Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1916-07-23
CIVIC BODIES
WILL COOPERATE
Doing All in Their Power to
Bring Land Bank to North
Dakota.
BISMARCK AND
ABERDEEN CONSIDERED
Workings of New System OF
Rural Credits Institution
Explained.

That North Dakota organizations
will unite with the Bismarck CONNER
cial club in it's efforts to secure the
federal farm loan bank for the Da-
kota- Montana Wyoming district to
North Dakota is indicated by wires
being received here in response to
message sent out earlier in the
| week.
The Williston Commercial club, one
of the livest organizations in north
western North Dakota, advises:
"Williston will unite with North
Dakota organizations toward secur-
ing the federal farm loan bank for a
North Dakota location"
A North Dakota location for the
federal farm loan bank means the
Capital City, as only Bismarck and
Aberdeen are receiving consideration
from Secretary McAdoo, who, as pres
ident, ex-officio, of the board will have
an important voice in it's actions.
What the Farm Loan Bank Is.
In view of the probability that Bis
marck will be. made one OF the ~
farm loan bank centers for the Unit
ed States, North Dakotans will be in
terested in learning just what the
farm loan bank act is.
The rural credits law recently sign
ed by the president, which may give
Bismarck one Of the II federal loan
banks, is not complicated piece of
machinery.
Its workings are simple and easily
managed.
At the top is board, composed of
five men, one being the secretary OF
the treasury. The other four are ap-
pointed by the president, not more
than two of the same political party
Divided Into Districts.
The country is to be divided into II
districts, each having a federal loan
bank, also known as the land" bank.
1t is probable that Minnesota and
Wisconsin will form the 9Th district;
the Dakotas, Montana and Wyoming
the 9th. PM
These land banks will each have a
capital of at least $750,0O0, to be sub
scribed by local loan associations.
Should these associations not sub
scribe the necessary amount, the gov
eminent will supply the remainder.
The government will withdraw its
money as other associations are form
ed and more stock is taken up by
these associations.
Bank Issues Bonds.
The land bank receives the mort
cages from the association, sending
to the latter the money to be paid
the borrowers, and taking these mort |
cages, will issue bonds against them.
These bonds may bear 3, or 5'per |
cent interest and will be sold to In
vestors.
The land bank can charge the bor-
rover as interest but I per cent more
than it pays on the bonds. This per
cent must pay the banks expenses
and may provide profit, which is |
turned back to the local associations |
in the shape Of dividends, which are
then paid to the members CT the as
sociations or applied upon their loans.
Board Controls Banks.
The land banks are under the con.
troll Of the national farm loan board
anu are 10 De government agents ana
repositories. The officers of the bank !
will be selected by the stockholders,
that is, the government and the local !
loan associations. I
Back of the land bank are the local
farm loan associations, each IN it's
district, formed by those farmers who
want to borrow money for payment |
on land, buildings, fertilizer, i've
stock, equipment and improvements.
Each Member. Votes.
An association must have 10 mem |
bers and applications for loans
amounting to 100000 before it can do |
business with the land bank. Each !
member must pay IS for eacn share |
he holds and may borrow 800 upon |
each share up to and including $780, |
900. He has vote in the election of |
officers for each share up to and in
GLIDING 10 votes.
The farmer takes out his shares,
paying his S. per share. applies for
a loan to the full number o: shares |
he has. The loan committee of the |
local association nosocs ,,non tho an