The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-08-01
.tRH L0tN 30ln9
NiIEED BY NiLNGN
Twelve Districts. With Federal
Farm Loan Banks in Each,'
Will Be Instituted.

QlSiEicJS ana tOGGtlOI u i0"C1 - 1->-
banks in each OF them under the new
rural credits IaW Will be undertaken
soon bv the federal farm loan board,
four of whose members were noml-
mated today by President Wilson,
Secretary McAdoo, who as an ex-offl-
clio member completes the board, sa1;
tonight. however, that he believed i.
would be impossible to conclude Or
ganization of the system in less than
six months and that it might not be
. in actual operation before spring.
The four mem nominated today as
members OF the board are Charles E.
Lobden of Kansas, George W. Norris
of Pennsylvania, w. S. A. Smith of
Iowa and Herbert Quick of West
Virginia.
The president is expected to des-
ignate either Mr.. Norriss or Mr.
Quick, the Democratic members OF
the board, to act as farm loan CON-
missioner and executive head Of the
farm Loan system. .
Within a Fortnight.
Until the senate acts On 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 focatiou Of banks probably Will be
gin some time IN September. The
first of these is expected 70 be held
here and most of the State capitals
probably will be visited before they
are concluded.
1t was pointed out tonight that the
board would have little to go on in
framing It's decisions. About the only
directory provision in the new law is
that the IL federal land bank dis
tricts shall be apportioned with due
regard to the farm loan needs Of the
country and that State lines shall
not be broken in defining districts.
1t was said tonight. however, that
the: board in locating cbanRs would
consider first cities which are near
farming centres, regardless of size or
other banking facilities, and that
cities which were candidates for fed
eral reserve banks but failed to get
them probably would be strongly con-
sidered for federal land banks.
:. Many Ask for Loans.
Requests for loans on farm lands
under the law already have been fled
in large numbers in the treasury de-
partment, but no action can be taken
ON them until after the board is Or
ganized. The board will have Offices
in the treasury department here.
Each federal land bank must have
subscribed capital of $75o,000 be-
fore beginning business.
Individuals, corporations, State gov
ernments and the United States may
hold stock under the law, but divi-
dends accruing may not be paid the
United States as to other stockhold-
ers.. The hanks will not come in
direct contact with farmer borrowers,
hut will operate through national
farm loan associations, corporated
charter by the farm loan board under
authority of congress and operating in
the farming communities where loans
are sought.
Must Have Security.
All loans to be made under the sys-
TEN must be secured by first mort
cages extending over period of
years and interest not exceeding 6 per
cent. Loans may not exceed so per-
cent. of the value of the land mort
gage and 20 per cent. of improve
ments. Mortgages may run from five
to 40 years.
Mr.. Lobdell was a farmer before
studying law, served in the Kansas
legislature for ten years and was
speaker of the Kansas house in 1895.
In 1902 he was elected a judge and
served on the bench for nine years,
resigning to become president of a
bank at Great Bend.
Mr.. Norris has been successfully a
newspaper man, lawyer ana a
banker In 1894 he took charge of the
private banking concern in Philadel-
phia and served as member of the firm
until 1911 when he retired from busi-
ness to study social and economic