New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-12-06
MINNEAPOLIS NOT
TO GET new BANK
LACK OF INTEREST IN FARM
LOAN INSTITUTION WORKS
AGAINST IT
FEDERAL BOARD MEMBER SAYS
CITY'S CLAIM NOT PRESSED
VIGOROUSLY

Minneapolis stands "a pretty poor
chance of getting the new federal farm
loan bank, which is to he located some
where in the Northwest, under the
provisions Of the farm loan act, which
was passed at the session of Congress,
according to information received in
the Mill City "a few days ago. The
Washington correspondent of the Jour-
nal says that a different attitude of the
business men and banking interests OF
that city must be manifested, or there
will be no chance, there whatever
Not an Applicant
Members of the Farm Lean Board,
who have just returned from a visit to
the territory affected, do not consider
Minneapolis an;apphcant, from the cool
manner in which the financial interests
treated the matter when the Board was
there recently.
minneapolis is not an applicant fol-
the farm loan bank member OF thu
board told the correspondent. 44By
that" he explained, Il do not NEAR
chat it did not file an application, bu1
that it's claims were pressed lightly, as
compared with>S St. Paul and Fargo, AND
other cities lin that section. The latter
cities went after it as though they
wanted it and presented claims why ii
should he located in their respective
towns. Arguments were made by men
in all walks of life.'
Reserve Bank Not Considered.
This member of the board said that
the fact that the Federal Reserve bank
is located in Minneapolis would have no
particular bearing when the farm loan
bank Tor that district is finally, placed
3'There is nothing in the law that FOR
bids or requires us to locate farm
loan hank in "a federal reserve city," he
said. "'The first duty of the board, how
ever, will be to determine the boundaries
of the various districts, and the selec-
tion of cities for the farm loan banks
will he taken up .afterward. Neither are
we obliged to place the bank in city
that has an agricultural country tribu-
tary to it. BY that I mean that the
board can locate the farm loan bank in
a financial center if it wishes
Under this construction the bank may
be located in either of the twin cities.
or in Fargo, which is more nearly the
center of an agricultural community.
The board expects to announce the
boundaries of the districts and the To-
cation of the farm loan banks before
Christmas.
influence of Law Felt.
This member of the board said that
even though the farm loan banks may
not be in full operation for some months,
or even year, the effect of the new law
already has been felt in the agricultural
states.
1.-The big insurance companies and the
banks making speciality of farm loans
already have adapted themselves to the
new law, and are actually ready to COM
pete with the government for farm
loans," he said.
"They are Offering 10 year loans at 6
per cent and have adopted an amortiza-
ton scheme of payment such as is pro-
vided in the federal law.
The semiannual or annual payments
on the loan include both principal and
interest, and the plan is practically the
same as that followed by the building
Money is plentiful and the
rates are low.
Low Interest Predicted.
'This condition will prevail as long
IS the European war lasts. Then money
will be tight, but the interest
rates will not 60 up, because the farmers
will have the government farm loan
bank as check on other lenders on this
class of security.
"The drop in the interest rates came
soon after the farm loan bank became
law. Farmers and others who APP
oeared before the board were asked
when the rates and the new plans were
out into effect. They all said some time
n August or early September. That
testimony alone disproves statements
hat have been made by some members
II the house and senate in the debate
hat the new law would not do the
arn1ers in certain sections any good
because money was plentiful and cheap.
The new law already has benefited the
armers, and there will be further bene-