Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-07-28
Division of Country Into II
Federal Bank Districts
First Step.
WILSON NAMES MEN
Hearings on Designation of
Districts VIII Begin
Within 2 Months.

WAsHlNdroM, IN" TON, July ,g,a s7rplyision =, Division
land bank districts and location Of
| federal land banks in each Of them
| under the new rural credits law viii
| he undertaken soon by the federal
| farm loan board, four of whose mem
! bers were nominated today by Pres-
dent Wilson. Secretary McAdoo, who
| as an eX-officio member completes
the board, said tonight, however. that
ne believed il would be impossible to
conclude organization of the system
in less than six months and that il
might not be in actual operation be-
fore next spring.
The four men nominated today as
members of the board are Charles f..
Lobdell Of Kansas George w. Norris
of Pennsylvania, w. S. A. Smith of
Iowa and Herbert Quick of West
Virginia. The president is expected
to designate either Mr.. Norris or Mr..
Quick, the Democratic members of
the board. to act as farm loan com
missioner and executive head OF the
farm loan system.
No Date Can BE Set
Until the senate acts upon the nom
nations no date for meeting can be
set, but it was believed probable to-
night that the members would get to-
gether within two weeks. Hearings
on the designation of districts and the
location Of banks probably will begin
some time in September The first of
these is expected to be held here and
most of the state capitals probably
Will be visited before they are con-
cluded.
Although in making his selections
the president named lawyer, a
banker, farmer and an economist, it
.l.es
would have little to go on in framing
its decisions. The vast amount of in
formation collected by the reserve
bank organization committee two
years ago in aligning the federal re-
serve districts will be virtually value
less to the new board. That commit
tee paid particular attention to the
flow Of commerce and the channels
Of trade and to information from
bankers and gave little heed to the
farmer.
About the only directory provision
in the new law is that the ~ federal
land bank district shall be appor-
toned with due regards to the farm
loan needs of the country" and that
state lines shall not be broken in de-
filming districts.
Will Consider Cities
II was said tonight, however. that
the board in locating the banks would
consider first cities which are near
farming centers, regardless Of size or
other banking facilities, and that
cities which were candidates for fed
eral reserve banks, but failed 10 ge,
them. probably would be strongly
considered for federal land banks.
Requests fer loans on farm land-
under the law already have been filed
in large numbers in the treasury de-
partment, but no action can be taken
on them until after the board is or
gani7ed.
Each federal land bank must have |
"A subscribed capit>l Of S750,0O0 be- |
fore beginning business. Individuals, |
corporations, state governments and |
the United States may hold stock |
under the law. hut dividends accru. !
ing may not be paid the United |
states as to other stockholders. The !
banks will not come in direct contact !
with farmer borrowers but will oper-
ate through national farm loan assJ. |
Citations. corporations chartered by |
Of congress and operating in tn, |
farming communities where loans are
sought.
All loans TO be made under the sys-
TEN must he secured by first mort
cages providing for amortization over
a period of years and at interest not
exceeding per cent. No loans may
exceed 80 per cent of the value OF
the land mortsagcd and 90 per cent
OF the value Of permanent improve
faents. nor be greater than SO O0d
nor less than 500. Mortgages may
run from five to forty years.