Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-12-29
SITES FOR FEDERAL
FARM LOAN BANKS
SELECTED BY BOARD
New Orleans Columbia and
Houston Are Among South
ern Cities Designated as
Districts for Institutions
CRx Associated Press.N

NEy AsSociateQ EreSs-l
WASHINGTON, Dec 27.-Springheld.
Mass. Baltimore. Columbia S. C, Louis
willie, New Orleans. St Louis. st. Paul.
Wichita, Kas.. Houston, Tex, Berkeley,
Cal, and Spokane have been chosen as
locations for federal farm loan banks
The twelve districts into which The
country is divided were announced by
the farm loan board today as follows:
District No. Maine. New Hampshire.
Vermont. Massachusetts,. Rhode Island,
Connecticut. New York and New Jersey
District No z-Pennsylvania. Della
ware. Maryland. Virginia. West virginia
and the District OF Columbia
District No. 3-NOrth Carolina, South
Carolina. Georgia and Florida
District No. 4-Ohio. Indiana, Ken
lucky and Tennessee.
District No. Alabama, Mississippi
District No. S-nlinois. Missouri and
Arkansas.
District No. Michigan. Wisconsin,
Minnesota and North Dakota
District No. S--Iowa, Nebraska, South
Dakota and wyoming
District No 9-Oklahomas kansas,
Colorado and New Mexico
District No. 1O-Texas-
District No. 11-CalifOrnia, Nevada
Utah and Arizona
District No. 12-Wasnington' oregon,
Montana and Idaho.
in determining the federal land bank
districts and in designating the cities
within such districts where federal land
hanks shall be located" the official an
nouncement says. the federal farm lean
hoard has given careful consideration
to the farm loan needs Of the country.
The board held public hearings in near
ly every state in the union and in this
manner collected information OF great
value in determining its decision
OVER rs CITIES APPLY.
Every reasonable opportunity has
been afforded applicant cities TO fur
nish evidence TO support their claim as
locations of federal land banks More
than seventy-five cities applied TO be
designated as the headquarters OF a
bank and were heard through represen-
Iatlve committees and individuals"
The banks will be established as soon
as practicable Each will have a CAPT
tai OF $780, 900. Application for loans
have been pouring into the board in
great volume recently and it is estimated
that a sum more than twenty times in
excess Of the combined capital stock
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.
new form Of security in this country.
The bonds will be issued in denomina-
tions as small as S25, il is expected,
and viii bear interest at a rate 1 per
cent less than the interest rate charged
farmers on their loans.
INTEREST RATE UNDECIDED.
What this interest rate will be has
not definitely been determined. 1t is
limited by law TO a maximum of per
cent. The expectation is that il will pot
exceed IL per cent at first and sub
seQuently may be lowered
Loans on farming land are limited by
the law 10 so per cent OF the value OF
the land and may be payable in from
I'VE to forty years AS fast as loans are
made bonds will be issued to cover
them SO that at no time. under the pres
ent plan. viii a banks entire capital be
tied up in loans to the detriment OF
other applicants One OF the chief tasks
now confronting the board is to find
experienced employees for the new banks.
More than 5000 applications for posi-
lions have been received The appoint
ments will be exempt from civil service
regulations. but the board intends to
assemble a corps OF men experienced
IN banking
The head Of each hank will be desig-
mated as the registrar. They probably
will be only residents OF the districts
involved and preferably attorneys.
The banks will be organized temper
arfly by the appointment by the board of
five directors for each bank. who shall
be residents of the district in which the
bank is located The directors will Sc
Iect from among their number the
banks officers The capital stock OF
each bank will be open to public sub
scription for thirty days. II not en-
tirely subscribed in that time the gov
eminent is authorized to take the IN
subscribed amount
Through a process OF having borrow
ers subscribe in small amounts TO the
capital stock il is expected that the
banks soon viii be virtually cooperative
Institutions. The permanent organiza-
ton OF the banks provides for nine
directors. six TO be selected by assOcia-
tions of farmer borrowers. the other
three being appointed by the federal
board The terms OF these directors will
be three years and they will elect Off
GERS from among their number.
Macon was the only Georgia city which
presented claims for one of the banks.
Several weeks ago. a committee from the
Atlanta chamber Of commerce decided to
pledge its support 10 Macon