New Britain herald., 1916-12-27
FARM LOAN BANK
 FOR SPRINGFIELD
Massachusetts City to Be Center
 for District Including Conn.
CAPITAL STOCK FOR PUBLIC

Thirty Days-Problem Presented in
 Selection of Employes Out of More
 Than 5000 Applicants.
 Washington, Dec. 27-springfeld, Mass, Baltimore, Md, Columbia, S.. C., Louisville, Ky. New Orleans, St. Louis, St.. Paul. Omaha, Wichita, Kansas City, Houston. Berkeley and Spokane were chosen as the locations . for twelve federal farm loan banks today.
 The banks will be organized tenn porarily by the appointment by the board of five directors for each bank who shall be residents of the dis trict in which the bank is located The directors will select from among their number the banks officers The capital stock of each bank will be open to public subscription for thirty days.
 If it is not subscribed at the end of that time the government is au- thorized to take the unsubscribed amount.
 The twelve districts into which the country is divided were announced by ~, the farm loan board today as follows:
 District No. Maine. New Hamp- shire, Vernon, Massachusetts, Rhode Island, Connecticut, New York and New Jersey.
 District Mo- 2-Pennsylvania, Del aware, Maryland, Virginia, West Vir- eFginia, and the District of Columbia
 District No. 3.-North Carolina, South Carolina. Georgia and Florida. District Mo- 4.-Ohio, Indiana, Kentucky, and Tennessee.
 District No. 5.-Alabama, Missis- s4efppi and Louisiania. District No. 6-Illinois, Missouri and Kansas.
 District No. 7.-Michigan, Wiscon- sin, Minnesota and North Dakota
 District No. S.-Iowa, Nebraska, South Dakota and Wyoming. District No. 9.-Ok1ahoma, Kan | sas, Colorado and New Mexico. District No. 1O.-Texas.
 District No. 11.-California, Ne wada, Utah and Arizona.
 District No. 12.--WashinEton, Ore-3 gon, Montana and Idaho.
 75 Cities Candidates for Banks.
 Tn determining the federal land bank districts and in designating the cities within such districts where federal land banks shall be located" the official announcement says: 'The federal farm loan board has given careful consideration to the farm loan needs of the country. The bord held s~public hearings in nearly every state in the union and in this manner col lected information of great value in determining it's decision.
 livery reasonable opportunity has been afforded applicant cities to fur @ nish evidence to support their claim as locations of federal land banks. HT designated as the headquarters of a bank and were heard through repre- sentative committees and individuals .''
 The banks will be established as soon as practicable. Under the law s each will have a capital of $75O, ,0OO. Application for loans have been pour ing into the board in great volume recently. Almost the first work Of the banks after approving and issuing loans, will be the issue of farm loan bonds, a new form of security in this country. The bonds will be issued in denominations as small as $25, it is sv expected, and will bear interest at a rate of one per cent. less than the in- terest rate charged farmers on their loans.
 \ What the interest rate will be has mot been definitely determined. It is '> limited by law to a maximum of si2 per cent The expectation is that il will not not exceed 5. 1-2 per cent. a first and subsequently, may be lowered Loans on farm land are limited by the law to fifty per cent. of the value O. l. the land and may be payable in from five to forty years. As fast as loan are made, bonds will be issued tt cover them, so that at time, under the present plan, will a banks entir capital be tied Up in loans to tn detriment of other applicants. On = of the chief tasks now confronting tn board is to find emIoyes for the nev banks. More than 5000 application for positions have been received. Tn appointments will be exempt iron civil service regulations but the boar intends to assemble a corps of mel experienced in banking
 The head Of each bank will be desig ' mated as the registrar. They prob ably will be only residents of dis tricts involved and preferably attor neys.
 Through a process of borrower subscribe in small amounts to the cap ita1 stock 1t is expected that the bank not long after beginning operation will be virtual cooperative institu Hons.