New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1916-12-29
FARM LOAN BANK FOR DIS
TRICT NINE EMBRACES
NEW MEXICO, COLORADO,
KANSAS AND OKLAHOMA
WILL COMMENCE
BUSINESS SOON
NEW SYSTEM SHOULD BE A
GREAT HELP TO FARMERS
PROVIDING THEM WITH
CAPITAL AT EASY RATE OF
INTEREST

Washington, Dec. H.-Omaha, Net
Berkeley, California Spokane, Wash
ington., Baltimore Maryland, Co
lumbia. S. C.. Louisville. KY, New
Orleans, La. St. Louis, Mo-, St. Paul
MINI, Wichita, Kansas, and Hous
ton, Texas, have been chosen as 10
cations for IL federal farm loar
banks.
The II districts into which the
uNntry is divided were announced
by the farm loan board today a.
follows:
District No. l.-Maine, New Hamp
shjrs, Vermont, Massachusetts,
Rhode Island, Connecticut, New
York and New Jersey.
District No2-Pennsylvania, Della
ware, Maryland, Virginia, West Vir
ginia and District of Columbia.
District No. 3-North Carolina
South Carolina, Georgia and Florida
District No4-Ohio, Indiana, Ken.
lucky and Tennessee.
District No. 5-Alabama, Mississip
pi and louisiana.
District No. 6-Illinois, Missouri
and Arkansas,
District No. 7-Michigan, Wiscon.
sin, Minnesota and North Dakota.
District No. 8-Iowa, Nebraska
South Dakota and Wyoming
District No. o--Oklahoma, Kansas
Colorado and New Mexico.
District No. l0-Texas.
District No. ll-California, Nevada
Utah and Arizona.
District No. l2-Washington, Ore
son. Montana and Idaho.
an determining the federal land
bank districts and in designating the
cities within such districts where
federal land banks shall be locat-
ed" the official announcement says,
"the federal 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.
Every reasonable opportunity has
been Afforded applicant cities to fur
nish evidence to support their claims
Is to locations OF federal land banks.
More than IS cities applied to be
designated as the headquartrs of a
bank, and were heard through repre-
sentative committees and individu-
ais"
will BE- Established Soon
The banks will be established as
soon as practicable. Under the law
each will have a capital of T50OOO.
for loans have been
pouring into the board in great vol:
ume recently, and it is estimated
that a sum more than 20 times the
capital stock could be used
n making loans.
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
The bonds will be issued
in denominations as low as SzS, 1t is
expected, and will bear interest at a
rate of one per cent less than the in
terest rate charged farmers on their
Ioans.
What this interest rate will be has
not definitely been determined. 1t is
inited by law to maximum OF SIX
Der cent. The expectation is that il
.ill not exceed five and one half per
-ent at first and subsequently may
be lowered. =.
Loans on farm land are limited by
me law to 50 per cent of the value
# the land and may be payable in
rom five to forty years. AS fast as
oans are made, bonds will be issued
q cover them. so that at no time,
,nder the present plan, will banks
.ntire capital be tied up in loans to
>f
Experienced Men Needed
One of the chief tasks now con-
ronting the board is to find expert
need employees for the new banks.
kore than 5000 applications for po-
itions have been received. The APP
,ointments will be exempt from civil
ervice regulation, but the board in
ends to assemble a corps of men ex-
'er;enced in banking.
The head of each bank will Be des-
gnated as the registrar. They prob
bly, will be residents of the districts
involved, and preferably attorneys.
Open to Subscription
The banks will be organized tenn
orarily by the appointment by the
oard of five directors for each bank
yho shall be residents of the district
a which the bank is located. The di-
ectors will select from among their
lumber the banks officers. The cap
al stock of each bank will be open
0 public subscription for 80 days.
It is not entirely subscribed at the {
nd of that time the government is {
under the law to take the I
nsubscribed amount.
Through a process of having bor-
owers subscribe in small amounts !
, the capital stock, If is said that I
lie banks not long after. beginning {
perations will be virtually cooper {
tive institutions, The permanent
rganization of the banks provides
" nine directors, six of whom shall I
: selected by associations of farmer {
orrowers, the other three being ap- "