San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-07
FEDERAL FARM
BANK SHOWS
BIC EARNINGS
Since 1917 Houston insti-
tuition Has Loaned Farm
ers Over $4,000, 900.
CLIENTS TOTAL $4,000
Texas Producers Furnished
Cheap Money and They
Have Paid Their Debts.

Houston, Tex, Jan. e.-More than
25,000 farmers have taken advantage
of their ability to borrow from the
Federal Land Bank Of Houston and
they have been loaned in excess of
sDO, 900 since the bank was organ
lied in 1917, according to the state
ment issued today by NJ. ii. Gossett,
president of the bank. The statement
follows:
"The Federal Land Bank of Hous-
ton was organized on March 26, 1917.
FThe original board Of directors consist
ed of NJ. H. Gossett, j. A. Thompson,
Nv. Z. Hobby, S. A. Lindsey and Il. }.
caldwell. OF the original board two
only now remain, Mr.. Gossett and Mr..
Thompson, the other three having vol
unfairly resigned at different periods
to engage in other lines of activities.
Their successors now serving on the
board are X. d. johnson, John v.
Van De Mark and ID. j. Woodward.
The growth of the Federal Land
Bank of Houston, barring more than
year in which our lending activities
were suspended on account of htiga-
lion attacking the validity of the Farm
Loan Act, has been regular and steady.
I'VE have now loaned to $4,000 farm
FRS more than S70000,000. Speaking
yenerally the rate of interest has been
IL per cent, although for short
periods-depending on the rate of in
crest borne by Federal Land Bank
)onds-the rate was > and 6 per cent
respectively. During the month of
December, 1922, there was close TO
200 farmers loans aggregating 3d.
47O00. The annual savings on this
yolume of loans to the farmers of
Texas exceeds 100000 per year. A
pond sale of S7500O,000 has just been
Concluded, from the proceeds Of which
mple funds are provided the Federal
and Banks to meet the needs of
ligible farmers for the next several
months.
Bank Making Money.
"The Federal Land Bank of Hous-
on has declared an annual dividend
n its stock of 9 per cent from the
rganization Of the bank up to 1922.
Tor the year 1922 an annual dividend
as been declared and paid of s per
ent, paid per cent semi-annually
uly and January. In addition to this
ocular dividend, within the next so
sys there will be distributed for the
s5 and benefit of the borrowing stock
gliding farmers special cumulative
hvidend of 2 per cent per annum,
;om which it follows that in addition
B the regular per cent dividend paid
the bank for the year 1922, Dor
overs during the year 1917 will re-
Pive an additional 10 per cent, or a
ptal of Is per cent for 1922. The
an who borrowed in 1918 will receive
special cumulative dividend of s per
int; the man who borrowed in 1919,
per cent, and SO on down on :he
me basis. After paying these regular
nd special dividends, the bank re-
ms its legal reserve and a substantial
irplus.
Notwithstanding this more than
0,000,000 loaned to $4,000 farmers,
losses have been sustained and the
tai delinquencies as of December 81,
~, was the relatively small sum of
1000, and this is in active process
collection. 1t is not to be expected
at lending in millions to thousands
borrowers no defaults would occur.
e have foreclosed five securities and
ii probably have to make other fore
Psures, but have every assurance now
az the comparatively few farms
iich we may have to take over can
readily resold to actual farmers at
price which will protect the Federal
md Bank from loss and supply adj
ional farm homes to those who need
em.
Farmers Prompt To Pay.
The strongest proof of the fact that
gible farmers borrowing from the
deral Land Bank are thoroughly
We and appreciate fully the economy
benefits through Federal Land
nix loans is the fact of the PROMPT
yment of their semi-annual interest
d amortization payments. A total
ment OF 1-2 per cent per annum,
ID semi-annually, operates in "a ID
RS to discharge in full both the
crest and the principal, while each
has the option at any time
er ilye years to pay his loan in
ole or in part, without bonus or
MUM. When the loan is paid off.
ether at or before maturity, the 3
cent stock held by each borrower
the National Farm Loan Associa-
Is paid in cash, and he also re-
yes liberal dividends on such STOCK
ing the life of the loan.
Ihe officers of the Federal land
TX OF Houston feel justified in con.
tulatlng the great body of our bor-
ers upon the record already made.
at the same time express the con,
ent hope and belief that present
levements constitute the hest assur-
and promise of continued useful