Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1916-12-28
Federal Board Announces
Twelve Cities in Which
Banks to Be Located.
ARKANSAS PUT IN
ST. LOUIS DISTRICT
Needs OF Farming Sections Guide in
Selections. with Result That Three
Are Placed i'm South and Seven
in the West.


in which are to be located the fedora
farm loan banks were announced to-
day. by the farm loan board, and II
is expected that within 60 days the
new institutions will be in operation
ready to make the loans for which
applications already are pouring IN
from every section of the country.
The banks will be set up in Spring
field, Mass; Baltimore, Md; Column
bia, S. c.; New Orleans, La; Hous-
ton, Texas; St. Louis, Mo-; Louisville,
KY; st. Paul, Mimi; Omaha, Neb.;
Wichita, Kan; Spokane, WASH, and
Berkeley, Cal.
Arkansas with st. Louis.
Arkansas is in the st. Louis dis
trict, the twelve districts into when
the country is divided being as fol-
lows:
District No. MAINE, New Hamp-
shire, Vermont. Massachusetts,, Rhode
Island, Connecticut, New York and
New Jersey.
District No. 2-Pennsylvania, Della
ware, Maryland, Virginia, West Vlr-
ginia 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
and Louisiana.
District No. 6-Illinois, Missouri
and Arkansas.
District No. 7-Michigan. Wisconsin,
Minnesota and North Dakota.
District No. S-Iowa, Nebraska,
South Dakota and Wyoming.
District No. 9-Oklahoma, Kansas,
Colorado and New Mexico.
. District No. 10-Texas.
District No. California, Nevada,
Utah and Arizona.
District No. 12-Washington, Ore
gon, Montana and Idaho.
Stock subscription books of the
banks will be open within the next
ten days, probably about January 2,
to remain open for 80 days. 1t is ex-
pected, however, that the government
will have to supply most of the 49,
100000 capital under that section OF
the law which empowers the secretary
CT the treasury to make up the UNI
subscribed stock of the banks.
Borrowers Will Control.
Temporary directors, five to each
bank, will be named probably within
the next three weeks by the farm loan
board. AS soon as the banks have
been organized and borrowers have
subscribed to 100000 of the stock
of each bank, the temporary directors
will surrender their authority to a
board of nine directors for each bank,
six of whom will be named by the
farmer borrowers and three by the
farm loan board. The permanent di-
rectors will serve three years. and re-
ceive per diem compensation as in
the case of federal reserve bank d.
rectOrs.
Each borrower must subscribe to
stock in bank from which he borroWs
to the extent of five per cent of his
loan, and the original subscribers to
capital stock are required to surren-
der their holdings to meet this sltua-
ticn.
Understanding the locations for the
banks the board was guided by the
needs of the rural sections. This has
resulted in placing only two of the
twelve in New England and the Mid
die Atlantic states. chief centers OF
population. Three go to the South
five to farming states of the Middle
West, and two to the Pacific coast.
Almost the first work of the banks
after approving and issuing loans will
be the issuance of farm loan bonds
a new form of securitp in this coun-
try. The bonds will be issued in de-
nominations as small as $25, it is
expected, and will bear interest at
rate per cent less than the interest
rate charged farmers on their loans
Loans at 51s Per Cent.
What this interest rate will be has
not definitely been determined. 1t Il
limited by law to a maximum OF
per cent. The expectation is that i
will not exceed 5h per cent at first
and subsequently may be lowered.
Loans on farm lands are limited b.
; law to a so per cent value OF the LAM
and may be payable in from to -
years. As fast as loans are made
CONTINUED on page six.)