chartered may loan to farmers on carefully regulated appraisements, not to exceed 50 per cent of the value of their land, and up to 20 per cent of the value of the insured permanent improvements. Money may be bor- rowed to pay off existing loans or as part of the purchase price of land, for improvements or other purposes, joint stock land banks not being restricted in this respect. Loans are repayable on the amortization plan, by which an- ,nual installments cover interest and part of the principal, so the whole loan is paid in not less than five nor more than forty years.
 Bonds Exempt
 By depositing these mortgages with the Registrar of the Farm Loan Board, bonds may be issued, to bear not more than per cent interest, to the value of the mortgages, but not to exceed fifteen times the capital and surplus of the bank. These bonds have been held by the Supreme Court of the United States to be "instrumen- talities of the government" and are therefore exempt from Federal, State, municipal or local taxation upon prin- ,cipal or interest, 4l4. These bonds are legal security for the deposit of gov Nelnment money, or for any fiduciary capacity in which bank may serve the Federal government. They are admissible for the investment of sav- ings bank funds in most States, i'm cluding California. With these ad- vantages, joint stock land bank bonds are selling readily both to private in vestors and to banks, at par.
 The ability to help in the financing of land sales, in returning mortgages, floating new loans for farm improve ments and development which the sys- tenn of banks will have through this ability to issue bonds is expected to have stimulating effect upon legit- innate development of the agricultural resources of the whole region tribu- tary to Los Angeles.
 To John S. Drum of San Francisco president of the Mercantile Trust Company, and formerly president of the American Bankers Association, is accorded the credit for devising the plan for joint action by the leading bankers and working out the details. The nine banks which have subscribed are the First National Bank and the Security Trust and Savings Bank of Los Angeles, the Los Angeles Trust and Savings Bank, the First National Bank of Portland, the National Cop per Bank, the Utah State National Bank, Walker Brothers Bank and the Desert National Bank of Salt Lake City, and the Mercantile Trust Com- pany of San Francisco. Each of the nine banks will have holdings of stock in the four joint stock land banks, which will be designated as follows:
 The Pacific Coast Joint Stock Land Bank of Los Angeles, to operate in California and Arizona.
 1, The Pacific Coast Joint Stock Land Bank of Portland, to operate in Ore gon and Washington.
 The Pacific Coast Joint Stock Land Bank of San Francisco, which will op- crate in California and Oregon.
 The Pacific Coast Joint Stock Land Bank of Salt Lake City, to operate in Utah and Idaho.
 Nevada, is not included in the group of states served because the present banking facilities are believed ade- quate to the agricultural require ments of that state.
 Each joint stock land bank will be capitalized, at first, at $250,O00, with paid in surplus of $25,0O0. This will give to each bank loan capacity of $4,125, ,000, fifteen times it capital and surplus. It is intended, however, to increase the capital of the banks from time to time as the loan requirements increase. Thirty bankers subscribe as individuals, representing their .insti- tutions, and from their names will be selected directors for each of the banks, so that the whole system will be unified in policies and manage ment.