Evening star., 1925-09-13
BY CHAS. p. SHAEFFER.


The Potomac Joint Stock Land
Bank. through Brooke, Stokes & Co.,
will issue and sell tomorrow morn
ing a new offering of S50O,000 of it's
farm loan bonds, dated September l,
bearing per cent interest, and ma
turing in 80 years, though callable
after 10 years. The bonds will be
sold at Is. yielding 4.51 per cent
to the callable date and per cent
thereafter.
The Potomac Joint Stock Land Bank
was chartered by the Federal Farm
Loan Board in May, 1928, for the
purpose of making long-term loans
on approved farmland in Maryland
and Virginia 1t is a member OF the
Federal farm loan system. created
as a part of the banking system of
the United States. and it's bonds are
exempt from Federal, State. municipal
and local taxation. 1t is under private
ownership and management, and
while no farm loan bonds are Govern
ment obligations, or are guaranteed
by the Government, the bonds are
the secured obligation of a bank OPP
Grating under Federal charter with
governmental supervision. These
bonds are the direct obligation of the
Potomac Joint Stock Land Bank and
are secured by deposit with the farm
loan registrar of the Federal Farm
Loan Board of first mortgages upon
farms where loans are made.
Enormous Loans Made.
More than three and one-quarter
millions of dollars have been placed
in first mortgages since inception of
the institution, while another half
million in applications are in process
of closing The Federal farm loan
act strictly limits loans to SO per
cen, of farm loan values and to $100
per acre. At the close of business
August 81 the bank had completed
697 loans on 1888 acres of land.
The appraised value of these farms
was $S,443,000, the average amount
loaned per acre being s24, vile the
percentage of loans to the appraised
value was 80 per cent.
The majority of the institutions
loans are made in three general sec
tions. The first section near Wash
ington and Baltimore comprises of
northeastern counties of Virginia and
few adjoining counties of Mary
land. Farming is diversified in this
territory, with high-grade dairy farms
predominating. The second section is
known as the blue grass" section in
the southwestern part of Virginia, and
Is principally a stock-raising country.
The third section comprises the
southern section of Virginia, which in
cludes bright tobacco, peanut and
cotton land.
When present financing is completed
the bank will have bonded indebt-
edness of s4,000,0 900. An initial per
cent dividend was paid stockholders
on July l last. That the institution
is on a substantial paying basis is
indicate by statement of condition on
August 81 last, which showed sur
plus of S25, 900, legal reserve of $4,000
and undivided profits of $8,155.6S. 1t
has a stock capitalization of $3.50, 200,
and is directed by George A. Harris,
president.
Bankers Push Education.
The opening days session of this
years annual convention of the Ameri-
can Bankers Association convention,
scheduled to get under way Septem-
Der % at Atlantic City, will be fea-
tured by the announcement that sub
stantial funds have already been sub
scribed by American bankers for the
endowment of economic scholarships
and research in colleges of the United
States through an educational founda-
ton This educational foundation
will be established in commemoration
of so years of existence of the Amer
lean Bankers Association.
The orooram of the general diyi-