Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1916-12-29
.U,S,FARML LOAN
bANkSL0CATED.
Federal Board Announces
Cities Which Will Get
New Institutions

Washington. D. c.. Dec. 27.-Spring-
field, Mass: Baltimore, Nd: Column
bia. S. c.: Omaha, Neb.; Wichita.
kas.; Houston. Tex: Berkeley, Cal.
and Spokane. Wash, have been chos-
en- as locations for twelve federal farm
loan banks. =
The twelve districts into which the
country is divided were announced by
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-
ginia and the District of Columbia.
District No. 3-North Carolina.
South Carolina. Georgia and Florida
District No. ohio, Indiana, Ken
lucky and Tennessee.
District No. Alabama. Missis-
sippi and Louisiana.
District No. G-Tllinois, 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, Ore
gon, Montana and Idaho.
Needs Considered.
in determining the federal land dis
tricts and in designating the cities
within such districts where federal
land banks shall be located" the Of
fetal announcement says. "the feder-
al farm loan board has given careful
consideration to the farm loan needs
of the country. The board held public
hearings in nearly every state in the
union and in this manner collected in
formation of great value in determine
ing it's decision.
Every reasonable opportunity has
been afforded applicant cities to fur
nish evidence TO support their claim
as locations for federal land banks.
More than seventy-five cities applied
to be designated as the headquarter4
Of the bank and were heard through
representative committee and indivi(i,i-
ais"
To Establish Banks Soon.
The banks will be established al
soon as practicable. Under the lay
each will have capital of $750,0oe
Application for loans have been pouf-
ing into the board in great volume ri Y.
Gently and it is estimated that SUI
more than twenty times in excess d
the combined capital stock could b.
used in making loans. ~
AluoSt fret HynrlS nf tho ho n
after approving the loans and issuing
loans will be the issuance of farm loan
bonds. new form of security in this
country. The bonds will be issued in
denominations as small as S25, it is ex-
pected. and will bear interest at a rate
of one per cent less than the interest
rate charged farmers on their loans
What this interest rate will be has
not definitely been determined. It is
limited by law to maximum of per
cent. The expectation is that it will
not exceed 5h per cent at first and
subsequently may be lowered.
Bonds to Cover Loans
Loans on farm land are limited by
the law to 50 per cent Of the value Of
the land and may be payable in from
five to forty years. AS fast as loans
are made bonds win be issued to cover
them so that at no time, under the
present plan, will banks entire capt.
tai be tied up in loans to the detriment
of other applicants.
One Of the chief tasks now confront
! ing the board is to find experienced
employees for the new banks. More
than 5000 applications for positions
have been received The appointments
will be exempt from civil service regu.
lations but the board intends to as
semble a corps of men experienced In
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