, 1923-08-02

they have twenty per cen in re-
serve of their capital, after which,
if they have no losses they may de-
clare a dividend to their individual
members. 1t might be added here
that when the individual a
loan Of say one thousand dollars
from the Bank he must place five
per cent or fifty dollars of this loan
for stock in his Loan Association
and they in turn place this same
amount in stock Of the Federal
Land Bank. The earnings Of this
money m back directly to each
borrower by paying expenses. etc.
and when an individual dividend is
paid helps to reduce the cost of in
terest.
All money is loaned on the amor
tization plan. The borrowers pays
interest at the rate of five and one
half per cent at the present time
on his loan and each year pay one
per cent On the principal. At his
rate his loan is paid off in a period
of thirty four and one half years if
he makes no default in payments.
His payments on the above basis are
made twice each year. After five
years time the borrower may make
any number of payments he wishes
each year and thereby reduce his
time If ne so chooses. Loans may
be reappraised after a loan has been
granted and a larger sum loaned
where the assets justify such in
crease.
At the present time the Bank can
make a loan from $500 to $685. 900
in one loan upon proper security.
INBA la lla I al n- -
this time 1891 loans amounting
to S4,Sil, 74O, which is an average
loan of $5,143. We have in Wyo-
ming at this time 1857 loans
amounting to $4,706.40O, which is
an average loan of $2,6S3. In Wy
oming fifty per cent of the loans ap-
piled for have been closed to date.
We have no large loans in Wyom
ing at thi slime. Up to this year the
limit of a loan was ten thousand
dollars, which was not a sufficient
amount to take are of the stock
men of Wyoming. While the aver
age acre value of our loans in Wy
oming is onlp $3.50 per acre the
loans run from as low as 81 cents
per acre on dry land sections up
to SOS per acre on irrigated lands.
All loans are given a personal ap-
praisal by the Banks appraiser and
his report is gone over by the Loan
Committee. No loans are made for
over fifty per cent of the appraised
value OF the land and improvements.
improvements are allowed only a 20
per cent loan value. To those who
are skeptical of the success of a
land bank plan l might say that in
wyoming with loans totaling S4,-
706,400 in our June 3Oth state
ment Il total d%elinuent payments
for a period of over ninety days
was only ~S1049.20. | understand
much of this has been paid since
tina date. No foreclosures have had
to be made by the Bank. This in
itself is n remarkable statement.
The land Bank now has about ten
per cent of all the mortgage loans
on farm loans in the states above
mentioned.
The Bank loans money on n basis
of ne-half percent above what we
pay for it. In other words II our
bonds sell at five per cent interest
we loan to the farmer and stock
man at five and one half per cen
With the dividends tina have been
paid. which total over one million
dollars to date this reduces the in
terest to above five per cent.
II might be of interest to know
that all Federal Land Bank bonds
are pooled and sold. You do not
purchase the individual bonds of
any particular Land Bank. and all
series of bonds are issued at the
same rate of interest. The assets
of all the Federal Land Bands are
pooled against the bonds. II one
Bank failed the other eleven banks
would have to pay its losses. The
several Banks now hire a Commits
sioner and counsellor, who handles
all the bonds. The bonds are sold
directly through a syndicate of the
largest boding companies some
SEQ in all. SO that when n series
of hnnls nrn nlncnd In ala -. 49,