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Mr. Ellsworth. In regard to the bonds, what interest is 

 being paid, and how many of the western States have legalized 

 them for savings banks and other banks? 



Mr. Robinson. The bonds — that is, the last few issues of 

 bonds — bore the rate of 4^ per cent. They were sold to the 

 public at 101|, which placed it on somewhat like a 4j basis 

 for five years. Just what the rate of interest will be in the 

 future it is hard to say, but we hope we will be able to main- 

 tain, — especially with the government underwriting, which is 

 certain to come, of $100,000,000, — we will be able to main- 

 tain the 4| per cent bonds and will not have to increase our 

 interest rate on those bonds. As far as the number of States 

 that have legalized the farm loan bonds as savings bank in- 

 vestments I could not give you all the names. I know there 

 are something like 23, of which three are in this district, 

 that is, Maine, New Hampshire and New Jersey. The others 

 haven't yet come into line. When I sat down Mr. Holland, 

 president of the Plymouth County Trust Company, suggested 

 that I had better say something about amortization. When you 

 consider that a loan you have from a bank or private in- 

 vestor is likely to be called in at any time, and then you 

 have to seek another man to take your mortgage, each time 

 you do this it means expense, — new lawyers, new bonuses or 

 what not. Now, here you have a loan for thirty-six years, 

 and you are relieved of all worry and of all expense for that 

 length of time. Besides, you repay your loan in small annual 

 annuities or payments, — which they call amortization, — and 

 by increasing your rate, that is, adding to the interest rate of 

 5 or 5| per cent, 1 per cent more, your loan will be repaid, 

 principal and interest, in the space of thirty-six years. So 

 when you take everything into account you will find, — even 

 if the rate of interest on the loan of the Land Bank is as high 

 or perhaps a little higher than those mortgages received from 

 other sources, — you will find that in the end it is much 

 cheaper. 



