Evening Republican, Volume 17, Number 7, Rensselaer, Jasper County, 8 January 1913 — New Ruling for National Banks on Investments [ARTICLE+ILLUSTRATION]

New Ruling for National Banks on Investments

Comptroller Murray Deckles First, Mortgage Real Estate Bonds are Legal Investments.

A decision of vital importance to the west, according to Chicago financiers, has been made by Comptroller Murray of the currency in Washington. He has given permission to national banks to invest in bonds of all classes and has removed the restriction formerly made against several types of western securities. First mortgage real estate bonds are now legal investments for national banks, although these banks could not purchase ap undivided mortgage. Such bonds are often Issued in western cities to finance the construction of large new buildings, and building operations in many western cities will be greatly benefited by the comptroller’s ruling. The safety of this class of bonds has led many state banks and insurance companies to purchase them in large amounts and national banks are now to be admitted to this market. S. W. Straus, president of S. W. Straus & Co., mortgage and bond brokers, Chicago and New York, explained the comptroller’s ruling and its benefits to the west. "I regard this ruling as one of the most important developments in recent years for the prosperity of the Mississippi valley region,” said Mr. Straus. “There are several classes of perfectly safe bonds issued in the west which for a long time had been denied lack of recognition by the eastern national banks. The comptroller’s ruling removes this bar, and will give safe western bonds, bearing 5% to 6 per cent. Interest, a much wider market in the east and, in fact, in all portions of the country than ever before."

8. W. STRAUS, President S. W. Straus <fc Co., Mortgage and Bond Brokers Chicago and New York