Evening star., 1916-12-27
FARM LOAN BANK
LOCATIONS NAMED
Board Announces the Twelve
Federal Districts With Their
Headquarters.
D. C. IN BAL LTIMORE SECTION

Springfield, Mass: Baltimore, Md;
Columbia. S. c.; Louisville, Ky; New
Orleans, La; st. Louis. Mo-: st. Paul
Mimi; Omaha. Neb.; Wichita, KAN;
Houston, Tex; Berkeley, Cal, and Spo-
kane, Wash, have been chosen as loca-
tions for twelve federal farm loan
banks.
The twelve districts into which the
country is divided We're announced by
the farm loan board today as follows:
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 Vir-
gnia 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. 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. 11-California, Nevada.
Utah and Arizona
District No 12-Washington, Oregon,
Montana and Idaho.
Reasons for the Selections.
I'm determining the federal land bank
districts and in designating the cities
within such districts where federal land
banks shall be located" the official an
nouncement says. 1.-The federal farm
loan board has given careful considera-
tionAo the farm loan needs of the coun-
try. 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 claim
as locations of federal land banks. More
than seventy-f1ve cities applied to be
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 each bank
will have a capital of $750.000. Applica
tions for loans have been pouring into
v.
it Is estimated that 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, a new
form of security in this country. The
bonds will be issued in denominations as
small S25, it is expected, and will
bear interest at a rate of l per cent less
he n rat q a ia lYrF7a arc
on their loans.
Interest Rate Not Determined.
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 it will not exceed 5h
per cent at first and subsequently may
be lowered.
Loans on farm land are limited by the
law to so per cent of the value of the
land. and may be payab!- in from five to
forty years AS fast as loans are made
that at no time. under the present plan,
will banks entire capital be tied up in
loans to the detriment of other applf-
cants.
one of the chief tasks now confront
ing the board is to find experienced en-
ployes for the new banks. More than
| 5000 applications for positions have
been received. The appointments will
be exempt from civil service regula-
tions but the board intends to assem-
| BILE corps of men experienced in
banking.
The head of each bank will be des-
ignated as the registrar. They prob
ably will be only residents of the dis
tricts involved, and preferably attor-
neys.
Temporary Organization Plans.
The banks will be organized tempo
rarily 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 di-
rectors will select from among their
number the banks officers. The capital
stock of each bank viii be open TO
! public subscription for thirty days If
/ it is not entirely subscribed at the end
| Of that time the government is authoy-
! Zed under the law TO take the uh-
subscribed amount.
! Through Il process of having borrow
| ers subscribe in small amounts To the
| capital stock it is expected that the
banks not long after beginning opera :
/ tions will be virtually cooperative in
stitutions. The permanent organization
! of the banks provides for nine di-
| rectors. six of whom shall be selected
! the other three being appointed by the
federal board. The terms of these di-
! rectors will be three years and they
J will elect officers from among their