Evening star., 1926-06-14


varying from $40 to $4,000.
The bonds are being offered to the
public by a countrywide group. com.
posed Of the ~ Federal Land Banks.
investment houses. institutions and
upwards of ! 900 dealers The banking
group is headed by Alex Brown and
Sons of Baltimore. Harris, Forbes &;
Co, Brown Brothers & Co. Lee, Hie.
ginson Co, the National CITY Co.
and the Guaranty Co. Of New York.
The bonds are exempt from Federal
State: municipal and local taxation
are dated July ], 1926. and are que
July /. 1856.
Land Banks Grow Rapidly.
Figures made public in connection
with the new offering show that IN
elght years Of active operation the
IL Federal Land Banks have been
built up until on April 80, 1926. their
capital was $50. $40. reserve. 81.
o62 800; undivided profits, S4.955 saq. .
and total assets. S1,1A .694 .s69 Every
oank shows surplus earned from
operations.
The holdings of the United States
Government in the capital stock of
the Federal Land Banks have been
reduced from $4,000, 900 at the time
Of the Inauguration of the system
TO about $1,000. 900, as of April go.
1926. During the same period the
Farm Loan Associations acquired an.
proximately $50 900, 900 ca pital STOCK.
part of the proceeds of which was
used TO retire stock owned by the
Government as required BY the
Farm Loan Act. The United States
Government has purchased and now
holds over 500, 900 Federal Land
Bank bonds
The Supreme Court Of the United
States has held that these banks
were legally created as part of the
banking system of the United States
and that the bonds issued by the
banks are instrumentalities of the
United States Government and are
exempt from Federal. State, munici.
pal and local taxation.
The bonds are acceptable by the
United States Treasury as security
for Government deposits. including
postal savings funds. and the Federal
farm loan act provides that the bonds
shall be lawful investments for all
fiduciary and trust funds under the
jurisdiction of the United States Gov
erment.
Prices Higher OH Exchange.
Prices advanced on the Washington
Stock Exchange today. when the
weeks trading opened. Potomac
Electric Power preferred came out
at 10S12: Washington Gas Light
changed hands AT 6Si2. 20 shares of
Merchants Transfer and Storage pre-
ferred brought Il. and 80 shares
of Peoples Drug Stores preferred sold
at 1903. which is back at the high
point for the year on the local board,
One share of Mergenthaler Linotype
sold at 1912 and ~ shares of Ma
tional Mortgage and Investment pre-.
ferred sold at the prevailing price of-
Sl2. The bond division was fully as
active as the stock market.
An odd lot of Capital Traction IS
sold a 1902. the issue later selling at
I01 on another small deal. Chesa.
peake and Potomac Telephone 5s sold
at par. Washington Gas 6s came out
at 1892 ON a $4,000 turnover. Rail-
way and Electric As sold at So while
the same corporations General and
Refunding 6s were out at 1895. Cap
ital Traction 5s registered 10l for a
small lot.
Convention List Increases.
The list of delegates and guests 10
the District Bankers convention az
Hot Springs during the last half Of
the present week is still growing,
Chairman II. c.. Hoskinson' of the
transportation committee reported
this morning. IL has now reached
22S. MIR. Hoskinson knows Of other
applications that are coming in. so
that it now appears certain that the
number will reach 245.
The train tickets and Pullman cou-
pons will he delivered tomorrow or
early Wednesday to those who are
going on the trip. Most of them will
be given out at the banks TO their own
delegations.
1t so happens that the annual con-
vention of the Virginia Bankers AS
sociation will be in session at Roanoke
at the same time that the Washington
bankers are meeting at Hot Springs
If the meetings did not conflict. sew
eral Washington bankers would at
tend the Roanoke sessions. They have
done so in the past. It Is expected.
however, that 90 or more Virginia.
financiers will drop in on the Hot
Springs convention before 1t closes
John NJ. Riordon, chairman of the
hotel committee, leaves for Hot
Springs tomorrow to make the final
arrangements for hotel accommoda-
tions for the Washington party.
rrnest F.. Herrell. president of the
International Finance Corporation be-
lieves he is the only banker in Wash.
ington who has been to every conven-
ton the association has held.
Who Owns the Washington Banks?
One of the best chats prepared by
the District Bankers Association In
it's present campaign to explain the
relationship between the Washington
banks and their customers appears In
the advertising columns of today's
Star. 1t not only explains clearly
who owns the local banks, but II adds