The copper era and Morenci leader., 1916-08-25

, through the north ana return by the south. Forty cities have filed appli- !; cafons to have bank located in them. With twelve districts in the country, this allows four states to a district, but it is probable that the grouping be arranged according to the density of population and that considerable number of states in the Southwest will be grouped together. Owing to the cheaper money which may be ob- tained in the East, the demands of the West on the system may be such as to dictate the location of goodly number of the banks in this region. As the bonds are salable in any market, this should tend to equalize matters.
 How to Get the Coin.
 Before the farmers in any section can borrow they must organize farm loan association, which involves sub- scribing 5 per cent of the amount they want to borrow to the capital stock of the association, which the as- sociation must turn over to it's re- gional land bank as extra collateral. The aggregate of the loans sought by the association must not be less than $20,000. Each stockholder of an as- sociation is liable for the acts of that association up to twice the amount of his stock.
 m hnr sary to form farm loan association. If would-be borrower has not the cash to buy stock, his stock will be charged against him as part of his loan.
 A member of a farm loan associa- tion before obtaining a loan must first fill out an application blank sup piled to the farm loan association by the federal farm loan board. This ap- plication blank and other necessary papers will then be referred to a loan committee of the association which must appraise the property offered as security. Such application as is approved by the committee Is then forwarded to the federal land bank and must be investigated and reported upon by a salaried appraiser of the bank before the loan is grant led. The appraiser is required to in- vestigate the solvency and character of the prospective borrower as we'll as the value of his land. When a loan is granted, the amount is for warded to the borrower through the loan association.
 Each loan association must have a board of directors and secretary treasurer. The directors serve with out pay; the secretary-treasurer's compensation is to be determined by the directors. The association must appoint an appraisal committee.
 In sections where local conditions do not make the formation of associ- ations practicable, the farm loan make loans through agents approved by the Board. These agents are to be banks, trust companies, mortgage companies or savings institutions chartered by the state. But such agent, may not be appointed until a year has elapsed without the forma- tion of a loan association.
 Government Helps with Capital.
 Where is the $75O,OO0 capital for each regional bank coming from? By public subscription during 30 days after the stock is offered for sale and by the purchase of the unsold stock by the secretary of the treasury. The government shall not receive any divi- dends on it's stock.
 Joint Stock Banks.
 In addition to the system of 12 fed eral land banks, and the national farm loan associations of borrowers, the act signed by the president on July IT permits of the establishments of joint stock land banks and author izes them to carry on the business of lending directly to the borrowers on farm mortgage security and issuing farm loan bonds. These banks must have al capital of not less than S250,- 900. They are under the supervision of the federal farm ioan board but the government does not lend them any financial assistance. The joint stock bank is free from any of the conditions imposed upon the federal