Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-12-27
Cities Chosen For Locations
of Twelve Farm Loan
Institutions.
OMAHA SELECTED
For THIS DiSTRiCC /
Iowa included in District No. 8 With
Nebraska, South Dakota and Wyom-
ing-St. Paul and st. Louis Among
Cities Named in Preferences to Chi
caso- States Grouped Into Twelve
Districts.

T .. .. .
Berkeley, Cal, Spokane, Wash. Spring
field, Mass, Baltimore, Md, Columbia,
s. c.. Louisville, KY, New Orleans. La,
st. Louis Mo-, st. Paul, Mimi, Wichita,
Kan. and Houston, Tex. have been
chosen as locations for the twelve
federal farm loan banks.
The twelve districts into which the
country is divided were announced by
the farm loan board today as follows:
District No. Maine, New Hamp-
shire, Vermont, Massachusetts,, Rhode
Island, Connecticut, New YORK ana
New Jersey.
District No. 2-Pennsylvania, Della :
ware. Maryland, Virginia, West Nir-
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. 5--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. Q - Oklahoma, Kansas
Colorado and New Mexico.
District No. 10-Texas
District No. 11-California, Nevada,
Utah and Arizona.
District No. 2--Washington, Oregon,
Montana and Idaho
Considered Local Needs.
.1n determining the federal land
bank districts and the cities where
federal land banks shall be located
the announcement says. The board
has given careful consideration to the
farm loan needs of the country Ihe
board dssheld public: hearings In nearly
all the states. Every reasonable op-
portunity had been afforded cities 10
furnish evidence to support thelr
claims as locations for federal land
banks More than seventy-five cities
applied to be designated as district
hea duuarters and We're heard thru
committees.
THE banks will be established as
soon as practicable. Under the law
each will have a capital of S50,O00
Applications for loans have been pour
ing into the board and it Is estimated
that a sum more than twenty times in
excess of the combined capital stock
could be used in making loans.
To Issue Farm Loan Bonds.
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 denomina-
tions as small as $25 it is expected
and will bear interest at rate l per
cent less than the rate charged farmers
on their loans.
What this interest rate will be has
not been determined as yet. 1t is linn
tied by law to maximum OF per
cent. The expectation is that it will
not be more than 51a per cent at first,
and afterwards may be lower.
Loans on farm land are limited by
law to so per cent of the value of the
land and are made payable in from
Ave to forty years. AS fast as loans
are made bonds will be issued to cover
them so that at no time under this
plan will a banks entire capital be tied
up in loans to the detriment Of other
applicants.
To Create New Jobs.
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 the civil service
law, but the board will assemble a
corps of men experienced in banking.
The head OF each bank will be called
the registrar. They will be only resi-
dents of the districts involved and
preferably attorneys.
The banks will be organized tempoN
arily with the appointment of board
OF Ave directors for each one. Directors
shall be residents Of the district. The
directors will select from their number
the banks officers The capital stock
of each bank will be open to public
subscription for thirty days If it is
not entirely subscribed at the end Of
that time the government is authorized
under the law to take the unsubscribed
amount.
Thru a process of having borrowers
subscribe in small amounts for the
stock, 1t is expected the banks not long
after beginning operation will be vir-
sua..y cooperative institutions. the
permanent organization of the banks
provides for nine directors. six Of
whom shall be selected by the associa-
.tions Of farmer borrowers. the other
three being appointed by the federal
board. The terms OF these men will be
three years and they Will elect officers
frox,, y,aor q thair Y111n1hpr
PLAN RAID ON TREASURY.