The Sentinel=record., 1916-12-28

Washington, Dec 7--Spsingfield Mass Baltimore Md, Columbia, $. C.. Louisville. Ky, New Orleans. La, St Louis, Mo-. St Paul, Minn. Omaha Neb., Wichita, Kan. Houston Tex, Berkeley Cal. and Spokane, Wash. have been chosen as locations for tue l2 Federal farm loan banks.
 The l2 districts into which the coun try is divided were announced by the Farm Loan Board today as follows:
 District No. l--Maine, New Hamp- shire, Vermont, Massachusettes Rhode Island, Connecticut, New York, and New Jersey.
 District No 2.--Pennsylyaaia, Della ware, Maryland, Virginia, West Viz gina and the District of Columbia.
 District No. 3-North Caroina, South Carolina, Georgia and Florida.
 District No 1 Ohio, Indiana, Ken lucky and Tennessee.
 District No. 5-Alabama, Mississip- pi and Louisiana.
 District No. 6--Illinois, Missouri and Arkansas.
 District No. 7---Nlichigaa. Wiseon. sin. Minnesota and North Dakota.
 District N1 Slowa, Nebraska, South Dakota and Wyoming.
 District No. 9--Oklahoma, Kansas, Colorado and New Mexico.
 District No. l0-Texas.
 District No 11-California, Nevada, Utah and Arizona.
 District No. 12-Washington, Ore. gon Montana and Idaho
 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 board held public hearings in nearly every state in the union, and in this manner collected information of great value in determining its decision.
 Every reasonable opportunity has been afforded applicant cities to fur nish evidence to support their claims as 10 locations of Federal land banks More than 7b cities applied so the, des- gnated as U1e headquarters Of a bank land were heard through representa- tive committees and individuals
 The banks will be established as soon as practicable. Under the law each will have a capital Of $750,000. Applications for loans have been pour ing in to the board in great volume recently, and it is estimated that a sum more than 20 times in excess of the combined capital st2eh could be used in making loans.
 Almost the first work of the banks after approving and issuing loans will be the issuance of farm loan bonds, a new form of security in this country. The bonds will be issued in denomila. tions as small as $25, it is expected, and will bear interest at rate pe- cent less than the interest rate charg- ed farmers on their loans.
 What this interest rate will be has mot definitely been determined. 1t Is limited by law to maximum of 6 per cent. The expectation is that it will met exceed l-2 per cent at first, and subsequently, may be lowered. Loans o2 larm lands are limited by law Go 0pe- cent value of the laud and may be payable in from 8 to 4o years As fast as loans are made. bonds will be issued to cover them so that at no time under the resent plan will q banks entire ca.ital be tied mp in loans to Che dtrrjm,1. fl otYer applicants
 One Of the chief tasks now con fronting the board is to ind eXpericn ed employees for the new banks. More than 5000 applications for positions have been received T3e appoint ments will he exempt from civil SC" vice regulations but the board in tends to assemble a corps of men eN perienced in banking
 The head of each bank will be des' ignated as the registrar. They proba. hly will be residents of the districts involved and preferably attorneys.
 The banks will be organized tempof arily by the sppomtments by the board of five directors for each bana who shall be residents Of the distric' n 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 3' days If it is not entirely subscribed at the end Of that time the govern ment is authorized under the law t take the unsubscribed amount. Through a process Of having bor foNers subscribed in small amounts to the capital stoek 1t is expected tho