El Nuevo mexicano., 1916-12-28
new MEXICO IN
WICHITA, KANSAS,
FEDERAL FARM
LOAN DISTRICT
Farm Loan Board Today
Announces Location
OF IL Districts
.tBy leased wire q New Mexican.

tby Leased WIRE " w" W~oNiSe"'l
Washington, Dec. ~. ~ Omaha
Neb.: Berkeley, Calf. Spokane
| Wash; Springfield, Mass; Baltimore
| Nd; Columbia, S. c.; Louisville, KY.
New Orleans, La. st. Louis, Mo-; st
Paul, MINI; wichita, Kan, and Hous
ton, Texas, have been chosen as loca
tions for 10 federal farm loan banks.
The IL districts into which thu
country is divided were announced BY
the farm loan board today as follows
District No. 1-Maine, New Hamp
shine. Vermont, Massachusetts,, Rhod.
Island. Connecticut, New York ant
New Jersey.
District MO. 2-Pennsylvania, Della
ware, Maryland, Virginia, West Vir
ginia and District Of Columbia.
District No. 3--North Carolina
South Carolina, Gtorge and Florida.
District No. 4-Ohio, Indiana, Ken
Itucky and Tennessee.
District No. 5-Alabama, MISSISSIPPI
pi and Louisiana.
District No. 6~-Illinois, Missouri
and Arkansas.
District NO. michigan, Wiscon
sin. Minnesota and North Dakota.
District No. 8-Iowas Nebraska
| South Dakota and Wyoming.
District No. 9-Oklahoma, Kansas
Colorado and New Mexico.
District No. 10-Texas.
District NO. 11-CaIifornia, Utaf
| and Arizona.
District No. 12-Washington, Ore
gon, and Idaho.
Elm determining the federal land
bank districts and in designating tht
cities within such districts where
federal land banks shall be located
the official announcement says. "tht
federal farm loan board has given
careful consideration to the farm loar
needs of the country, The boart
hold public hearings in nearly every
state in the Union.
every reasonable opportunity has
been offered applicant cities to estab
lish evidence to support their claim
as to locations of federal land banks
| More than seventy-five cities applied
to be designated as the headquarters
of a bank and were heard through
representative committees and indi
viduals.."
The banks will be established as
soon as practicable. Under the law
each will have a capital Of $750,0OO
| Applications for loans have beer
pouring into the board in great vol
ume recently, and it is estimated that
a sum more than twenty times In ex
| cess Of the combined capital stocl
7could be used in making loans. AL
most 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 denomi
nations as small as $25, it is expected
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 a maximum Of siz
per cent. The expectation is that il
will not exceed So per cent at first
and subsequently may be lowered.
Loans on farm land are limited by
the law to fifty per cent value Of the
land and may be payablesin from five
to forty years. As mast as loans are
made bonds will be issued to cover
them so that at no time, under the
present plan, will a banks entire cap
ltal be tied up in loans to the detri
ment Of other applicants.
One of the chief tasks nov con
fronting the board is to find expert
enced employees for the new banks
More than six thousand applications
for positions have been received. The
appointments will be exempt from civ
IL service regulations, but the board
Intends to assemble a 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.
The banks viii be organized tenn
porarily by the appointment by the
board Of five directors for each bank
who shall be residents Of the district
Al WHICH Tic Dauh ID AOLBNCus
The directors will select from
among their number the banks Of
ficers. The capial stock Of each bank
will be open to public subscription for
80 days. If It is not entirely sub
scribed at the end Of that time. the
government is authorized under the
law to take the unsubscribed amount.
Through a process Of having borrow
ers subscribe IN small amounts to the
capital stock It is expected that the
banks not long after beginning opera
lions will be virtually cooperative in
stitntions.
The permanent organization Of the
banks provides for nine directors, six
of whom,shall be selected by associa-
lions Of farmer borrowers. the other
three being appointed by the federal
board.
The terms Of these directors will be
three years and they win elect Of
icers from among their number.