, 1923-08-02
WYOMING RECEIVES MUCH
BENEFIT FROM LAND BANK
]. c. UNDERWOOD, WYOMING Director OF Federal
Land BANK, At OMAHA, WRITES Of 0PER-
ATOMS and VALUE To The STATE

~ Va 'ht AosotIdtlOn, ana all
work between the Land Banks and
the borrower is conducted through
this officer. These associations are
also cooperative in their functions.
They are also responsible for the
loans made through their associa
ton. The idea of Congress. | pre-
sumo, was to place upon the in
divldual borrowers, who go to make
up the National Loan Associations,
a responsibility that would tend to
make the borrowers collectively
conservative in their recommends
tons as to who should be members
of their associations, and careful in
their selection of lands and individ
nals for loans that there would not
be a question of their ability under
ordinary circumstances to De able to
make their payments. The life and
success of an association depends
largely upon the ability of the
secretary treasurer. Even when Il
loan itself may look favorable in
every way if there is not a clear
abstract of title to the it
may he the cause of holding up a
loan indefinitely. Hence the ex
p%erience and ability of the secretary
Treasurer means much to the Dor
rover who is anxious to close a loan.
While my experience with the Land
Bank is very limited / presume that
Associations may be prone in re
questing loans to begin with that
are above a real safe value. AS in
our National Banking system, it is
necessary for the individuals thru
their associations to establish a
credit with the land banks. As the
officers of a Federal Land Bank are
directly responsible to the bond
holders for the safety and success
of the bank it is natural that in the
beginning they will move slowly un-
til the credit of a community is es-
tablished.
The directors of a federal land
bank do not hold any stock in the
bank, nor do they share in any pro
fits of the bank. The Federal Land
Bank of Omaha comprises the tates
of Iowa, Nebraska and South Dakota
and Wyoming. The bank is divided
into three districts, in he order
named. South Dakota and Wyom-
ing comprising one district The
Loan Associations in their
districts are allowed to
n of their members as
a director. The person receiving
the highest number of votes is
a director for that district,
is a state or states as the
case may be, The Federal Loan
Board d~esignates a director at large
from among the nominated direct
ors. choosing n of three receiving
the highest number of votes. They
also appoint n man from each of
the districts to ,act as director,
making a total OF seven directors.
directors elect officers of the
from their number.
The Federal Act requires that 25
pc recent of the net earnings OF the
shall be carried to a reserve
account until the reserve capital
equals twenty per cent of the out
standing capital. After that five
per cent of the net earnings of the
less there have been losses from
payments. These losses
may be deducted from the profits.
Whatever profits there are over
the five per cent may be paid in the
shape of dividends to the various
National Loan Associations OF the
Banks districts. They in turn must
place ten per cen OF their net
earnings TO reserve ccoun until