Evening capital news. (Boise, Idaho) 1901-1927, 1916-12-02
BOARD RETURNS TO
NATIONAL CAPITAL
Members Travelled 10000
Miles and Held so Hear
ings, Getting in Direct
Touch With the Farmers
of the Country.

Washington, Dec. 1.-THE federal
farm loan board has returned to Wash
ington after completing it's investiga-
ton in every state in the union. In
Its effort to find out at frst-hand the
farm loan needs of the farmers of the
United States, the board travelled 90
900 miles, held so hearings, and took
testimony from hundreds of farmers
direct
The testimony of all of these farm
ers emphasized the great demand for
an agency to lower and equalize in
terest rates on farm loans, and to pro-
vide long time loans repayable in small
tnstallments through long period of
years.
This testimony also gave the board
valuable advice as to how the IL fed
eral land banks could be located to
best serve the needs of the whole
country, and how the farm loan act
could be applied to perform the great
est service to these people. The tes-
timony showed that farmers have been
required to pay eXorbtant rates of in
terest and unnecessary commissions
and have been laboring under the ham
dicap of too short loans.
INTEREST RATES LOWERED.
The hearings also disclosed the fact
that since the farm loan act has been
passed interest rates in most parts Of
the country have been reduced to
marked degree to meet the new CO.
operative competition.
Members of the board expressed
great pleasure over the great degree of
cooperation that has been given them
by chambers of commerce, by state
agricultural colleges, by newspapers
and farm papers, by county agents,
and by bankers. Particular pleasure
was expressed over the fact that bank
ers in most parts of the country did
not resent the creation of the govern
mental agency to finance farmers but
rather took the broad view that the
farm loan act would so stimulate pros
perity in the rural districts that the
cities would reflect this prosperity and
that eventually its benefits would be
felt in every line of commercial ac-
tivity.
The board also expressed pleasure
over the fact that farmers in most
cases voiced the belief that a loan
limited to so per cent of the security
would serve their necessities, and that
this limitation would so contribute to
make the bonds secure that lower rates
of interest would result
DIGEST OF THE TESTIMONY.
The members of the board today be-
gan making digest of the great mass
of testimony taken at these hearings,
and within 20 days they expect to he
able to announce the boundaries of
the J. federal land bank districts and
thu cities in which these banks will be
located.
After these banks are located their
stock will remain open for public sub
scription for a period of 80 days, after
which the government will buy all the
remaining stock. The banks will then
be ready to lend money for agricul-
tural purposes.
That the farmers of the United
States are ready to take advantage of
these banks as soon as they are in OPP
Grafton is indicated by the fact that
more than 100000 communications
seeking detailed information have been
sent to the farm loan board by farmers
FARM LOAN ASSOCIATIONS.
The board has now prepared form
of articles of association for national
farm loan associations, and approx
mately 10000 of these forms have been
distributed at the request of farmers
who declare their intention of organic
ing associations in their counties.
Each association represents mini
mum of $4,000 worth of loans.
SO the farm loan board assumes that
this new cooperative banking system
will have from the date of it's installa-
ton volume of business that will in
sure it's operation at a minimum over
head expense.